Benjamin Cher · · 2 min readSea remains in the black, posts $153m Q3 profit
Shopee’s office in Jakarta / Photo credit: jafriyalbule / Shutterstock
Gaming and ecommerce player Sea reported a US$153.3 million net profit for Q3 2024, reversing from a US$144 million loss a year ago, and marking a second consecutive quarter in the black.
The figure beat estimates from a Bloomberg poll of 13 analysts, which projected a net profit of US$128.6 million. Revenue for the quarter also rose 30.8% to US$4.3 billion from US$3.3 billion in Q3 2023.
“I am very proud that we also improved our profitability while getting back to high growth,” said Forrest Li, chairman and CEO, Sea.
The ecommerce segment, Shopee, posted a positive adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of US$34.4 million in Q3 2024, up from a loss of US$346.5 million in Q3 2023. Sea is now positive adjusted Ebitda across all markets in ecommerce, with Asia recording US$30.9 million and other markets US$3.5 million.
The segment recorded a 42.6% increase in revenue to US$3.2 billion for Q3 2024, from US$2.2 billion a year ago. Ecommerce revenue consists of marketplace revenue, which is made up of transaction fees and advertising revenues, and value-added services revenue, which comprises logistics services.
Marketplace revenue jumped 49.3% to US$2 billion in Q3 from US$1.3 billion. Value-added services revenue rose 29.4% to US$767.2 million from US$592.8 million in Q3 2023.
Shopee’s gross merchandise value rose 25.2% year on year to US$25.1 billion from US$20.1 billion.
The digital financial services segment booked a 38% increase in revenue to US$615.7 million, up from US$446.2 million. The consumer and small and medium enterprise (SME) loans principal outstanding stood at US$4.6 billion as at Sep 30, 2024, up 73.2% from US$2.4 billion a year ago.
The non-performing loans due by more than 90 days stood at 1.2% of consumer and SME loans principal outstanding, lower than the 1.6% in Q3 2023.
In the digital entertainment segment, revenue for the quarter was down at US$497.8 million from US$592.2 million.
Bookings were up 24.3% to US$556.5 million from US$447.9 million. They increased due to a bigger portion of revenue being deferred due to users’ average lifespan increasing from efforts in user engagement.
Quarterly active users stood at 628.5 million in Q3 2024, up 15.5% year on year from 544.1 million.
Quarterly paying users were up 23.9% to 50.2 million from 40.5 million, with the paying user ratio at 8% compared to 7.5% the year prior.
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