UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
Commission File Number: 001-38237
Sea Limited
1 Fusionopolis Place, #17-10, Galaxis
Singapore 138522
(Address of principal executive office)
Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
Exhibit 99.1 — Press Release
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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| SEA LIMITED |
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| By: |
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/s/ Forrest Xiaodong Li |
| Name: |
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Forrest Xiaodong Li |
| Title: |
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Chairman and Chief Executive Officer |
Date: March 4, 2025
Exhibit 99.1
Sea Limited Reports Fourth Quarter and Full Year 2024 Results
Singapore, March 4, 2025 – Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced
its financial results for the fourth quarter and full year ended December 31, 2024.
“We delivered a great 2024 with all three
businesses going back to strong, double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITDA,” said Forrest Li,
Sea’s Chairman and Chief Executive Officer.
On e-commerce, he said, “GMV grew 28% year-on-year to surpass US$100 billion, and we achieved adjusted EBITDA profitability in both Asia and Brazil. We remain confident about our ability to continue
delivering profitable growth in 2025 and expect Shopee’s full year 2025 GMV growth to be around 20%, with improving profitability.”
Regarding digital financial services, Mr. Li shared, “We delivered exceptional loan book growth of more than 60% year-on-year in the fourth quarter, surpassing US$5 billion as of the end of 2024, making us one of the largest consumer lending businesses in Southeast Asia. While we
have scaled fast, risk management remains to be our top operational priority. In 2025, we expect loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate, as we improve credit penetration both on- and off-Shopee.”
On digital entertainment, Mr. Li said, “2024 was a great year for
Garena, marking Free Fire’s remarkable comeback with annual bookings growing at 34% year-on-year. Looking ahead into 2025, we will continue scaling our user base
and broadening our content offerings. We now expect Garena to grow double digit year-on-year, for both user base and bookings in 2025.”
Fourth Quarter 2024 Highlights
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○ |
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Total GAAP revenue was US$5.0 billion, up 36.9%
year-on-year. |
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○ |
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Total gross profit was US$2.2 billion, up 44.6%
year-on-year. |
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○ |
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Total net income was US$237.6 million, as compared to total net loss of US$(111.6) million for the fourth quarter of
2023. |
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○ |
|
Total adjusted EBITDA1 was US$590.9 million, as compared to
US$126.7 million for the fourth quarter of 2023. |
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○ |
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As of December 31, 2024, cash, cash equivalents, short-term investments, and other treasury investments2 were US$10.4 billion, representing a net increase of US$478.6 million from September 30, 2024. |
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○ |
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Gross orders totaled 3.0 billion for the quarter, increasing by 20.1% year-on-year. |
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○ |
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GMV was US$28.6 billion for the quarter, increasing by 23.5% year-on-year. |
1
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○ |
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GAAP revenue was US$3.7 billion, up 41.3%
year-on-year. |
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○ |
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GAAP revenue included US$3.2 billion of GAAP marketplace revenue, which consists of core marketplace revenue and
value-added services revenue and increased by 41.4% year-on-year. |
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● |
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Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up 49.8% year-on-year to US$2.4 billion. |
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● |
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Value-added services revenue, mainly consisting of revenues related to logistics services, was up 20.8% year-on-year to US$794.8 million. |
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○ |
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Adjusted EBITDA1 was US$152.2 million, as compared to US$(225.3)
million for the fourth quarter of 2023. |
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● |
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Both Asia and Other markets recorded positive adjusted EBITDA for the fourth quarter of 2024. |
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◾ |
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Digital Financial Services |
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○ |
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GAAP revenue was US$733.3 million, up 55.2%
year-on-year. |
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○ |
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Adjusted EBITDA1 was US$211.0 million, up 42.1% year-on-year. |
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○ |
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Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business.
As of December 31, 2024, consumer and SME loans principal outstanding was US$5.1 billion, up 63.9% year-on-year. This consists of US$4.2 billion on-book and US$0.9 billion off-book loans principal outstanding3. |
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○ |
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Non-performing loans past due by more than 90 days as a percentage of consumer and
SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding3, was 1.2%,
stable quarter-on-quarter. |
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○ |
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Bookings4 were US$543.2 million, up 19.0% year-on-year. |
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○ |
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GAAP revenue was US$519.1 million, as compared to US$510.8 million for the fourth quarter of 2023. |
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○ |
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Adjusted EBITDA1 was US$289.7 million, up 33.3% year-on-year. |
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Adjusted EBITDA represented 53.3% of bookings for the fourth quarter of 2024, as compared to 47.6% for the fourth quarter
of 2023. |
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Quarterly active users were 618.0 million, up 16.9%
year-on-year. |
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○ |
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Quarterly paying users were 50.4 million, up 27.2%
year-on-year. Paying user ratio was 8.2%, as compared to 7.5% for the fourth quarter of 2023. |
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○ |
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Average bookings per user were US$0.88, as compared to US$0.86 for the fourth quarter of 2023. |
Full Year 2024 Highlights
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○ |
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Total GAAP revenue was US$16.8 billion, up 28.8%
year-on-year. |
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○ |
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Total gross profit was US$7.2 billion, up 23.5%
year-on-year. |
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○ |
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Total net income was US$447.8 million, as compared to total net income of US$162.7 million for the full year of
2023. |
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○ |
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Total adjusted EBITDA1 was US$2.0 billion, as compared to
US$1.2 billion for the full year of 2023. |
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○ |
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Gross orders totaled 10.9 billion, up 33.0%
year-on-year. |
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○ |
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GMV was US$100.5 billion, up 28.0%
year-on-year. |
2
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○ |
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GAAP revenue was US$12.4 billion, up 37.9%
year-on-year. |
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○ |
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GAAP revenue included US$10.9 billion of GAAP marketplace revenue, up 37.8% year-on-year. |
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○ |
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Adjusted EBITDA1 was US$155.8 million, as compared to US$(213.8)
million for the full year of 2023. |
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◾ |
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Digital Financial Services |
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○ |
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GAAP revenue was US$2.4 billion, up 34.6%
year-on-year. |
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○ |
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Adjusted EBITDA1 was US$712.2 million, up 29.5% year-on-year. |
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○ |
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Bookings4 were US$2.1 billion, up 18.7% year-on-year. |
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○ |
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GAAP revenue was US$1.9 billion, as compared to US$2.2 billion for the full year of 2023. |
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○ |
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Adjusted EBITDA1 was US$1.2 billion, up 30.2% year-on-year. |
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○ |
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Adjusted EBITDA represented 55.8% of bookings for the full year of 2024, as compared to 50.9% for the full year of
2023. |
1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial
Measures”.
