Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results November 2022
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: Total GAAP Revenue
Total GAAP Revenue US$ Millions EC GAAP Revenue DFS GAAP Revenue DE GAAP Revenue Other Services GAAP Revenue1 +17% YoY 3,156.0 16.1 2,688.9 6.9 326.9 132.2 892.9 1,099.4 1,920.1 1,450.4 3Q 2021 3Q 2022 Note: Financial figures are unaudited. 1. A combination of multiple business activities that does
Slide 4: Total Adjusted EBITDA
Total Adjusted EBITDA US$ Millions EC Adjusted EBITDA Other Services Adjusted EBITDA DE Adjusted EBITDA Unallocated Expenses DFS Adjusted EBITDA 715.1 333.6 289.9 (495.7) (683.8) (648.1) (67.7) (159.0) (111.5) (76.5) (72.6) (357.7) (7.5) (31.9) (165.5) (5.8) (506.3) (7.7) 3Q 2021 2Q 2022 3Q 2022 Aft
Slide 5: Cash, Cash Equivalents and Short-term Investments
Cash, Cash Equivalents and Short-term Investments US$ Billions 11.8 10.2 8.8 7.8 7.3 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 As of September 30, 2022, cash, cash equivalents and short-term investments was US$7.3 billion, representing a net change of US$(485.1) million from June 30, 2022. Note: Finan
Slide 6: E-commerce
E-commerce GAAP Marketplace Revenue Adjusted EBITDA1 US$ Billions US$ Millions 28% YoY & 24% QoQ +39% YoY Improvement Core Marketplace Revenue Asia Markets Adjusted EBITDA Value-added Services Revenue Other Markets Adjusted EBITDA 1.6 3Q 2021 2Q 2022 3Q 2022 31% QoQ (216.8) 1.2 +20% YoY 0.6 Improvem
Slide 7: E-commerce
E-commerce Gross Orders GMV Billions US$ Billions +14% YoY +19% YoY +21% YoY FXN1 2.0 19.0 19.1 2.0 2.0 18.2 1.9 17.4 16.8 1.7 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 1. Current and comparative prior period local currency amounts are converted into United Stat
Slide 8: Digital Entertainment
Digital Entertainment DE Bookings1 Quarterly Active Users Quarterly Paying User Ratio US$ Millions Millions % -7% QoQ -8% QoQ Flat QoQ -4% QoQ FXN2 729.0 12.8% 1,220.7 654.0 11.8% 1,081.7 615.9 619.3 568.2 10.0% 9.1% 9.1% 826.2 717.4 664.7 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 3Q 2021 4Q 2021 1Q 2
Slide 9: Digital Financial Services
Digital Financial Services GAAP Revenue As of the end of the third quarter 2022: US$ Millions Total loans receivable was US$2.2 billion, +147% YoY net of allowance for credit losses of US$253.4 million. 326.9 279.0 236.0 197.5 Non-performing loans past due by more than 90 days represented less than
Slide 10: Gross Profit
Gross Profit Total Gross Profit US$ Billions +22% YoY 1.2 1.0 3Q 2021 3Q 2022 Note: Financial figures are unaudited. Sea 3Q 2022 Results | 9
Slide 11: Cost and Expense Trends
Cost and Expense Trends Cost of Revenue Sales & Marketing Expenses US$ Millions US$ Millions 1,009.6 1,928.2 1,680.2 816.7 3Q 2021 3Q 2022 3Q 2021 3Q 2022 General & Administrative Expenses Research & Development Expenses US$ Millions US$ Millions 551.7 421.0 294.8 231.4 3Q 2021 3Q 2022 3Q 2021 3Q 20
Slide 12: Net Loss and Net Loss Excluding Share-based Compensation
Net Loss and Net Loss Excluding Share-based Compensation Net Loss Net Loss Excluding Share-based Compensation US$ Millions US$ Millions 3Q 2021 2Q 2022 3Q22 3Q 2021 2Q 2022 3Q 2022 (373.5) (448.0) (571.0) (569.3) (569.8)1 After adjusting for US$85.4 million of severance and early lease termination r
Slide 13: Appendix
Appendix Sea 3Q 2022 Results | 12
Slide 14: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 3Q 2021 2Q 2022 3Q 2022 Digital Entertainment Operating income / (loss) 611,673 456,811 456,952 Net effect of changes in deferred revenue & its related cost 93,707 (134,100) (177,874) Depreciation and amortization 9,759 10,908 10,801 Digi
Slide 15: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 3Q 2021 2Q 2022 3Q 2022 Other Services Operating income / (loss) (33,913) (75,604) (80,711) Depreciation and amortization 1,993 3,049 4,181 Other Services Adjusted EBITDA (31,920) (72,555) (76,530) Group Operating income / (loss) (458,556
Slide 16: Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation and Impairment of Goodwill
Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation and Impairment of Goodwill US$ Thousands 3Q 2021 2Q 2022 3Q 2022 Group Net loss (570,981) (931,199) (569,275) Share-based compensation 122,967 184,108 195,755 Impairment of goodwill - 177,280 - Net loss excluding share-b