Sea Limited Reports Fourth Quarter and Full Year 2024 Results
SE
Sea Limited (NYSE: SE) (“Sea” or the “Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2024.
“We delivered a great 2024 with all three businesses going back to strong, double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITDA,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On e-commerce, he said, “GMV grew 28% year-on-year to surpass US$100 billion, and we achieved adjusted EBITDA profitability in both Asia and Brazil. We remain confident about our ability to continue delivering profitable growth in 2025 and expect Shopee’s full year 2025 GMV growth to be around 20%, with improving profitability.”
Regarding digital financial services, Mr. Li shared, “We delivered exceptional loan book growth of more than 60% year-on-year in the fourth quarter, surpassing US$5 billion as of the end of 2024, making us one of the largest consumer lending businesses in Southeast Asia. While we have scaled fast, risk management remains to be our top operational priority. In 2025, we expect loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate, as we improve credit penetration both on- and off-Shopee.”
On digital entertainment, Mr. Li said, “2024 was a great year for Garena, marking Free Fire’s remarkable comeback with annual bookings growing at 34% year-on-year. Looking ahead into 2025, we will continue scaling our user base and broadening our content offerings. We now expect Garena to grow double digit year-on-year, for both user base and bookings in 2025.”
Fourth Quarter 2024 Highlights
Full Year 2024 Highlights
1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”.
2 Other treasury investments currently consist of group treasury related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations.
3 Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform.
4 GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment.
Unaudited Summary of Financial Results
(Amounts are expressed in thousands of US dollars “$” except for per share data)
For the Three Months ended December 31,
For the Full Year ended December 31,
2023
2024
2023
2024
$
$
YOY%
$
$
YOY%
Revenue
Service revenue
Digital Entertainment
510,773
519,064
1.6
%
2,172,009
1,910,589
(12.0
%)
E-commerce and other services
2,771,267
3,959,575
42.9
%
9,770,376
13,350,674
36.6
%
Sales of goods
334,588
471,797
41.0
%
1,121,175
1,558,603
39.0
%
3,616,628
4,950,436
36.9
%
13,063,560
16,819,866
28.8
%
Cost of revenue
Cost of service
Digital Entertainment
(161,360
)
(159,065
)
(1.4
%)
(672,481
)
(610,586
)
(9.2
%)
E-commerce and other services
(1,621,218
)
(2,146,644
)
32.4
%
(5,530,043
)
(7,553,801
)
36.6
%
Cost of goods sold
(309,263
)
(439,267
)
42.0
%
(1,027,389
)
(1,450,391
)
41.2
%
(2,091,841
)
(2,744,976
)
31.2
%
(7,229,913
)
(9,614,778
)
33.0
%
Gross profit
1,524,787
2,205,460
44.6
%
5,833,647
7,205,088
23.5
%
Other operating income
58,524
53,256
(9.0
%)
221,021
180,443
(18.4
%)
Sales and marketing expenses
(967,433
)
(1,049,726
)
8.5
%
(2,779,223
)
(3,472,686
)
25.0
%
General and administrative expenses
(232,603
)
(366,259
)
57.5
%
(1,134,724
)
(1,267,706
)
11.7
%
Provision for credit losses
(159,988
)
(235,764
)
47.4
%
(633,942
)
(776,937
)
22.6
%
Research and development expenses
(279,806
)
(301,216
)
7.7
%
(1,164,126
)
(1,206,050
)
3.6
%
Impairment of goodwill
-
-
-
(117,875
)
-
-
Total operating expenses
(1,581,306
)
(1,899,709
)
20.1
%
(5,608,869
)
(6,542,936
)
16.7
%
Operating (loss) income
(56,519
)
305,751
(641.0
%)
224,778
662,152
194.6
%
Non-operating income, net
31,654
28,222
(10.8
%)
207,616
116,631
(43.8
%)
Income tax expense
(76,894
)
(89,198
)
16.0
%
(262,680
)
(321,168
)
22.3
%
Share of results of equity investees
(9,856
)
(7,183
)
(27.1
%)
(7,032
)
(9,788
)
39.2
%
Net (loss) income
(111,615
)
237,592
(312.9
%)
162,682
447,827
175.3
%
(Loss) Earnings per share attributable to Sea Limited’s ordinary shareholders:
Basic
(0.19
)
0.41
(315.8
%)
0.27
0.77
185.2
%
Diluted
(0.19
