Q2 2024 Sea Ltd Earnings Call Transcript
Key Points
- Sea Ltd (SE) reported a solid quarter with strong momentum from Q1 continuing into Q2, showing growth and higher profitability across all three business segments.
- Shopee's market share in Southeast Asia remains strong, with the company expecting adjusted EBITDA positivity from Q3 and revising up its full-year GMV growth rate to the mid-20s.
- SeaMoney has shown strong momentum, growing its loan book size to $3.5 billion, up almost 40% year on year, with nonperforming loans improving slightly.
- Garena's Free Fire has shown more than 20% year-on-year growth in bookings, with over 100 million daily active players, reinforcing its status as an evergreen franchise.
- Sea Ltd (SE) has added two new independent directors with expertise in AI and financial services, strengthening its board and future strategic direction.
- Total adjusted EBITDA for Sea Ltd (SE) decreased to $448 million in Q2 2024 from $510 million in Q2 2023.
- E-commerce adjusted EBITDA showed a loss of $9 million in Q2 2024, although this was an improvement from previous quarters.
- Net income for Q2 2024 was $80 million, a significant drop from $331 million in Q2 2023.
- The company faces competitive pressures in markets like Taiwan and Indonesia, with new entrants and increased subsidies from competitors.
- Despite strong growth in Free Fire, the company remains cautious about the sustainability of this momentum and the potential impact of seasonality on gaming revenue.
Good morning, and good evening to all, and welcome to the Sea Limited second-quarter-2024 results conference call. (Operator Instructions) And finally, I would like to advise all participants that the call is being recorded. Thank you.
I'd now like to welcome Mr. M.C. Koh to begin the conference. Please go ahead.
Hello, everyone, and welcome to Sea's 2024-second-quarter earnings conference call. I am M.C., Sea's Investor Relations Director. On this call, we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release.
Also, this call includes a discussion of certain non-GAAP financial measures, such as the EBITDA. We believe these measures can enhance our investors' understanding of the actual cash flows of our major businesses when used as a complement to our GAAP disclosures. For a discussion of the use of non-GAAP financial measures and reconciliations
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