- Singapore-based internet services company Sea Limited (SE) reported better-than-expected sales on Tuesday, driven by its Shopee e-commerce business.
- Despite posting a wider-than-expected loss, Sea stock rose more than 5% to 68.07 at the opening bell.
- The company’s e-commerce revenue increased by 33% year over year, while its financial services revenue increased by 21%.
Sea Limited reports better-than-expected sales for Q1 2024, driven by its e-commerce business, Shopee. Despite a wider-than-expected loss, Sea stock rose in early trading.
Strong Q1 Results Despite Increased Competition
Sea Limited reported a loss of 4 cents per share on sales of $3.73 billion for the March-ending quarter. Analysts had projected an adjusted loss of 3 cents per share on sales of $3.64 billion. The company’s sales increased 22.8% year over year, while it swung to a loss from earnings of 15 cents per share in Q1 2023.
Shopee Drives Sales Growth
Sea’s largest business, Shopee, has faced growing competition from online retailers based in China. Despite this, the e-commerce platform delivered strong growth this quarter, with gross merchandise value for goods sold on the platform increasing 36% year over year to $23.6 billion. Total e-commerce revenue advanced 33% year over year to $2.7 billion.
Financial Services and Gaming Segments Performance
Revenue from financial services increased 21% year-over-year to $499.4 million. However, the company’s Garena gaming arm saw a 15% year-over-year decline in sales to $458 million.
Conclusion
Despite facing increased competition and posting a wider-than-expected loss, Sea Limited reported better-than-expected sales for Q1 2024, driven by its Shopee e-commerce business. The company’s stock rose in early trading, reflecting investor confidence in its ability to handle competition in Southeast Asia.