2 Other treasury investments currently consist of group treasury
related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations.
3 Off-book loans principal outstanding mainly refers to channeling arrangements, which is
lending by other financial institutions on our platform.
4 GAAP revenue for the
digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment.
3
Unaudited Summary of Financial Results
(Amounts are expressed in thousands of US dollars “$” except for per share data)
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For the Three Months
ended December 31, |
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For the Full Year
ended December 31, |
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2023 |
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2024 |
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YOY% |
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2023 |
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2024 |
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YOY% |
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| |
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$ |
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$ |
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$ |
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$ |
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| Revenue |
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| Service revenue |
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| Digital Entertainment |
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|
510,773 |
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|
519,064 |
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|
|
1.6 |
% |
|
|
2,172,009 |
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|
1,910,589 |
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|
|
(12.0 |
%) |
| E-commerce and other services |
|
|
2,771,267 |
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|
3,959,575 |
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|
42.9 |
% |
|
|
9,770,376 |
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|
13,350,674 |
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36.6 |
% |
| Sales of goods |
|
|
334,588 |
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|
471,797 |
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|
|
41.0 |
% |
|
|
1,121,175 |
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|
|
1,558,603 |
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|
|
39.0 |
% |
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|
3,616,628 |
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|
4,950,436 |
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|
36.9 |
% |
|
|
13,063,560 |
|
|
|
16,819,866 |
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|
|
28.8 |
% |
| Cost of revenue |
|
|
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|
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| Cost of service |
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| Digital Entertainment |
|
|
(161,360 |
) |
|
|
(159,065 |
) |
|
|
(1.4 |
%) |
|
|
(672,481 |
) |
|
|
(610,586 |
) |
|
|
(9.2 |
%) |
| E-commerce and other services |
|
|
(1,621,218 |
) |
|
|
(2,146,644 |
) |
|
|
32.4 |
% |
|
|
(5,530,043 |
) |
|
|
(7,553,801 |
) |
|
|
36.6 |
% |
| Cost of goods sold |
|
|
(309,263 |
) |
|
|
(439,267 |
) |
|
|
42.0 |
% |
|
|
(1,027,389 |
) |
|
|
(1,450,391 |
) |
|
|
41.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
(2,091,841 |
) |
|
|
(2,744,976 |
) |
|
|
31.2 |
% |
|
|
(7,229,913 |
) |
|
|
(9,614,778 |
) |
|
|
33.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Gross profit |
|
|
1,524,787 |
|
|
|
2,205,460 |
|
|
|
44.6 |
% |
|
|
5,833,647 |
|
|
|
7,205,088 |
|
|
|
23.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Other operating income |
|
|
58,524 |
|
|
|
53,256 |
|
|
|
(9.0 |
%) |
|
|
221,021 |
|
|
|
180,443 |
|
|
|
(18.4 |
%) |
| Sales and marketing expenses |
|
|
(967,433 |
) |
|
|
(1,049,726 |
) |
|
|
8.5 |
% |
|
|
(2,779,223 |
) |
|
|
(3,472,686 |
) |
|
|
25.0 |
% |
| General and administrative expenses |
|
|
(232,603 |
) |
|
|
(366,259 |
) |
|
|
57.5 |
% |
|
|
(1,134,724 |
) |
|
|
(1,267,706 |
) |
|
|
11.7 |
% |
| Provision for credit losses |
|
|
(159,988 |
) |
|
|
(235,764 |
) |
|
|
47.4 |
% |
|
|
(633,942 |
) |
|
|
(776,937 |
) |
|
|
22.6 |
% |
| Research and development expenses |
|
|
(279,806 |
) |
|
|
(301,216 |
) |
|
|
7.7 |
% |
|
|
(1,164,126 |
) |
|
|
(1,206,050 |
) |
|
|
3.6 |
% |
| Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(117,875 |
) |
|
|
- |
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|
- |
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|
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|
|
|
|
|
|
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|
|
|
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| Total operating expenses |
