Sea Limited Q2 2023 Earnings Note
[Rewards] Sea Limited plunges after Q2 earnings miss, bone or bane?
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KEY Figures:
● Sea Limited Q2 total revenue was $3.1 billion, representing a single-digit increase of 5.2% YoY (year-over-year).
● Q2 net income turned positive to $331.0 million, as compared to a total net loss of $(931.2) million for the second quarter of 2022.
● The E-commerce sector's revenue in Q2 was $2.1 billion, up 20.6% YoY. Specifically, its core marketplace revenue, which consists of transaction-based fees and advertising revenues, was up 37.6% YoY to $1.2 billion. The value-added services revenue, mainly consisting of logistics services, was up 11.3% YoY to $625.5 million.
● The Digital Entertainment's revenue in Q2 was $529.4 million, down from $539.7 million QoQ (quarter-on-quarter), and compared to $900.3 million YoY, primarily attributable to moderation in user engagement and monetization.
● As of June 30, 2023, the cash & cash equivalents and treasury investments were US$7.7 billion, representing a net increase of $477.4 million from Q1 2023.
● "In the past couple of quarters, we have not only achieved self-sufficiency but also demonstrated the profitability of our model and ability to manage fast and significant shifts in operational focus as we see fit," said Forrest Li, Sea's CEO.
More statistics: Total Adjusted EBITDA
*EC=E-commerce segment; DE=Digital Entertainment segment; DFS=Digital Financial Services segment; Adjusted EBITDA is a measure computed for a company that takes its earnings and adds back interest expenses, taxes, and depreciation charges, plus other adjustments to the metric. Source: Company IR, 2023
KEY Points:
● The company's R&D expenses decreased by 23.6% to $283.3 million in Q2 2023 from $370.9 million in the second quarter of 2022.
● For the E-commerce sector, Gross orders increased by more than 10% QoQ due to growth in both active buyers and buyer purchase frequency.
● In Brazil, E-commerce's unit economics continued to improve, with contribution margin loss per order improving 83% QoQ (quarter-on-quarter) to reach $0.24.
● For the Digital Financial Services sector, total loans receivable was $2 billion, net of allowance for credit losses of $278.6 million. Non-performing loans past due more than 90 days remained stable at around 2% as a percentage of total gross loans.
● TikTok's increase in market share should be observed carefully, although Sea Limited's market leadership and scale in Southeast Asia position it well for an uphill battle.
The KEY in your hands:
By August 15, 2023, SE shares had dropped more than 24.5% since the beginning of 2023, underperforming the S&P 500 (.SPX), which was up about 16% during the same period (Source: moomoo APP).
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Disclaimer
Comments above are made available for informational purposes only. Before investing, please consult a licensed professional. *Source of data: https://www.moomoo.com/news/notice/149748693; Sea Limited's earnings conference call* This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Before investing, please consult a licensed professional. See this link for more information.
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Moon fairy 大炮仙 ❤ : Sea share price dive so much because of that kuku gong tao song, what shop cheap cheap cheap shop cheap cheap cheap. Now you see their share price really cheap cheap le.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Tamages : Over reaction…good to add for those who do not have any share. While the gaming is decreasing, the e-commerce is improving. Using shopee daily… user experience much better than Lazada.
Triple K : can't compete with Lazada. sit tight and relax. otw going down to 30 soon.
103047546 : Several brokerage firms have recently published reports on SE. On Wednesday, May 17, Bank of America reduced the target price of SEA from $92 to $90 in a research report. Bernstein Bank reduced the target price of SEA from $100 to $90 in a research report on Tuesday, July 11. On Monday, July 31, UBS Group raised SEA's rating from “neutral” to “buy,” and raised the stock's target price from $66 to $86. Benchmark began reporting on SEA in a report on Thursday, April 20. They gave the company a “buy” rating and a target price of $105.
Finally, Loop Capital raised SEA's target price from $62 to $88 in a report on Thursday, April 13, and gave the stock a “hold” rating. Six investment analysts gave the stock a holding rating, ten analysts gave a buying rating, and one analyst gave a strong buying rating. SEA's current unanimous rating is “Moderate Buy,” and the consistent target price is $89.35.
The Cow King : Prefers Shopee > Lazada. Already holding it. Not going to buy more for now. Many e-commerce competitors, hope for the best~
Jungle lee : Jungle lee
Due The macroeconomic outlook is full of challenges, and tepid spending is also putting pressure on Shopee, i dont think this is a good opportunity to invest in, lets see how the market share been expanding on live streaming arm first.
727727727 : It's crazy to me to think that a company that doesn't carry inventory can spend billions of dollars in a quarter and not see significant ROI. Where is their cashflow going? I say avoid this stock, smells like vaporware to me.
HZXS : I see is a good time to buy as the price now is oversold. Invest for the long term growth. Analyst target price lowest at $50 $Sea (SE.US)$
peace24z Moon fairy 大炮仙 ❤ : 有道理kuku gong tap song
peace24z Triple K : The focus of this is to read the excitement of the news first. Sometimes the opposite is true; bad news instead draws more attention from retail investors
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