Sea Limited (SE) Sails to 52-Week Highs on Accelerating Growth and Profitability

Sea Limited, the Asian Pacific tech powerhouse known for its e-commerce, fintech, and gaming businesses, delivered a standout third-quarter performance that sent its stock surging 13 percent to its highest level since early 2022.

After a challenging 2023, Sea's focus on balancing growth with profitability is proving to be a winning formula, as reflected in its impressive results.

E-commerce Growth Drives Revenues

Shopee, Sea Limited's e-commerce division and its largest business, recorded a robust 25.2 percent increase in gross merchandise volume (GMV) to $25.1 billion, with orders growing at a similar pace.

This propelled Shopee's revenue to $3.2 billion, a year-over-year increase of 42.6 percent. Live streaming has emerged as a major growth catalyst for Shopee, boosting engagement and sales across key markets such as Indonesia, Thailand, and Vietnam.

Financial Services and Gaming Gain Momentum

SeaMoney, Sea's fintech arm, delivered 38 percent year-over-year growth in revenue to $615 million. The segment's strong performance underscores its ability to tap into underserved credit markets across the region.

Meanwhile, Garena, Sea's digital entertainment division, saw bookings grow 24.3 percent. Its flagship game, Free Fire, maintained its status as a global phenomenon with over 100 million daily active users, marking a 25 percent year-over-year increase. The game is now expanding into North Africa, opening up new opportunities in an untapped region.

Profitability Improves Across Segments

Sea's growth has not come at the expense of profitability. Shopee achieved a positive adjusted EBITDA of $34.4 million, a remarkable turnaround from a loss of $346.5 million in the same period last year. Adjusted EBITDA also increased across SeaMoney and Garena, rising 13.4 percent and 34.4 percent year-over-year, respectively.

Sea Limited reported consolidated revenue growth of 30.8 percent to $4.33 billion, accelerating from 23 percent growth in the prior quarter. The company also posted its second consecutive quarter of non-GAAP profitability, with earnings per share of $0.24, exceeding analyst expectations.

Long-Term Growth Opportunities

Looking ahead, Sea is well-positioned to capitalize on several growth trends. Shopee's live-streaming feature is driving consumer engagement and sales, mirroring successful strategies used by other e-commerce giants like PDD Holdings.

Garena continues to expand Free Fire’s reach into new markets, while SeaMoney leverages the region's underserved demand for credit and digital financial services.

Conclusion

Sea Limited’s Q3 results reaffirm its ability to navigate challenging markets while achieving strong growth and profitability. Although its shares remain about 70 percent below their record 2021 highs, the company’s strategic focus on sustainable expansion and efficiency gains positions it for long-term success.

Investors are taking notice, as evidenced by the stock's robust rally and renewed confidence in Sea's outlook.