|
|
(1,581,306 |
) |
|
|
(1,899,709 |
) |
|
|
20.1 |
% |
|
|
(5,608,869 |
) |
|
|
(6,542,936 |
) |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
|
(56,519 |
) |
|
|
305,751 |
|
|
|
(641.0 |
%) |
|
|
224,778 |
|
|
|
662,152 |
|
|
|
194.6 |
% |
| Non-operating income, net |
|
|
31,654 |
|
|
|
28,222 |
|
|
|
(10.8 |
%) |
|
|
207,616 |
|
|
|
116,631 |
|
|
|
(43.8 |
%) |
| Income tax expense |
|
|
(76,894 |
) |
|
|
(89,198 |
) |
|
|
16.0 |
% |
|
|
(262,680 |
) |
|
|
(321,168 |
) |
|
|
22.3 |
% |
| Share of results of equity investees |
|
|
(9,856 |
) |
|
|
(7,183 |
) |
|
|
(27.1 |
%) |
|
|
(7,032 |
) |
|
|
(9,788 |
) |
|
|
39.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income |
|
|
(111,615 |
) |
|
|
237,592 |
|
|
|
(312.9 |
%) |
|
|
162,682 |
|
|
|
447,827 |
|
|
|
175.3 |
% |
|
|
|
|
|
|
|
|
|
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|
|
|
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| (Loss) Earnings per share attributable to Sea Limited’s ordinary shareholders: |
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|
|
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|
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|
|
|
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|
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| Basic |
|
|
(0.19 |
) |
|
|
0.41 |
|
|
|
(315.8 |
%) |
|
|
0.27 |
|
|
|
0.77 |
|
|
|
185.2 |
% |
| Diluted |
|
|
(0.19 |
) |
|
|
0.39 |
|
|
|
(305.3 |
%) |
|
|
0.25 |
|
|
|
0.74 |
|
|
|
196.0 |
% |
| Change in deferred revenue of Digital Entertainment |
|
|
(54,459 |
) |
|
|
24,120 |
|
|
|
(144.3 |
%) |
|
|
(362,397 |
) |
|
|
238,077 |
|
|
|
(165.7 |
%) |
| Adjusted EBITDA for Digital
Entertainment (1) |
|
|
217,411 |
|
|
|
289,730 |
|
|
|
33.3 |
% |
|
|
920,923 |
|
|
|
1,199,166 |
|
|
|
30.2 |
% |
| Adjusted EBITDA for E-commerce (1) |
|
|
(225,332 |
) |
|
|
152,209 |
|
|
|
(167.5 |
%) |
|
|
(213,774 |
) |
|
|
155,775 |
|
|
|
(172.9 |
%) |
| Adjusted EBITDA for Digital
Financial Services (1) |
|
|
148,482 |
|
|
|
210,979 |
|
|
|
42.1 |
% |
|
|
550,112 |
|
|
|
712,242 |
|
|
|
29.5 |
% |
| Adjusted EBITDA for Other Services
(1) |
|
|
(6,979 |
) |
|
|
(5,121 |
) |
|
|
(26.6 |
%) |
|
|
(44,880 |
) |
|
|
(30,305 |
) |
|
|
(32.5 |
%) |
| Unallocated expenses (2) |
|
|
(6,877 |
) |
|
|
(56,876 |
) |
|
|
727.0 |
% |
|
|
(33,199 |
) |
|
|
(74,998 |
) |
|
|
125.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total adjusted EBITDA (1) |
|
|
126,705 |
|
|
|
590,921 |
|
|
|
366.4 |
% |
|
|
1,179,182 |
|
|
|
1,961,880 |
|
|
|
66.4 |
% |
|
|
|
|
|
|
|
|
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|
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|
(1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”.
(2) Unallocated expenses within total adjusted EBITDA are mainly related to general and
corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker
(“CODM”) as part of segment performance.
4
Three Months Ended December 31, 2024 Compared to Three Months Ended December 31,
2023
Revenue
Our total GAAP revenue increased by 36.9% to US$5.0 billion in the fourth quarter of 2024 from US$3.6 billion in the fourth quarter
of 2023.
|
|
|
|
|
|
|
● |
|
Digital Entertainment: GAAP revenue was US$519.1 million in the fourth quarter of 2024 compared to
US$510.8 million in the fourth quarter of 2023. |
|
|
|
|
|
|
|
● |
|
E-commerce and other services: GAAP revenue increased by 42.9% to
US$4.0 billion in the fourth quarter of 2024 from US$2.8 billion in the fourth quarter of 2023, primarily driven by the GMV growth of our e-commerce business and the growth of our credit
business. |
|
|
|
|
|
|
|
● |
|
Sales of goods: GAAP revenue increased by 41.0% to US$471.8 million in the fourth quarter of 2024 from
US$334.6 million in the fourth quarter of 2023. |
Cost of Revenue
Our total cost of revenue was US$2.7 billion in the fourth quarter of 2024, as compared to US$2.1 billion in the fourth quarter of
2023.
|
|
|
|
|
|
|
● |
|
Digital Entertainment: Cost of revenue was US$159.1 million in the fourth quarter of 2024, as compared to
US$161.4 million in the fourth quarter of 2023, relatively flat year-on-year. |
|
|
|
|
|
|
|
● |
|
E-commerce and other services: Cost of revenue for our e-commerce and other services segment combined was US$2.1 billion in the fourth quarter of 2024, as compared to US$1.6 billion in the fourth quarter of 2023, primarily driven by an increase in logistics
costs as orders volume grew. |
|
|
|
|
|
|
|
● |
|
Cost of goods sold: Cost of goods sold increased by 42.0% to US$439.3 million in the fourth quarter of 2024
from US$309.3 million in the fourth quarter of 2023. |
Other Operating Income
Our other operating income was US$53.3 million and US$58.5 million in the fourth quarter of 2024 and 2023, respectively. Other
operating income mainly consists of rebates from e-commerce related logistics services providers.
