2023-05-16 07:50:22 ET
Sea Ltd. ( NYSE: SE ) shares fell nearly 9% in pre-market trading on Tuesday after the Singapore tech giant reported first-quarter earnings that widely missed expectations due to a sharp increase in loan loss reserves.
For the period ending March 31, Sea ( SE ) earned 15 cents per share as revenue rose 4.8% year-over-year to $3.04B. Analysts were expecting a gain of 73 cents per share on $3.04B in revenue.
Sea Ltd. ( SE ) said it had it had $2B in total loans receivable as of March 31, though it had $281.1M in net allowance for credit losses and $177.4M in provision for credit losses, up 120.5% year-over-year.
Revenue related to e-commerce during the quarter was $2.1B, up 36.3% year-over-year, as consumers continued to flock to its Shopee platform.
Despite the increase in loan loss provisions, Sea ( SE ) generated $87.3M in net income during the period and $507.2M in adjusted EBITDA. It also ended the period with $7.2B in cash on its balance sheet, up $257.5M from the prior period.
Sea Ltd. ( SE ) also said that David Ma, the previous Chief Investment Officer of Sea Capital, would leave that role and join the company's board of directors, effective yesterday.
"On behalf of the company, I would like to express our gratitude to David for his service as part of our leadership team during an important period in our development," Forrest Li, Sea’s Chairman and CEO, said in a statement . "I am grateful that we will continue to benefit from his expertise and experience as a member of our board of directors, and I have no doubt that he will continue to make important contributions to our company in this new role."
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Sea Ltd plunges as Q1 earnings miss estimates despite e-commerce strength