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Sea Limited (SE) Q3 Earnings Miss Estimates, Revenues Up Y/Y
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Sea Limited (SE - Free Report) reported earnings of 6 cents per share in third-quarter 2023, missing the Zacks Consensus Estimate by 89.09%. The company reported earnings of 66 cents per share.
Revenues of $3.3 billion increased 4.9% on a year-over-year basis. The consensus estimate was pegged at $3.34 billion.
The company’s shares have declined 31.1% year to date, underperforming the Zacks Computer & Technology sector’s rise of 40.8%.
Top-Line Details
Digital entertainment revenues of $592.2 million beat the Zacks Consensus Estimate by 9.59% and declined 33.7% year over year.
Sea Limited Sponsored ADR Price, Consensus and EPS Surprise
Free Fire remained one of the largest mobile games globally. The company witnessed hints of improvement in user retention and engagement, led by continued improvements in the game’s core user experience, features and content to ensure a more seamless gaming experience.
Quarterly active users (QAUs) reached 544.1 million compared with the year-ago quarter’s 568.2 million. The metric missed the consensus mark by 0.62%.
Quarterly paying users of 40.5 million marked a paying user ratio of 7.5% in the third quarter compared with 9.1% for the same period in 2022. The metric missed the consensus mark by 7.32%.
Average bookings per user in the reported quarter were 82 cents compared with the year-ago quarter’s figure of $1.2. Bookings were $447.9 million in third-quarter 2023 compared with the year-ago quarter’s $664.7 million.
E-commerce and other services revenues of $2.4 billion missed the consensus mark by 1.58% and increased 22.3% from the year-ago quarter’s levels.
Sales of goods increased 5.1% year over year to $300.9 million in the third quarter of 2023.
Digital financial services revenues surged 36.5% year over year to $446.2 million. The figure missed the consensus estimate by 1.46%.
Operating Details
Gross profit increased 17.4% year over year to $1.4 billion in third-quarter 2023.
Adjusted EBITDA was $35.2 billion compared with an EBITDA loss of $357.6 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $233.9 million compared with $289.8 million reported in the year-ago quarter. The metric missed the Zacks Consensus Estimate by 0.24%.
E-commerce adjusted EBITDA declined $346.4 million compared with a loss of $495.7 million reported in the year-ago quarter. The metric missed the consensus mark by 18.76%.
Digital Financial Services' adjusted EBITDA was $165 million compared with a loss of $677.4 million reported in the year-ago quarter. The metric beat the consensus mark by 10.35%.
Balance Sheet
As of Sep 30, 2023, Sea had cash and cash equivalents of $3.21 billion compared with $3.52 billion as of Jun 30, 2023.
Zacks Rank & Upcoming Earnings to Watch
Sea Limited currently carries a Zacks Rank #3 (Hold).
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Sea Limited (SE) Q3 Earnings Miss Estimates, Revenues Up Y/Y
Sea Limited (SE - Free Report) reported earnings of 6 cents per share in third-quarter 2023, missing the Zacks Consensus Estimate by 89.09%. The company reported earnings of 66 cents per share.
Revenues of $3.3 billion increased 4.9% on a year-over-year basis. The consensus estimate was pegged at $3.34 billion.
The company’s shares have declined 31.1% year to date, underperforming the Zacks Computer & Technology sector’s rise of 40.8%.
Top-Line Details
Digital entertainment revenues of $592.2 million beat the Zacks Consensus Estimate by 9.59% and declined 33.7% year over year.
Sea Limited Sponsored ADR Price, Consensus and EPS Surprise
Sea Limited Sponsored ADR price-consensus-eps-surprise-chart | Sea Limited Sponsored ADR Quote
Free Fire remained one of the largest mobile games globally. The company witnessed hints of improvement in user retention and engagement, led by continued improvements in the game’s core user experience, features and content to ensure a more seamless gaming experience.
Quarterly active users (QAUs) reached 544.1 million compared with the year-ago quarter’s 568.2 million. The metric missed the consensus mark by 0.62%.
Quarterly paying users of 40.5 million marked a paying user ratio of 7.5% in the third quarter compared with 9.1% for the same period in 2022. The metric missed the consensus mark by 7.32%.
Average bookings per user in the reported quarter were 82 cents compared with the year-ago quarter’s figure of $1.2. Bookings were $447.9 million in third-quarter 2023 compared with the year-ago quarter’s $664.7 million.
E-commerce and other services revenues of $2.4 billion missed the consensus mark by 1.58% and increased 22.3% from the year-ago quarter’s levels.
Sales of goods increased 5.1% year over year to $300.9 million in the third quarter of 2023.
Digital financial services revenues surged 36.5% year over year to $446.2 million. The figure missed the consensus estimate by 1.46%.
Operating Details
Gross profit increased 17.4% year over year to $1.4 billion in third-quarter 2023.
Adjusted EBITDA was $35.2 billion compared with an EBITDA loss of $357.6 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $233.9 million compared with $289.8 million reported in the year-ago quarter. The metric missed the Zacks Consensus Estimate by 0.24%.
E-commerce adjusted EBITDA declined $346.4 million compared with a loss of $495.7 million reported in the year-ago quarter. The metric missed the consensus mark by 18.76%.
Digital Financial Services' adjusted EBITDA was $165 million compared with a loss of $677.4 million reported in the year-ago quarter. The metric beat the consensus mark by 10.35%.
Balance Sheet
As of Sep 30, 2023, Sea had cash and cash equivalents of $3.21 billion compared with $3.52 billion as of Jun 30, 2023.
Zacks Rank & Upcoming Earnings to Watch
Sea Limited currently carries a Zacks Rank #3 (Hold).
Synopsys (SNPS - Free Report) , ASANA (ASAN - Free Report) and Snowflake (SNOW - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Synopsys shares have declined 6.4% year to date. SNPS is set to report its fourth-quarter fiscal 2023 results on Nov 29.
ASANA shares have gained 44.6% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.
Snowflake shares have returned 10.8% year to date. SNOW is set to report its third-quarter fiscal 2024 results on Nov 29.