SINGAPORE, March 04, 2025--(BUSINESS WIRE)--Sea Limited (NYSE: SE) ("Sea" or the "Company") today announced its financial results for the fourth quarter and full year ended December 31, 2024.
"We delivered a great 2024 with all three businesses going back to strong, double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITDA," said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On e-commerce, he said, "GMV grew 28% year-on-year to surpass US$100 billion, and we achieved adjusted EBITDA profitability in both Asia and Brazil. We remain confident about our ability to continue delivering profitable growth in 2025 and expect Shopee’s full year 2025 GMV growth to be around 20%, with improving profitability."
Regarding digital financial services, Mr. Li shared, "We delivered exceptional loan book growth of more than 60% year-on-year in the fourth quarter, surpassing US$5 billion as of the end of 2024, making us one of the largest consumer lending businesses in Southeast Asia. While we have scaled fast, risk management remains to be our top operational priority. In 2025, we expect loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate, as we improve credit penetration both on- and off-Shopee."
On digital entertainment, Mr. Li said, "2024 was a great year for Garena, marking Free Fire’s remarkable comeback with annual bookings growing at 34% year-on-year. Looking ahead into 2025, we will continue scaling our user base and broadening our content offerings. We now expect Garena to grow double digit year-on-year, for both user base and bookings in 2025."
Fourth Quarter 2024 Highlights
Full Year 2024 Highlights
1 For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures". |
2 Other treasury investments currently consist of group treasury related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations. |
3 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. |
4 GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment. |
Unaudited Summary of Financial Results
(Amounts are expressed in thousands of US dollars "$" except for per share data)
For the Three Months |
For the Full Year |
|||||||||||||||||
2023 |
2024 |
2023 |
2024 |
|||||||||||||||
$ |
$ |
YOY% |
$ |
$ |
YOY% |
|||||||||||||
Revenue |
||||||||||||||||||
Service revenue |
||||||||||||||||||
Digital Entertainment |
510,773 |
519,064 |
1.6 |
% |
2,172,009 |
1,910,589 |
(12.0 |
%) |
||||||||||
E-commerce and other services |
2,771,267 |
3,959,575 |
42.9 |
% |
9,770,376 |
13,350,674 |
36.6 |
% |
||||||||||
Sales of goods |
334,588 |
471,797 |
41.0 |
% |
1,121,175 |
1,558,603 |
39.0 |
% |
||||||||||
3,616,628 |
4,950,436 |
36.9 |
% |
13,063,560 |
16,819,866 |
28.8 |
% |
|||||||||||
Cost of revenue |
||||||||||||||||||
Cost of service |
||||||||||||||||||
Digital Entertainment |
(161,360 |
) |
(159,065 |
) |
(1.4 |
%) |
(672,481 |
) |
(610,586 |
) |
(9.2 |
%) |
||||||
E-commerce and other services |
(1,621,218 |
) |
(2,146,644 |
) |
32.4 |
% |
(5,530,043 |
) |
(7,553,801 |
) |
36.6 |
% |
||||||
Cost of goods sold |
(309,263 |
) |
(439,267 |
) |
42.0 |
% |
(1,027,389 |
) |
(1,450,391 |
) |
41.2 |
% |
||||||
(2,091,841 |
) |
(2,744,976 |
) |
31.2 |
% |
(7,229,913 |
) |
(9,614,778 |
) |
33.0 |
% |
|||||||
Gross profit |
1,524,787 |
2,205,460 |
44.6 |
% |
5,833,647 |
7,205,088 |
23.5 |
% |
||||||||||
Other operating income |
58,524 |
53,256 |
(9.0 |
%) |
221,021 |
180,443 |
(18.4 |
%) |
||||||||||
Sales and marketing expenses |
(967,433 |
) |
(1,049,726 |
) |
8.5 |
% |
(2,779,223 |
) |
(3,472,686 |
) |
25.0 |
% |
||||||
