Sea Ltd. (NYSE:SE) reported mixed results for the fiscal Q2 2024, sending its shares slightly lower in the premarket trading Tuesday.
The consumer internet company posted Q2 earnings per share (EPS) of $0.14, falling short of the analysts’ estimate of $0.17. However, revenue came in at $3.81 billion for the quarter, surpassing the consensus projection of $3.74 billion.
Still, SE shares dropped 3.6% in the premarket trade.
The company’s adjusted EBITDA was $448.5 million, also above the expected $397.4 million.
In its Digital Entertainment segment, adjusted EBITDA reached $302.8 million, exceeding the projected $270.2 million. The Digital Financial Services segment also outperformed expectations, with an adjusted EBITDA of $164.7 million compared to the estimate of $156.4 million.
“I’m happy to report that it has been a solid quarter for us, with our strong momentum from Q1 continuing into Q2. All three of our businesses have shown both strong growth and higher profitability,” said Forrest Li, Sea’s Chairman and CEO.
“Garena delivered a strong quarter, with more than 20% year-on-year growth in bookings, mainly contributed by Free Fire.”
Li mentioned that, based on the strong results from the first half of the year and the positive outlook for the remainder, Shopee is expected to achieve adjusted EBITDA positivity starting in the third quarter. He also indicated that the company is revising its guidance for Shopee’s full-year GMV growth in 2024 to the mid-20% range.
Alongside its earnings, Sea also announced board changes.
Effective August 12, 2024, Dr. Silvio Savarese and Ms. Jessica Tan have been elected as independent directors to Sea’s board. Concurrently, Mr. Tony Hou, who also serves as Sea’s Chief Financial Officer, stepped down from the board.
As a result, the seven-member board now comprises a majority of independent directors. Tony Hou will continue in his role as Chief Financial Officer.
