SEA Ltd Spikes 7% As Revenue Grows 22.8%
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Sea Limited (NYSE:SE) has just made a splash with its fiscal first-quarter 2024 earnings report. The company's revenue growth of 22.8% year-on-year to $3.73 billion has surpassed analysts' estimates, leaving everyone impressed. Despite a slight EPS loss, the stock price surged in the premarket session, indicating a promising start to the year for Sea Limited.
Financial Highlights
Sea Limited's Digital Entertainment segment experienced a temporary decline in revenue, but bookings showed a strong rebound with a 10.8% year-on-year increase. The segment's adjusted EBITDA also saw robust growth, rising by 27% compared to the previous year.
In the E-commerce and other services category, Sea Limited achieved remarkable revenue growth of 32.9% to $2.7 billion. Shopee, the company's flagship brand, showcased significant improvement in adjusted EBITDA. The core marketplace revenue experienced an impressive 47% year-on-year growth, with gross orders and GMV soaring by 56.8% and 36.3%, respectively.
Sea Limited's Digital Financial Services division demonstrated a 21% year-on-year revenue growth, further solidifying the company's position in the market.
Looking Ahead
Chair and CEO Forrest Li expressed his satisfaction with the strong quarter and the growth of all three business segments. He highlighted SeaMoney's continued growth and profitability, along with prudent risk management. Li also shared his delight at Garena's positive growth, led by the strong performance of Free Fire across various markets.
With a clear roadmap for profitable growth, Sea Limited is confident in achieving its full-year guidance. The company's robust start to 2024 sets the stage for a promising future.
Despite a recent decline in Sea's stock value, investors can still gain exposure to the company through FMQQ The Next Frontier Internet & Ecommerce ETF (NYSE:FMQQ) and Fidelity Disruptive Communications ETF (NASDAQ:FDCF).
Summary
Sea Limited's fiscal first-quarter results have showcased impressive revenue growth and strong performance across its business segments. With a clear vision for the future, Sea Limited is poised for continued success in the market.
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Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.