E-commerce and gaming company Sea (NYSE:SE) will be reporting earnings tomorrow before market open. Here’s what you need to know.

Sea beat analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $4.33 billion, up 36.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and impressive growth in its users. It reported 50.2 million users, up 24% year on year.

Is Sea a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sea’s revenue to grow 29.1% year on year to $4.67 billion, improving from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sea has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Sea’s peers in the online marketplace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 37.4%, beating analysts’ expectations by 2.8%, and Shutterstock reported revenues up 15.2%, falling short of estimates by 1.5%. MercadoLibre traded up 6.7% following the results while Shutterstock was down 6.9%.

Read our full analysis of MercadoLibre’s results here and Shutterstock’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the online marketplace stocks have shown solid performance, the group has generally underperformed, with share prices down 4.2% on average over the last month. Sea is up 6.7% during the same time and is heading into earnings with an average analyst price target of $129.85 (compared to the current share price of $130.71).

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