To The Moon

Twenty times the big bull stocks and the "little Tencent" sea in Southeast Asia released the second quarter financial report before the U.S. stock market on August 17. The strong financial data pushed the share price of sea up 6% to a record high!

To the moon is my most obvious feeling after reading this financial report.

In terms of overall revenue, sea's revenue in the second quarter was US $2.28 billion, a year-on-year increase of 159%, and the growth rate reached a new high in recent years!

In terms of business, the revenue of the digital entertainment department, the main game business, was US $1 billion, a year-on-year increase of 166.8%; The revenue of e-commerce department was US $1 billion, a year-on-year increase of 174%; Commodity sales revenue was US $260 million, a year-on-year increase of 92%.

From the perspective of segment revenue growth, the main contributor to the better than expected performance in the second quarter lies in the digital entertainment business. In terms of the number of active users in the quarter, it reached 725 million in the second quarter, a year-on-year increase of 45%. The number of paying users in the quarter reached 92.2 million, a year-on-year increase of 85%. The quarterly payment ratio reached 12.7%, compared with 10% in the same period last year.

It can be seen that after the number of active users reached 700 million in the quarter, trying to improve the payment ratio has become the key to sea's growth.

Sea's hottest free fire game achieved brilliant performance in the second quarter. The download volume of Google App Store exceeded 1 billion times, and the peak number of daily active users hit a new high of 150 million. The average number of monthly active users ranked third in the global mobile games of Google App store, and the mobile Games ranked first in Southeast Asia and Latin America, winning the title for eight consecutive quarters.

In the Indian market, free fire is the mobile game with the highest revenue, and has won this leading position for three consecutive quarters.

In terms of e-commerce business, the total number of orders in the second quarter reached 1.4 billion, a year-on-year increase of 127%, and Gmv reached US $15 billion, a year-on-year increase of 88%.

Shopee's total downloads rank first in the global shopping apps of Google App store, second in the global shopping app ranking, and third in the total user use time.

In Southeast Asia, Indonesia and Taiwan, shopee ranks first in terms of average monthly active users and total user use time.

In particular, shopee recorded quarterly adjusted EBITDA profits in Malaysia, becoming the second profitable market after Taiwan.

The optimistic financial data also made sea raise its annual performance forecast for 2021, raising the revenue of game and entertainment pre-sale services from the previous US $4.3-4.5 billion to US $4.5-4.7 billion, with a median increase of 44.4% over 2020; The GAAP revenue of e-commerce business was increased from the previous US $4.5-4.7 billion to US $4.7-4.9 billion, with a median increase of 121.5% over 2020.

$Sea Ltd(SE)$