Third Quarter 2024 Results
Sea Limited’s third-quarter 2024 financial results demonstrate a strategic return to high growth across its core business segments while simultaneously improving overall profitability. The company reported a significant turnaround in consolidated performance, swinging from a GAAP operating loss of $127.7 million in the third quarter of 2023 to an operating income of $202.4 million in the same period of 2024. Total adjusted EBITDA rose dramatically from $35.3 million to $521.3 million year-over-year, supported by a robust cash position of $9.9 billion.
The e-commerce segment, Shopee, achieved a pivotal milestone by reaching positive adjusted EBITDA in both its Asian markets and Brazil. GAAP revenue for the segment grew 42.6% year-over-year to $3.2 billion, driven by improved monetization through higher commission take rates and a 25% increase in ad-paying revenue per seller. Operational efficiencies also improved, with half of SPX Express orders in Asia delivered within two days and a reduction in cost per order.
Digital Financial Services saw a 38% increase in GAAP revenue, reaching $615.7 million. The segment’s loan book expanded significantly, with principal outstanding growing over 70% year-over-year to $4.6 billion, while maintaining a stable risk profile with a non-performing loan ratio of 1.2%. Growth was particularly strong in the off-Shopee lending sector in Indonesia, which now accounts for over 50% of the local loan book.
In Digital Entertainment, Garena’s performance was bolstered by the continued strength of Free Fire, which saw a 25% year-over-year increase in daily active users. Segment bookings rose 24.3% to $556.5 million, leading the company to raise its full-year 2024 bookings growth guidance for Free Fire to over 30%. The segment remains a primary profit driver, contributing $314.4 million in adjusted EBITDA for the quarter. These results reflect Sea’s successful integration of content ecosystems, logistics improvements, and credit expansion across Southeast Asia, Latin America, and other global markets.
