Sea Holdings Ltd. · HKEX:251

Sea — Q4 2021 Earnings Presentation

17 slides from Sea's earnings presentation, March 2022

  1. Slide 1: Fourth Quarter and Full Year 2021 Results

    Fourth Quarter and Full Year 2021 Results March 2022

  2. 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,

  3. Slide 3: Group: Triple Digit Growth in GAAP Revenue

    Group: Triple Digit Growth in GAAP Revenue Total GAAP Revenue US$ Millions DE GAAP Revenue DFS GAAP Revenue 9,955.2 EC GAAP Revenue 42.4 Other Services GAAP Revenue1 469.8 3,222.1 14.5 197.5 5,123.0 1,595.1 4,375.7 131.8 1,566.6 6.6 60.8 24.4 2,167.1 842.2 4,320.0 1,415.0 693.4 2,016.0 4Q 2020 4Q 20

  4. Slide 4: Group: Revenue Driven By Growth Across Segments

    Group: Revenue Driven By Growth Across 3 Segments DE Bookings1 EC GAAP Revenue DFS GAAP Revenue US$ Billions US$ Billions US$ Millions 1.6 1.1 197.5 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Note: Financial figures are una

  5. Slide 5: Digital Entertainment: Large Global User Base

    Digital Entertainment: Large Global User Base Quarterly Active Users Quarterly Paying Users Millions Millions 654.0 77.2 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Sea 4Q2021 & FY2021 Results | 4

  6. Slide 6: E-commerce: Extending Our Leading Position

    E-commerce: Extending Our Leading Position Gross Orders GMV Billions US$ Billions 18.2 2.0 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Sea 4Q2021 & FY2021 Results | 5

  7. Slide 7: Digital Financial Services: Robust Growth Across Key Metrics

    Digital Financial Services: Robust Growth Across Key Metrics Quarterly Active Users1 Total Payment Volume for Mobile Wallet Millions US$ Billions 5.0 45.8 4Q 2020 4Q 2021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1. Quarterly active users for digital financial services segment are defined as users who

  8. Slide 8: Gross Profit

    Gross Profit Total Gross Profit US$ Billions 3.9 1.3 1.3 0.5 4Q 2020 4Q 2021 FY 2020 FY 2021 Note: Financial figures are unaudited. Sea 4Q2021 & FY2021 Results | 7

  9. Slide 9: Non-GAAP EBITDA

    Non-GAAP EBITDA Total Adjusted EBITDA US$ Millions DE Adjusted EBITDA EC Adjusted EBITDA DFS Adjusted EBITDA Other Services Adjusted EBITDA 107.0 Unallocated Expenses 2,776.0 48.7 1,982.7 663.5 602.6 (427.5) (171.3) (1,306.9) (877.7) (12.7) (511.1) (3.4) (149.8) (2,554.2) (56.9) (492.1) (10.3) (39.6

  10. Slide 10: Cost and Expense Trends

    Cost and Expense Trends Cost of Revenue Sales & Marketing Expenses US$ Millions US$ Millions 1,219.9 1,911.4 665.2 1,032.8 4Q 2020 4Q 2021 4Q 2020 4Q 2021 General & Administrative Expenses Research & Development Expenses US$ Millions US$ Millions 318.6 286.6 189.0 109.5 4Q 2020 4Q 2021 4Q 2020 4Q 20

  11. Slide 11: Net Loss

    Net Loss Net Loss Net Loss Excluding Share-based Compensation US$ Millions US$ Millions 4Q 2020 4Q 2021 4Q 2020 4Q 2021 (430.7) (524.6) (483.5) (616.3) Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between Net Loss and Net loss excluding share-base

  12. Slide 12: Cash and Cash Equivalents and Short-term Investments

    Cash and Cash Equivalents and Short-term Investments US$ Billions 10.2 6.3 3.2 1.0 FY 2018 FY 2019 FY 2020 FY 2021 Note: Financial figures are unaudited. Sea 4Q2021 & FY2021 Results | 11

  13. Slide 13: Full Year 2022 Guidance

    Full Year 2022 Guidance FY 2022 Guidance Digital Entertainment Bookings US$2.9 Billion - US$3.1 Billion US$8.9 Billion - US$9.1 Billion E-commerce GAAP Revenue 75.7% YoY growth at midpoint US$1.1 Billion - US$1.3 Billion Digital Financial Services GAAP Revenue 155.4% YoY growth at midpoint Sea 4Q202

  14. Slide 14: Appendix

    Appendix Sea 4Q2021 & FY2021 Results | 13

  15. Slide 15: Reconciliation Between GAAP and Non-GAAP EBITDA

    Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 4Q 2020 4Q 2021 FY 2020 FY 2021 Digital Entertainment Operating income / (loss) 397,115 858,831 1,016,793 2,500,081 Net effect of changes in deferred revenue & related cost 259,107 (266,399) 939,816 240,109 Depreciation and amortization 7

  16. Slide 16: Reconciliation Between GAAP and Non-GAAP EBITDA

    Reconciliation Between GAAP and Non-GAAP EBITDA US$ Thousands 4Q 2020 4Q 2021 FY 2020 FY 2021 Other Services Operating income / (loss) (14,335) (59,138) (49,006) (177,633) Depreciation and amortization 1,667 2,279 9,455 7,422 Other Services Adjusted EBITDA (12,668) (56,859) (39,551) (170,211) Group

  17. Slide 17: Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation

    Reconciliation Between Net Loss and Net Loss Excluding Share-based Compensation US$ Thousands 4Q 2020 4Q 2021 FY 2020 FY 2021 Group Net loss (524,569) (616,289) (1,624,157) (2,043,030) Share-based compensation 93,847 132,797 290,246 470,324 Net loss excluding share-based compensation (430,722) (483,

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