How has the business done?

During the market bull run that followed the COVID-19 crash of early 2020, Sea caught investors' attention with its regular triple-digit revenue growth, which helped drive the parabolic share appreciation.

However, at the same time, Sea was unprofitable and mostly free-cash-flow negative. While this is not uncommon for businesses that are in growth mode, the market began to sour on Sea once the revenue growth slowed.

What's interesting about the recently reported Q3 is that the results weren't overly impressive. Revenue increased 17% year over year and the net loss was $569 million, a slight improvement from a loss of $573 million in Q3 of 2021.

In fact, while revenue has grown, Sea has seen increasing net losses and continued cash burn over the past three years. The fact that this quarter caused such a share jump is curious considering the report was essentially more of the same.