Eye-Catching Stock Buzz: Sea Limited (NYSE: SE)

On Tuesday, Shares of Sea Limited (NYSE: SE) declined -1.69% to $16.25. The stock opened its trade at $16.69 and after floating in a price range of $16.04 to $16.74; the stock grabbed the investor’s attention and traded 1.6M shares as compared to its average daily volume of 1.83M shares. The stock’s institutional ownership stands at 48.60%.

Sea Limited (SE) recently declared its financial results for the quarter ended March 31, 2018.

First Quarter 2018 Key Metrics:

  • Group
    • Total adjusted revenue was US$197.00M, up 81.2% year-on-year from US$108.80M for the first quarter of 2017 and up 19.8% quarter-on-quarter from US$164.50M for the fourth quarter of 2017.
    • Total adjusted EBITDA was US$(144.70)M, contrast to US$(41.40)M for the first quarter of 2017 and US$(140.20)M for the fourth quarter of 2017.
  • Digital Entertainment
    • Adjusted revenue was US$146.00M, up 42.6% year-on-year from US$102.40M for the first quarter of 2017 and up 2.9% quarter-on-quarter from US$141.90M for the fourth quarter of 2017.
    • Adjusted EBITDA was US$55.00M, a boost of 48.6% year-on-year from US$37.00M for the first quarter of 2017 and up 4.6% quarter-on-quarter from $52.60M for the fourth quarter of 2017.
    • Quarterly active users (“QAUs”) reached 126.70M, a boost of 124.6% year-on-year from 56.40M for the first quarter of 2017 and up 44.3% quarter-on-quarter from 87.80M for the fourth quarter of 2017.
    • Average revenue per user (“ARPU”) was US$1.2 contrast to US$1.8 for the first quarter of 2017 and US$1.6 for the fourth quarter of 2017.
  • E-commerce
    • Gross merchandise value (“GMV”) was US$1.90B, a boost of 199.5% year-on-year from US$648.30M for the first quarter of 2017 and up 23.0% quarter-on-quarter from US$1.60B for the fourth quarter of 2017.
    • Gross orders for the quarter totaled 111.40M, a boost of 217.4% year-on-year from 35.10M for the first quarter of 2017 and up 13.3% quarter-on-quarter from 98.30M for the fourth quarter of 2017.
    • Adjusted revenue was US$33.70M, up 262.1% quarter-on-quarter from US$9.30M for the fourth quarter of 2017. Adjusted revenue included US$22.00M of marketplace revenue1 and US$11.70M of product revenue2. There was negligible e-commerce adjusted revenue for the first quarter of 2017.
    • Adjusted EBITDA was US$(179.60)M, contrast to US$(62.70)M for the first quarter of 2017 and US$(175.40)M for the fourth quarter of 2017.
    • Sales and marketing as a percentage of GMV stood at 6.6%, and improved from 7.1% for the first quarter of 2017 and 8.5% for the fourth quarter of 2017.
  • Digital Financial Services
    • Gross transaction value of our digital financial services as a whole (“GTV”) was US$1.70B, a boost of 428.6% year-on-year from US$322.00M for the first quarter of 2017 and up 65.7% quarter-on-quarter from US$1.00B for the fourth quarter of 2017. The growth was attributable to the payment processing services offered by AirPay to Shopee in most of our markets, which, depending on the operational arrangement in each relevant market, may include payments from buyers to Shopee accounts under Shopee Guarantee as well as outgoing payments from Shopee accounts to Shopee seller accounts that are operationally handled by AirPay.

Updated Guidance:

For the full year of 2018, we now expect total adjusted revenue to be between US$780.0M and US$820.0M, representing 40.9% to 48.1% growth from 2017. This compares to the formerly revealed guidance of between US$730.0M and US$770.0M, representing 31.9% to 39.1% growth.

We are also revising our e-commerce GMV guidance for the full year of 2018. We now expect e-commerce GMV for the full year of 2018 to be between US$8.20B and US$8.70B, representing 99.4% to 111.5% growth from 2017. This compares to the formerly revealed guidance of between US$7.50B and US$8.00B, representing 82.4% to 94.5% growth.

SE has a market value of $4.90B while its EPS was booked as $-2.06 in the last 12 months. The stock has 301.32M shares outstanding. In the profitability analysis, the company has gross profit margin of 14.50% Analyst recommendation for this stock stands at 1.70.

Bobbie Collins

Bobbie Collins gives us an insight into the most recent news hitting the Technology Sector in Wall Street. He has been an independent financial adviser for over 10 years in the city and in recent years turned his experience in finance and passion for journalism into a full time role. He performs analysis of Companies and publicizes valuable information for shareholder community. Collins is an accomplished journalist who has a passion for travel. His desire to see the world has taken him to countries around the world and given him the opportunity to report for some of the top news organizations.