SINGAPORE: Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025.

“We have delivered another great quarter of strong growth with improving profitability across all three businesses. Our strong start to the year gives us more confidence of achieving our full-year guidance.” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

On e-commerce, he said, “Shopee has delivered a record-high GMV and gross order volume in the first quarter. We sustained market leadership with improved profitability across both Asia and Brazil. Our strong execution of our operational priorities – enhancing price competitiveness, improving service quality, and strengthening our content ecosystem – has continued to make Shopee competitive and differentiated.”

On digital financial services, Mr. Li shared that SeaMoney had been rebranded to Monee. “We chose the name Monee because it is simple, cute, and, just like our company’s name Sea, easy to write and pronounce. Monee also resonates well with the name of its sister brand, Shopee, reflecting the seamless, synergetic connection between the two ecosystems.”

On Monee’s performance for the quarter, Mr. Li said, “Monee delivered another strong set of results, with both revenue and adjusted EBITDA growing more than 50% year-on-year while maintaining stable asset quality. As we scale, we remain focused on risk management as a top priority. We are confident that we can grow Monee in a way that is resilient to credit cycles and profitable into the long term.”

On digital entertainment, Mr. Li said, “Garena had a stellar start to 2025, with its best quarter since 2021. Thanks to the phenomenal success of the Free Fire and NARUTO collaboration in January, Free Fire’s average DAU in the first quarter was close to its peak quarterly average DAU during the pandemic. We will continue to drive Free Fire’s popularity and longevity, improve localized content across our games, and expand our game portfolio for overall sustained growth.”

First Quarter 2025 Highlights

• Group
  • Total GAAP revenue was US$4.8 billion, up 29.6% year-on-year.
  • Total gross profit was US$2.2 billion, up 43.9% year-on-year.
  • Total net income was US$410.8 million, as compared to total net loss of US$(23.0) million for the first quarter of 2024.
  • Total adjusted EBITDA1 was US$946.5 million, as compared to US$401.1 million for the first quarter of 2024.
    
• E-commerce
  • Gross orders totaled 3.1 billion for the quarter, increasing by 20.5% year-on-year.
  • GMV was US$28.6 billion for the quarter, increasing by 21.5% year-on-year.
  • GAAP revenue was US$3.5 billion, up 28.3% year-on-year.
  • GAAP revenue included US$3.1 billion of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by 28.7% year-on-year.
    • Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 39.2% year-on-year to US$2.4 billion.
    • Value-added services revenue, mainly consisting of revenues related to logistics services, was up 4.1% year-on-year to US$752.2 million.
  • Adjusted EBITDA1 was US$264.4 million, as compared to US$(21.7) million for the first quarter of 2024.
    
• Digital Financial Services
  • GAAP revenue was US$787.1 million, up 57.6% year-on-year.
  • Adjusted EBITDA1 was US$241.4 million, up 62.4% year-on-year.
  • Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business. As of March 31, 2025, consumer and SME loans principal outstanding was US$5.8 billion, up 76.5% year-on-year. This consists of US$4.9 billion on-book and US$0.9 billion off-book loans principal outstanding2.
  • 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 outstanding2, was 1.1%, relatively stable quarter-on-quarter.
    
• Digital Entertainment
  • Bookings3 were US$775.4 million, up 51.4% year-on-year.
  • GAAP revenue was US$495.6 million, as compared to US$458.1 million for the first quarter of 2024.
  • Adjusted EBITDA1 was US$458.2 million, up 56.8% year-on-year.
  • Adjusted EBITDA represented 59.1% of bookings for the first quarter of 2025, as compared to 57.1% for the first quarter of 2024.
  • Quarterly active users were 661.8 million, up 11.3% year-on-year.
  • Quarterly paying users were 64.6 million, up 32.2% year-on-year. Paying user ratio was 9.8%, as compared to 8.2% for the first quarter of 2024.
  • Average bookings per user were US$1.17, as compared to US$0.86 for the first quarter of 2024.
    

