Sea’s revenue surges 43.4 pct year on year in Q3 as Shopee hits record high

Singapore-based technology giant Sea said its revenue surged 43.4 percent year on year to $8.6 billion in the third quarter as its e-commerce arm Shopee hits record high.

Sea also achieved gross profit of $3.9 billion, up 51.4 percent year-on-year, and net income of $502.5 million, up 34 percent year-on-year, the firm said in a statement on Tuesday.

Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 28.9 percent year-on-year to reach $931.3 million.

“Our strong momentum from the first half of the year has continued into the third quarter. We are pleased with this solid performance, and will continue to focus on executing our priorities with discipline,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.

Shopee’s revenue jumped 41.3 percent year on year to $6.1 billion in the third quarter. Its gross merchandise value (GMV) was $39.7 billion for the quarter, increasing by 23.3 percent year-on-year.

Li said Shopee delivered another strong quarter, again achieving new record highs in both top- and bottom-line metrics.

“Our strategies have proven effective at strengthening our fundamentals, giving us a growing buyer base, stronger monetization, and improving unit economics,” he added.

Meanwhile, Sea’s digital arm revenue soared 63.9 percent year on year $1.6 billion in the third quarter. Its adjusted EBITDA was $298.3 million, up 15.5 percent year-on-year.

“Monee also delivered another quarter of healthy growth while staying disciplined in how we manage risk and how we invest,

“We are reaching more users, deepening relationships with existing ones, and extending credit into more everyday spending scenarios, both on- and off-Shopee,” Li said.

Sea’s gaming platform Garena also saw its revenue increased by 28.6 percent year on year to $840.1 million in the third quarter. Its adjusted EBITDA wasS$458.2 million, up 45.9 percent year-on-year.

“Garena delivered a solid third quarter, with bookings continuing to grow and profitability continuing to improve. Free Fire anchored this performance with strong bookings growth, and Arena of Valor continued its strong momentum from its 10th year anniversary celebrations,” said Li.

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