SE - Sea Limited's Shopee Turnaround Remains a Work in Progress
2023-11-22 10:24:00 ET
Investors were delighted when Sea Limited 's (NYSE: SE) e-commerce business, Shopee, reported its first quarter of positive earnings before interest, tax, depreciation, and amortization ( EBITDA ) at the end of 2022, affirming the validity of its business model.
But just three quarters after the company reached that significant milestone, Shopee plunged back into the red again in the third quarter of 2023, dashing investors' hope of continued profitability.
When the pandemic hit in 2020, Shopee was well-positioned to benefit from the surge in e-commerce demand. Not only that, Sea went all-in by investing heavily in subsidies and promotions to grow its market share. That year, revenue jumped 160%, followed by another 136% jump in 2021.
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Sea Limited's Shopee Turnaround Remains a Work in Progress