Sea (NYSE:SE), the Southeast Asian internet giant, reported a breakthrough third quarter, with its e-commerce arm Shopee achieving its first-ever quarterly profit on an adjusted basis.
The company’s earnings surpassed expectations, driven by stronger-than-expected performance in key markets like Indonesia, as it fends off larger Chinese competitors in the region.
Shares of Sea surged nearly 7% in pre-market U.S. trading as the company posted net income of $153.3 million, outpacing analysts’ projections, which averaged $128.6 million.
This came as total revenue for the quarter reached $4.33 billion, up 30.8% from the prior year and beating forecasts of $4.08 billion, according to data compiled by LSEG.
Shopee’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $34.4 million, marking a pivotal moment for the e-commerce unit, which had endured years of losses as Sea invested heavily in scaling its platform across Southeast Asia.
The company’s financial stability has largely been underpinned by Garena, its gaming unit, which remains a steady profit center, helping support Shopee’s rapid expansion.
Sea also reported a substantial increase in gross merchandise volume (GMV) for Shopee, up 25% year-over-year to $25.1 billion in Q3, defying projections of a lower growth rate.
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