- Key Highlights
Revenue: $3.45 billion +7% year-over-year (YoY)
- Digital Entertainment: $949 million -33% YoY
- E-commerce: $2.23 billion +51% YoY
- Sale of goods: $272 million -16% YoY
Gross Profit: $1.70 billion +30% YoY
- Digital Entertainment: $706 million -32% YoY
- E-commerce: $949 million +284% YoY
- Sale of goods: $42 million +81% YoY
Net Income: $423 million compared to a loss of $616 million YoY
Adjusted EBITDA: $486 million compared to a loss of $492 million YoY
- Wall Street Expectations
Revenue: $3.03 billion (beat by 14%)
Adjusted Earnings per Share: -0.75 (beat by 267%)
Source: Zachs
- Digital Entertainment
At the end of Q4 2024, quarterly active users (QAUs) reached 485.5 million, a decrease of 26% YoY. The quarterly paying user ratio also decreased from 11.8% to 9.0% YoY. What this ultimately means is that quarterly paying users fell by 43% from 77.2 million a year ago to 43.7 million for the fourth quarter of 2022. As you will see below, Sea changed the earnings disclosure so this had to be worked out independently.
Management have stated that ongoing moderation in user engagement and monetization is driving the weak performance. A significant driver of this has been the decision by the Indian government to ban the global hit game, Free Fire, in 2022 (Source).
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