SE - Sea: Ready For Take-Off
2024-03-07 16:31:07 ET
Summary
- Sea announced Q4 2023 earnings with revenue up just 5% year-over-year. But under the surface much more strength could be seen.
- Garena's revenue declined by 46%, but bookings show signs of stabilization and management guided for double-digit growth for Free Fire.
- Shopee's revenue grew by 23% YoY, with investments in sales and marketing paying off in market share gains.
- While many investors feared TikTok, the numbers show that Shopee beats TikTok on its own turf.
Introduction
On Monday, Sea Limited ( SE ) announced its Q4 2023 earnings and the stock price had one of the strangest reactions I have recently seen. First the stock shot up almost 15%, then was down almost 4%, and it ended the day up 6.3%. After hours, it was slightly down from the close, but still up 5.29% compared to before the earnings announcement.
Ycharts
The Numbers
Revenue was up 5% year-over-year, both for the quarter and the full year.
Sea Ltd.
5% looks very low, of course, for a growth company. The reason there is very clear: Garena still weighs on the results. Compared to last year, revenue was down 46%, from $948.9 million to $510.8 million....
Sea: Ready For Take-Off