Sea (SE) Q4 2024 earnings summary

Executive summary

• Achieved strong double-digit growth across all business segments in 2024, surpassing original guidance and marking the second consecutive year of annual positive profit, with each segment posting positive Adjusted EBITDA and significant improvements in operational scale.

• E-commerce GMV exceeded $100 billion for the first time, with Shopee maintaining market leadership in Asia, expanding in Brazil, and achieving profitability in both regions.

• Digital financial services saw loan book size surpass $5.1 billion, up over 60% year-on-year, with over 26 million active borrowers and stable credit quality.

• Digital entertainment segment rebounded, with Free Fire achieving 34% year-on-year bookings growth, record user engagement, and being the world's largest mobile game by average DAU in 2024.

• Net income for 2024 was $447.8 million, up 175.3% year-over-year, and total GAAP revenue reached $16.8 billion, up 28.8%.

Financial highlights

• Total GAAP revenue rose 37% year-on-year to $5 billion in Q4 2024 and 29% to $16.8 billion for the full year, with gross profit of $2.2 billion in Q4, up 44.6%.

• Total Adjusted EBITDA reached $591 million in Q4 2024 (up from $127 million in Q4 2023) and $2 billion for the year (up from $1.2 billion in 2023).

• Net income was $238 million in Q4 2024 (vs. net loss of $112 million in Q4 2023) and $448 million for the year (vs. $163 million in 2023).

• Cash, cash equivalents, and investments totaled $10.4 billion at year-end, up $478.6 million from Q3.

• E-commerce Adjusted EBITDA turned positive at $152 million in Q4 2024 and $156 million for the year, reversing prior losses.

Outlook and guidance

• Shopee's 2025 GMV is expected to grow around 20% with improving profitability, assuming stable FX rates.

• Digital financial services loan book is projected to grow meaningfully faster than Shopee's GMV in 2025, driven by increased SPayLater penetration and off-platform loans.

• Garena is expected to achieve double-digit year-on-year growth in both user base and bookings in 2025.