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Sea's Shares Rise 9% After Posting 93% Adjusted Revenue Growth in Q2

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Shares of Sea Ltd. reached a new 52-week high after the digital entertainment, e-commerce and digital payments firm reported Q2/20 financial results that included a 93.4% YoY growth in total adjusted revenue.

Internet platform operator Sea Ltd. (SE:NYSE), which provides digital entertainment, e-commerce and digital financial services, today announced financial results for the second quarter ended June 30, 2020.

The company reported that in Q2/20, total adjusted revenue was US$1.287 billion, up 93.4% compared to US$665.4 million in Q2/19. The firm also advised that in Q2/20 total gross profit increased by 106.1% to $200.8 million, compared to $97.4 million for Q2/19. The company further indicated that total adjusted EBITDA in Q2/20 was $7.7 million compared to $(11.0) million in Q2/19.

The firm additionally provided a breakdown of results by each of its three main business units.

In Q2/20, digital entertainment adjusted revenue increased 61.6% to $716.2 million, versus $443.2 million in Q2/19 and Adjusted EBITDA increased to $436.2 million, up 65.4% compared to Q2/19. The firm listed that quarterly active users reached 499.8 million, +61.0% YoY, up from 310.5 million in Q2/19 and that quarterly paying users grew by 91.2% YoY to 49.9 million in the same period.

In the e-commerce segment, the company reported adjusted revenue in Q2/20 of $510.6 million, up 187.7% versus Q2/19 and adjusted EBITDA of $(305.5) million, compared to US$(248.3) million in Q2/19.

The company highlighted that "in Indonesia, where Shopee is the largest e-commerce platform, it registered over 260 million orders for the market in the second quarter, or a daily average of over 2.8 million orders, an increase of over 130% year-on-year."

The company also noted that in its digital financial services products line, it saw accelerated growth in adoption of SeaMoney offerings in Q2/20. The firm noted that in Q2/20 quarterly paying users for its mobile wallet services exceeded 15 million and mobile wallet total payment volume was greater than $1.6 billion.

The firm pointed out that the continued integration of mobile wallet services with Shopee deepened further in the quarter. The company noted that in SeaMoney's largest market, Indonesia, greater than 45% of Shopee's gross orders were paid using its mobile wallet.

Sea Ltd. is a global consumer internet company headquartered in Singapore. The firm operations are composed of three primary product lines. These include global online games developer and publisher Garena in the digital entertainment space; Shopee, which the firm states is the largest pan-regional e-commerce platform in S.E. Asia and Taiwan in the e-commerce sector; and SeaMoney in the digital payments and financial services space, which the firm also pointed out has the leading digital payments and financial services provider in S.E. Asia.

Sea Ltd. began the day with a market capitalization of around $62.6 billion with approximately 466.1 million shares outstanding and a short interest of about 5.8%. SE U.S. ADR shares opened 10% higher today at $148.00 (+$13.72, +10.22%) over yesterday's $134.28 closing price and reached a new 52-week high price this morning of $152.51. The stock has traded today between $141.03 and $152.51 per share and is currently trading at $147.12 (+$12.72, +9.46%).


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