To The Moon

Sea Limited drops as mixed Q2 results, suspended guidance weighs on shares

Sea Limited (NYSE:SE) $Sea Ltd(SE)$dropped on Tuesday after the Singapore-based technology company reported mixed second-quarter results and suspended revenue guidance for its e-commerce segment, noting the "increasing macro uncertainties."

For the period ending June 30, Sea Limited (SE) lost an adjusted $1.03 per share on $2.94B in revenue, up 28.9% year-over-year. Analysts were expecting an adjusted loss of $1.06 per share on $2.88B in revenue.

The company said e-commerce revenue rose 51.4% year-over-year during the quarter to $1.7B, while gross orders totaled 2B, an increase of 41.6% year-over-year.

Sea Limited (SE) said adjusted EBITDA for its e-commerce unit, Shopee, was negative $648.1M, compared to negative $579.8M in the year-ago period, but adjusted EBITDA loss per order improved by 21%.

Sea Limited (SE) added that Shopee continued to rank first in Indonesia and Taiwan by monthly active users and it continued its strong growth in Brazil with GAAP revenue rising 270% year-over-year.

However, with the global economy increasingly weakening due to rising interest rates, slowing consumer activity and geopolitical uncertainties, Sea Limited (SE) said it would "further focus on efficiency and optimization for the long-term strength and profitability of the e-commerce business."

"Given this strategic shift, we will be suspending e-commerce GAAP revenue guidance for the full year 2022," the company said in a statement. "We believe such efforts will further strengthen our ability to better capture the long-term growth opportunities in our markets, which we remain highly positive about."

On Monday, it was disclosed that hedge fund Bridgewater Associates had bought 459K shares of Sea Limited (SE) during the second quarter.