)
0.39
(305.3
%)
0.25
0.74
196.0
%
Change in deferred revenue of Digital Entertainment
(54,459
)
24,120
(144.3
%)
(362,397
)
238,077
(165.7
%)
Adjusted EBITDA for Digital Entertainment (1)
217,411
289,730
33.3
%
920,923
1,199,166
30.2
%
Adjusted EBITDA for E-commerce (1)
(225,332
)
152,209
(167.5
%)
(213,774
)
155,775
(172.9
%)
Adjusted EBITDA for Digital Financial Services (1)
148,482
210,979
42.1
%
550,112
712,242
29.5
%
Adjusted EBITDA for Other Services (1)
(6,979
)
(5,121
)
(26.6
%)
(44,880
)
(30,305
)
(32.5
%)
Unallocated expenses (2)
(6,877
)
(56,876
)
727.0
%
(33,199
)
(74,998
)
125.9
%
Total adjusted EBITDA (1)
126,705
590,921
366.4
%
1,179,182
1,961,880
66.4
%
(1) For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”.
(2) Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker (“CODM”) as part of segment performance.
Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023
Revenue
Our total GAAP revenue increased by 36.9% to US$5.0 billion in the fourth quarter of 2024 from US$3.6 billion in the fourth quarter of 2023.
Cost of Revenue
Our total cost of revenue was US$2.7 billion in the fourth quarter of 2024, as compared to US$2.1 billion in the fourth quarter of 2023.
Other Operating Income
Our other operating income was US$53.3 million and US$58.5 million in the fourth quarter of 2024 and 2023, respectively. Other operating income mainly consists of rebates from e-commerce related logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 8.5% to US$1.0 billion in the fourth quarter of 2024 from US$967.4 million in the fourth quarter of 2023. The table below sets forth breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).
For the Three Months ended December 31,
2023
2024
YOY%
Sales and Marketing Expenses
$
$
E-commerce
878,985
853,919
(2.9
%)
Digital Financial Services
51,927
121,036
133.1
%
Digital Entertainment
29,926
44,528
48.8
%
General and Administrative Expenses
Our general and administrative expenses increased by 57.5% to US$366.3 million in the fourth quarter of 2024 from US$232.6 million in the fourth quarter of 2023, including one-time expenses related to the settlement of two securities class actions.
Provision for Credit Losses
Our provision for credit losses increased by 47.4% to US$235.8 million in the fourth quarter of 2024 from US$160.0 million in the fourth quarter of 2023.
Research and Development Expenses
Our research and development expenses increased by 7.7% to US$301.2 million in the fourth quarter of 2024 from US$279.8 million in the fourth quarter of 2023.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$28.2 million in the fourth quarter of 2024, as compared to a net non-operating income of US$31.7 million in the fourth quarter of 2023. The non-operating income in the fourth quarter of 2024 was primarily due to interest income of US$94.0 million, partially offset by investment losses of US$60.7 million recognized.
Income Tax Expense
We had a net income tax expense of US$89.2 million and US$76.9 million in the fourth quarter of 2024 and 2023, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$237.6 million in the fourth quarter of 2024, as compared to net loss of US$(111.6) million in the fourth quarter of 2023.
Basic and Diluted Earnings or Loss Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.41 in the fourth quarter of 2024, compared to basic loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.39 in the fourth quarter of 2024, compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$(0.19) in the fourth quarter of 2023.
Full Year Ended December 31, 2024 Compared to Full Year Ended December 31, 2023
Revenue
Our total GAAP revenue increased by 28.8% to US$16.8 billion for the full year ended December 31, 2024 from US$13.1 billion for the full year ended December 31, 2023.
Cost of Revenue
Our total cost of revenue was US$9.6 billion for the full year ended December 31, 2024, as compared to US$7.2 billion for the full year ended December 31, 2023.