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenue

Our total GAAP revenue increased by 29.6% to US$4.8 billion in the first quarter of 2025 from US$3.7 billion in the first quarter of 2024. The table below sets forth our revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

• E-commerce: Our e-commerce service GAAP revenue increased by 28.7% to US$3.1 billion in the first quarter of 2025 from US$2.4 billion in the first quarter of 2024, primarily driven by the growth of GMV.
• Digital Financial Services: Our digital financial services GAAP revenue increased by 57.6% to US$787.1 million in the first quarter of 2025 from US$499.4 million in the first quarter of 2024, primarily driven by the growth of our credit business as our lending activities increased.
• Digital Entertainment: Our digital entertainment GAAP revenue increased by 8.2% to US$495.6 million in the first quarter of 2025 from US$458.1 million in the first quarter of 2024. This increase was primarily due to the increase in our active user base as well as the deepened paying user penetration.
• Sales of goods: GAAP revenue increased by 24.6% to US$406.6 million in the first quarter of 2025 from US$326.2 million in the first quarter of 2024.

Cost of Revenue

Our total cost of revenue was US$2.6 billion in the first quarter of 2025, as compared to US$2.2 billion in the first quarter of 2024. The table below sets forth our cost of revenue breakdown. Amounts are expressed in thousands of US dollars (“$”).

• E-commerce: Cost of revenue was US$1.9 billion in the first quarter of 2025, as compared to US$1.6 billion in the first quarter of 2024, primarily driven by an increase in logistics costs as orders volume grew.
• Digital Financial Services: Cost of revenue was US$106.4 million in the first quarter of 2025, as compared to US$78.3 million in the first quarter of 2024, primarily driven by server and hosting expenses, interest expenses due to the growth in customer deposits under our banking business, and other costs associated with our credit business.
• Digital Entertainment: Cost of revenue was US$181.0 million in the first quarter of 2025, as compared to US$156.0 million in the first quarter of 2024, primarily due to higher royalties associated with the use of third-party intellectual properties.
• Cost of goods sold: Cost of goods sold increased by 20.8% to US$373.8 million in the first quarter of 2025 from US$309.5 million in the first quarter of 2024.

Other Operating Income

Our other operating income was US$34.9 million and US$44.0 million in the first quarter of 2025 and 2024, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers.

Sales and Marketing Expenses

Our total sales and marketing expenses increased by 20.8% to US$929.7 million in the first quarter of 2025 from US$769.6 million in the first quarter of 2024. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).

General and Administrative Expenses

Our general and administrative expenses increased by 5.6% to US$307.2 million in the first quarter of 2025 from US$290.9 million in the first quarter of 2024.

Provision for Credit Losses

Our provision for credit losses increased by 74.3% to US$281.9 million in the first quarter of 2025 from US$161.8 million in the first quarter of 2024.

Research and Development Expenses

Our research and development expenses decreased by 2.8% to US$295.9 million in the first quarter of 2025 from US$304.4 million in the first quarter of 2024.

Non-operating Income or Losses, Net

Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$89.2 million in the first quarter of 2025, as compared to a net non-operating loss of US$(17.5) million in the first quarter of 2024. The non-operating income in the first quarter of 2025 was primarily due to interest income of US$88.8 million.

Income Tax Expense

We had a net income tax expense of US$136.3 million and US$78.8 million in the first quarter of 2025 and 2024, respectively.

Net Income or Loss

As a result of the foregoing, we had net income of US$410.8 million in the first quarter of 2025, as compared to net loss of US$(23.0) million in the first quarter of 2024.

Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders

Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.68 in the first quarter of 2025, compared to basic loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.04) in the first quarter of 2024.

Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.65 in the first quarter of 2025, compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.04) in the first quarter of 2024.

Webcast and Conference Call Information

The Company’s management will host a conference call today to review Sea’s business and financial performance.

Details of the conference call and webcast are as follows:

A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.

About Sea Limited

Sea Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and Monee, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. Monee is a leading digital financial services provider in Southeast Asia and is growing its presence in Brazil.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other w