Sea’s chairman and group CEO Li says the company is seeking to achieve “self-sufficiency and profitability as soon as possible”.
NYSE-listed Sea Limited has reported a total net loss of US$569.3 million ($781.7 million) for the 3QFY2022 ended Sept 30, down 0.3% from the total net loss of US$571.0 million in the corresponding quarter before.
On a q-o-q basis, the quarter’s net loss improved by 38.9%.
Excluding share-based compensation, Sea reported a total net loss of US$373.5 million for the 3QFY2022, improving by 16.6% y-o-y and 34.4% q-o-q.
Sea’s chairman and group CEO Forrest Li said that the company has “entirely shifted [its] mindset and focus from growth to achieving self-sufficiency and profitability as soon as possible, without relying on any external funding” given the “significant uncertainties in the macro environment”.
He adds that the company is “adapting quickly to the changing climate”.
“All our efforts are directed to ensure that Sea not only survives the macro storms but emerges stronger, more efficient, and more resilient – and as a long-term winner in our markets,” Li continues. “This positions us to continue capturing the long-term potential of our businesses and markets, and to deliver strong and sustained shareholder returns over time.”
“Over the last quarter, we took decisive actions to improve margins, and set clear goals and priorities for the quarters to come. We remain highly confident about the compelling long-term growth prospects of our businesses and markets,” he stresses.
In the 3QFY2022, Sea reported a total GAAP or generally accepted accounting principles revenue of US$3.2 billion, up 17.4% y-o-y. The higher revenue was attributable to revenue growth in Sea’s e-commerce and digital financial services segments and dragged by lower revenue in its digital entertainment segment.
The company’s total gross profit increased by 21.7% y-o-y to US$1.2 billion.
Total adjusted ebitda for the 3QFY2022, however, saw a deeper loss of US$357.7 million, compared to the total adjusted ebitda of US$165.5 million for the 3QFY2021. On a q-o-q basis, total adjusted ebitda for the quarter improved by 29.4%. After adjusting for US$77.4 million of severance and early lease termination related costs for the quarter, adjusted ebitda improved by 44.7% q-o-q.
Basic and diluted loss per share for the 3QFY2022 stood at 0.66 US cents.
As at Sept 30, cash and cash equivalents stood at US$6.25 billion.
The company, in its Nov 15 statement, revealed that it is working towards achieving an adjusted ebitda breakeven for Shopee, which is a part of its e-commerce segment, by the end of 2023.
For its digital entertainment segment, Sea says it now expects bookings for the FY2022 to be between US$2.6 billion and US$2.8 billion, lower than its previous guidance of US$2.9 billion to US$3.1 million.
It added, in its outlook statement, that they do not intend to provide any guidance for 2023 for its businesses, given the ongoing macro uncertainties.
As at 11.06am (US time), shares in Sea are trading US$15 higher or 32.75% up at US$60.80.
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