Stock Story -
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.
Is now the time to buy Sea? Find out by reading the original article on StockStory, it's free.
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.
![Sea (NYSE:SE) Exceeds Q2 Expectations But users Fall](https://d68-invdn-com.investing.com/content/pic06ebf2e6596e5151d42955a3f925f8ac.jpeg)