Other Operating Income
Our other operating income was US$180.4 million for the full year ended December 31, 2024 from US$221.0 million for the full year ended December 31, 2023. Other operating income mainly consists of rebates from e-commerce related logistics services providers.
Sales and Marketing Expenses
Our total sales and marketing expenses increased by 25.0% to US$3.5 billion for the full year ended December 31, 2024 from US$2.8 billion for the full year ended December 31, 2023. The table below sets forth the breakdown of the sales and marketing expenses of our major reporting segments. Amounts are expressed in thousands of US dollars (“$”).
For the Full Year ended December 31,
2023
2024
YOY%
Sales and Marketing Expenses
$
$
E-commerce
2,510,693
2,966,084
18.1
%
Digital Financial Services
116,445
298,386
156.2
%
Digital Entertainment
104,721
117,556
12.3
%
General and Administrative Expenses
Our general and administrative expenses increased by 11.7% to US$1.3 billion for the full year ended December 31, 2024 from US$1.1 billion for the full year ended December 31, 2023.
Provision for Credit Losses
Our provision for credit losses increased by 22.6% to US$776.9 million for the full year ended December 31, 2024 from US$633.9 million for the full year ended December 31, 2023.
Research and Development Expenses
Our research and development expenses were US$1.2 billion for the full year ended December 31, 2024, flat year-on-year.
Impairment of Goodwill
We recorded nil impairment of goodwill for the full year ended December 31, 2024, compared to US$117.9 million for the full year ended December 31, 2023.
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), and foreign exchange gain (loss), and gain (loss) on debt extinguishment. We recorded a net non-operating income of US$116.6 million for the full year ended December 31, 2024, as compared to a net non-operating income of US$207.6 million for the full year ended December 31, 2023.
Income Tax Expense
We had a net income tax expense of US$321.2 million and US$262.7 million for the full year ended December 31, 2024 and 2023, respectively.
Net Income or Loss
As a result of the foregoing, we had net income of US$447.8 million for the full year ended December 31, 2024, as compared to net income of US$162.7 million for the full year ended December 31, 2023.
Basic and Diluted Earnings Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.77 for the full year ended December 31, 2024, as compared to basic earnings per share attributable to Sea Limited’s ordinary shareholders of US$0.27 for the full year ended December 31, 2023.
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was US$0.74 for the full year ended December 31, 2024, as compared to diluted loss per share attributable to Sea Limited’s ordinary shareholders of US$0.25 for the full year ended December 31, 2023.
Webcast and Conference Call Information
The Company’s management will host a conference call today to review Sea’s business and financial performance.
Details of the conference call and webcast are as follows:
Date and time:
7:30 AM U.S. Eastern Time on March 4, 2025
8:30 PM Singapore / Hong Kong Time on March 4, 2025
Webcast link:
https://events.q4inc.com/attendee/769111006
A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.
About Sea Limited
Sea Limited (NYSE: SE) is a leading global consumer internet company founded in Singapore in 2009. Its mission is to better the lives of consumers and small businesses with technology. Sea operates three core businesses across digital entertainment, e-commerce, as well as digital financial services, known as Garena, Shopee and SeaMoney, respectively. Garena is a leading global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan and has a significant presence in Latin America. SeaMoney is a leading digital financial services provider in Southeast Asia and is growing its presence in Brazil.
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expect,” “anticipate,” “aim,” “future,” “intend,” “plan,” “believe,” “estimate,” “likely to,” “potential,” “confident,” “guidance,” and similar statements. Among other things, statements that are not historical facts, including statements about Sea’s beliefs and expectations, the business, financial and market outlook, and projections from its management in this announcement, as well as Sea’s strategic and operational plans, contain forward-looking statements. Sea may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Sea’s goals and strategies; its future business development, financial condition, financial results, and results of operations; the expected growth in, and market size of, the digital entertainment, e-commerce and digital financial services industries in the markets where it operates, including segments within those industries; expected changes or guidance in its revenue, costs or expenditures; its ability to continue to source, develop and offer new and attractive online games and to offer other engaging digital entertainment content; the expected growth of its digital entertainment, e-commerce and digital financial services businesses; its expectations regarding growth in its user base, level of engagement, and monetization; its ability to continue to develop new technologies and/or upgrade its existing technologies; growth and trends of its markets and competition in its industries; government policies and regulations relating to its industries, including the effects of any government orders or actions on its businesses; general economic, political, social and business conditions in its markets; and the impact of widespread health developments. Further information regarding these and other risks is included in Sea’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:
These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest U.S. GAAP financial measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on any single financial measure.
