Sea Ltd Q4'23 - This is really some sort of magic show

There is a little bit of magic dust going on for its Q4'22 results.

But even though Q4'22 did see Sea breaking into profitability, there are some aspects that investors should take note of.

Here are my findings after going through Sea Ltd's results

Total revenue grew by 7% YoY for Q4'22 vs Q4'21. As for total FY'22 versus FY'21, revenue grew 25%. Investors should be wary of the single-digit YoY growth for Q4'22.

Perhaps the show stealer of these results. Overall EBITDA improved significantly from -USD 492.1 million to a positive USD 495.7 million.

Fiscal year-wise, EBITDA is still lower, falling from -USD 593.6 million to -USD878.1 million.

Digital entertainment is contracting. Bookings are down, QAU is down, and the quarterly paying user ratio also is down.

Do these results give you confidence in investing or continue to hold on to Sea?

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