Sea Holdings Ltd. · HKEX:251
Sea — Q3 2020 Earnings Presentation
15 slides from Sea's earnings presentation, Nov 18, 2020
Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results November 2020
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 99% YoY Growth in Total GAAP Revenue 1 110% YoY Growth in DE Bookings3 944.7 US$ Millions US$ Millions DE GAAP Revenue EC GAAP Revenue DFS GAAP Revenue Other Services GAAP Revenue2 1,212.2 10.1 14.4 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 618.7 173% YoY Growth in EC GAAP
Slide 4: Digital Entertainment: Continued Growth of User Base
Digital Entertainment: Continued Growth of User Base Quarterly Active Users Quarterly Paying Users Millions Millions 65.3 572.4 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Sea 3Q2020 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 741.6 9.3 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Sea 3Q2020 Results | 4
Slide 6: Digital Financial Services: Accelerating Adoption In Our Region
Digital Financial Services: Accelerating Adoption In Our Region > US$2.1 Billion > 17.8 Million > 30% in mobile wallet Quarterly Paying Users for of Shopee’s Gross Orders were Total Payment Volume in 3Q 2020 mobile wallet services in 3Q 2020 paid using our mobile wallet in Oct1 Note: 1. In October 2
Slide 7: Gross Profit
Gross Profit Total Gross Profit US$ Millions 407.6 203.2 3Q 2019 3Q 2020 Note: Financial figures are unaudited. Sea 3Q2020 Results | 6
Slide 8: 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 120.4 120.4 584.5 266.0 (253.7) (33.6) (301.6) (6.5) (149.3) (30.8) (2.9) (9.1) (4.2) (30… 3Q 2019 3Q 2020 3Q 2019 3Q 2020 Not
Slide 9: Cost and Expense Trends
Cost and Expense Trends Cost of Revenue Sales & Marketing Expenses US$ Millions US$ Millions 471.0 804.6 251.8 407.0 3Q 2019 3Q 2020 3Q 2019 3Q 2020 General & Administrative Expenses R&D Expenses US$ Millions US$ Millions 104.3 196.7 99.3 43.6 3Q 2019 3Q 2020 3Q 2019 3Q 2020 Note: Financial figures
Slide 10: 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 3Q 2019 3Q 2020 3Q 2019 3Q 2020 (206.1) (175.2) (346.0) (425.3) Note: Financial figures are unaudited. Please refer to the appendix for details on reconcili
Slide 11: Cash and Cash Equivalents
Cash and Cash Equivalents US$ Millions 3,432.8 3,509.0 3,119.0 2,599.7 2,297.2 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Note: Financial figures are unaudited. Sea 3Q2020 Results | 10
Slide 12: Raised Full Year 2020 Guidance
Raised Full Year 2020 Guidance Guidance > US$3.1 Billion > 75.4% YoY Growth Digital Entertainment Bookings1 (Previous: US$1.9 Billion to US$2.0 Billion) > US$2.3 Billion E-commerce GAAP revenue plus sales > 144.1% YoY Growth incentives net-off2 (Previous: US$1.7 Billion to US$1.8 Billion) Note: 1. A
Slide 13: Appendix
Appendix Sea 3Q2020 Results | 12
Slide 14: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 3Q 2019 3Q 2020 Digital Entertainment Operating income / (loss) 278,614 Net effect of changes in deferred revenue & related cost 299,200 Depreciation and amortization 6,711 Digital Entertainment Adjusted EBITDA 584,525 E-commerce Operatin
Slide 15: Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation and Changes in Fair Value
Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation and Changes in Fair Value of the 2017 Convertible Notes US$ Thousands 3Q 2019 3Q 2020 Group Net loss (425,262) Share-based compensation 79,213 Changes in fair value of the 2017 convertible notes - Net loss excluding shar