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E-commerce and gaming company Sea (NYNYSE:SE:SE) announced better-than-expected results in Q2 CY2024, with revenue up 23% year on year to $3.81 billion. It made a GAAP profit of $0.14 per share, down from its profit of $0.54 per share in the same quarter last year.
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Sea (SE) Q2 CY2024 Highlights:
- Revenue: $3.81 billion vs analyst estimates of $3.72 billion (2.4% beat)
- Adjusted EBITDA: $448.5 million vs analyst estimates of $367.4 million (22.1% beat)
- EPS: $0.14 vs analyst expectations of $0.19 (27.2% miss)
- Gross Margin (GAAP): 41.6%, down from 46.9% in the same quarter last year
- EBITDA Margin: 11.8%, down from 16.5% in the same quarter last year
- Paying Users: 52.5 million, down 1.73 billion year on year
- Market Capitalization: $38.43 billion
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Online MarketplaceMarketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
Sales GrowthSea's revenue growth over the last three years has been strong, averaging 21.7% annually. This quarter, Sea beat analysts' estimates and reported decent 23% year-on-year revenue growth.
Ahead of the earnings results, analysts were projecting sales to grow 17.3% over the next 12 months.
Key Takeaways from Sea's Q2 Results It was great to see Sea beat analysts' revenue and adjusted EBITDA expectations this quarter. Overall, this was a solid quarter. The market seemed to be expecting more, however, and the stock traded down 2.9% to $64.99 immediately after reporting.
