Will SE's earnings momentum continue in 2025?

**Sea's earnings momentum is likely to continue in 2025**, driven by several key factors: 1. **Strong Revenue Growth**: Sea reported a 36.9% year-on-year increase in revenue for Q4 2024, reaching $4.95 billion, surpassing analyst expectations. This robust growth trajectory indicates a strong market demand for Sea's services. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |SE|SE.N|Sea|2024 Q1|-126.34834807313385|22.79517569935129|-126.66666666666669|169| |SE|SE.N|Sea|2024 Q2|-75.85646392715034|22.97435764909583|-74.07407407407408|169| |SE|SE.N|Sea|2024 Q3|206.49126949950687|30.755689741427023|192.3076923076923|169| |SE|SE.N|Sea|2024 Q4|312.8674461317923|36.8798781627527|305.2631578947369|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |SE|SE.N|Sea|2024 Q1|-126.34834807313385|-2.3E7|169| |SE|SE.N|Sea|2024 Q2|-75.85646392715034|7.9911E7|169| |SE|SE.N|Sea|2024 Q3|206.49126949950687|1.53324E8|169| |SE|SE.N|Sea|2024 Q4|312.8674461317923|2.37592E8|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |SE|SE.N|Sea|2024 Q1|22.79517569935129|3.734329E9|169| |SE|SE.N|Sea|2024 Q2|22.97435764909583|3.806868E9|169| |SE|SE.N|Sea|2024 Q3|30.755689741427023|4.328233E9|169| |SE|SE.N|Sea|2024 Q4|36.8798781627527|4.950436E9|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |SE|SE.N|Sea|2024 Q1|-126.66666666666669|-0.04|169| |SE|SE.N|Sea|2024 Q2|-74.07407407407408|0.14|169| |SE|SE.N|Sea|2024 Q3|192.3076923076923|0.24|169| |SE|SE.N|Sea|2024 Q4|305.2631578947369|0.39|169| 2. **Profitability Improvements**: The company achieved positive adjusted EBITDA in all three business segments for the first time, marking a significant shift towards profitability. This trend is expected to continue as Sea focuses on sustainable growth and profitability. 3. **E-commerce and Digital Finance Growth**: Sea's e-commerce segment, Shopee, saw a 41.3% year-on-year increase in revenue, reaching $3.7 billion. The digital financial services segment also experienced significant growth, with a 55.2% revenue increase and an expanding loan book. These segments are expected to contribute positively to earnings in 2025. 4. **User and Market Expansion**: Shopee's quarterly active users grew by 16.9% year-on-year to 618 million, and average bookings per user increased to $0.88. The company is projecting a 20% increase in Gross Merchandise Value (GMV) for Shopee in 2025, indicating strong user engagement and market expansion. 5. **Analyst Confidence**: The consensus rating for Sea is a "Strong Buy" with an average analyst price target of $162.17, suggesting confidence in the company's future performance. 6. **Strategic Investments and Future Outlook**: Sea plans to expand its loan book and digital services, which is expected to drive further growth and profitability. The company's strategic investments in logistics and digital financial services are poised to enhance its market position and profitability in 2025. In conclusion, Sea's strong revenue growth, profitability improvements, and strategic investments in high-growth segments like e-commerce and digital finance, along with positive analyst sentiment, suggest that the company's earnings momentum is likely to continue in 2025.