Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Sea Limited
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
== Financials == === Historic === ==== Most recent quarter ==== Sea Limited released its 2Q23 results in June 2023<ref><nowiki>https://www.sea.com/investor/quarterlyresults</nowiki></ref>, the most notable of which contained in the table below. The company reported just a 5.2% raise in overall revenues, which is mostly due to a 41.1% steep decline in Garena's revenues. The company attributed that to moderation in user engagement and monetization year-on-year, which is likely related to India's ban of Free Fire, Garena's most profitable game, in 2022. Free Fire was the second most downloadable app in India, and had the highest consumer spend.<ref>Free Fire Revenue and Usage Statistics (2023) - Business of Apps</ref> Despite the small increase in overall revenue, the company made a significant cut on operating expenses as it reported a 49.3% decrease in sales and marketing expenses and 23.6% decrease in R&D expenses, which resulted in the company turning profitable after many years of reporting losses. {| class="wikitable" ! ! colspan="2" |For the Three Months ended June 30, ! |- ! !2022 !2023 !YOY% |- |Digital Entertainment Revenue ($thousands) |900,258 |529,397 | -41.20% |- |E-commerce and other services revenue ($thousands) |1,755,686 |2,322,496 |32.30% |- |Sales of goods ($thousands) |286,655 |243,767 | -15% |- |'''Total Revenue ($thousands)''' |'''2,942,599''' |'''3,095,660''' |'''5.20%''' |- |'''Gross Profit ($thousands)''' |'''1,090,218''' |'''1,450,878''' |'''33.10%''' |- | colspan="2" |'''Operating expenses''' | | |- |Sales and marketing ($thousands) | -973,767 | -493,601 | -49.30% |- |General and admin. ($thousands) | -364,447 | -295,169 | -19% |- |Research and development ($thousands) | -370,926 | -283,297 | -23.60% |- |Other ($thousands) | -3,636,054 | -2,239,132 | |- |'''Total operating expenses ($thousands)''' |'''-1,926,914''' |'''-1,167,065''' |'''-39.40%''' |- |'''Net income/loss ($thousands)''' |'''-931,199''' |'''330,983''' |'''-135.50%''' |} ==== Most recent year ==== The decreasing trend in Garena's revenues was evident from 2022, as the company saw a 10.25% decrease since 2021. However, there is steep growth both in the e-commerce and digital financial services sectors, which seems to become the company's main focus. There was a modest decrease in sales and marketing expenses (14.64%) but increase in administrative and R&D expenses, which led total operating expenses increasing by 21.79%. Nevertheless, the 33.1% increase in gross profit outweighed the higher operating expenses that led to a 18.86% decrease in the net loss. {| class="wikitable" ! ! colspan="2" |For the fiscal year ended, ! |- ! !2021 !2022 !YOY% |- |Digital Entertainment Revenue ($thousands) |4,320,013 |3,877,163 | -10.25% |- |E-commerce ($thousands) |5,122,959 |7,288,677 |42.27% |- |Digital Financial Services ($thousands) |469,774 |1,221,996 |160.12% |- |Other services ($thousands) |42,444 |61,869 |45.77% |- |'''Total Revenue ($thousands)''' |'''9,955,190''' |'''12,449,705''' |'''25.06%''' |- |'''Gross Profit ($thousands)''' |'''3,895,735''' |'''5,185,277''' |'''33.10%''' |- | colspan="2" |'''Operating expenses''' | | |- |Sales and marketing ($thousands) | -3,829,743 | -3,269,223 | -14.64% |- |General and admin. ($thousands) | -987,868 | -1,437,612 |45.53% |- |Research and development ($thousands) | -831,703 | -1,376,501 |65.50% |- |Other ($thousands) |170,519 | -589,449 | -445.68% |- |'''Total operating expenses ($thousands)''' |'''-5,478,795''' |'''-6,672,785''' |'''21.79%''' |- |'''Net income/loss ($thousands)''' |'''-2,043,030''' |'''-1,657,772''' |'''-18.86%''' |} ==== Last 5 years ==== {| class="wikitable" ! rowspan="2" |Year ! rowspan="2" |Year end date ! colspan="2" |Income Statement !Balance Sheet |- !Revenues($thousands) !Net losses ($thousands) !Total Assets($million) |- |22 |'''31/12/2018''' |826,968 | -961,241 |N/A |- |23 |'''31/12/2019''' |2,175,378 | -1,462,799 |5,224,169 |- |24 |'''31/12/2020''' |4,375,664 | -1,618,056 |10,455,671 |- |25 |'''31/12/2021''' |9,955,190 | -2,046,759 |18,756,025 |- |26 |'''31/12/2022''' |12,449,705 | -1,651,421 |17,002,796 |} [[File:Sea Limited Operating Expenses.png|thumb|Breakdown of Sea Limited's operating expenses for 2022|none|491x491px]] Revenues and gross profit are steeply increasing, but after applying operating expenses, the company reports an increasing loss every year. This is attributed to disproportionate increase of operating expenses year by year, which outweigh the increase in revenues. Sea Limited's great investment in subsidies to local express delivery companies were one of the major operational expenses that kept Shopee, and by extension the entire company from being profitable until 2023.<ref>Here’s how Lazada lost its lead to Shopee in Southeast Asia (Part 2 of 2) | KrASIA (kr-asia.com)</ref> However, based on the most recent results, operational expenses were significantly reduced, Garena's revenues declined, and the most promising and profitable branch is Shopee. === Forward === ==== Method ==== The forecasted values for revenues and EBITDA were calculated using straight line forecasting. The growth rates used for revenues were retrieved from Yahoo Finance and CIQ as predicted by analysts, and for EBITDA the average growth rate of the previous years was used. ==== Financial Forecasts ==== {| class="wikitable" !Year !2014 !2015 !2016 !2017 !2018 !2019 !2020 !2021 !2022 !2023 !2024 !2025 !2026 !2027 |- |'''Revenues''' |160.756 |292.124 |345.67 |414.19 |826.968 |2175.378 |4375.664 |9955.19 |12449.71 |14317.16 |15748.88 |17323.76 |19056.14 |21914.56 |- |'''EBITDA''' | -69.3 | -52.1 | -160.3 | -460.5 | -904.9 | -769.6 | -1122.6 | -1304 | -704.2 |514.3483 |565.7832 |622.3615 |684.5976 |787.2873 |} [[File:Revenuesf.png|none|thumb|576x576px|Revenues Historic (2014-2022) and Forecasted (2023-2027) Values for Sea Limited]] [[File:EBITDA.png|none|thumb|573x573px|EBITDA Historic (2014-2022) and Forecasted (2023-2027) Values for Sea Limited]]
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)