Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 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: Second Quarter 2024 Results Overview
Second Quarter 2024 Results Overview Sea 2Q 2024 Results | 2
Slide 4: Strong Growth Momentum from 1Q Continuing into 2Q
Strong Growth Momentum from 1Q Continuing into 2Q E-commerce Digital Financial Services Digital Entertainment GAAP Revenue Loans Principal Outstanding1 Bookings2 US$ Billions US$ Billions US$ Millions YoY: +33.7% YoY: +39.5% YoY: +21.1% QoQ: +2.7% QoQ: +7.8% QoQ: +4.8% 2.7 2.8 536.8 3.5 512.1 3.3 44
Slide 5: 2Q 2024 Financial Performance
2Q 2024 Financial Performance GAAP Gross Operating Net Revenue Profit Income Income/(Loss) US$ Billions US$ Billions US$ Millions US$ Millions 283.8 331.0 1.6 1.6 3.8 1.5 3.7 3.1 79.9 82.9 71.1 (23.0) 2Q 2023 1Q 2024 2Q 2024 2Q 2023 1Q 2024 2Q 2024 2Q 2023 1Q 2024 2Q 2024 2Q 2023 1Q 2024 2Q 2024 Not
Slide 6: 2Q 2024 Profitability and Cash Position
2Q 2024 Profitability and Cash Position Adjusted Cash EBITDA Position1 US$ Millions US$ Billions 510.0 9.0 448.5 8.6 401.1 8.3 2Q 2023 1Q 2024 2Q 2024 EC 150.3 (21.7) (9.2) DFS 137.0 148.7 164.7 DE 239.5 292.2 302.8 2Q 2023 1Q 2024 2Q 2024 Note: Financial figures are unaudited. Please refer to the a
Slide 7: 2Q 2024 Segmental Breakdown
2Q 2024 Segmental Breakdown Digital Financial Digital Unallocated US$ Millions E-commerce Services Entertainment Other Services Expenses1 Consolidated Revenue 2,821.3 519.3 435.6 30.7 - 3,806.9 Operating (loss)/income (84.8) 151.3 210.1 (9.0) (184.7) 82.9 Adjusted EBITDA (9.2) 164.7 302.8 (6.0) (3.9
Slide 8: Second Quarter 2024 Business Highlights
Second Quarter 2024 Business Highlights Sea 2Q 2024 Results | 7
Slide 9: Healthy and Sustainable Growth while Improving Profit Profile
Healthy and Sustainable Growth while Improving Profit Profile Maintaining sizable lead Improving ad take rate & live Service quality continues to be a over peers; revising full-year streaming unit economics differentiating brand factor guidance upward • Happy with market share in • Improved onboardi
Slide 10: E-commerce: GMV and Gross Orders
E-commerce GMV and Gross Orders Billions GMV (US$) Gross Orders 30 2.5 2.6 2.5 3 2.2 1.8 25 23.1 23.6 23.3 2 20.1 18.0 20 1 15 0 10 -1 5 -2 0 -3 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Sea 2Q 2024 Results | 9
Slide 11: E-commerce: GAAP Revenue & Take Rate
E-commerce GAAP Revenue & Take Rate1 US$ Billions Core Marketplace Revenue Product Revenue Value-added Services Revenue GAAP Take Rate1 12.1% 11.7% 11.7% 11.2% 4 11.1% 0 3 2.7 2.8 2.6 0 0.3 3 2.2 2.1 0 2 0.7 0 0 2 0 0 1 1.8 0 1 0 0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 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 0.8% (0.1%) (0.0%) 350 (1.7%) (1.0%) 0 250 150.3 150 0 50 (9.2) -50 0 (21.7) -150 -250 0 (225.3) -350 -450 (346.5) 0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Asia 204.1 (306.2) (192.9) 11.5 3.8 Other (53.7) (40.3)
Slide 13: Strong Growth Momentum in Loan Book and Profitability
Strong Growth Momentum in Loan Book and Profitability Consumer and SME credit business continues to be a Strong loan book and user base growth primary driver of revenue and profit growth with prudent risk management On-Shopee: Leveraging large Shopee user base to acquire • Loans principal outstandin
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 1.6% 1.4% 1.4% 1.4% 5 1.3% 0 0 4 3.5 3.1 3.3 0.7 3 2.7 0 2.5 0 2 0 0 2.9 1 0 0 0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 1. Consumer and SME loans principal outstanding. 2. Non-perf
Slide 15: Digital Financial Services: GAAP Revenue and Adjusted EBITDA
Digital Financial Services GAAP Revenue and Adjusted EBITDA US$ Millions GAAP Revenue Adjusted EBITDA 600 519.3 499.4 500 472.4 446.2 427.9 400 300 200 165.7 164.7 137.0 148.5 148.7 100 0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Note: Financial figures are unaudited. Please refer to the appendix for
Slide 16: Delivered a Strong Quarter Led by Free Fire's Growth
Delivered a Strong Quarter Led by Free Fire’s Growth Free Fire is the main contributor to Continuing to take user-centric approach with exciting bookings growth content and new launches Free Fire demonstrating ability to be an evergreen franchise, • Released our 7th anniversary Free Fire campaign, o
Slide 17: Digital Entertainment: Quarterly Active Users 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% 0 800 7.9% 7.5% 7.5% 0 700 648.0 0 594.7 600 544.5 544.1 528.7 0 500 0 400 0 300 0 200 0 100 0 0 0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 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% 54.0% 800 52.2% 0.6 700 47.6% 0.5 592.2 0.5 600 529.4 536.8 510.8 512.1 0.4 500 443.1 447.9 456.3 458.1 435.6 0.4 400 292.2 302.8 0.3
Slide 19: Appendix
Appendix Sea 2Q 2024 Results | 18
Slide 20: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 2Q 2023 2Q 2024 E-commerce Operating income / (loss) 65,550 (84,762) Depreciation and amortization 84,789 75,582 E-commerce Adjusted EBITDA 150,339 (9,180) Digital Financial Services Operating income / (loss) 120,966 151,261 Depr
Slide 21: GAAP Operating Income and Non-GAAP EBITDA Reconciliation
GAAP Operating Income and Non-GAAP EBITDA Reconciliation US$ Thousands 2Q 2023 2Q 2024 Other Services Operating income / (loss) (10,034) (9,003) Depreciation and amortization 2,845 3,045 Other Services Adjusted EBITDA (7,189) (5,958) Group Operating income / (loss) 283,813 82,894 Net effect of chang