General and administrative expenses |
(232,603 |
) |
(366,259 |
) |
57.5 |
% |
(1,134,724 |
) |
(1,267,706 |
) |
11.7 |
% |
||||||
Provision for credit losses |
(159,988 |
) |
(235,764 |
) |
47.4 |
% |
(633,942 |
) |
(776,937 |
) |
22.6 |
% |
||||||
Research and development expenses |
(279,806 |
) |
(301,216 |
) |
7.7 |
% |
(1,164,126 |
) |
(1,206,050 |
) |
3.6 |
% |
||||||
Impairment of goodwill |
- |
- |
- |
(117,875 |
) |
- |
- |
|||||||||||
Total operating expenses |
(1,581,306 |
) |
(1,899,709 |
) |
20.1 |
% |
(5,608,869 |
) |
(6,542,936 |
) |
16.7 |
% |
||||||
Operating (loss) income |
(56,519 |
) |
305,751 |
(641.0 |
%) |
224,778 |
662,152 |
194.6 |
% |
|||||||||
Non-operating income, net |
31,654 |
28,222 |
(10.8 |
%) |
207,616 |
116,631 |
(43.8 |
%) |
||||||||||
Income tax expense |
(76,894 |
) |
(89,198 |
) |
16.0 |
% |
(262,680 |
) |
(321,168 |
) |
22.3 |
% |
||||||
Share of results of equity investees |
(9,856 |
) |
(7,183 |
) |
(27.1 |
%) |
(7,032 |
) |
(9,788 |
) |
39.2 |
% |
||||||
Net (loss) income |
(111,615 |
) |
237,592 |
(312.9 |
%) |
162,682 |
447,827 |
175.3 |
% |
|||||||||
(Loss) Earnings per share attributable to |
||||||||||||||||||
Basic |
(0.19 |
) |
0.41 |
(315.8 |
%) |
0.27 |
0.77 |
185.2 |
% |
|||||||||
Diluted |
(0.19 |
) |
0.39 |
(305.3 |
%) |
0.25 |
0.74 |
196.0 |
% |
|||||||||
Change in deferred revenue of |
(54,459 |
) |
24,120 |
(144.3 |
%) |
(362,397 |
) |
238,077 |
(165.7 |
%) |
||||||||
Adjusted EBITDA for Digital |
217,411 |
289,730 |
33.3 |
% |
920,923 |
1,199,166 |
30.2 |
% |
||||||||||
Adjusted EBITDA for E-commerce (1) |
(225,332 |
) |
152,209 |
(167.5 |
%) |
(213,774 |
) |
155,775 |
(172.9 |
%) |
||||||||
Adjusted EBITDA for Digital |
148,482 |
210,979 |
42.1 |
% |
550,112 |
712,242 |
29.5 |
% |
||||||||||
Adjusted EBITDA for Other Services (1) |
(6,979 |
) |
(5,121 |
) |
(26.6 |
%) |
(44,880 |
) |
(30,305 |
) |
(32.5 |
%) |
||||||
Unallocated expenses (2) |
(6,877 |
) |
(56,876 |
) |
727.0 |
% |
(33,199 |
) |
(74,998 |
) |
125.9 |
% |
||||||
Total adjusted EBITDA (1) |
126,705 |
590,921 |
366.4 |
% |
1,179,182 |
1,961,880 |
66.4 |
% |
||||||||||
(1) For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures". |
(2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker ("CODM") as part of segment performance. |
Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023
Revenue
Our total GAAP revenue increased by 36.9% to US$5.0 billion in the fourth quarter of 2024 from US$3.6 billion in the fourth quarter of 2023.
Cost of Revenue
Our total cost of revenue was US$2.7 billion in the fourth quarter of 2024, as compared to US$2.1 billion in the fourth quarter of 2023.
Other Operating Income
Our other operating income was US$53.3 million and US$58.5 million in the fourth quarter of 2024 and 2023, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 8.5% to US$1.0 billion in the fourth quarter of 2024 from US$967.4 million in the fourth quarter of 2023. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars ("$").
For the Three Months |
|||||||
2023 |
2024 |
YOY% |
|||||
Sales and Marketing Expenses |
$ |
$ |
|||||
E-commerce |
878,985 |
853,919 |
(2.9 |
%) |
|||
Digital Financial Services |
51,927 |
121,036 |
133.1 |
% |
|||
Digital Entertainment |
29,926 |
44,528 |
48.8 |
% |
|||
General and Administrative Expenses
Our general and administrative expenses increased by 57.5% to US$366.3 million in the fourth quarter of 2024 from US$232.6 million in the fourth quarter of 2023, including one-time expenses related to the settlement of two securities class actions.
