https://seekingalpha.com/news/3731262-sea-eps-beats-by-007-b…
2 Likes
Ugh sorry - that post ran away from me…
Here’s the press release
https://seekingalpha.com/pr/18438406-sea-limited-reports-sec…
Here are the headlines…
Second Quarter 2021 Highlights
Group
Total GAAP revenue was US$2.3 billion, up 158.6% year-on-year.
Total gross profit was US$930.9 million, up 363.5% year-on-year.
Total adjusted EBITDA1 was US$(24.1) million compared to US$7.7 million for the second quarter of 2020.
Digital Entertainment
Bookings2 were US$1.2 billion, up 64.8% year-on-year.
Adjusted EBITDA1 was US$740.9 million, up 69.8% year-on-year.
Adjusted EBITDA represented 62.8% of bookings for the second quarter of 2021, compared to 60.9% for the second quarter of 2020.
GAAP revenue was US$1.0 billion, up 166.8% year-on-year.
E-commerce
GAAP revenue was US$1.2 billion, up 160.7% year-on-year.
GAAP revenue included US$904.6 million of GAAP marketplace revenue4, up 190.7% year-on-year, and US$250.6 million of GAAP product revenue5, up 90.0% year-on-year.
Gross orders totaled 1.4 billion, an increase of 127.4% year-on-year.
Gross merchandise value (“GMV”) was US$15.0 billion, an increase of 87.5% year-on-year.
Adjusted EBITDA1 was US$(579.8) million compared to US$(313.7) million for the second quarter of 2020. Adjusted EBITDA loss per order decreased by 19.6% year-on-year to US$0.41, compared to US$0.51 for the second quarter of 2020.
Digital Financial Services Update
We continued to see strong growth in the adoption of SeaMoney’s offerings. Our mobile wallet total payment volume exceeded US$4.1 billion for the second quarter of 2021, an increase of close to 150% year-on-year. Moreover, quarterly paying users for our mobile wallet services increased to 32.7 million in the second quarter.
Raising Guidance
We are raising the guidance for both digital entertainment and e-commerce for the full year of 2021.
59 Likes
Excellent ER! A beat and a raise.
“We are raising the guidance for both digital entertainment and e-commerce for the full year of 2021. We expect bookings for digital entertainment to be between US$4.5 billion and US$4.7 billion, representing 44.4% growth from 2020 at the midpoint of the revised guidance. We also expect GAAP revenue for e-commerce to be between US$4.7 billion and US$4.9 billion, representing 121.5% growth from 2020 at the midpoint of the revised guidance.”
Wow.
Just as expected, while the reopenings in the Western world have slowed down digital growth on a number of platforms like Amazon, Etsy, and Roku, the pandemic continues to rage in other marketers like Indonesia, Taiwan, and Brazil. This continues to drive Sea’s business in developing markets. While I am in no way celebrating the very real problems and challenges the pandemic presents, the reality is that vaccines will not be available at scale in those areas for a long time. This will continue to drive Sea and other developing market digital platforms at least until the end of the year.
There is a lot to digest here given the complexity of their business, but my first quick read seems to indicate they are executing extremely well in all areas. There was a lot of speculation that gaming may slow down given the notoriously fickle world of entertainment. That didn’t happen. Also, international expansion to Latin America where they are going up against Mercado Libre is risky, but they are executing well. My bet remains they will win against Mercado Libre given the mobile-first and English-centric nature of Sea.
I am going to dive in more later.
17 Likes