Sea (SE) Q2 2024 earnings summary

Executive summary

• Achieved strong momentum in Q2 2024, with all three business segments—e-commerce, digital financial services, and digital entertainment—showing growth and improved profitability.

• Shopee maintained market leadership in Southeast Asia, revising full-year GMV growth guidance upward to mid-20%.

• Shopee is expected to become Adjusted EBITDA positive from Q3 2024.

• SeaMoney expanded its loan book and user base, while Garena’s Free Fire delivered over 20% year-on-year bookings growth and exceeded 100 million daily active users.

• Net income was $79.9 million, down from $331 million in Q2 2023, while adjusted EBITDA was $448.5 million, a 12.1% decrease year-over-year.

Financial highlights

• Total GAAP revenue rose 23% year-over-year to $3.8 billion in Q2 2024, driven by e-commerce and digital financial services.

• Adjusted EBITDA was $448.5 million, down from $510 million in Q2 2023.

• Shopee’s gross orders grew 40.3% and GMV reached $23.3 billion, up 29.1% year-over-year; marketplace revenue up 33% to $2.5 billion.

• Digital financial services revenue up 21.4% to $519.3 million; adjusted EBITDA up 20.2% to $164.7 million.

• Digital entertainment bookings up 21.1% to $536.8 million; adjusted EBITDA $302.8 million.

Outlook and guidance

• Shopee expected to be Adjusted EBITDA positive from Q3 2024.

• Full-year 2024 GMV growth guidance for Shopee raised to mid-20%.

• Free Fire expected to deliver double-digit growth in both monetization and user base for the full year.

• Long-term e-commerce EBITDA margin target remains at 2%-3%.