How does SE's Q3 earnings compare to peers?

**Sea's Q3 earnings demonstrate strong performance and strategic resilience compared to peers**:

1. **Revenue Growth**: Sea Limited (SE) reported a 37% year-on-year increase in revenue for Q4, reaching $4.33 billion, surpassing analysts' expectations by 6.3%. This robust growth is a testament to Sea's successful expansion across its e-commerce, digital financial services, and digital entertainment segments.
2. **EBITDA and Profitability**: Sea's EBITDA exceeded estimates, and the company reported its second consecutive profitable year, with a significant improvement in net income margin from -3% to 5%. This indicates enhanced operational efficiency and cost management.
3. **Segment Performance**:
- **Shopee**: The e-commerce division, Shopee, achieved profitability in key markets such as Asia and Brazil, marking a pivotal success for Sea's largest unit.
- **SeaMoney**: The digital financial services segment exhibited strong growth, with revenues increasing by 55% year-over-year. The unit's steady profitability and substantial revenue expansion highlight its stability and potential for future growth.
- **Garena**: The digital entertainment arm reported a 17% rise in active users and a 19% increase in gross bookings, reflecting growing market traction.
4. **Peer Comparison**: When compared to peers like MercadoLibre and Shutterstock, Sea's revenue growth rate of 37% is comparable to MercadoLibre's 37.4% year-on-year increase. However, Sea's P/E ratio of 180.23 is higher than MercadoLibre's forward P/E ratio of 42, indicating that while Sea's growth prospects may be more optimistic, it is also trading at a premium.
5. **Stock Performance and Market Reception**: Following the earnings release, Sea's stock surged, reflecting investor confidence in the company's performance and growth potential. This is in contrast to Shutterstock, which reported weaker-than-expected quarterly earnings, leading to a decline in its stock price.
6. **Strategic Insights**: Sea's strategic collaborations and product innovations, such as the partnership with YouTube to enhance Shopee's ecosystem, underscore its focus on expanding market presence and user engagement.

In conclusion, Sea's Q3 earnings showcase impressive growth and profitability across its core segments, positioning it favorably compared to peers like MercadoLibre and Shutterstock. While Sea's higher P/E ratio suggests a premium valuation, its strong revenue growth, segment profitability, and strategic initiatives suggest confidence in its continued success.