From Nasdaq: 2024-05-15 10:50:00

Sea Limited (SE) reported first-quarter 2024 earnings of 21 cents per share, missing the Zacks Consensus Estimate of 41.67%. Revenues of $3.79 billion increased by 27.8% year-over-year, primarily driven by e-commerce and credit business growth. Sea Limited shares have gained 63.6% year-to-date, outperforming the Computer & Technology sector’s 12.5% rise.

In the first quarter, Garena saw an 11% year-over-year increase in bookings, with flagship game Free Fire showing a 24% rise in average Monthly Active Users (MAU). Quarterly active users reached 594.7 million, with 48.9 million paying users, reflecting a 8.2% paying user ratio and 86 cents average bookings per user.

E-commerce and other services revenues of $2.9 billion beat estimates, with Shopee’s performance driving growth. Sales of goods increased by 34.9% year-over-year to $326.1 million, and digital financial services revenues surged by 21% to $499 million, driven by growth in active users and the credit business’s expansion.

Sea Limited reported a gross profit of $1.55 billion in the first quarter of 2024. Adjusted EBITDA was $401.1 million, with Digital Entertainment’s EBITDA at $292.2 million, e-commerce at a decline, and digital financial services at $149 million. Sea Limited had cash and cash equivalents of $2.46 billion as of March 31, 2024.

Sea Limited has a Zacks Rank #2 (Buy). Top-ranked stocks in the sector include CrowdStrike (CRWD), NVIDIA (NVDA), and Intuit (INTU). CrowdStrike shares have surged 29.1%, NVIDIA 84.5%, and Intuit 1.7% year-to-date. Each stock is scheduled to release first-quarter or third-quarter fiscal results in May or June.



Read more at Nasdaq: Sea Limited (SE) Q1 Earnings Miss Estimates, Revenues Up Y/Y