Sea Holdings Ltd. · HKEX:251
Sea — Q1 2024 Earnings Presentation
21 slides from Sea's earnings presentation, May 14, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results May 2024
Slide 2: Disclaimer
Disclaimer This presentation by Sea Limited (“Sea”) contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,
Slide 3: First Quarter 2024 Results Overview
First Quarter 2024 Results Overview Sea 1Q 2024 Results | 2
Slide 4: Solid Growth Across All Three Business Segments
Solid Growth Across All Three Business Segments E-commerce Digital Financial Services Digital Entertainment GAAP Revenue Loans Principal Outstanding 1 Bookings2 US$ Billions US$ Billions US$ Millions YoY: +32.9% YoY: +28.7% YoY: +10.8% QoQ: +6.0% QoQ: +5.1% QoQ: +12.2% 3.3 2.7 3.1 2.6 512.1 462.3 45
Slide 5: 1Q 2024 Financial Performance
1Q 2024 Financial Performance GAAP Gross Operating Net Revenue Profit Income/(Loss) Income/(Loss) US$ Billions US$ Billions US$ Millions US$ Millions 125.2 87.3 1.5 1.6 3.7 1.4 3.6 71.1 3.0 (23.0) (111.6) (56.5) 1Q 2023 4Q 2023 1Q 2024 1Q 2023 4Q 2023 1Q 2024 1Q 2023 4Q 2023 1Q 2024 1Q 2023 4Q 2023
Slide 6: 1Q 2024 Profitability and Cash Position
1Q 2024 Profitability and Cash Position Adjusted Cash EBITDA Position1 US$ Millions US$ Billions 507.2 8.7 8.6 401.1 7.9 126.7 1Q 2023 4Q 2023 1Q 2024 EC 207.7 (225.3) (21.7) DFS 98.9 148.5 148.7 DE 230.1 217.4 292.2 1Q 2023 4Q 2023 1Q 2024 Note: Financial figures are unaudited. Please refer to the
Slide 7: 1Q 2024 Segmental Breakdown
1Q 2024 Segmental Breakdown Digital Financial Digital Unallocated US$ Millions E-commerce Services Entertainment Other Services Expenses1 Consolidated Revenue 2,747.8 499.4 458.1 29.1 - 3,734.3 Operating (loss)/income (97.3) 134.4 236.2 (13.8) (188.4) 71.1 Adjusted EBITDA (21.7) 148.7 292.2 (10.7) (
Slide 8: First Quarter 2024 Business Highlights
First Quarter 2024 Business Highlights Sea 1Q 2024 Results | 7
Slide 9: Record Quarter With Strong Growth & Improved Unit-Economics
Record Quarter With Strong Growth & Improved Unit-Economics Record quarter with strong growth Improving service quality & improved profit profile • Delivered strong growth in 1Q 2024: • Integrated logistics capabilities as a differentiator • Highest ever quarterly orders, GMV, and • ~70% of SPX Expr
Slide 10: E-commerce: GMV and Gross Orders
E-commerce GMV and Gross Orders Billions GMV (US$) Gross Orders 30 2.5 2.6 3 2.2 1.8 25 1.6 23.1 23.6 2 20.1 18.0 20 1 17.3 15 0 10 -1 5 -2 0 -3 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Sea 1Q 2024 Results | 9
Slide 11: E-commerce: GAAP Revenue & Take Rate
E-commerce GAAP Revenue & Take Rate1 US$ Billions Core Marketplace Revenue Product Revenue Value-added Services Revenue GAAP Take Rate 1 12.0% 11.7% 11.7% 11.2% 4 11.1% 0 2.7 3 2.6 0 3 0.3 2.2 2.1 2.1 0 2 0.7 0 0 2 0 0 1 1.7 0 1 0 0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Note: Financial figures are
Slide 12: E-commerce: Adjusted EBITDA
E-commerce Adjusted EBITDA US$ Millions Adjusted EBITDA Adjusted EBITDA as % of GMV 450 1.2% 0.8% (0.1%) 350 (1.7%) (1.0%) 0 250 207.7 150.3 150 0 50 -50 0 (21.7) -150 -250 0 (225.3) -350 -450 (346.5) 0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q2024 Asia 275.8 204.1 (306.2) (192.9) 11.5 Other (68.1) (53.7)
Slide 13: Strong Growth Momentum With Prudent Risk Management
Strong Growth Momentum With Prudent Risk Management User acquisition drives Growth opportunities Prudent approach to user & loan growth off-Shopee risk management • Consumer and SME loans • By the end of 1Q 2024, off- • Continuously fine-tuning the active users1 increased 42% Shopee loans2 accounted
Slide 14: Digital Financial Services: Loans Principal Outstanding and NPL90+ Ratio
Digital Financial Services Loans Principal Outstanding 1 and NPL90+ Ratio2 US$ Billions On-book NPL90+ Ratio2 Off-book3 1.7% 0 5 1.6% 1.4% 1.4% 1.4% 0 4 0 3.1 3.3 0 3 2.7 0.6 0 2.5 2.5 0 0 2 0 0 2.7 0 1 0 0 0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1. Consumer and SME loans principal outstanding. 2.
Slide 15: Digital Financial Services: GAAP Revenue and Adjusted EBITDA
Digital Financial Services GAAP Revenue and Adjusted EBITDA US$ Millions GAAP Revenue Adjusted EBITDA 600 499.4 500 472.4 446.2 412.8 427.9 400 300 200 165.7 137.0 148.5 148.7 98.9 100 0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Note: Financial figures are unaudited. Please refer to the appendix for d
Slide 16: Back To Positive Growth Led By Free Fire's Strong Performance
Back To Positive Growth Led By Free Fire’s Strong Performance Improving user acquisition, engagement, Recent Free Fire content and retention • Free Fire’s average MAU in 1Q 2024 increased • Continue to introduce play modes, redesign 24% YoY features, and launch new content – all at a high frequency,
Slide 17: Digital Entertainment: Quarterly Active Users, Paying User Ratio and ARPPU
Digital Entertainment Quarterly Active Users, Quarterly Paying User Ratio and ARPPU1 Millions Quarterly Active Users Quarterly Paying User Ratio 800 8.2% 0 7.9% 7.7% 7.5% 7.5% 0 700 594.7 0 600 544.5 544.1 528.7 491.6 0 500 0 400 0 300 0 200 0 100 0 0 0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 ARPPU1
Slide 18: Digital Entertainment: Bookings, GAAP Revenue and Adjusted EBITDA
Digital Entertainment Bookings1, GAAP Revenue and Adjusted EBITDA US$ Millions Bookings 1 Adjusted EBITDA GAAP Revenue Adjusted EBITDA as a % of Bookings1 57.1% 54.0% 800 52.2% 0.6 49.8% 700 47.6% 0.5 592.2 0.5 539.7 600 529.4 510.8 512.1 462.3 0.4 500 443.1 447.9 456.3 458.1 0.4 400 292.2 0.3 300 2
Slide 19: Appendix
Appendix Sea 1Q 2024 Results | 18
Slide 20: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 1Q 2023 1Q 2024 E-commerce Operating income / (loss) 115,844 (97,335) Depreciation and amortization 91,870 75,635 E-commerce Adjusted EBITDA 207,714 (21,700) Digital Financial Services Operating income / (loss) 84,568 134,443 Dep
Slide 21: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 1Q 2023 1Q 2024 Other Services Operating income / (loss) (25,432) (13,787) Depreciation and amortization 3,491 3,116 Other Services Adjusted EBITDA (21,941) (10,671) Group Operating income / (loss) 125,224 71,092 Net effect of ch