Sea Limited Reports Fourth Quarter and Full Year 2024 Results
Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2024. “We delivered a great 2024 with all three...
SINGAPORE: Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2024.
“We delivered a great 2024 with all three businesses going back to strong, double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITDA,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On e-commerce, he said, “GMV grew 28% year-on-year to surpass US$100 billion, and we achieved adjusted EBITDA profitability in both Asia and Brazil. We remain confident about our ability to continue delivering profitable growth in 2025 and expect Shopee’s full year 2025 GMV growth to be around 20%, with improving profitability.”
Regarding digital financial services, Mr. Li shared, “We delivered exceptional loan book growth of more than 60% year-on-year in the fourth quarter, surpassing US$5 billion as of the end of 2024, making us one of the largest consumer lending businesses in Southeast Asia. While we have scaled fast, risk management remains to be our top operational priority. In 2025, we expect loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate, as we improve credit penetration both on- and off-Shopee.”
On digital entertainment, Mr. Li said, “2024 was a great year for Garena, marking Free Fire’s remarkable comeback with annual bookings growing at 34% year-on-year. Looking ahead into 2025, we will continue scaling our user base and broadening our content offerings. We now expect Garena to grow double digit year-on-year, for both user base and bookings in 2025.”
Fourth Quarter 2024 Highlights
- Group
- Total GAAP revenue was US$5.0 billion, up 36.9% year-on-year.
- Total gross profit was US$2.2 billion, up 44.6% year-on-year.
- Total net income was US$237.6 million, as compared to total net loss of US$(111.6) million for the fourth quarter of 2023.
- Total adjusted EBITDA1 was US$590.9 million, as compared to US$126.7 million for the fourth quarter of 2023.
- As of December 31, 2024, cash, cash equivalents, short-term investments, and other treasury investments2 were US$10.4 billion, representing a net increase of US$478.6 million from September 30, 2024.
- E-commerce
- Gross orders totaled 3.0 billion for the quarter, increasing by 20.1% year-on-year.
- GMV was US$28.6 billion for the quarter, increasing by 23.5% year-on-year.
- GAAP revenue was US$3.7 billion, up 41.3% year-on-year.
- GAAP revenue included US$3.2 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 41.4% year-on-year.
- Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 49.8% year-on-year to US$2.4 billion.
- Value-added services revenue, mainly consisting of revenues related to logistics services, was up 20.8% year-on-year to US$794.8 million.
- Adjusted EBITDA1 was US$152.2 million, as compared to US$(225.3) million for the fourth quarter of 2023.
- Both Asia and Other markets recorded positive adjusted EBITDA for the fourth quarter of 2024.
- Both Asia and Other markets recorded positive adjusted EBITDA for the fourth quarter of 2024.
- Digital Financial Services
- GAAP revenue was US$733.3 million, up 55.2% year-on-year.
- Adjusted EBITDA1 was US$211.0 million, up 42.1% year-on-year.
- Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business. As of December 31, 2024, consumer and SME loans principal outstanding was US$5.1 billion, up 63.9% year-on-year. This consists of US$4.2 billion on-book and US$0.9 billion off-book loans principal outstanding3.
- Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding3, was 1.2%, stable quarter-on-quarter.
- Digital Entertainment
- Bookings4 were US$543.2 million, up 19.0% year-on-year.
- GAAP revenue was US$519.1 million, as compared to US$510.8 million for the fourth quarter of 2023.
- Adjusted EBITDA1 was US$289.7 million, up 33.3% year-on-year.
- Adjusted EBITDA represented 53.3% of bookings for the fourth quarter of 2024, as compared to 47.6% for the fourth quarter of 2023.
- Quarterly active users were 618.0 million, up 16.9% year-on-year.
- Quarterly paying users were 50.4 million, up 27.2% year-on-year. Paying user ratio was 8.2%, as compared to 7.5% for the fourth quarter of 2023.
- Average bookings per user were US$0.88, as compared to US$0.86 for the fourth quarter of 2023.
Full Year 2024 Highlights
- Group
- Total GAAP revenue was US$16.8 billion, up 28.8% year-on-year.
- Total gross profit was US$7.2 billion, up 23.5% year-on-year.
- Total net income was US$447.8 million, as compared to total net income of US$162.7 million for the full year of 2023.
- Total adjusted EBITDA1 was US$2.0 billion, as compared to US$1.2 billion for the full year of 2023.
- E-commerce
- Gross orders totaled 10.9 billion, up 33.0% year-on-year.
- GMV was US$100.5 billion, up 28.0% year-on-year.
- GAAP revenue was US$12.4 billion, up 37.9% year-on-year.
- GAAP revenue included US$10.9 billion of GAAP marketplace revenue, up 37.8% year-on-year.
- Adjusted EBITDA1 was US$155.8 million, as compared to US$(213.8) million for the full year of 2023.
- Digital Financial Services
- GAAP revenue was US$2.4 billion, up 34.6% year-on-year.
- Adjusted EBITDA1 was US$712.2 million, up 29.5% year-on-year.
- Digital Entertainment
- Bookings4 were US$2.1 billion, up 18.7% year-on-year.
- GAAP revenue was US$1.9 billion, as compared to US$2.2 billion for the full year of 2023.
