The following is a summary of the Sea Limited (SE) Q4 2024 Earnings Call Transcript:
Financial Performance:
Sea Limited reported total GAAP revenue of $5 billion in Q4, up 37% year-on-year, and $16.8 billion for the full year of 2024, reflecting a year-on-year increase of 29% mainly due to strong performance in e-commerce and digital financial services.
Total adjusted EBITDA for Q4 was $591 million, a significant improvement from $127 million in Q4 2023. The full-year adjusted EBITDA reached $2 billion, up from $1.2 billion in 2023.
Net income stood at $238 million in Q4, compared to a net loss of $112 million in the previous year's quarter, illustrating strong profitability improvements.E-commerce segment showed robust growth with GMV increasing by 23% year-on-year to $28.6 billion in Q4 and full-year adjusted EBITDA turned positive at $156 million, reversing the previous loss of $214 million.
Digital financial services revenue increased by 35% to $2.4 billion in 2024, and its adjusted EBITDA grew by 29% to $712 million, demonstrating substantial growth and profitability.
Business Progress:
Shopee celebrated its 10th year with over $100 billion GMV and first full year of adjusted EBITDA positivity, showing strong market leadership in Asia and significant growth in Brazil.
AI integrations across Shopee improved user experience, product discovery, and operational efficiency, notably enhancing customer service and reducing logistics costs.
The digital financial services segment grew significantly, with the loan book size surpassing $5 billion and active borrowers reaching over 26 million.
Garena, Sea's digital entertainment arm, announced a remarkable year with Free Fire leading as the most downloaded mobile game globally and expecting continued growth in 2025.
Opportunities:
Expansion into new regions and enhancing service offerings in existing markets are pivotal, particularly in Brazil where Sea Limited sees considerable growth potential.
Tapping into advanced AI technology for improving efficiency and service delivery across e-commerce and digital financial services.
Strengthening the content ecosystem, including integrating video content with e-commerce capabilities, aligns with growing trends in digital consumption.
Risks:
Potential fluctuations in foreign exchange rates that could impact operational costs and profitability.
Increased competition in e-commerce and digital financial services sectors, especially in Southeast Asia and expanding markets like Brazil that could affect market share and profitability.
More details: Sea IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