5
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 8.5% to US$1.0 billion in the fourth quarter of 2024 from US$967.4 million in
the fourth quarter of 2023. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months
ended December 31, |
|
|
|
|
|
|
|
| |
|
2023 |
|
|
|
|
|
2024 |
|
|
|
|
|
YOY% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
| Sales and Marketing Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| E-commerce |
|
|
878,985 |
|
|
|
|
|
|
|
853,919 |
|
|
|
|
|
|
|
(2.9 |
%) |
| Digital Financial Services |
|
|
51,927 |
|
|
|
|
|
|
|
121,036 |
|
|
|
|
|
|
|
133.1 |
% |
| Digital Entertainment |
|
|
29,926 |
|
|
|
|
|
|
|
44,528 |
|
|
|
|
|
|
|
48.8 |
% |
General and Administrative Expenses
Our general and administrative expenses increased by 57.5% to US$366.3 million in the fourth quarter of 2024 from US$232.6 million
in the fourth quarter of 2023, including one-time expenses related to the settlement of two securities class actions.
Provision for Credit Losses
Our provision for credit losses increased by 47.4% to US$235.8 million in the fourth quarter of 2024 from US$160.0 million in the
fourth quarter of 2023.
Research and Development Expenses
Our research and development expenses increased by 7.7% to US$301.2 million in the fourth quarter of 2024 from US$279.8 million in
the fourth quarter of 2023.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain
(loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$28.2 million in the fourth quarter of 2024, as compared to a net non-operating income of US$31.7 million in the fourth quarter of 2023. The non-operating income in the fourth quarter of 2024 was primarily due to interest income of
US$94.0 million, partially offset by investment losses of US$60.7 million recognized.
Income Tax Expense
We had a net income tax expense of US$89.2 million and US$76.9 million in the fourth quarter of 2024 and 2023, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$237.6 million in the fourth quarter of 2024, as compared to net loss of US$(111.6)
million in the fourth quarter of 2023.
6
Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary
Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.41 in the fourth quarter
of 2024, compared to basic loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.39 in the fourth quarter of 2024, compared to
diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
7
Full Year Ended December 31, 2024 Compared to Full Year Ended December 31, 2023
Revenue
Our total GAAP revenue increased by 28.8% to US$16.8 billion for the full year ended December 31, 2024 from US$13.1 billion for
the full year ended December 31, 2023.
|
|
|
|
|
|
|
● |
|
Digital Entertainment: GAAP revenue was US$1.9 billion for the full year ended December 31, 2024 from
US$2.2 billion for the full year ended December 31, 2023. Despite the increase in bookings, the decrease in GAAP revenue was primarily driven by higher bookings in 2022 compared to 2023. The stronger bookings in 2022 resulted in more
revenue being deferred and subsequently recognized in 2023. |
|
|
|
|
|
|
|
● |
|
E-commerce and other services: GAAP revenue increased by 36.6% to
US$13.4 billion for the full year ended December 31, 2024 from US$9.8 billion for the full year ended December 31, 2023, primarily driven by the GMV growth of our e-commerce business and
the growth of our credit business. |
|
|
|
|
|
|
|
● |
|
Sales of goods: GAAP revenue increased by 39.0% to US$1.6 billion for the full year ended December 31,
2024 from US$1.1 billion for the full year ended December 31, 2023. |
Cost of Revenue
Our total cost of revenue was US$9.6 billion for the full year ended December 31, 2024, as compared to US$7.2 billion for the
full year ended December 31, 2023.
|
|
|
|
|
|
|
● |
|
Digital Entertainment: Cost of revenue decreased by 9.2% to US$610.6 million for the full year ended
December 31, 2024 from US$672.5 million for the full year ended December 31, 2023. |
|
|
|
|
|
|
|
● |
|
E-commerce and other services: Cost of revenue for our e-commerce and other services segment combined increased by 36.6% to US$7.6 billion for the full year ended December 31, 2024 from US$5.5 billion for the full year ended December 31, 2023,
primarily driven by an increase in logistics costs as orders volume grew. |
|
|
|
|
|
|
|
● |
|
Cost of goods sold: Cost of goods sold increased by 41.2% to US$1.5 billion for the full year ended
December 31, 2024 from US$1.0 billion for the full year ended December 31, 2023. |
Other Operating Income
Our other operating income was US$180.4 million for the full year ended December 31, 2024 from US$221.0 million for the full
year ended December 31, 2023. Other operating income mainly consists of rebates from e-commerce related logistics services providers.
8
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 25.0% to US$3.5 billion for the full year ended December 31, 2024 from
US$2.8 billion for the full year ended December 31, 2023. The table below sets forth the breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Full Year
ended December 31, |
|
|
|
|
| |
|
2023 |
|
|
2024 |
|
|
YOY% |
|
| |
|
$ |
|
|
$ |
|
|
|
|
| Sales and Marketing Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| E-commerce |
|
|
2,510,693 |
|
|
|
2,966,084 |
|
|
|
18.1 |
% |
| Digital Financial Services |
|
|
116,445 |
|
|
|
298,386 |
|
|
|
156.2 |
% |
| Digital Entertainment |
|
|
104,721 |
|
|
|
117,556 |
|
|
|
12.3 |
% |
General and Administrative Expenses
Our general and administrative expenses increased by 11.7% to US$1.3 billion for the full year ended December 31, 2024 from
US$1.1 billion for the full year ended December 31, 2023.
Provision for Credit Losses
Our provision for credit losses increased by 22.6% to US$776.9 million for the full year ended December 31, 2024 from
US$633.9 million for the full year ended December 31, 2023.
Research and Development Expenses
Our research and development expenses were US$1.2 billion for the full year ended December 31, 2024, flat year-on-year.