Provision for Credit Losses
Our provision for credit losses increased by 47.4% to US$235.8 million in the fourth quarter of 2024 from US$160.0 million in the fourth quarter of 2023.
Research and Development Expenses
Our research and development expenses increased by 7.7% to US$301.2 million in the fourth quarter of 2024 from US$279.8 million in the fourth quarter of 2023.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$28.2 million in the fourth quarter of 2024, as compared to a net non-operating income of US$31.7 million in the fourth quarter of 2023. The non-operating income in the fourth quarter of 2024 was primarily due to interest income of US$94.0 million, partially offset by investment losses of US$60.7 million recognized.
Income Tax Expense
We had a net income tax expense of US$89.2 million and US$76.9 million in the fourth quarter of 2024 and 2023, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$237.6 million in the fourth quarter of 2024, as compared to net loss of US$(111.6) million in the fourth quarter of 2023.
Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.41 in the fourth quarter of 2024, compared to basic loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.39 in the fourth quarter of 2024, compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
Full Year Ended December 31, 2024 Compared to Full Year Ended December 31, 2023
Revenue
Our total GAAP revenue increased by 28.8% to US$16.8 billion for the full year ended December 31, 2024 from US$13.1 billion for the full year ended December 31, 2023.
Cost of Revenue
Our total cost of revenue was US$9.6 billion for the full year ended December 31, 2024, as compared to US$7.2 billion for the full year ended December 31, 2023.
Other Operating Income
Our other operating income was US$180.4 million for the full year ended December 31, 2024 from US$221.0 million for the full year ended December 31, 2023. Other operating income mainly consists of rebates from e-commerce related logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 25.0% to US$3.5 billion for the full year ended December 31, 2024 from US$2.8 billion for the full year ended December 31, 2023. The table below sets forth the breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars ("$").
For the Full Year |
|||||||
2023 |
2024 |
YOY% |
|||||
Sales and Marketing Expenses |
$ |
$ |
|||||
E-commerce |
2,510,693 |
2,966,084 |
18.1 |
% |
|||
Digital Financial Services |
116,445 |
298,386 |
156.2 |
% |
|||
Digital Entertainment |
104,721 |
117,556 |
12.3 |
% |
|||
General and Administrative Expenses
Our general and administrative expenses increased by 11.7% to US$1.3 billion for the full year ended December 31, 2024 from US$1.1 billion for the full year ended December 31, 2023.
Provision for Credit Losses
Our provision for credit losses increased by 22.6% to US$776.9 million for the full year ended December 31, 2024 from US$633.9 million for the full year ended December 31, 2023.
Research and Development Expenses
Our research and development expenses were US$1.2 billion for the full year ended December 31, 2024, flat year-on-year.
Impairment of Goodwill
We recorded nil impairment of goodwill for the full year ended December 31, 2024, compared to US$117.9 million for the full year ended December 31, 2023.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), and foreign exchange gain (loss), and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$116.6 million for the full year ended December 31, 2024, as compared to a net non-operating income of US$207.6 million for the full year ended December 31, 2023.
Income Tax Expense
We had a net income tax expense of US$321.2 million and US$262.7 million for the full year ended December 31, 2024 and 2023, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$447.8 million for the full year ended December 31, 2024, as compared to net income of US$162.7 million for the full year ended December 31, 2023.
Basic and Diluted Earnings Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.77 for the full year ended December 31, 2024, as compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.27 for the full year ended December 31, 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.74 for the full year ended December 31, 2024, as compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$0.25 for the full year ended December 31, 2023.
Webcast and Conference Call Information
The Company’s management will host a conference call today to review Sea’s business and financial performance.
Details of the conference call and webcast are as follows:
Date and time: |
7:30 AM U.S. Eastern Time on March 4, 2025 |
8:30 PM Singapore / Hong Kong Time on March 4, 2025 |
|
Webcast link: |
https://events.q4inc.com/attendee/769111006 |
A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.
About Sea Limited
Sea Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and SeaMoney, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. SeaMoney is a leading digital financial services provider in Southeast Asia and is growing its presence in Brazil.
