Sea Group narrows EBITDA losses for Q3, lowers guidance

Sea Group reported an adjusted EBITDA loss of US$357.7 million for the third quarter of 2022, improving 29% compared to the previous quarter. On a year-on-year basis, the result more than doubled the Singapore-born tech giant’s US$165.5 million EBITDA loss in Q3.

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The company’s Q3 revenue was listed at around US$3.2 billion, a 17.4% year-on-year jump. Most of the amount came from its ecommerce arm Shopee, which contributed US$1.9 billion.

Garena, Sea’s digital entertainment unit, raked in almost US$893 million in revenue, while its fintech segment SeaMoney accounted for US$326.9 million.

Meanwhile, Sea’s cash, cash equivalents, and short-term investments were recorded at US$7.3 billion, decreasing by around 6% from the previous quarter.

Its net loss stayed flat year on year, hovering at around US$569.3 million. Operating expenses also grew 17.5% to US$1.72 billion in Q3.

The company also lowered its guidance for the year, expecting 2022 bookings to be between US$2.6 billion and US$2.8 billion. Its previous guidance was pegged at between US$2.9 billion to US$3.1 billion.

See also: Making sense of Shopee’s layoffs

“Given the significant uncertainties in the macro environment, we have entirely shifted our mindset and focus from growth to achieving self-sufficiency and profitability as soon as possible, without relying on any external funding,” said Forrest Li, Sea’s chairperson and group CEO.