Sea Ltd (SE, Financial), a prominent Southeast Asian tech company, reported a significant increase in third-quarter revenue, surpassing expectations due to robust growth across its e-commerce, entertainment, and financial services sectors. Shopee, Sea's e-commerce platform, saw a surge in purchases in Southeast Asia and Taiwan as consumers prepared for the holiday and travel seasons. The company also expanded its digital finance and entertainment businesses to meet the growing demand in the region.
For the third quarter, Sea's revenue increased by 30.8% to $4.33 billion, exceeding analysts' forecasts of $4.08 billion. E-commerce revenue rose by 42.6% to $3.18 billion, while digital entertainment and financial services revenues reached $497.8 million and $615.7 million, respectively, all surpassing expectations. Sea's net profit for the quarter was $153 million, compared to a net loss of $144 million in the same period last year, with earnings per share (EPS) of $0.24, meeting analysts' predictions.
The company's total order volume increased by 24.2% to $2.8 billion. Sea reported an adjusted EBITDA of $521.3 million, significantly exceeding the expected $480.9 million. Forrest Li, Sea's Chairman and CEO, highlighted the strong growth across all three business segments, stating that Shopee is on track to achieve a 25% year-over-year growth in gross merchandise value (GMV). He also emphasized the enhanced profitability alongside this growth.
Shopee achieved positive adjusted EBITDA in both Asia and Brazil this quarter. As the company continues to focus on growth, it expects Shopee to maintain profitability going forward. Following the news, Sea's U.S.-listed shares rose by over 6% in pre-market trading.
