Sea Limited ( NYSE: SE ) dropped on Tuesday after the Singapore-based technology company reported mixed second-quarter results and suspended revenue guidance for its e-commerce segment, noting the "increasing macro uncertainties."
For the period ending June 30, Sea Limited ( SE ) lost an adjusted $1.03 per share on $2.94B in revenue, up 28.9% year-over-year. Analysts were expecting an adjusted loss of $1.06 per share on $2.88B in revenue.
The company said e-commerce revenue rose 51.4% year-over-year during the quarter to $1.7B, while gross orders totaled 2B, an increase of 41.6% year-over-year.
Sea Limited ( SE ) said adjusted EBITDA for its e-commerce unit, Shopee, was negative $648.1M, compared to $579.8M in the year-ago period, but adjusted EBITDA loss per order improved by 21%.
Sea Limited ( SE ) added that Shopee continued to rank first in Indonesia and Taiwan by monthly active users and it continued its strong growth in Brazil with GAAP revenue rising 270% year-over-year.
However, with the global economy increasingly weakening due to rising interest rates, slowing consumer activity and geopolitical uncertainties, Sea Limited ( SE ) said it would "further focus on efficiency and optimization for the long-term strength and profitability of the e-commerce business."
"Given this strategic shift, we will be suspending e-commerce GAAP revenue guidance for the full year 2022," the company said in a statement. "We believe such efforts will further strengthen our ability to better capture the long-term growth opportunities in our markets, which we remain highly positive about."
Sea Limited ( SE ) shares fell more than 5% to 85.38 in premarket trading.
On Monday, it was disclosed that hedge fund Bridgewater Associates had bought 459K shares of Sea Limited ( SE ) during the second quarter .
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Sea Limited drops as mixed Q2 results, suspended guidance weighs on shares