Slide 1: Second Quarter 2020 Results
Second Quarter 2020 Results August 2020 Private & Confidential
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 “will,” “expec
Slide 3: Group: Robust Revenue Growth
Group: Robust Revenue Growth 93% YoY Growth in Total Adjusted Revenue 1 62% YoY Growth in DE Adjusted Revenue 2 US$ Millions US$ Millions 716.2 DE Adjusted Revenue EC Adjusted Revenue DFS Adjusted Revenue Other Services Adjusted Revenue4 1,287.2 48.5 11.9 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 510.
Slide 4: Digital Entertainment: Continued Growth of User Base
Digital Entertainment: Continued Growth of User Base Quarterly Active Users Quarterly Paying Users Millions Millions 499.8 49.9 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Private & Confidential Sea 2Q 20 Results | 3
Slide 5: E-commerce: Extending Our Leading Position Across the Region
E-commerce: Extending Our Leading Position Across the Region Gross Orders GMV Millions US$ Billions 615.9 8.0 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Private & Confidential Sea 2Q 20 Results | 4
Slide 6: Digital Financial Services: Accelerating Adoption In Our Region
Digital Financial Services: Accelerating Adoption In Our Region > US$1.6 Billion > 15 Million in mobile wallet Quarterly Paying Users for Total Payment Volume in 2Q 2020 mobile wallet services in 2Q 2020 Private & Confidential Sea 2Q 20 Results | 5
Slide 7: Strong and Sustained User Engagement Into 3Q 2020
Strong and Sustained User Engagement Into 3Q 2020 New Record High > 45% in Monthly Adjusted Revenue in July1 of Shopee’s Gross Orders in Indonesia paid using our mobile wallet service in July 2 > 100% YoY growth in Free Fire’s Monthly Paying Users in July1 Note: 1. In July 2020, Garena hit a new rec
Slide 8: Non-GAAP Revenue
Non-GAAP Revenue DE Adjusted Revenue EC Adjusted Revenue DFS Adjusted Revenue Other Services Adjusted Revenue US$ Millions US$ Millions 1,287.2 48.5 1,287.2 48.5 11.9 11.9 510.6 913.9 76.8 510.6 10.7 665.4 42.0 314.0 2.8 177.4 716.2 716.2 443.2 512.4 2Q 2019 2Q 2020 1Q 2020 2Q 2020 Note: Financial f
Slide 9: Reconciliation Between GAAP and Non-GAAP Revenue
Reconciliation Between GAAP and Non-GAAP Revenue US$ Thousands 2Q 2019 2Q 2020 Digital Entertainment Revenue 383,946 Changes in Deferred Revenue 332,264 Digital Entertainment Adjusted Revenue 716,210 E-commerce Revenue 443,0351 Sales Incentives Net-Off 67,562 E-commerce Adjusted Revenue 510,5972 Gro
Slide 10: Gross Profit
Gross Profit Total Gross Profit US$ Millions 200.8 97.4 2Q 2019 2Q 2020 Note: Financial figures are unaudited. Private & Confidential Sea 2Q 20 Results | 9
Slide 11: Non-GAAP EBITDA
Non-GAAP EBITDA Total Adjusted EBITDA US$ Millions US$ Millions DE Adjusted EBITDA EC Adjusted EBITDA DFS Adjusted EBITDA Unallocated Expenses Other Services Adjusted EBITDA 7.7 7.7 436.2 263.8 (248.3) (305.5) (18.1) (5.0) (11.0) (3.3) (110.1) (11.0) (6.4) (6.5) 7.7 2Q 2019 2Q 2020 2Q 2019 2Q 2020 N
Slide 12: Cost and Expense Trends
Cost and Expense Trends Cost of Revenue Sales & Marketing Expenses US$ Millions US$ Millions 681.2 386.3 338.7 198.1 2Q 2019 2Q 2020 2Q 2019 2Q 2020 General & Administrative Expenses R&D Expenses US$ Millions US$ Millions 75.3 144.5 101.3 35.1 2Q 2019 2Q 2020 2Q 2019 2Q 2020 Note: Financial figures
Slide 13: Net Loss
Net Loss Net Loss Excluding Share-based Compensation and Net Loss Changes in Fair Value of the 2017 Convertible Notes US$ Millions US$ Millions 2Q 2019 2Q 2020 2Q 2019 2Q 2020 (215.1) (280.1) (317.7) (393.5) Note: Financial figures are unaudited. Please refer to the appendix for details on reconcili
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents US$ Millions 3,432.8 3,119.0 2,599.7 2,308.1 2,297.2 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Note: Financial figures are unaudited. Private & Confidential Sea 2Q 20 Results | 13
Slide 15: Appendix
Appendix Private & Confidential Sea 2Q 20 Results | 14
Slide 16: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 2Q 2019 2Q 2020 Digital Entertainment Operating income / (loss) 167,027 Net effect of changes in deferred revenue & related cost 262,966 Depreciation and amortization 6,242 Digital Entertainment Adjusted EBITDA 436,235 E-commerce Operatin
Slide 17: Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation
Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation and Changes in Fair Value of the 2017 Convertible Notes US$ Thousands 2Q 2019 2Q 2020 Group Net loss (393,535) Share-based compensation 75,870 Changes in fair value of the 2017 convertible notes - Net loss excluding shar