Slide 1: Fourth Quarter and Full Year 2022 Results
Fourth Quarter and Full Year 2022 Results March 2023
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 +7% YoY +25% YoY 3,451.6 12,449.7 3,222.1 14.5 19.8 61.9 380.2 1,222.0 197.5 9,955.2 42.4 469.8 948.9 3,877.2 1,415.0 4,320.0 2,102.7 7,288.7 1,595.1 5,123.0 4Q 2021 4Q 2022 FY 2021 FY 2022
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 495.7 2,776.0 75.6 1,313.1 602.6 258.2 196.1 (25.4) (8.9) (877.7) (1,690.6) (2,554.2) (228.6) (149.8) (56.9) (239.1) (492.1) (878.1) (33.0) (10.3) (616.9)
Slide 5: Cash, Cash Equivalents and Short-term Investments
Cash, Cash Equivalents and Short-term Investments US$ Billions 10.2 8.8 7.8 7.3 6.9 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Excluding cash consideration used to repurchase our outstanding convertible bonds with a gain, cash, cash equivalents and short-term investments would have increased by US$209.
Slide 6: E-commerce
E-commerce GAAP Marketplace Revenue Adjusted EBITDA US$ Billions US$ Millions +44% YoY Turned Positive Core Marketplace Revenue Asia Markets Adjusted EBITDA Value-added Services Revenue Other Markets Adjusted EBITDA 196.1 1.8 320.0 +29% YoY 0.7 (123.9) 1.3 (525.8) +54% YoY 1.1 (352.0) (877.7) 4Q 202
Slide 7: E-commerce
E-commerce Gross Orders GMV Billions US$ Billions -1% YoY -12% YoY +8% YoY FXN1 2.0 19.0 19.1 2.0 2.0 18.2 18.0 1.9 17.4 1.7 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1. Current and comparative prior period local currency amounts are converted into United States
Slide 8: Digital Entertainment
Digital Entertainment DE Bookings1 Quarterly Active Users Quarterly Paying User Ratio US$ Millions Millions % -18% QoQ -15% QoQ -0.1% QoQ 1,081.7 654.0 615.9 619.3 11.8% 568.2 826.2 10.0% 485.5 9.1% 9.1% 9.0% 717.4 664.7 543.6 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4
Slide 9: Digital Financial Services
Digital Financial Services GAAP Revenue As of the end of 4Q 2022: US$ Millions Total loans receivable was US$2.1 billion, +92% YoY net of allowance for credit losses of US$238.8 million. 380.2 326.9 279.0 Non-performing loans past due by more 236.0 than 90 days as a percentage of our total 197.5 gro
Slide 10: Gross Profit
Gross Profit US$ Billions +29% YoY +33% YoY 1.7 5.2 1.3 3.9 4Q 2021 4Q 2022 FY 2021 FY 2022 Note: Financial figures are unaudited. Sea 4Q 2022 & FY 2022 Results | 9
Slide 11: Costs and Expenses
Costs and Expenses Cost of Revenue Sales & Marketing Expenses General & Administrative Expenses US$ Millions US$ Millions US$ Millions 1,911.4 1,219.9 352.3 1,754.3 284.1 473.6 4Q 2021 4Q 2022 4Q 2021 4Q 2022 4Q 2021 4Q 2022 Provision for Credit Losses Research & Development Expenses US$ Millions US
Slide 12: Net Income/(Loss)
Net Income/(Loss) US$ Millions US$ Billions 422.8 (1.7) (2.0) (616.3) 4Q 2021 4Q 2022 FY 2021 FY 2022 Total net income for 4Q 2022 was negatively impacted by US$177.7 million impairment of goodwill related to certain historical investments for the digital entertainment business, and positively impac
Slide 13: Appendix
Appendix Sea 4Q 2022 & FY 2022 Results | 12
Slide 14: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 4Q 2021 4Q 2022 FY 2021 FY 2022 Digital Entertainment Operating income / (loss) 858,831 400,165 2,500,081 1,971,416 Net effect of changes in deferred revenue & its related cost (266,399) (331,321) 240,109 (879,809) Depreciation and amorti
Slide 15: Reconciliation Between GAAP and Non-GAAP EBITDA
Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 4Q 2021 4Q 2022 FY 2021 FY 2022 Other Services Operating income / (loss) (59,138) (28,714) (177,633) (252,162) Depreciation and amortization 2,279 3,277 7,422 13,013 Other Services Adjusted EBITDA (56,859) (25,437) (170,211) (239,149) Gro