$SE (-1,3 %) | Sea Limited Q2'24 Earnings Highlights

🔹 EPS: $0.14 (Est. $0.59) 🔴

🔹 Revenue: $3.81B (Est. $3.73B) 🟢; UP +23.0% YoY

FY'24 Outlook:

🔸 Shopee GMV Growth: Revised up to mid-20%

🔸 Shopee Adjusted EBITDA: Expected to turn positive from Q3 (previously H2)

🔸 Revenue: Reaffirming guidance for at least 30% growth on a constant currency basis

Group Financial Metrics:

🔸 Gross Profit: $1.6B, UP +9.2% YoY

🔸 Net Income: $79.9M, DOWN -75.9% YoY

🔸 Adjusted EBITDA: $448.5M, DOWN -12.1% YoY

E-commerce (Shopee) Performance:

🔹 Gross Orders: 2.5B, UP +40.3% YoY

🔹 GMV: $23.3B, UP +29.1% YoY

🔹 Revenue: $2.8B, UP +33.7% YoY

🔹 Adj EBITDA: $(9.2)M (vs. $150.3M in Q2'23) 

Digital Financial Services:

🔸 Revenue: $519.3M, UP +21.4% YoY

🔸 Adjusted EBITDA: $164.7M, UP +20.2% YoY

Digital Entertainment (Garena):

🔹 Bookings: $536.8M, UP +21.1% YoY

🔹 Revenue: $435.6M, DOWN -17.7% YoY 

🔹 Adjusted EBITDA: $302.8M, UP +26.5% YoY

CEO Commentary:

🔸 Forrest Li (CEO): "We are pleased with the strong performance across all our businesses. With the positive momentum from the first half of 2024, we expect Shopee to achieve adjusted EBITDA profitability starting in Q3. Garena continues to perform well, driven by Free Fire, which remains an evergreen franchise with over 100 million daily active players."

Board Changes:

🔹 New Appointments: Dr. Silvio Savarese and Ms. Jessica Tan have been elected as independent directors.

🔹 Departure: Mr. Tony Hou, current CFO, steps down from the board but remains in his CFO role.

Additional Highlights:

🔸 Provision for Credit Losses rose by 9.4% YoY to $167.4 million in Q2 2024, up from $153.0 million in Q2 2023.

🔸 Sales and Marketing Expenses surged by 57.0% YoY to $774.8 million in Q2 2024 from $493.6 million in Q2 2023.