SINGAPORE - Sea Limited (NYNYSE:SE: SE), a leading global consumer internet company, reported a fourth-quarter revenue beat, driving its shares up 13.4% in premarket trading.
The company announced a Q4 EPS of -$0.19, which was below the analyst estimate of -$0.07. However, revenue exceeded expectations, coming in at $3.6 billion against the consensus estimate of $3.57 billion.
The company's total GAAP revenue rose by 4.8% year-on-year (YoY), demonstrating a resilient performance despite the challenging market conditions. The e-commerce segment, in particular, showcased significant growth with a 23.2% increase in GAAP revenue YoY.
This segment's growth was driven by a 40.6% rise in core marketplace revenue, which includes transaction-based fees and advertising revenues. Conversely, the digital entertainment segment experienced a decline in GAAP revenue by 46.2% YoY, primarily due to a moderation in user monetization.
Despite the mixed results across its business segments, Sea Limited's Chairman and CEO, Forrest Li, expressed optimism about the company's trajectory, stating, "We have emerged with a much stronger balance sheet with our cash position increasing to 8.5 billion dollars as of the end of 2023." He also highlighted the company's first full year of annual profit since its IPO and anticipated another profitable year in 2024.
The digital financial services segment, SeaMoney, reported a 24.3% increase in GAAP revenue YoY, with adjusted EBITDA up by a remarkable 96.4%. This growth was primarily attributed to the consumer and SME credit business, which saw a 27.0% increase in loans principal outstanding YoY.
For the upcoming year, the company expects Shopee's full-year GMV growth to be in the high teens range and its adjusted EBITDA to turn positive in the second half of the year. Additionally, the company projects double-digit growth for its digital entertainment business, Free Fire, both in user base and bookings.
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