Sea's Q3 revenue exceeded expectations with strong growth in e-commerce business
Southeast Asian technology company Sea Ltd's revenue in the third quarter exceeded expectations, reaching USD 4.33 billion, a year-on-year increase of 30.8%. E-commerce revenue grew by 42.6% to USD 3.18 billion, and revenue from digital entertainment and financial services also surpassed expectations. The net profit was USD 153 million, compared to a loss in the same period last year. Sea expects Shopee's full-year GMV to grow by 25% year-on-year. Following this news, Sea's stock rose over 6% in pre-market trading in the U.S
According to the Zhitong Finance APP, Southeast Asian technology company Sea Ltd (SE.US) reported third-quarter revenue that exceeded expectations, driven by significant growth in its e-commerce, entertainment, and financial services businesses. As consumers prepare for the holiday and travel season, Sea's e-commerce platform Shopee saw a surge in purchases in Southeast Asia and Taiwan. The company also expanded its digital finance and entertainment businesses to meet the growing service demands in the region.
The financial report shows that in the third quarter, Sea's revenue grew by 30.8% to USD 4.33 billion, surpassing analysts' expectations of USD 4.08 billion. Among them, e-commerce revenue increased by 42.6% to USD 3.18 billion, digital entertainment revenue was USD 497.8 million, and digital financial services revenue was USD 615.7 million, all exceeding expectations. Sea's net profit for the third quarter was USD 153 million, compared to a net loss of USD 144 million in the same period last year; earnings per share (EPS) were USD 0.24, in line with analysts' expectations.
The company's total order volume in the third quarter grew by 24.2% to 2.8 billion. Sea reported adjusted EBITDA of USD 521.3 million, significantly exceeding analysts' expectations of USD 480.9 million.
Forrest Li, Chairman and CEO of Sea, stated, "This is another solid quarter, with all three of our businesses achieving high growth." He further noted that Shopee is expected to achieve a year-on-year GMV growth of 25% for the full year and emphasized, "We are improving profitability while restoring high growth."
In this quarter, Shopee achieved positive adjusted EBITDA in both Asia and Brazil. As we continue to focus on achieving growth, we expect Shopee to remain profitable in the future."
As a result of this news, the Singapore-based company's stock listed in the United States rose over 6% in pre-market trading