How sustainable is SE's gross profit growth?

**Sea's gross profit growth appears to be sustainable**, as evidenced by the following factors: 1. **Consistent Revenue Growth**: Sea has demonstrated a significant revenue growth rate of 36.88%, which is a strong indicator of a sustainable business model. This growth is not a one-time event but a consistent trend, as reflected in the company's financial reports. |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| 2. **Profitability Across Segments**: The company has shown profitability across all three segments: gaming, e-commerce, and digital financial services. This diversification reduces the risk of relying on a single source of income and enhances the overall sustainability of its gross profit growth. 3. **E-commerce Business Shopee's Performance**: Shopee, Sea's e-commerce platform, has transformed into a more balanced and sustainable business. It achieved its first profitable year in 2024, with significant increases in orders, gross merchandise value, and revenue. This milestone indicates a strong foundation for continued gross profit growth. 4. **Gaming Business Garena's Resilience**: Garena, Sea's gaming segment, has shown resilience and growth in its flagship title, Freefire. With over 100 million daily active users and a significant contribution to adjusted EBITDA, Garena remains a profitable and sustainable business. 5. **Market Position and Strategic Direction**: Sea's strategic focus on sustainability and profitability has been recognized by investors, as reflected in the company's stock performance and the confidence of analysts in its future improvement. The company's ability to adapt to market trends and pivot towards sustainability in its e-commerce business further supports the notion of sustainable gross profit growth. In conclusion, Sea's gross profit growth is supported by consistent revenue growth, profitability across segments, the success of its e-commerce and gaming businesses, and a strategic focus on sustainability. These factors collectively contribute to the sustainability of its gross profit growth.