Sea Limited (NYSE: SE) reported better-than-expected sales results for its fourth quarter on Monday. The company posted a quarterly loss of 19 cents per share, compared to a profit of 72 cents per share a year ago. However, Sea’s quarterly sales came in at $3.62 billion, exceeding market estimates of $3.53 billion.
The company reported that quarterly active users were 528.7 million, down from 544.1 million in the previous quarter. Average bookings per user increased by 4.8% quarter-on-quarter to $0.86. Core marketplace revenue grew by 40.6% year-over-year, with gross orders rising by 46.0% year-over-year and 13.4% quarter-on-quarter.
Forrest Li, Sea’s Chairman and Chief Executive Officer, expressed his satisfaction with the company’s performance, stating, “I am happy to share that we have achieved our first full year of annual profit since our IPO. In 2023, we achieved profitability, strengthened our market leadership for our e-commerce business, grew our digital financial services business, and stabilized the performance of our digital entertainment business.”
Looking ahead, Sea expects Shopee’s full-year GMV growth to be in the high teens range and its adjusted EBITDA to turn positive in the second half of this year. The company’s shares gained 5.6% to close at $53.90 on Monday.
Following the quarterly results, analysts made changes to their price targets on Sea. Bernstein raised the price target from $50 to $60, maintaining an Outperform rating, while JP Morgan boosted the price target from $43 to $70 and upgraded the stock from Neutral to Overweight.
Sea’s strong performance in the fourth quarter and positive outlook for the coming year have impressed analysts and investors alike. The company’s focus on profitability and growth in key areas such as e-commerce and digital financial services bodes well for its future success. Investors will be keeping a close eye on Sea Limited as it continues to navigate the competitive landscape of the tech industry.
