Financial Report is out | "Southeast Asian Tencent" Sea drops 10% in pre-market! Profit falls short of expectations, digital entertainment business slows significantly.
According to the financial report, Sea's Q1 revenue was $3 billion, with a net profit of $87 million, while the market expected a profit of $237 million.
On Tuesday, "Southeast Asian Little TENCENT" Sea announced its Q1 2023 financial report.
The report showed that Sea's Q1 revenue was $3 billion, net profit was $87 million, and the market expected a profit of $237 million.
In pre-market trading, Sea fell 10%.
Q1 Financial Data
Sea's Q1 GAAP total revenue was $3 billion, a YoY increase of 4.9%.
Total gross profit was $1.4 billion, a YoY increase of 21.1%.
Total net profit was $87.3 million, while the total net loss for Q1 2022 was $580.1 million.
Adjusted EBITDA was $507.2 million, while Q1 2022 had a loss of $509.9 million.
As of March 31, 2023, cash, cash equivalents, short-term investments, and other government bond investments totaled $7.2 billion, a net increase of $257.5 million from December 31, 2022.
Net profit was negatively impacted by $117.9 million in goodwill impairment related to previous acquisitions.
Segment Data
E-commerce:
Q1 e-commerce revenue was $2.1 billion, a YoY increase of 36.3%:
• Core market revenue, mainly including transaction-based fees and advertising revenue, increased by 54.3% YoY to $1.2 billion.
• Value-added service revenue, mainly including revenue related to logistics services, increased by 32.6% YoY to $700 million.
Adjusted EBITDA was $207.7 million, while Q1 2022 was $742.8 million.
Digital Entertainment:
Q1 digital entertainment revenue was $539.7 million, compared to $948.9 million in the previous quarter;
Bookings were $462.3 million, compared to $543.6 million in the previous quarter.
Adjusted EBITDA was $230.1 million, compared to $258.2 million in the previous quarter.
Quarterly active users were 491.6 million, compared to 485.5 million in the previous quarter.
Quarterly paying users were 37.6 million, with a paying user ratio of 7.7%, compared to 9.0% in the previous quarter.
Digital Financial Services:
Q1 digital financial services revenue was $412.8 million, a YoY increase of 75.0%.
Adjusted EBITDA was $98.9 million, while Q1 2022 was $124.9 million.