Impairment of Goodwill
We recorded nil impairment of goodwill for the full year ended December 31, 2024, compared to US$117.9 million for the full year
ended December 31, 2023.
9
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain
(loss), and foreign exchange gain (loss), and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$116.6 million for the full year ended December 31, 2024, as compared to
a net non-operating income of US$207.6 million for the full year ended December 31, 2023.
Income Tax Expense
We had a net income tax expense of US$321.2 million and US$262.7 million for the full year ended December 31, 2024 and 2023,
respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$447.8 million for the full year ended December 31, 2024, as compared to net
income of US$162.7 million for the full year ended December 31, 2023.
Basic and Diluted Earnings Per Share Attributable
to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was
US$0.77 for the full year ended December 31, 2024, as compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.27 for the full year ended December 31, 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.74 for the full year ended December 31,
2024, as compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$0.25 for the full year ended December 31, 2023.
10
Webcast and Conference Call Information
The Company’s management will host a conference call today to review Sea’s business and financial performance.
Details of the conference call and webcast are as follows:
|
|
|
| Date and time: |
|
7:30 AM U.S. Eastern Time on March 4, 2025
8:30 PM Singapore / Hong Kong Time on March 4, 2025 |
|
|
| Webcast link: |
|
https://events.q4inc.com/attendee/769111006 |
A replay of the conference call will be available at the Company’s investor relations website
(www.sea.com/investor/home). An archived webcast will be available at the same link above.
For enquiries, please contact:
Investors / analysts: ir@sea.com
Media: media@sea.com
About Sea Limited
Sea
Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and SeaMoney, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. SeaMoney is a leading digital financial services provider in
Southeast Asia and is growing its presence in Brazil.
11
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,”
“future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements
that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational
plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press
releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, and results of operations;
the expected growth in, and market size of, the digital entertainment, e-commerce and digital financial services industries in the markets where it operates, including segments within those industries;
expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging digital entertainment content; the expected growth of its digital
entertainment, e-commerce and digital financial services businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new
technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on
its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All
information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.
12
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:
| ● |
“Adjusted EBITDA” for our digital entertainment segment represents operating income (loss) plus
(a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our digital entertainment segment. We believe that the segment adjusted EBITDA helps to identify underlying trends
in our operating results, enhancing their understanding of the past performance and future prospects. |
| ● |
“Adjusted EBITDA” for our e-commerce segment, digital
financial services segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing
their understanding of the past performance and future prospects. |
| ● |
“Total adjusted EBITDA” represents the sum of adjusted EBITDA of all our segments combined, plus
unallocated expenses. We believe that the total adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects. |
These non-GAAP financial measures have limitations as analytical tools. None of the above financial
measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP
financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s
data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We
encourage you to review our financial information in its entirety and not rely on any single financial measure.
13
The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars
(“$”) except for number of shares & per share data.
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
| |
|
For the Three Months ended December 31, 2024 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Operating income (loss) |
|
|
79,484 |
|
|
|
197,856 |
|
|
|
270,143 |
|
|
|
(10,112 |
) |
|
|
(231,620 |
) |
|
|
305,751 |
|
| Net effect of changes in deferred revenue and its related cost |
|
|
- |
|
|
|
- |
|
|
|
14,257 |
|
|
|
- |
|
|
|
- |
|
|
|
14,257 |
|
| Depreciation and Amortization |
|
|
72,725 |
|
|
|
13,123 |
|
|
|
5,330 |
|
|
|
4,991 |
|
|
|
- |
|
|
|
96,169 |
|
| Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
174,744 |
|
|
|
174,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
152,209 |
|
|
|
210,979 |
|
|
|
289,730 |
|
|
|
(5,121 |
) |
|
|
(56,876 |
) |
|
|
590,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
For the Three Months ended December 31, 2023 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Operating (loss) income |
|
|
(303,681 |
) |
|
|
134,205 |
|
|
|
261,060 |
|
|
|
(9,558 |
) |
|
|
(138,545 |
) |
|
|
(56,519 |
) |
| Net effect of changes in deferred revenue and its related cost |
|
|
- |
|
|
|
- |
|
|
|
(49,925 |
) |
|
|
- |
|
|
|
- |
|
|
|
(49,925 |
) |
| Depreciation and Amortization |
|
|
78,349 |
|
|
|
14,277 |
|
|
|
6,276 |
|
|
|
2,579 |
|
|
|
- |
|
|
|
101,481 |
|
| Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
131,668 |
|
|
|
131,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
(225,332 |
) |
|
|
148,482 |
|
|
|
217,411 |
|
|
|
(6,979 |
) |
|
|
(6,877 |
) |
|
|
126,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A combination of multiple business activities that do
not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to
segments. For the three months ended December 31, 2024, unallocated expenses included one-time expenses related to the settlement of two securities class actions. These expenses are excluded from segment
results as they are not reviewed by the CODM as part of segment performance.