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "could," "will," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," "likely to," "potential," "confident," "guidance," and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, and results of operations; the expected growth in, and market size of, the digital entertainment, e-commerce and digital financial services industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging digital entertainment content; the expected growth of its digital entertainment, e-commerce and digital financial services businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:
These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on any single financial measure.
The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars ("$") except for number of shares & per share data.
For the Three Months ended December 31, 2024 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Operating income (loss) |
79,484 |
197,856 |
270,143 |
(10,112 |
) |
(231,620 |
) |
305,751 |
||||||||||
Net effect of changes in deferred |
- |
- |
14,257 |
- |
- |
14,257 |
||||||||||||
Depreciation and Amortization |
72,725 |
13,123 |
5,330 |
4,991 |
- |
96,169 |
||||||||||||
Share-based compensation |
- |
- |
- |
- |
174,744 |
174,744 |
||||||||||||
Adjusted EBITDA |
152,209 |
210,979 |
289,730 |
(5,121 |
) |
(56,876 |
) |
590,921 |
||||||||||
For the Three Months ended December 31, 2023 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Operating (loss) income |
(303,681 |
) |
134,205 |
261,060 |
(9,558 |
) |
(138,545 |
) |
(56,519 |
) |
||||||||
Net effect of changes in deferred |
- |
- |
(49,925 |
) |
- |
- |
(49,925 |
) |
||||||||||
Depreciation and Amortization |
78,349 |
14,277 |
6,276 |
2,579 |
- |
101,481 |
||||||||||||
Share-based compensation |
- |
- |
- |
- |
131,668 |
131,668 |
||||||||||||
Adjusted EBITDA |
(225,332 |
) |
148,482 |
217,411 |
(6,979 |
) |
(6,877 |
) |
126,705 |
|||||||||
(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". |
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. For the three months ended December 31, 2024, unallocated expenses included one-time expenses related to the settlement of two securities class actions. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
For the Full Year ended December 31, 2024 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Operating (loss) income |
(139,431 |
) |
657,502 |
978,821 |
(43,903 |
) |
(790,837 |
) |
662,152 |
|||||||||
Net effect of changes in deferred |
- |
- |
194,216 |
- |
- |
194,216 |
||||||||||||
Depreciation and Amortization |
295,206 |
54,740 |
26,129 |
13,598 |
- |
389,673 |
||||||||||||
Share-based compensation |
- |
- |
- |
- |
715,839 |
715,839 |
||||||||||||
Adjusted EBITDA |
155,775 |
712,242 |
1,199,166 |
(30,305 |
) |
(74,998 |
) |
1,961,880 |
||||||||||
For the Full Year ended December 31, 2023 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Operating (loss) income |
(550,470 |
) |
490,209 |
1,177,871 |
(56,728 |
) |
(836,104 |
) |
224,778 |
|||||||||
Net effect of changes in deferred |
- |
- |
(289,346 |
) |
- |
- |
(289,346 |
) |
||||||||||
Depreciation and Amortization |
336,696 |
59,903 |
32,398 |
11,848 |
- |
440,845 |
||||||||||||
Share-based compensation |
- |
- |
- |
- |
685,030 |
685,030 |
||||||||||||
Impairment of goodwill |
- |
- |
- |
- |
117,875 |
117,875 |
||||||||||||
Adjusted EBITDA |
(213,774 |
) |
550,112 |
920,923 |
(44,880 |
) |
(33,199 |
) |
1,179,182 |
|||||||||
(1) A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". |
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
||||||||||||
Amounts expressed in thousands of US dollars ("$") except for number of shares & per share data |
||||||||||||
For the Three Months |
For the Year |
|||||||||||
2023 |
2024 |
2023 |
2024 |
|||||||||
$ |
$ |
$ |
$ |
|||||||||
Revenue |
||||||||||||
Service revenue |
||||||||||||
