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Sea Limited (SE) Q4 Earnings Miss Estimates, Revenues Up Y/Y
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Sea Limited (SE - Free Report) reported a loss of 1 cent per share in fourth-quarter 2023, missing the Zacks Consensus Estimate of 2 cents per share. The company posted earnings of $1.25 per share in the year-ago quarter.
Revenues of $3.6 billion increased 4.8% on a year-over-year basis. The consensus estimate was pegged at $3.59 billion.
The company’s shares have gained 33.1% year to date compared with the Zacks Computer & Technology sector’s rise of 9.8%.
Top-Line Details
Digital entertainment revenues totaled $510.7 million, missing the Zacks Consensus Estimate by 10.9% and declining 46.2% 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 528.7 million compared with the previous quarter’s 544.1 million. The metric missed the consensus mark by 3.5%.
Quarterly paying users of 39.7 million marked a paying user ratio of 7.5% in the fourth quarter compared with 40.5% in the previous quarter. The metric missed the consensus mark by 2.51%.
Average bookings per user in the reported quarter were 86 cents compared with the previous quarter’s figure of 82 cents. Bookings were $456.3 million in fourth-quarter 2023 compared with the previous quarter’s $447.9 million.
E-commerce and other services revenues of $2.7 billion beat the consensus mark by 4.43% and increased 24.2% from the year-ago quarter’s levels.
Sales of goods increased 23.2% year over year to $334.5 million in the fourth quarter of 2023.
Digital financial services revenues surged 24.3% year over year to $472.4 million. The figure missed the consensus estimate by 0.66%.
Operating Details
Gross profit decreased 10.2% year over year to $1.5 billion in fourth-quarter 2023.
Adjusted EBITDA was $126.7 million compared with an EBITDA of $495.7 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $217.4 million compared with $234 million reported in the year-ago quarter. The metric missed the Zacks Consensus Estimate by 4.59%.
E-commerce adjusted EBITDA declined $225.3 million compared with a profit of $196.1 million reported in the year-ago quarter. The metric beat the consensus mark by 30.79%.
Digital Financial Services' adjusted EBITDA was $148.5 million and increased 96.4% year over year. The metric missed the consensus mark by 9.38%.
Balance Sheet
As of Dec 31, 2023, Sea Limited had cash and cash equivalents of $2.81 billion compared with $3.21 billion as of Sep 30, 2023.
Zacks Rank & Stocks to Consider
Currently, Sea Limited has a Zacks Rank #5 (Strong Sell).
Kanzhun (BZ - Free Report) , Blink Charging (BLNK - Free Report) and Adobe (ADBE - Free Report) are some top-ranked stocks that investors can consider in the broader sector.
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Sea Limited (SE) Q4 Earnings Miss Estimates, Revenues Up Y/Y
Sea Limited (SE - Free Report) reported a loss of 1 cent per share in fourth-quarter 2023, missing the Zacks Consensus Estimate of 2 cents per share. The company posted earnings of $1.25 per share in the year-ago quarter.
Revenues of $3.6 billion increased 4.8% on a year-over-year basis. The consensus estimate was pegged at $3.59 billion.
The company’s shares have gained 33.1% year to date compared with the Zacks Computer & Technology sector’s rise of 9.8%.
Top-Line Details
Digital entertainment revenues totaled $510.7 million, missing the Zacks Consensus Estimate by 10.9% and declining 46.2% 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 528.7 million compared with the previous quarter’s 544.1 million. The metric missed the consensus mark by 3.5%.
Quarterly paying users of 39.7 million marked a paying user ratio of 7.5% in the fourth quarter compared with 40.5% in the previous quarter. The metric missed the consensus mark by 2.51%.
Average bookings per user in the reported quarter were 86 cents compared with the previous quarter’s figure of 82 cents. Bookings were $456.3 million in fourth-quarter 2023 compared with the previous quarter’s $447.9 million.
E-commerce and other services revenues of $2.7 billion beat the consensus mark by 4.43% and increased 24.2% from the year-ago quarter’s levels.
Sales of goods increased 23.2% year over year to $334.5 million in the fourth quarter of 2023.
Digital financial services revenues surged 24.3% year over year to $472.4 million. The figure missed the consensus estimate by 0.66%.
Operating Details
Gross profit decreased 10.2% year over year to $1.5 billion in fourth-quarter 2023.
Adjusted EBITDA was $126.7 million compared with an EBITDA of $495.7 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $217.4 million compared with $234 million reported in the year-ago quarter. The metric missed the Zacks Consensus Estimate by 4.59%.
E-commerce adjusted EBITDA declined $225.3 million compared with a profit of $196.1 million reported in the year-ago quarter. The metric beat the consensus mark by 30.79%.
Digital Financial Services' adjusted EBITDA was $148.5 million and increased 96.4% year over year. The metric missed the consensus mark by 9.38%.
Balance Sheet
As of Dec 31, 2023, Sea Limited had cash and cash equivalents of $2.81 billion compared with $3.21 billion as of Sep 30, 2023.
Zacks Rank & Stocks to Consider
Currently, Sea Limited has a Zacks Rank #5 (Strong Sell).
Kanzhun (BZ - Free Report) , Blink Charging (BLNK - Free Report) and Adobe (ADBE - Free Report) are some top-ranked stocks that investors can consider in the broader sector.
BZ currently sports Zacks Rank #1(Strong Buy), while BLNK and ADBE carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kanzhun’s shares have declined 3.8% year to date. BZ is scheduled to release fourth-quarter 2023 results on Mar 12.
Blink Charging’s shares have declined 10.3% year to date. BLNK is set to report its fourth-quarter 2023 results on Mar 14.
Adobe’s shares have dropped 4.8% year to date. ADBE is set to release its fourth-quarter fiscal 2024 results on Mar 14.