The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars (“$”) except for number of shares & per share data.
For the Three Months ended December 31, 2024
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating income (loss)
79,484
197,856
270,143
(10,112
)
(231,620
)
305,751
Net effect of changes in deferred revenue and its related cost
-
-
14,257
-
-
14,257
Depreciation and Amortization
72,725
13,123
5,330
4,991
-
96,169
Share-based compensation
-
-
-
-
174,744
174,744
Adjusted EBITDA
152,209
210,979
289,730
(5,121
)
(56,876
)
590,921
For the Three Months ended December 31, 2023
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating (loss) income
(303,681
)
134,205
261,060
(9,558
)
(138,545
)
(56,519
)
Net effect of changes in deferred revenue and its related cost
-
-
(49,925
)
-
-
(49,925
)
Depreciation and Amortization
78,349
14,277
6,276
2,579
-
101,481
Share-based compensation
-
-
-
-
131,668
131,668
Adjusted EBITDA
(225,332
)
148,482
217,411
(6,979
)
(6,877
)
126,705
(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. For the three months ended December 31, 2024, unallocated expenses included one-time expenses related to the settlement of two securities class actions. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
For the Full Year ended December 31, 2024
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating (loss) income
(139,431
)
657,502
978,821
(43,903
)
(790,837
)
662,152
Net effect of changes in deferred revenue and its related cost
-
-
194,216
-
-
194,216
Depreciation and Amortization
295,206
54,740
26,129
13,598
-
389,673
Share-based compensation
-
-
-
-
715,839
715,839
Adjusted EBITDA
155,775
712,242
1,199,166
(30,305
)
(74,998
)
1,961,880
For the Full Year ended December 31, 2023
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Operating (loss) income
(550,470
)
490,209
1,177,871
(56,728
)
(836,104
)
224,778
Net effect of changes in deferred revenue and its related cost
-
-
(289,346
)
-
-
(289,346
)
Depreciation and Amortization
336,696
59,903
32,398
11,848
-
440,845
Share-based compensation
-
-
-
-
685,030
685,030
Impairment of goodwill
-
-
-
-
117,875
117,875
Adjusted EBITDA
(213,774
)
550,112
920,923
(44,880
)
(33,199
)
1,179,182
(1) A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Amounts expressed in thousands of US dollars (“$”) except for number of shares & per share data
For the Three Months ended December 31,
For the Year ended December 31,
2023
2024
2023
2024
$
$
$
$
Revenue
Service revenue
Digital Entertainment
510,773
519,064
2,172,009
1,910,589
E-commerce and other services
2,771,267
3,959,575
9,770,376
13,350,674
Sales of goods
334,588
471,797
1,121,175
1,558,603
Total revenue
3,616,628
4,950,436
13,063,560
16,819,866
Cost of revenue
Cost of service
Digital Entertainment
(161,360
)
(159,065
)
(672,481
)
(610,586
)
E-commerce and other services
(1,621,218
)
(2,146,644
)
(5,530,043
)
(7,553,801
)
Cost of goods sold
(309,263
)
(439,267
)
(1,027,389
)
(1,450,391
)
Total cost of revenue
(2,091,841
)
(2,744,976
)
(7,229,913
)
(9,614,778
)
Gross profit
1,524,787
2,205,460
5,833,647
7,205,088
Operating income (expenses):
Other operating income
58,524
53,256
221,021
180,443
Sales and marketing expenses
(967,433
)
(1,049,726
)
(2,779,223
)
(3,472,686
)
General and administrative expenses
(232,603
)
(366,259
)
(1,134,724
)
(1,267,706
)
Provision for credit losses
(159,988
)
(235,764
)
(633,942
)
(776,937
)
Research and development expenses
(279,806
)
(301,216
)
(1,164,126
)
(1,206,050
)
Impairment of goodwill
–
–
(117,875
)
–
Total operating expenses
(1,581,306
)
(1,899,709
)
(5,608,869
)
(6,542,936
)
Operating (loss) income
(56,519
)
305,751
224,778
662,152
Interest income
90,949
93,970
331,310
365,817
Interest expense
(10,129
)
(9,281
)
(41,075
)
(38,341
)
Investment loss, net
(80,279
)
(60,677
)
(125,656
)
(250,220
)
Net gain on debt extinguishment
38,550
8,206
38,550
42,621
Foreign exchange (loss) gain
(7,437
)
(3,996
)
4,487
(3,246
)