14
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
| |
|
For the Full Year ended December 31, 2024 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Operating (loss) income |
|
|
(139,431 |
) |
|
|
657,502 |
|
|
|
978,821 |
|
|
|
(43,903 |
) |
|
|
(790,837 |
) |
|
|
662,152 |
|
| Net effect of changes in deferred revenue and its related cost |
|
|
- |
|
|
|
- |
|
|
|
194,216 |
|
|
|
- |
|
|
|
- |
|
|
|
194,216 |
|
| Depreciation and Amortization |
|
|
295,206 |
|
|
|
54,740 |
|
|
|
26,129 |
|
|
|
13,598 |
|
|
|
- |
|
|
|
389,673 |
|
| Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
715,839 |
|
|
|
715,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
155,775 |
|
|
|
712,242 |
|
|
|
1,199,166 |
|
|
|
(30,305 |
) |
|
|
(74,998 |
) |
|
|
1,961,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
For the Full Year ended December 31, 2023 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Operating (loss) income |
|
|
(550,470 |
) |
|
|
490,209 |
|
|
|
1,177,871 |
|
|
|
(56,728 |
) |
|
|
(836,104 |
) |
|
|
224,778 |
|
| Net effect of changes in deferred revenue and its related cost |
|
|
- |
|
|
|
- |
|
|
|
(289,346 |
) |
|
|
- |
|
|
|
- |
|
|
|
(289,346 |
) |
| Depreciation and Amortization |
|
|
336,696 |
|
|
|
59,903 |
|
|
|
32,398 |
|
|
|
11,848 |
|
|
|
- |
|
|
|
440,845 |
|
| Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
685,030 |
|
|
|
685,030 |
|
| Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
117,875 |
|
|
|
117,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
|
(213,774 |
) |
|
|
550,112 |
|
|
|
920,923 |
|
|
|
(44,880 |
) |
|
|
(33,199 |
) |
|
|
1,179,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A combination of multiple business activities that
does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate
administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
15
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Amounts expressed in thousands of US dollars (“$”) except for number of shares & per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months
ended December 31, |
|
|
For the Year
ended December 31, |
|
| |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital Entertainment |
|
|
510,773 |
|
|
|
519,064 |
|
|
|
2,172,009 |
|
|
|
1,910,589 |
|
| E-commerce and other services |
|
|
2,771,267 |
|
|
|
3,959,575 |
|
|
|
9,770,376 |
|
|
|
13,350,674 |
|
| Sales of goods |
|
|
334,588 |
|
|
|
471,797 |
|
|
|
1,121,175 |
|
|
|
1,558,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
3,616,628 |
|
|
|
4,950,436 |
|
|
|
13,063,560 |
|
|
|
16,819,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital Entertainment |
|
|
(161,360 |
) |
|
|
(159,065 |
) |
|
|
(672,481 |
) |
|
|
(610,586 |
) |
| E-commerce and other services |
|
|
(1,621,218 |
) |
|
|
(2,146,644 |
) |
|
|
(5,530,043 |
) |
|
|
(7,553,801 |
) |
| Cost of goods sold |
|
|
(309,263 |
) |
|
|
(439,267 |
) |
|
|
(1,027,389 |
) |
|
|
(1,450,391 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of revenue |
|
|
(2,091,841 |
) |
|
|
(2,744,976 |
) |
|
|
(7,229,913 |
) |
|
|
(9,614,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
1,524,787 |
|
|
|
2,205,460 |
|
|
|
5,833,647 |
|
|
|
7,205,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other operating income |
|
|
58,524 |
|
|
|
53,256 |
|
|
|
221,021 |
|
|
|
180,443 |
|
| Sales and marketing expenses |
|
|
(967,433 |
) |
|
|
(1,049,726 |
) |
|
|
(2,779,223 |
) |
|
|
(3,472,686 |
) |
| General and administrative expenses |
|
|
(232,603 |
) |
|
|
(366,259 |
) |
|
|
(1,134,724 |
) |
|
|
(1,267,706 |
) |
| Provision for credit losses |
|
|
(159,988 |
) |
|
|
(235,764 |
) |
|
|
(633,942 |
) |
|
|
(776,937 |
) |
| Research and development expenses |
|
|
(279,806 |
) |
|
|
(301,216 |
) |
|
|
(1,164,126 |
) |
|
|
(1,206,050 |
) |
| Impairment of goodwill |
|
|
– |
|
|
|
– |
|
|
|
(117,875 |
) |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
(1,581,306 |
) |
|
|
(1,899,709 |
) |
|
|
(5,608,869 |
) |
|
|
(6,542,936 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
|
(56,519 |
) |
|
|
305,751 |
|
|
|
224,778 |
|
|
|
662,152 |
|
| Interest income |
|
|
90,949 |
|
|
|
93,970 |
|
|
|
331,310 |
|
|
|
365,817 |
|
| Interest expense |
|
|
(10,129 |
) |
|
|
(9,281 |
) |
|
|
(41,075 |
) |
|
|
(38,341 |
) |
| Investment loss, net |
|
|
(80,279 |
) |
|
|
(60,677 |
) |
|
|
(125,656 |
) |
|
|
(250,220 |
) |
| Net gain on debt extinguishment |
|
|
38,550 |
|
|
|
8,206 |
|
|
|
38,550 |
|
|
|
42,621 |
|
| Foreign exchange (loss) gain |
|
|
(7,437 |
) |
|
|
(3,996 |
) |
|
|
4,487 |
|
|
|
(3,246 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) income before income tax and share of results of equity investees |
|
|
(24,865 |
) |
|
|
333,973 |
|
|
|
432,394 |
|
|
|
778,783 |
|
| Income tax expense |
|
|
(76,894 |
) |
|
|
(89,198 |
) |
|
|
(262,680 |
) |
|
|
(321,168 |
) |
| Share of results of equity investees |
|
|
(9,856 |
) |
|
|
(7,183 |
) |
|
|
(7,032 |
) |
|
|
(9,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income |
|
|
(111,615 |
) |
|
|
237,592 |
|
|
|
162,682 |
|
|
|
447,827 |
|
| Net loss (income) attributable to non-controlling
interests |
|
|
1,875 |
|
|
|
(284 |
) |
|
|
(11,956 |
) |
|
|
(3,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to Sea Limited’s ordinary shareholders |
|
|
(109,740 |
) |
|
|
237,308 |
|
|
|
150,726 |
|
|
|
444,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Loss) Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
