In This Article:
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Total GAAP Revenue: $4.8 billion, up 30% year on year.
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Total Adjusted EBITDA: $947 million, compared to $401 million in Q1 2024.
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E-commerce Gross Orders: $3.1 billion, up 20% year on year.
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E-commerce GMV: $28.6 billion, up 22% year on year.
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E-commerce Adjusted EBITDA: $264 million, compared to a loss of $22 million in Q1 2024.
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Digital Financial Services GAAP Revenue: $787 million, up 58% year on year.
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Digital Financial Services Adjusted EBITDA: $241 million, up 62% year on year.
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Consumer and SME Loans Principal Outstanding: $5.8 billion, up over 75% year on year.
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Digital Entertainment Bookings: $775 million, up 51% year on year.
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Digital Entertainment Adjusted EBITDA: $458 million.
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Net Income: $411 million, compared to a net loss of $23 million in Q1 2024.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sea Ltd (NYSE:SE) reported a 30% year-on-year increase in total GAAP revenue, reaching $4.8 billion in Q1 2025.
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Shopee achieved record-high GMV and gross order volume, with a 22% year-on-year increase in GMV to $28.6 billion.
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Monee, the rebranded Digital Financial Services business, saw revenue and adjusted EBITDA grow by more than 50% year on year.
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Garena's total bookings grew 51% year on year, with a successful collaboration with Naruto Shippuden boosting user engagement.
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Sea Ltd (NYSE:SE) achieved a net income of $411 million in Q1 2025, compared to a net loss of $23 million in Q1 2024.
Negative Points
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The competitive landscape in ASEAN and Brazil remains challenging, with new entrants like TikTok Shop in Brazil.
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Currency fluctuations, particularly in some markets, could impact financial performance.
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The company faces potential margin pressure from increased shipping subsidies and dynamic cost adjustments.
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The expansion of Monee's off-Shopee services requires careful risk management and could impact margins.
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The live streaming ecosystem in Brazil is still in its early stages, posing challenges for Shopee Live's growth.
Q & A Highlights
Q: What drives Shopee's strong improvement in profitability this quarter, and how should we think about the margin trend in the coming quarters? A: Chris Feng, President of Sea Ltd, explained that Shopee's profitability was driven by seasonality, improved take rates, cost optimization, and the use of AI solutions to automate operations. The company remains confident in achieving a 20% growth outlook, despite macroeconomic uncertainties, due to its local marketplace focus and price competitiveness.