Q1 2026 Sea Ltd Earnings Call Transcript
Key Points
- Sea Ltd (SE) reported a strong start to 2026 with over $7 billion in revenue, marking a 47% year-on-year growth.
- Shopee achieved record highs in GMV, gross order volume, and revenue, with GMV growing 30% year-on-year.
- The ShopeeVIP program saw significant growth, with total subscribers surpassing 10 million, up more than 40% from the previous quarter.
- Garena delivered its best quarter since 2021, with bookings up 20% and adjusted EBITDA growing 25% year-on-year.
- Sea Ltd (SE) is effectively leveraging AI to enhance operations, resulting in a 14% improvement in purchase conversion rates and a 30% reduction in customer service costs per contact.
- Despite strong growth, Shopee's adjusted EBITDA decreased compared to the previous year, reflecting increased investments in delivery fulfillment and user acquisition.
- The company maintained a conservative full-year GMV growth guidance of 25%, despite achieving 30% growth in the first quarter, due to macroeconomic uncertainties.
- There are concerns about the impact of rising fuel prices on operational costs, which could affect profitability if sustained.
- The e-commerce take rates have risen, leading to some pushback from sellers in markets like Thailand, potentially impacting seller relationships.
- Fintech margins have been inching down, with no clear steady-state number provided, indicating potential volatility in profitability.
Good morning and good evening to all and welcome to the Sea Limited first-quarter 2026 results conference call. (Operator Instructions) And finally, if you would like to advise all participants that this call is being recorded. Thank you. I'd like to now turn and welcome the call over to Ms. Rebecca Lee to begin the conference. Please go ahead.
Hello, everyone, and welcome to Sea's 2026 first-quarter earnings conference call. I am Rebecca from Sea's Investor Relations team. 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 the discussion of certain non-GAAP financial measures, such as adjusted 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
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