$Sea Ltd(SE)$With its mammoth three headed business models, namely:
Shopee:
e-commerce market place platform that serves many (sellers) to many (consumers) models.
Garena:
Leading e sports in Southeast Asia
Sea Money:
Digital payment and financial service provider in Southeast Asia
The company's total losses has double up, stand at $931 million Vs $433 million last year same quarter.
Though revenue grew 28.9% to $2.98 billion from $2.28 billion quarter to quarter mainly supported by e commerce division.
It's gaming segments has been on declining trend, possible due to users mainly spending more time outdoor after pendamic lockdown or perhaps users are bored with existing gaming resulted in 15% quarterly active users a further 39% down in paid users.
Costs has increased substantial especially on R& D costs, almost double to $371 million from $172 million. It looks like Sea is going all out to "break the chain" in sustaining growth and at the same time managing innovative to attract more users per say.
Stock base compensation has significantly increased to $391 million from $112 million same quarter last year. I guess it's hard to resist in rewarding oneself over better earnings[Doubt]
It's cash has been on declining stage since its peak on 2021 quarter 3. Signaling that Sea needs to have new avenue income stream if its to sustain its business and convinced the world that they are THE top notch player in Southeast Asia in gaming, market place and in digital payment.
How SEA able to navigate to not only better growth in revenue but at some point be profitable and remain profitable is not only test of time but also its creativity in executing new product mix and ensure users especially in gaming segment to be more engaging.
For now, it's wait for better price before enter your position as there is another rate hike coming in Sept 2022.
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