Digital Entertainment |
510,773 |
519,064 |
2,172,009 |
1,910,589 |
||||||||
E-commerce and other services |
2,771,267 |
3,959,575 |
9,770,376 |
13,350,674 |
||||||||
Sales of goods |
334,588 |
471,797 |
1,121,175 |
1,558,603 |
||||||||
Total revenue |
3,616,628 |
4,950,436 |
13,063,560 |
16,819,866 |
||||||||
Cost of revenue |
||||||||||||
Cost of service |
||||||||||||
Digital Entertainment |
(161,360 |
) |
... | (159,065 |
) |
(672,481 |
) |
(610,586 |
) |
|||
E-commerce and other services |
(1,621,218 |
) |
(2,146,644 |
) |
(5,530,043 |
) |
(7,553,801 |
) |
||||
Cost of goods sold |
(309,263 |
) |
(439,267 |
) |
(1,027,389 |
) |
(1,450,391 |
) |
||||
Total cost of revenue |
(2,091,841 |
) |
(2,744,976 |
) |
(7,229,913 |
) |
(9,614,778 |
) |
||||
Gross profit |
1,524,787 |
2,205,460 |
5,833,647 |
7,205,088 |
||||||||
Operating income (expenses): |
||||||||||||
Other operating income |
58,524 |
53,256 |
221,021 |
180,443 |
||||||||
Sales and marketing expenses |
(967,433 |
) |
(1,049,726 |
) |
(2,779,223 |
) |
(3,472,686 |
) |
||||
General and administrative expenses |
(232,603 |
) |
(366,259 |
) |
(1,134,724 |
) |
(1,267,706 |
) |
||||
Provision for credit losses |
(159,988 |
) |
(235,764 |
) |
(633,942 |
) |
(776,937 |
) |
||||
Research and development expenses |
(279,806 |
) |
(301,216 |
) |
(1,164,126 |
) |
(1,206,050 |
) |
||||
Impairment of goodwill |
– |
– |
(117,875 |
) |
– |
|||||||
Total operating expenses |
(1,581,306 |
) |
(1,899,709 |
) |
(5,608,869 |
) |
(6,542,936 |
) |
||||
Operating (loss) income |
(56,519 |
) |
305,751 |
224,778 |
662,152 |
|||||||
Interest income |
90,949 |
93,970 |
331,310 |
365,817 |
||||||||
Interest expense |
(10,129 |
) |
(9,281 |
) |
(41,075 |
) |
(38,341 |
) |
||||
Investment loss, net |
(80,279 |
) |
(60,677 |
) |
(125,656 |
) |
(250,220 |
) |
||||
Net gain on debt extinguishment |
38,550 |
8,206 |
38,550 |
42,621 |
||||||||
Foreign exchange (loss) gain |
(7,437 |
) |
(3,996 |
) |
4,487 |
(3,246 |
) |
|||||
(Loss) income before income tax and |
(24,865 |
) |
333,973 |
432,394 |
778,783 |
|||||||
Income tax expense |
(76,894 |
) |
(89,198 |
) |
(262,680 |
) |
(321,168 |
) |
||||
Share of results of equity investees |
(9,856 |
) |
(7,183 |
) |
(7,032 |
) |
(9,788 |
) |
||||
Net (loss) income |
(111,615 |
) |
237,592 |
162,682 |
447,827 |
|||||||
Net loss (income) attributable to non- |
1,875 |
(284 |
) |
(11,956 |
) |
(3,506 |
) |
|||||
Net (loss) income attributable to Sea |
(109,740 |
) |
237,308 |
150,726 |
444,321 |
|||||||
(Loss) Earnings per share: |
||||||||||||
Basic |
(0.19 |
) |
0.41 |
0.27 |
0.77 |
|||||||
Diluted |
(0.19 |
) |
0.39 |
0.25 |
0.74 |
|||||||
Weighted average shares used in (loss) |
||||||||||||
Basic |
569,527,667 |
580,046,457 |
566,612,815 |
574,966,327 |
||||||||
Diluted |
569,527,667 |
610,136,776 |
594,405,604 |
604,713,980 |
||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
Amounts expressed in thousands of US dollars ("$") |
||||||
As of |
As of |
|||||
2023 |
2024 |
|||||
$ |
$ |
|||||
ASSETS |
||||||
Current assets |
||||||
Cash and cash equivalents |
2,811,056 |
2,405,153 |
||||
Restricted cash |
1,410,365 |
1,655,171 |
||||
Accounts receivable, net of allowance for credit losses |
262,716 |
306,657 |
||||
Prepaid expenses and other assets |
1,861,842 |
1,661,373 |
||||
Loans receivable, net of allowance for credit losses of |
2,464,662 |
4,052,215 |
||||
Inventories, net |
125,395 |
143,246 |
||||
Short-term investments |
2,547,644 |
6,215,423 |
||||
Amounts due from related parties |
290,254 |
418,430 |
||||
Total current assets |
11,773,934 |
16,857,668 |
||||
Non-current assets |
||||||
Property and equipment, net |
1,207,698 |
1,097,699 |
||||
Operating lease right-of-use assets, net |
1,015,982 |
1,054,785 |
||||
Intangible assets, net |
50,821 |
27,310 |
||||
Long-term investments |
4,262,562 |
2,694,305 |
||||