(0.19 |
) |
|
|
0.41 |
|
|
|
0.27 |
|
|
|
0.77 |
|
| Diluted |
|
|
(0.19 |
) |
|
|
0.39 |
|
|
|
0.25 |
|
|
|
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares used in (loss) earnings per share computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
569,527,667 |
|
|
|
580,046,457 |
|
|
|
566,612,815 |
|
|
|
574,966,327 |
|
| Diluted |
|
|
569,527,667 |
|
|
|
610,136,776 |
|
|
|
594,405,604 |
|
|
|
604,713,980 |
|
16
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
|
|
|
|
|
|
|
|
|
| |
|
As of
December 31, |
|
|
As of
December 31, |
|
| |
|
2023 |
|
|
2024 |
|
| |
|
$ |
|
|
$ |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
2,811,056 |
|
|
|
2,405,153 |
|
| Restricted cash |
|
|
1,410,365 |
|
|
|
1,655,171 |
|
| Accounts receivable, net of allowance for credit losses of $9,351 and $5,089, as of
December 31, 2023 and 2024 respectively |
|
|
262,716 |
|
|
|
306,657 |
|
| Prepaid expenses and other assets |
|
|
1,861,842 |
|
|
|
1,661,373 |
|
| Loans receivable, net of allowance for credit losses of $319,463 and $443,555, as of
December 31, 2023 and 2024 respectively |
|
|
2,464,662 |
|
|
|
4,052,215 |
|
| Inventories, net |
|
|
125,395 |
|
|
|
143,246 |
|
| Short-term investments |
|
|
2,547,644 |
|
|
|
6,215,423 |
|
| Amounts due from related parties |
|
|
290,254 |
|
|
|
418,430 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
11,773,934 |
|
|
|
16,857,668 |
|
|
|
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
1,207,698 |
|
|
|
1,097,699 |
|
| Operating lease
right-of-use assets, net |
|
|
1,015,982 |
|
|
|
1,054,785 |
|
| Intangible assets, net |
|
|
50,821 |
|
|
|
27,310 |
|
| Long-term investments |
|
|
4,262,562 |
|
|
|
2,694,305 |
|
| Prepaid expenses and other assets |
|
|
87,705 |
|
|
|
138,839 |
|
| Loans receivable, net of allowance for credit losses of $2,105 and $5,780, as of December 31,
2023 and 2024 respectively |
|
|
20,551 |
|
|
|
108,594 |
|
| Restricted cash |
|
|
22,236 |
|
|
|
21,261 |
|
| Deferred tax assets |
|
|
328,961 |
|
|
|
517,383 |
|
| Goodwill |
|
|
112,782 |
|
|
|
107,625 |
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
7,109,298 |
|
|
|
5,767,801 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
18,883,232 |
|
|
|
22,625,469 |
|
|
|
|
|
|
|
|
|
|
17
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
|
|
|
|
|
|
|
|
|
| |
|
As of
December 31, |
|
|
As of
December 31, |
|
| |
|
2023 |
|
|
2024 |
|
| |
|
$ |
|
|
$ |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
342,547 |
|
|
|
350,021 |
|
| Accrued expenses and other payables |
|
|
1,834,807 |
|
|
|
2,380,371 |
|
| Deposits payable |
|
|
1,706,299 |
|
|
|
2,711,693 |
|
| Escrow payables and advances from customers |
|
|
2,199,464 |
|
|
|
2,498,094 |
|
| Amounts due to related parties |
|
|
64,081 |
|
|
|
255,896 |
|
| Borrowings |
|
|
146,661 |
|
|
|
130,615 |
|
| Operating lease liabilities |
|
|
290,788 |
|
|
|
300,274 |
|
| Convertible notes |
|
|
151,764 |
|
|
|
1,147,984 |
|
| Deferred revenue |
|
|
1,208,892 |
|
|
|
1,405,785 |
|
| Income tax payable |
|
|
223,638 |
|
|
|
115,419 |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
8,168,941 |
|
|
|
11,296,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
| Accrued expenses and other payables |
|
|
79,257 |
|
|
|
71,678 |
|
| Borrowings |
|
|
119,323 |
|
|
|
249,474 |
|
| Operating lease liabilities |
|
|
789,514 |
|
|
|
803,502 |
|
| Deferred revenue |
|
|
72,587 |
|
|
|
109,895 |
|
| Convertible notes |
|
|
2,949,785 |
|
|
|
1,478,784 |
|
| Deferred tax liabilities |
|
|
133 |
|
|
|
408 |
|
| Unrecognized tax benefits |
|
|
6,107 |
|
|
|
138,000 |
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
4,016,706 |
|
|
|
2,851,741 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
12,185,647 |
|
|
|
14,147,893 |
|
|
|
|
|
|
|
|
|
|
18
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
|
|
|
|
|
|
|
|
|
| |
|
As of
December 31, |
|
|
As of
December 31, |
|
| |
|
2023 |
|
|
2024 |
|
| |
|
$ |
|
|
$ |
|
| Shareholders’ equity |
|
|
|
|
|
|
|
|
| Class A Ordinary shares |
|
|
262 |
|
|
|
272 |
|
| Class B Ordinary shares |
|
|
23 |
|
|
|
23 |
|
| Additional paid-in capital |
|
|
15,283,870 |
|
|
|
16,703,192 |
|
| Accumulated other comprehensive loss |
|
|
(108,000 |
) |
|
|
(193,148 |
) |
| Statutory reserves |
|
|
16,981 |
|
|
|
17,260 |
|
| Accumulated deficit |
|
|
(8,599,306 |
) |
|
|
(8,155,264 |
) |
|
|
|
|
|
|
|
|
|
| Total Sea Limited shareholders’ equity |
|
|
6,593,830 |
|
|
|
8,372,335 |
|
| Non-controlling interests |
|
|
103,755 |
|
|
|
105,241 |
|
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
6,697,585 |
|
|
|
8,477,576 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders’ equity |
|
|
18,883,232 |
|
|
|
22,625,469 |
|
|
|
|
|
|
|
|
|
|
19
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts expressed in thousands of US dollars (“$”)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months
ended December 31, |
|
|
For the Year ended
December 31, |
|
| |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Net cash generated from operating activities |
|
|
278,833 |
|
|
|
1,020,982 |
|
|
|
2,079,688 |
|
|
|
3,277,420 |
|
| Net cash used in investing activities |
|
|
(1,048,554 |
) |
|
|
(1,761,066 |
) |
|
|
(5,804,462 |
) |
|
|
(5,040,846 |
) |
| Net cash generated from financing activities |
|
|
183,385 |
|
|
|
