2023-04-04 15:01:09 ET
Shares of Sea Limited (NYSE: SE) soared 38.5% higher in March, according to data provided by S&P Global Market Intelligence . The company reported strong financial results, stunning analysts by showing profitability in the final quarter of the year. As the month went on, Wall Street analysts digested the news and upgraded their outlooks for the company, contributing to the stock's strong performance during the month.
Sea Limited is an Asian company that has business segments in video games, e-commerce, and financial technology. For context, this company had experienced ultra-high growth, with full-year revenue up 101% and 128% year over year in 2020 and 2021, respectively. But as macroeconomic conditions weakened, management pulled back on growth, and the stock was hammered -- at one point, it was down 89% from its all-time high.
In the final quarter of 2022, Sea Limited's management spent 61% less on sales-and-marketing expenses than it had in the prior-year period. This impacted revenue growth -- Q4 revenue was only up 7% year over year. However, the company generated operating income of almost $343 million compared to an operating loss of $442 million in the same quarter of 2021.
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Why Sea Limited Stock Soared Over 38% Higher Last Month