(Loss) income before income tax and share of results of equity investees
(24,865
)
333,973
432,394
778,783
Income tax expense
(76,894
)
(89,198
)
(262,680
)
(321,168
)
Share of results of equity investees
(9,856
)
(7,183
)
(7,032
)
(9,788
)
Net (loss) income
(111,615
)
237,592
162,682
447,827
Net loss (income) attributable to non- controlling interests
1,875
(284
)
(11,956
)
(3,506
)
Net (loss) income attributable to Sea Limited’s ordinary shareholders
(109,740
)
237,308
150,726
444,321
(Loss) Earnings per share:
Basic
(0.19
)
0.41
0.27
0.77
Diluted
(0.19
)
0.39
0.25
0.74
Weighted average shares used in (loss) earnings per share computation:
Basic
569,527,667
580,046,457
566,612,815
574,966,327
Diluted
569,527,667
610,136,776
594,405,604
604,713,980
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
As of December 31,
As of December 31,
2023
2024
$
$
ASSETS
Current assets
Cash and cash equivalents
2,811,056
2,405,153
Restricted cash
1,410,365
1,655,171
Accounts receivable, net of allowance for credit losses of $9,351 and $5,089, as of December 31, 2023 and 2024 respectively
262,716
306,657
Prepaid expenses and other assets
1,861,842
1,661,373
Loans receivable, net of allowance for credit losses of $319,463 and $443,555, as of December 31, 2023 and 2024 respectively
2,464,662
4,052,215
Inventories, net
125,395
143,246
Short-term investments
2,547,644
6,215,423
Amounts due from related parties
290,254
418,430
Total current assets
11,773,934
16,857,668
Non-current assets
Property and equipment, net
1,207,698
1,097,699
Operating lease right-of-use assets, net
1,015,982
1,054,785
Intangible assets, net
50,821
27,310
Long-term investments
4,262,562
2,694,305
Prepaid expenses and other assets
87,705
138,839
Loans receivable, net of allowance for credit losses of $2,105 and $5,780, as of December 31, 2023 and 2024 respectively
20,551
108,594
Restricted cash
22,236
21,261
Deferred tax assets
328,961
517,383
Goodwill
112,782
107,625
Total non-current assets
7,109,298
5,767,801
Total assets
18,883,232
22,625,469
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
As of December 31,
As of December 31,
2023
2024
$
$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
342,547
350,021
Accrued expenses and other payables
1,834,807
2,380,371
Deposits payable
1,706,299
2,711,693
Escrow payables and advances from customers
2,199,464
2,498,094
Amounts due to related parties
64,081
255,896
Borrowings
146,661
130,615
Operating lease liabilities
290,788
300,274
Convertible notes
151,764
1,147,984
Deferred revenue
1,208,892
1,405,785
Income tax payable
223,638
115,419
Total current liabilities
8,168,941
11,296,152
Non-current liabilities
Accrued expenses and other payables
79,257
71,678
Borrowings
119,323
249,474
Operating lease liabilities
789,514
803,502
Deferred revenue
72,587
109,895
Convertible notes
2,949,785
1,478,784
Deferred tax liabilities
133
408
Unrecognized tax benefits
6,107
138,000
Total non-current liabilities
4,016,706
2,851,741
Total liabilities
12,185,647
14,147,893
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed in thousands of US dollars (“$”)
As of December 31,
As of December 31,
2023
2024
$
$
Shareholders’ equity
Class A Ordinary shares
262
272
Class B Ordinary shares
23
23
Additional paid-in capital
15,283,870
16,703,192
Accumulated other comprehensive loss
(108,000
)
(193,148
)
Statutory reserves
16,981
17,260
Accumulated deficit
(8,599,306
)
(8,155,264
)
Total Sea Limited shareholders’ equity
6,593,830
8,372,335
Non-controlling interests
103,755
105,241
Total shareholders’ equity
6,697,585
8,477,576
Total liabilities and shareholders’ equity
18,883,232
22,625,469
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts expressed in thousands of US dollars (“$”)
For the Three Months ended December 31,
For the Year ended December 31,
2023
2024
2023
2024
$
$
$
$
Net cash generated from operating activities
278,833
1,020,982
2,079,688
3,277,420
Net cash used in investing activities
(1,048,554
)
(1,761,066
)
(5,804,462
)
(5,040,846
)
