Focusing on Efficiency & Quality of Earnings
Sea Q2 EPS $(1.03) Beats $(1.21) Estimate, Sales $2.90B Miss $2.97B Estimate;
This is a wise and sustainable long term strategy rather than focusing revenue growth at all costs given the change in dynamics.
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Ixy The Cat : Company has not reduced cash burn and still hasn't turned in a steady profit. With inflationary environment, company don't have time to waste.
hodlmenot Ixy The Cat: They cant be profitable right away, it will take some years, thats what their strategy is, maybe end 2023 (excluding headquarters costs) as per their report, but they are heading there
StirlingOP Ixy The Cat: SEA has 3 businesses in various stages of life cycle.
1. Gaming biz is in a mature life cycle, it is profitable and generating free cashflow while its growth has plateau.
2. E-commerce : it is at early to growth stage. It needs to invest and capture market shares in this growing market. Long term investors expect this segment to incur losses until it reach maturity.
3. Fintech : this is in very early stage where huge investment is required to create a potentially lucrative growth assets (digital banking infrastructure). Therefore, losses are expected in early stages.
Ixy The Cat StirlingOP: Inflation looming if not already here. That's going to make it hard to reign in cost and eats thru profits plus make user base reign in spending... cash burn of 2 billion already, time running out