700,210 |
|
|
|
366,011 |
|
|
|
1,684,493 |
|
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
68,317 |
|
|
|
(144,793 |
) |
|
|
(7,964 |
) |
|
|
(83,139 |
) |
| Net decrease in cash, cash equivalents and restricted cash |
|
|
(518,019 |
) |
|
|
(184,667 |
) |
|
|
(3,366,727 |
) |
|
|
(162,072 |
) |
| Cash, cash equivalents and restricted cash at beginning of the period |
|
|
4,761,676 |
|
|
|
4,266,252 |
|
|
|
7,610,384 |
|
|
|
4,243,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, cash equivalents and restricted cash at end of the period |
|
|
4,243,657 |
|
|
|
4,081,585 |
|
|
|
4,243,657 |
|
|
|
4,081,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities amounted to US$1,761 million for the three months ended
December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$934 million, net placement of US$759 million in securities purchased under agreements to resell, time deposits and liquid
investment products, for better cash yield management, and purchase of property and equipment of US$89 million to support the existing operations. Net cash generated from financing activities amounted to US$700 million for the three months
ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$600 million.
Net cash used in
investing activities amounted to US$5,041 million for the year ended December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$2,532 million, net placement of US$2,164 million
in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management and purchase of property and equipment of US$318 million to support the existing operations. Net cash generated
from financing activities amounted to US$1,684 million for the year ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$1,292 million, and settlement of capped call of US$429 million.
20
UNAUDITED SEGMENT INFORMATION
The Company has three reportable segments, namely e-commerce, digital financial services and digital
entertainment. The Chief Operating Decision Maker (“CODM”) reviews the performance of each segment based on revenue and certain key operating metrics of the operations and uses these results for the purposes of allocating resources to and
evaluating the financial performance of each segment. Amounts are expressed in thousands of US dollars (“$”).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months ended December 31, 2024 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Revenue |
|
|
3,662,636 |
|
|
|
733,326 |
|
|
|
519,064 |
|
|
|
35,410 |
|
|
|
- |
|
|
|
4,950,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
79,484 |
|
|
|
197,856 |
|
|
|
270,143 |
|
|
|
(10,112 |
) |
|
|
(231,620 |
) |
|
|
305,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,222 |
|
| Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(89,198 |
) |
| Share of results of equity investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,183 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
237,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
For the Three Months ended December 31, 2023 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Revenue |
|
|
2,591,272 |
|
|
|
472,389 |
|
|
|
510,773 |
|
|
|
42,194 |
|
|
|
- |
|
|
|
3,616,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
|
(303,681 |
) |
|
|
134,205 |
|
|
|
261,060 |
|
|
|
(9,558 |
) |
|
|
(138,545 |
) |
|
|
(56,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,654 |
|
| Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(76,894 |
) |
| Share of results of equity investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(111,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A combination of multiple business activities that do
not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to
segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Year ended December 31, 2024 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Revenue |
|
|
12,415,231 |
|
|
|
2,367,739 |
|
|
|
1,910,589 |
|
|
|
126,307 |
|
|
|
- |
|
|
|
16,819,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
|
(139,431 |
) |
|
|
657,502 |
|
|
|
978,821 |
|
|
|
(43,903 |
) |
|
|
(790,837 |
) |
|
|
662,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116,631 |
|
| Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(321,168 |
) |
| Share of results of equity investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
447,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
For the Year ended December 31, 2023 |
|
| |
|
E-commerce |
|
|
Digital
Financial
Services |
|
|
Digital
Entertainment |
|
|
Other
Services(1) |
|
|
Unallocated
expenses(2) |
|
|
Consolidated |
|
| |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| Revenue |
|
|
9,000,848 |
|
|
|
1,759,422 |
|
|
|
2,172,009 |
|
|
|
131,281 |
|
|
|
- |
|
|
|
13,063,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
|
(550,470 |
) |
|
|
490,209 |
|
|
|
1,177,871 |
|
|
|
(56,728 |
) |
|
|
(836,104 |
) |
|
|
224,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
207,616 |
|
| Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(262,680 |
) |
| Share of results of equity investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
162,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A combination of multiple business activities that
does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate
administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
22
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