Earnings Alerts

Sea Ltd Surpasses Earnings Estimates in 1Q Revenue: A Deep Dive into SE’s Earnings Breakdown

  • Sea Ltd’s 1Q revenue surpassed estimates, standing at $3.73 billion against the projected $3.6 billion.
  • E-commerce revenue also beat estimates, with a report of $2.75 billion versus the expected $2.49 billion.
  • Digital entertainment revenue, however, fell short of expectations, with $458.1 million against an estimate of $513.4 million.
  • The revenue for Digital Financial Services similarly underperformed estimates, with earnings worth $499.4 million set against an expected $503.9 million.
  • The reported loss per share for the period was 4.0 cents.
  • The Adjusted Ebitda exceeded estimates, standing at $401.1 million as opposed to the forecast of $221.8 million.
  • Digital Entertainment’s Adjusted Ebitda also outperformed estimates, coming in at $292.2 million against an expected $232.5 million.
  • However, Digital Financial Services’ Adjusted Ebitda was below the estimate, recording $148.7 million against a projected $157.8 million.
  • Speaking on digital entertainment, Mr Li expressed satisfaction over Garena’s return to positive growth, credited largely to Free Fire’s strong market performance.
  • Mr Li also noted that the first quarter results have set a strong foundation for the year 2024 and they are optimistic about achieving their full-year guidance.
  • The overall stock forecast for the company consisted of 29 buys, 6 holds, and 2 sells.

Sea on Smartkarma

Analysts on Smartkarma have varied views on Sea Limited (SE). Value Investors Club highlighted the company’s strong underlying business performance and potential for growth, drawing comparisons to Amazon’s early days. Oshadhi Kumarasiri, however, expressed concerns about Sea’s struggle to achieve stable profitability despite cost-cutting efforts and marketing challenges. Angus Mackintosh, on the other hand, pointed out Sea’s positive 4Q2023 and FY2023 results, with significant improvements in e-commerce and digital financial services hinting at a profitable 2024. Simon Torring noted investors’ interest in Sea’s earnings growth potential, particularly focusing on Shopee’s performance and investors’ reactions to the company’s financial reports.

Despite some bearish sentiments, there are optimistic outlooks on Sea’s scalability and potential profitability, especially with the company’s focus on expanding its market reach and improving key financial metrics. The mix of perspectives from analysts reveals a dynamic landscape for Sea Limited, with both challenges and opportunities on the horizon that investors should consider.


A look at Sea Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth4
Resilience5
Momentum5
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Sea Limited, a company offering various information technology services, provides online platforms for digital content, e-commerce, and payments to customers globally. By considering the Smartkarma Smart Scores, Sea demonstrates a promising long-term outlook. With high scores in Growth, Resilience, and Momentum, the company appears well-positioned to expand its operations and withstand market challenges. These positive scores suggest that Sea’s future prospects for growth and sustainability are strong.

Although Sea has lower scores in Value and Dividend, its higher ratings in Growth, Resilience, and Momentum indicate a favorable overall outlook. Investors may find Sea Limited an appealing opportunity based on its strong growth potential, resilience in the face of economic uncertainties, and positive momentum in the market. As the company continues to expand its online services and platforms, it is likely to attract more interest from investors seeking growth opportunities in the IT sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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