TSLA
Tesla
-- 453.074 NVDA
NVIDIA
-- 140.069 RGTI
Rigetti Computing
-- 14.5631 PLTR
Palantir
-- 81.915 LAES
SEALSQ Corp
-- 9.000 
SE’s ability to demonstrate profitability improvement is paramount to a turnaround in the stock’s performance
$Sea (SE.US)$
When investors are turning their focus towards more stable, profitable companies in fear of a potential recession, SE’s ability to demonstrate profitability improvement is paramount to a turnaround in the stock’s performance.
When investors are turning their focus towards more stable, profitable companies in fear of a potential recession, SE’s ability to demonstrate profitability improvement is paramount to a turnaround in the stock’s performance.
Gross profit during the quarter grew 81% yoy to $1.2 billion and reflected a gross margin of 40.4%, improving quite nicely relative to 36.6% in the year ago period. To me, this demonstrates the underlying high incremental margins the company generates when at scale.
During the quarter, adjusted EBITDA loss was $510 million and while lower than the $88 million profit in the year ago period, this was well above consensus expectations for a $570 million loss. The biggest variance relative to the year-ago period was ~$525 million increase in S&M and R&D expense, which will be better utilized as the company scales.
While I do believe the company will likely print several more quarters of adjusted EBITDA losses, the combination of gross margin improvement and the company gaining more scale gives me increased confidence in the longer-term profitability trajectory.
During the quarter, adjusted EBITDA loss was $510 million and while lower than the $88 million profit in the year ago period, this was well above consensus expectations for a $570 million loss. The biggest variance relative to the year-ago period was ~$525 million increase in S&M and R&D expense, which will be better utilized as the company scales.
While I do believe the company will likely print several more quarters of adjusted EBITDA losses, the combination of gross margin improvement and the company gaining more scale gives me increased confidence in the longer-term profitability trajectory.
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Yeize : I suppose I’ll hold.
Yeize : So similar to young Amazon. SE will be profitable when they decide to be profitable.