Sea Shares Gain Premarket After Q3 Consensus Beat

  • Sea Limited SE reported third-quarter FY22 revenue growth of 17.4% year-on-year to $3.16 billion, beating the consensus of $3.00 billion.
  • Digital Entertainment revenue decreased 18.8% Y/Y to $892.88 million. The bookings declined 4% Q/Q to $664.7 million. The segment-adjusted EBITDA was $289.9 million, compared to $333.6 million a quarter ago.
  • Quarterly active users were 568.2 million, compared to 619.3 million a quarter ago.
  • Average bookings per user were stable at $1.2 versus a quarter ago.
  • E-commerce and other services revenue increased 32.4% Y/Y to $1.9 billion. Adjusted EBITDA loss for Shopee overall was $(495.7) million improving by 27.5% Y/Y.
  • Core marketplace revenue grew 54.1% Y/Y. Gross orders rose 19.2% Y/Y. Gross merchandise value increased 13.5% Y/Y.
  • Digital Financial Services revenue grew 147.2% Y/Y to $326.9 million.
  • Adjusted EPS loss of $(0.66) beat the consensus loss of $(1.09). Sea Ltd held $7.3 billion in cash and equivalents.
  • "Given the significant uncertainties in the macro environment, we have entirely shifted our mindset and focus from growth to achieving self-sufficiency and profitability as soon as possible, without relying on any external funding," said Forrest Li, Sea's Chairman and Group Chief Executive Officer.
  • Outlook: Sea expects 2022 Digital Entertainment bookings of $2.6 billion - $2.8 billion, down from the previous guidance of $2.9 billion - $3.1 billion.
  • Price Action: SE shares traded higher by 20.41% at $55.15 in the premarket session on the last check Tuesday.
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