1. Startups

Even though Sea Still Records Losses, Shopee Sets Highest Revenue Record in Q1 2024

Sea's revenue grew 22,8% with a contribution of $2,7 billion coming from the e-commerce segment

Good news coming from Shopee, which posted its highest quarterly revenue, successfully attracted attention and praise from investors. Although, Sea itself recorded a net loss of $23 million for its first quarter.

Referring to the released financial report, Sea's revenue grew by 22,8% to $3,7 billion, with a contribution of $2,7 billion coming from the E-commerce. This result reflects performance that exceeded analyst expectations, with adjusted EBITDA reaching $401,1 million, well above analyst estimates of $221,8 million.

Shopee's success This record revenue was supported by a GMV value that rose 36,3% to reach $23,6 billion. According to Sea CEO Forrest Li, capability development live streaming and SPX Express' improved logistics services have been key to this significant growth. SPX Express, which handles more than half of Shopee orders in Asia and around 70% in Brazil, can now deliver orders within three days.

Although Shopee posted impressive revenue growth, the segment still experienced an EBITDA loss of $21,7 million, a reversal from last year's EBITDA profit of $207,7 million. The increase was largely due to sales and marketing expenses nearly doubling to $675,9 million during the quarter.

Meanwhile, Sea's digital entertainment segment, which includes gaming unit Garena, saw revenue fall 15,1% to $458,1 million. However, Garena still recorded an increase in the number of paid users by 29,8% to 48,9 million. Li remains optimistic about the potential of Free Fire, one of Garena's popular games, which is expected to continue to be a motor for the company's growth.

Sea also reported positive developments in its digital financial services, with revenue increasing 21% to $499,4 million and adjusted EBITDA rising 50,3% to $148,7 million. This development was driven by growth in lending to consumers and SMEs, with total loans reaching $3,3 billion as of March 31.

Having weathered a difficult period full of macroeconomic challenges, Li stated that Sea is now on a stable and more efficient growth path, which will strengthen the company's position in the long term.

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Disclosure: This article was produced with AI technology and supervision of the content writer
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