Q&A（Question-and-Answer Session）is a session after the company's prepared remarks where institutional investors and analysts ask management questions. In this dialogue, you may find some valuable information that might affect the stock price in the following weeks.
Now let's look at some key points from SEA Q1 2023 Q&A Session Transcript $Sea Ltd(SE)$
Q:I think earlier, you mentioned that GMV for Q1 this year was consistent with Q1 last year. Did you mean by U.S. dollar terms or by constant currency?
Could you also talk about the FX impact on your GMV or revenue for this quarter? And anything you can share about the number of orders for both Asia and Brazil. And lastly, any comments about your headquarter costs both year-over-year or quarter-over-quarter, anything even qualitatively would be great.
A:In terms of GMV, as I mentioned, we don't discuss quarter-on-quarter GMV numbers specifically. And what I mentioned though was that the trend we're observing, the general trend Q-on-Q, observed for this quarter versus last quarter is in line as what we observed in Q1 last year versus Q4 2021.
And in terms of ForEx impact, we disclosed that for our GAAP revenue in e-commerce on the constant currency basis, the GAAP revenue would be up 41.7% year-on-year. And on a USD basis, 6.3% year-on-year, so I think that probably gives you a sense of what the ForEx impact is. And in terms of our order number, again, we don't discuss specific order numbers quarter-on-quarter, but you can assume that our basket size doesn't change dramatically quarter-on-quarter anyway so roughly in line with GMV trends. In terms of HQ costs for the quarter, we continue to see improvement on the cost and of course, adjusting for any onetime accrual reversal that we had in the previous quarter.
Q:On the gaming side, can you provide an update on tenant site of first refusal. So it's coming up for September, October. So how should we think about that agreement and its impact potential?
A:Commercial agreement with Tencent for our game publishing. And I think we mentioned before, it's over renewal unless either party terminates it. We are not aware of any changing circumstances and the agreement is publicly filed, so you can refer to the terms there.
Q:On the sticking to Garena, on the margin side, it looks like going to launch some gains in the second half. So how should we think about margins given you may need to invest on marketing of the game? So it should trend down from current 50% that we have shown in the quarter.
A:In terms of the margin for the new game launches. Now I think there will be some initial marketing spend, but again, we will remain highly disciplined and will be commensurate with the performance of the game overall and remain tight on that. So we do not, at this point, anticipate a major impact on marketing because of the marketing spend related to the new game launch. And in terms of the LatAm plans for Shopee, our focus is still on Brazil, which is the largest market in the region and where we already established a significant scale and leadership in the segment that we target.
The above Q&A are highlights that are edited for brevity. Click here for the full Sea Q1 2023 Earnings Call Transcript.
If you want to know more details, you can click here to re-watch the Sea Q1 2023 Earnings Conference Call
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