Net cash generated from financing activities
183,385
700,210
366,011
1,684,493
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
68,317
(144,793
)
(7,964
)
(83,139
)
Net decrease in cash, cash equivalents and restricted cash
(518,019
)
(184,667
)
(3,366,727
)
(162,072
)
Cash, cash equivalents and restricted cash at beginning of the period
4,761,676
4,266,252
7,610,384
4,243,657
Cash, cash equivalents and restricted cash at end of the period
4,243,657
4,081,585
4,243,657
4,081,585
Net cash used in investing activities amounted to US$1,761 million for the three months ended December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$934 million, net placement of US$759 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management, and purchase of property and equipment of US$89 million to support the existing operations. Net cash generated from financing activities amounted to US$700 million for the three months ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$600 million.
Net cash used in investing activities amounted to US$5,041 million for the year ended December 31, 2024. This was primarily attributable to increase in loans receivable of our credit business of US$2,532 million, net placement of US$2,164 million in securities purchased under agreements to resell, time deposits and liquid investment products, for better cash yield management and purchase of property and equipment of US$318 million to support the existing operations. Net cash generated from financing activities amounted to US$1,684 million for the year ended December 31, 2024. This was primarily attributable to an increase in bank deposits of US$1,292 million, and settlement of capped call of US$429 million.
UNAUDITED SEGMENT INFORMATION
The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The Chief Operating Decision Maker (“CODM”) reviews the performance of each segment based on revenue and certain key operating metrics of the operations and uses these results for the purposes of allocating resources to and evaluating the financial performance of each segment. Amounts are expressed in thousands of US dollars (“$”).
For the Three Months ended December 31, 2024
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
3,662,636
733,326
519,064
35,410
-
4,950,436
Operating income (loss)
79,484
197,856
270,143
(10,112
)
(231,620
)
305,751
Non-operating income, net
28,222
Income tax expense
(89,198
)
Share of results of equity investees
(7,183
)
Net income
237,592
For the Three Months ended December 31, 2023
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
2,591,272
472,389
510,773
42,194
-
3,616,628
Operating (loss) income
(303,681
)
134,205
261,060
(9,558
)
(138,545
)
(56,519
)
Non-operating income, net
31,654
Income tax expense
(76,894
)
Share of results of equity investees
(9,856
)
Net loss
(111,615
)
(1) A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
For the Year ended December 31, 2024
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
12,415,231
2,367,739
1,910,589
126,307
-
16,819,866
Operating (loss) income
(139,431
)
657,502
978,821
(43,903
)
(790,837
)
662,152
Non-operating income, net
116,631
Income tax expense
(321,168
)
Share of results of equity investees
(9,788
)
Net income
447,827
For the Year ended December 31, 2023
E- commerce
Digital Financial Services
Digital Entertainment
Other Services(1)
Unallocated expenses(2)
Consolidated
$
$
$
$
$
$
Revenue
9,000,848
1,759,422
2,172,009
131,281
-
13,063,560
Operating (loss) income
(550,470
)
490,209
1,177,871
(56,728
)
(836,104
)
224,778
Non-operating income, net
207,616
Income tax expense
(262,680
)
Share of results of equity investees
(7,032
)
Net income
162,682
(1) A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”.
(2) Unallocated expenses are mainly related to share-based compensation, impairment of goodwill of prior acquisitions that are not under our reportable segments, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance.
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