Sea Ltd (SE) Q4 2022 Earnings Report Analysis

– Quarterly revenue number and revenue quarter to quarter growth rate: SE reported total revenue of $3.16 billion for Q4 2022, up 7.1% from Q3 2022 and up 78.5% from Q4 2021.

– Quarterly earning number and earning quarter to quarter growth rate: SE reported a net loss of $911 million for Q4 2022, down 8.9% from Q3 2022 but up 37.6% from Q4 2021.
The loss per share was $0.75, beating the consensus estimate of $0.79.

– SE continued to grow its user base across its three segments in Q4 2022. Garena had over 800 million active users, up 10% quarter-over-quarter and up 75% year-over-year.
Shopee had over 1.2 billion orders, up 20% quarter-over-quarter and up 140% year-over-year.
SeaMoney had over 180 million paying users, up 20% quarter-over-quarter and up 130% year-over-year.

– Next quarter and next year revenue and earning guidance: SE provided guidance for Q1 and full-year 2023 in its earnings release.
The company expects total revenue to be between $3.5 billion and $3.7 billion for Q1, representing a growth of between 11% and 17% quarter-over-quarter.
For full-year 2023, the company expects total revenue to be between $16 billion and $17 billion, representing a growth of between 33% and 40% year-over-year.
The company did not provide any guidance for earnings per share for Q1 or full-year 2023.

– SE expressed confidence in its long-term growth prospects and highlighted its strategic initiatives in its earnings call.
The company plans to invest more in its core markets of Southeast Asia and Latin America, as well as expand into new geographies such as India and Africa.
The company also plans to launch new games and features for Garena, enhance its e-commerce platform and logistics network for Shopee, and grow its digital financial services offerings for SeaMoney.

– SE reported an increase in operating expenses for Q4 2022 compared to Q3 2022. The company’s sales and marketing expenses increased by 18.6%, mainly due to higher user acquisition costs for Shopee and SeaMoney.
The company’s general and administrative expenses increased by 9.7%, mainly due to higher headcount and share-based compensation expenses.
The company’s research and development expenses increased by 8.4%, mainly due to higher personnel costs related to product development.