Prepaid expenses and other assets |
87,705 |
138,839 |
||||
Loans receivable, net of allowance for credit losses of |
20,551 |
108,594 |
||||
Restricted cash |
22,236 |
21,261 |
||||
Deferred tax assets |
328,961 |
517,383 |
||||
Goodwill |
112,782 |
107,625 |
||||
Total non-current assets |
7,109,298 |
5,767,801 |
||||
Total assets |
18,883,232 |
22,625,469 |
||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
Amounts expressed in thousands of US dollars ("$") |
||||||
As of |
As of |
|||||
2023 |
2024 |
|||||
$ |
$ |
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
Current liabilities |
||||||
Accounts payable |
342,547 |
350,021 |
||||
Accrued expenses and other payables |
1,834,807 |
2,380,371 |
||||
Deposits payable |
1,706,299 |
2,711,693 |
||||
Escrow payables and advances from customers |
2,199,464 |
2,498,094 |
||||
Amounts due to related parties |
64,081 |
255,896 |
||||
Borrowings |
146,661 |
130,615 |
||||
Operating lease liabilities |
290,788 |
300,274 |
||||
Convertible notes |
151,764 |
1,147,984 |
||||
Deferred revenue |
1,208,892 |
1,405,785 |
||||
Income tax payable |
223,638 |
115,419 |
||||
Total current liabilities |
8,168,941 |
11,296,152 |
||||
Non-current liabilities |
||||||
Accrued expenses and other payables |
79,257 |
71,678 |
||||
Borrowings |
119,323 |
249,474 |
||||
Operating lease liabilities |
789,514 |
803,502 |
||||
Deferred revenue |
72,587 |
109,895 |
||||
Convertible notes |
2,949,785 |
1,478,784 |
||||
Deferred tax liabilities |
133 |
408 |
||||
Unrecognized tax benefits |
6,107 |
138,000 |
||||
Total non-current liabilities |
4,016,706 |
2,851,741 |
||||
Total liabilities |
12,185,647 |
14,147,893 |
||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
Amounts expressed in thousands of US dollars ("$") |
||||||
As of |
As of |
|||||
2023 |
2024 |
|||||
$ |
$ |
|||||
Shareholders’ equity |
||||||
Class A Ordinary shares |
262 |
272 |
||||
Class B Ordinary shares |
23 |
23 |
||||
Additional paid-in capital |
15,283,870 |
16,703,192 |
||||
Accumulated other comprehensive loss |
(108,000 |
) |
(193,148 |
) |
||
Statutory reserves |
16,981 |
17,260 |
||||
Accumulated deficit |
(8,599,306 |
) |
(8,155,264 |
) |
||
Total Sea Limited shareholders’ equity |
6,593,830 |
8,372,335 |
||||
Non-controlling interests |
103,755 |
105,241 |
||||
Total shareholders’ equity |
6,697,585 |
8,477,576 |
||||
Total liabilities and shareholders’ equity |
18,883,232 |
22,625,469 |
||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
Amounts expressed in thousands of US dollars ("$") |
||||||||||||
For the Three Months ended |
For the Year ended |
|||||||||||
2023 |
2024 |
2023 |
2024 |
|||||||||
$ |
$ |
$ |
$ |
|||||||||
Net cash generated from operating |
278,833 |
1,020,982 |
2,079,688 |
3,277,420 |
||||||||
Net cash used in investing activities |
(1,048,554 |
) |
(1,761,066 |
) |
(5,804,462 |
) |
(5,040,846 |
) |
||||
Net cash generated from financing |
183,385 |
700,210 |
366,011 |
1,684,493 |
||||||||
Effect of foreign exchange rate changes |
68,317 |
(144,793 |
) |
(7,964 |
) |
(83,139 |
) |
|||||
Net decrease in cash, cash equivalents |
(518,019 |
) |
(184,667 |
) |
(3,366,727 |
) |
(162,072 |
) |
||||
Cash, cash equivalents and restricted |
4,761,676 |
4,266,252 |
7,610,384 |
4,243,657 |
||||||||
Cash, cash equivalents and restricted |
4,243,657 |
4,081,585 |
4,243,657 |
4,081,585 |
||||||||
Net cash used in investing activities amounted to US$1,761 million for the three months ended December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$934 million, net placement of US$759 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management, and purchase of property and equipment of US$89 million to support the existing operations. Net cash generated from financing activities amounted to US$700 million for the three months ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$600 million.
