Posted 3/4/2024, 4:05:58 PM
Sea Beats Q4 Earnings Estimates But Profits Drop on E-Commerce Push
- Sea Ltd posted $126.7 million in adjusted Q4 earnings, higher than expected despite a 74% drop due to marketing costs
- Sales topped estimates at $3.6 billion, up 4.8% year-over-year, showing e-commerce growth
- E-commerce gross merchandise volume grew about 29% amid intense competition from rivals like TikTok and Alibaba
- Gaming revenue fell 46% without a new hit game, but Free Fire users and bookings will see double-digit growth
- Sea will ramp up investments into Shopee e-commerce to defend market share, which may pressure profits