- Adjusted EBITDA1 was US$1.2 billion, up 30.2% year-on-year.
- Adjusted EBITDA represented 55.8% of bookings for the full year of 2024, as compared to 50.9% for the full year of 2023.
1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”. |
2 Other treasury investments currently consist of group treasury related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations. |
3 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. |
4 GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment. |
Unaudited Summary of Financial Results
(Amounts are expressed in thousands of US dollars “$” except for per share data)
| For the Three Months |
| For the Full Year |
| ||||||||||||||
| 2023 | 2024 |
| 2023 | 2024 |
| ||||||||||||
| $ | $ | YOY% | $ | $ | YOY% | ||||||||||||
Revenue |
|
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Service revenue |
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|
|
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Digital Entertainment | 510,773 |
| 519,064 |
| 1.6 | % | 2,172,009 |
| 1,910,589 |
| (12.0 | %) | ||||||
E-commerce and other services | 2,771,267 |
| 3,959,575 |
| 42.9 | % | 9,770,376 |
| 13,350,674 |
| 36.6 | % | ||||||
Sales of goods | 334,588 |
| 471,797 |
| 41.0 | % | 1,121,175 |
| 1,558,603 |
| 39.0 | % | ||||||
| 3,616,628 |
| 4,950,436 |
| 36.9 | % | 13,063,560 |
| 16,819,866 |
| 28.8 | % | ||||||
|
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Cost of revenue |
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Cost of service |
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Digital Entertainment | (161,360 | ) | (159,065 | ) | (1.4 | %) | (672,481 | ) | (610,586 | ) | (9.2 | %) | ||||||
E-commerce and other services | (1,621,218 | ) | (2,146,644 | ) | 32.4 | % | (5,530,043 | ) | (7,553,801 | ) | 36.6 | % | ||||||
Cost of goods sold | (309,263 | ) | (439,267 | ) | 42.0 | % | (1,027,389 | ) | (1,450,391 | ) | 41.2 | % | ||||||
| (2,091,841 | ) | (2,744,976 | ) | 31.2 | % | (7,229,913 | ) | (9,614,778 | ) | 33.0 | % | ||||||
Gross profit | 1,524,787 |
| 2,205,460 |
| 44.6 | % | 5,833,647 |
| 7,205,088 |
| 23.5 | % | ||||||
Other operating income | 58,524 |
| 53,256 |
| (9.0 | %) | 221,021 |
| 180,443 |
| (18.4 | %) | ||||||
Sales and marketing expenses | (967,433 | ) | (1,049,726 | ) | 8.5 | % | (2,779,223 | ) | (3,472,686 | ) | 25.0 | % | ||||||
General and administrative expenses | (232,603 | ) | (366,259 | ) | 57.5 | % | (1,134,724 | ) | (1,267,706 | ) | 11.7 | % | ||||||
Provision for credit losses | (159,988 | ) | (235,764 | ) | 47.4 | % | (633,942 | ) | (776,937 | ) | 22.6 | % | ||||||
Research and development expenses | (279,806 | ) | (301,216 | ) | 7.7 | % | (1,164,126 | ) | (1,206,050 | ) | 3.6 | % | ||||||
Impairment of goodwill | - |
| - |
| - |
| (117,875 | ) | - |
| - |
| ||||||
Total operating expenses | (1,581,306 | ) | (1,899,709 | ) | 20.1 | % | (5,608,869 | ) | (6,542,936 | ) | 16.7 | % | ||||||
Operating (loss) income | (56,519 | ) | 305,751 |
| (641.0 | %) | 224,778 |
| 662,152 |
| 194.6 | % | ||||||
Non-operating income, net | 31,654 |
| 28,222 |
| (10.8 | %) | 207,616 |
| 116,631 |
| (43.8 | %) | ||||||
Income tax expense | (76,894 | ) | (89,198 | ) | 16.0 | % | (262,680 | ) | (321,168 | ) | 22.3 | % | ||||||
Share of results of equity investees | (9,856 | ) | (7,183 | ) | (27.1 | %) | (7,032 | ) | (9,788 | ) | 39.2 | % | ||||||
Net (loss) income | (111,615 | ) | 237,592 |
| (312.9 | %) | 162,682 |
| 447,827 |
| 175.3 | % | ||||||
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(Loss) Earnings per share attributable to | ||||||||||||||||||
Basic | (0.19 | ) | 0.41 |
| (315.8 | %) | 0.27 |
| 0.77 |
| 185.2 | % | ||||||
Diluted | (0.19 | ) | 0.39 |
| (305.3 | %) | 0.25 |
| 0.74 |
| 196.0 | % | ||||||
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Change in deferred revenue of | (54,459 | ) | 24,120 |
| (144.3 | %) | (362,397 | ) | 238,077 |
| (165.7 | %) | ||||||
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Adjusted EBITDA for Digital | 217,411 |
| 289,730 |
| 33.3 | % | 920,923 |
| 1,199,166 |
| 30.2 | % | ||||||
Adjusted EBITDA for E-commerce (1) | (225,332 | ) | 152,209 |
| (167.5 | %) | (213,774 | ) | 155,775 |
| (172.9 | %) | ||||||
Adjusted EBITDA for Digital | 148,482 |
| 210,979 |
|
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