Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 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: Third Quarter 2024 Results Overview
Third Quarter 2024 Results Overview Sea 3Q 2024 Results | 2
Slide 4: Back to High Growth While Improving Profitability
Back to High Growth While Improving Profitability E-commerce Digital Financial Services Digital Entertainment GAAP Revenue Loans Principal Outstanding1 Bookings2 US$ Billions US$ Billions US$ Millions YoY: +42.6% YoY: +73.2% YoY: +24.3% QoQ: +12.8% QoQ: +30.9% QoQ: +3.7% 3.2 4.6 556.5 536.8 2.8 447.
Slide 5: 3Q 2024 Financial Performance
3Q 2024 Financial Performance GAAP Gross Operating Net Revenue Profit Income/(Loss) Income/(Loss) US$ Billions US$ Billions US$ Millions US$ Millions 4.3 1.9 202.4 153.3 3.8 1.6 1.4 3.3 79.9 82.9 (127.7) (144.0) 3Q 2023 2Q 2024 3Q 2024 3Q 2023 2Q 2024 3Q 2024 3Q 2023 2Q 2024 3Q 2024 3Q 2023 2Q 2024
Slide 6: 3Q 2024 Profitability and Cash Position
3Q 2024 Profitability and Cash Position Adjusted Cash EBITDA Position1 US$ Millions US$ Billions 521.3 9.9 448.5 9.0 8.5 35.3 3Q 2023 2Q 2024 3Q 2024 EC (346.5) (9.2) 34.4 DFS 165.7 164.7 187.9 DE 234.0 302.8 314.4 3Q 2023 2Q 2024 3Q 2024 Note: Financial figures are unaudited. Please refer to the ap
Slide 7: 3Q 2024 Segmental Breakdown
3Q 2024 Segmental Breakdown Digital Financial Digital Unallocated US$ Millions E-commerce Services Entertainment Other Services Expenses1 Consolidated Revenue 3,183.6 615.7 497.8 31.1 - 4,328.2 Operating (loss)/income (36.8) 173.9 262.4 (11.0) (186.1) 202.4 Adjusted EBITDA 34.4 187.9 314.4 (8.6) (6.
Slide 8: Third Quarter 2024 Business Highlights
Third Quarter 2024 Business Highlights Sea 3Q 2024 Results | 7
Slide 9: Sustaining Strong Growth And Market Leadership
Sustaining Strong Growth And Market Leadership Progress made on key Profitable and growing strongly Improving monetization operational priorities • Achieved positive adjusted • Further market rationalization in • Price competitiveness: Shopee EBITDA in 3Q 2024 in both Asia Southeast Asia drove indus
Slide 10: E-commerce: GMV and Gross Orders
E-commerce GMV and Gross Orders Billions GMV (US$) Gross Orders 2.8 2.5 2.6 2.5 3 30 2.2 25.1 2 25 23.1 23.6 23.3 20.1 1 20 0 15 -1 10 5 -2 0 -3 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Sea 3Q 2024 Results | 9
Slide 11: E-commerce: GAAP Revenue & Take Rate
E-commerce GAAP Revenue & Take Rate1 US$ Billions Core Marketplace Revenue Product Revenue Value-added Services Revenue GAAP Take Rate1 12.7% 12.1% 11.7% 4 11.1% 11.2% 0 3.2 3 2.7 2.8 0.4 0 2.6 0 2.2 3 0.8 2 0 0 2 0 0 1 2.0 0 1 0 0 0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Note: Financial figures ar
Slide 12: E-commerce: Adjusted EBITDA
E-commerce Adjusted EBITDA US$ Millions Adjusted EBITDA Adjusted EBITDA as % of GMV 0.1% 450 (0.1%) (0.0%) 350 (1.7%) (1.0%) 0 250 150 0 34.4 50 (9.2) -50 0 (21.7) -150 -250 0 (225.3) -350 -450 (346.5) 0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Asia (306.2) (192.9) 11.5 3.8 30.9 Other (40.3) (32.4) (
Slide 13: Strong Growth Momentum in Revenue and Adjusted EBITDA
Strong Growth Momentum in Revenue and Adjusted EBITDA High growth while maintaining stable risk profile Driving off-Shopee growth • Loans principal outstanding grew > 70% YoY in 3Q 2024 • Pushing most strongly in Indonesia where off-Shopee loans3 now > 50% of the loan book in this market • We added
Slide 14: Digital Financial Services: Loans Principal Outstanding and NPL90+ Ratio
Digital Financial Services Loans Principal Outstanding1 and NPL90+ Ratio2 US$ Billions On-book NPL90+ Ratio2 Off-book3 7 1.4% 1.4% 1.4% 1.3% 0 6 1.2% 0 5 4.6 0.8 4 3.5 0 3.1 3.3 0 3 2.7 0 0 3.8 2 0 1 0 0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 1. Consumer and SME loans principal outstanding. 2. Non-
Slide 15: Digital Financial Services: GAAP Revenue and Adjusted EBITDA
Digital Financial Services GAAP Revenue and Adjusted EBITDA US$ Millions GAAP Revenue Adjusted EBITDA 700 615.7 600 519.3 499.4 500 472.4 446.2 400 300 187.9 200 165.7 148.5 148.7 164.7 100 0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Note: Financial figures are unaudited. Please refer to the appendix
Slide 16: Good Performance Driven By the Strength of Free Fire
Good Performance Driven By the Strength of Free Fire Free Fire remains one of largest mobile games in the Continuing to delight users with fresh localized world, with high user engagement and acquisition content and exciting new launches • Maintained daily active users above 100 million, Content ins
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 8.2% 8.1% 8.0% 0 800 7.5% 7.5% 0 700 648.0 628.5 0 594.7 600 544.1 528.7 0 500 0 400 0 300 0 200 0 100 0 0 0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 ARPPU1
Slide 18: Digital Entertainment: Bookings, GAAP Revenue and Adjusted EBITDA
Digital Entertainment Bookings1, GAAP Revenue and Adjusted EBITDA US$ Millions Bookings1 Adjusted EBITDA GAAP Revenue Adjusted EBITDA as a % of Bookings1 57.1% 56.4% 56.5% 800 52.2% 0.6 700 47.6% 0.5 592.2 600 536.8 556.5 0.5 510.8 512.1 497.8 0.4 500 447.9 456.3 458.1 435.6 0.4 400 302.8 314.4 292.
Slide 19: Appendix
Appendix Sea 3Q 2024 Results | 18
Slide 20: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 3Q 2023 3Q 2024 E-commerce Operating income / (loss) (428,183) (36,818) Depreciation and amortization 81,688 71,264 E-commerce Adjusted EBITDA (346,495) 34,446 Digital Financial Services Operating income / (loss) 150,470 173,942
Slide 21: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 3Q 2023 3Q 2024 Other Services Operating income / (loss) (11,704) (11,001) Depreciation and amortization 2,933 2,446 Other Services Adjusted EBITDA (8,771) (8,555) Group Operating income / (loss) (127,740) 202,415 Net effect of c