Net cash used in investing activities amounted to US$5,041 million for the year ended December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$2,532 million, net placement of US$2,164 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management and purchase of property and equipment of US$318 million to support the existing operations. Net cash generated from financing activities amounted to US$1,684 million for the year ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$1,292 million, and settlement of capped call of US$429 million.
UNAUDITED SEGMENT INFORMATION
The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The Chief Operating Decision Maker ("CODM") reviews the performance of each segment based on revenue and certain key operating metrics of the operations and uses these results for the purposes of allocating resources to and evaluating the financial performance of each segment. Amounts are expressed in thousands of US dollars ("$").
For the Three Months ended December 31, 2024 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Revenue |
3,662,636 |
733,326 |
519,064 |
35,410 |
- |
4,950,436 |
||||||||||||
Operating income (loss) |
79,484 |
197,856 |
270,143 |
(10,112 |
) |
(231,620 |
) |
305,751 |
||||||||||
Non-operating income, net |
28,222 |
|||||||||||||||||
Income tax expense |
(89,198 |
) |
||||||||||||||||
Share of results of equity investees |
(7,183 |
) |
||||||||||||||||
Net income |
237,592 |
|||||||||||||||||
For the Three Months ended December 31, 2023 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Revenue |
2,591,272 |
472,389 |
510,773 |
42,194 |
- |
3,616,628 |
||||||||||||
Operating (loss) income |
(303,681 |
) |
134,205 |
261,060 |
(9,558 |
) |
(138,545 |
) |
(56,519 |
) |
||||||||
Non-operating income, net |
31,654 |
|||||||||||||||||
Income tax expense |
(76,894 |
) |
||||||||||||||||
Share of results of equity investees |
(9,856 |
) |
||||||||||||||||
Net loss |
(111,615 |
) |
||||||||||||||||
(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". |
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
For the Year ended December 31, 2024 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Revenue |
12,415,231 |
2,367,739 |
1,910,589 |
126,307 |
- |
16,819,866 |
||||||||||||
Operating (loss) income |
(139,431 |
) |
657,502 |
978,821 |
(43,903 |
) |
(790,837 |
) |
662,152 |
|||||||||
Non-operating income, net |
116,631 |
|||||||||||||||||
Income tax expense |
(321,168 |
) |
||||||||||||||||
Share of results of equity investees |
(9,788 |
) |
||||||||||||||||
Net income |
447,827 |
|||||||||||||||||
For the Year ended December 31, 2023 |
||||||||||||||||||
E- |
Digital |
Digital |
Other |
Unallocated |
Consolidated |
|||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||
Revenue |
9,000,848 |
1,759,422 |
2,172,009 |
131,281 |
- |
13,063,560 |
||||||||||||
Operating (loss) income |
(550,470 |
) |
490,209 |
1,177,871 |
(56,728 |
) |
(836,104 |
) |
224,778 |
|||||||||
Non-operating income, net |
207,616 |
|||||||||||||||||
Income tax expense |
(262,680 |
) |
||||||||||||||||
Share of results of equity investees |
(7,032 |
) |
||||||||||||||||
Net income |
162,682 |
|||||||||||||||||
(1) A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as "Other Services". |
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250303845756/en/
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