Sea Ltd (NYSE:SE) stock fell 8.49% (As on August 17, 11:18:37 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. The company, however, said it will suspend guidance for its e-commerce unit, which accounts for about 60% of company revenue. On e-commerce, the second quarter GAAP revenue of $1.7 billion included GAAP marketplace revenue of $1.5 billion, up 62% year-on-year and GAAP product revenue of $0.3 billion, up 14% year-on-year. E-commerce adjusted EBITDA loss was $648 million. Adjusted EBITDA loss per order was $0.33 compared to $0.41 for the second quarter of 2021 as the company further improved the growth efficiency and unit economics. Digital entertainment bookings were $0.7 billion and GAAP revenue was $0.9 billion for the second quarter of 2022. Adjusted EBITDA was $334 million. The slowdown compared to the second quarter of 2021 was mainly due to moderation of user base and user trends post COVID. Digital financial services GAAP revenue was $279 million, an increase of 214% year-on-year from $89 million in the second quarter of 2021. The growth was primarily due to the growing adoption of the financial products and services. Adjusted EBITDA loss was $112 million compared to $155 million for the second quarter of 2021 as the company further improved on the growth efficiency. At the end of second quarter of 2022, the company had $7.8 billion of cash, cash equivalents and short-term investments on the balance sheet.

SE in the second quarter of FY 22 has reported the adjusted loss per share of 61 cents, beating the analysts’ estimates for the adjusted loss per share of $1.14. The company had reported the adjusted revenue growth of 29 percent to $2.9 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $2.99 billion. This was mainly driven by the growth in the e-commerce and digital financial services businesses as the company continues to leverage the synergies across the platforms.

Moreover, in the quarter, Shopee’s unique economics improved significantly, driven by efficiency gains across our markets. In particular, adjusted EBITDA loss per order before allocation of HQ costs in the Asian market combined was less than $0.01. And the company is on track to achieving positive adjusted EBITDA before HQ cost allocation in this region. At the same time, Shopee continued to grow at healthy rates despite the tough year-over-year comparison, with GAAP revenue up 51% year-on-year, or 56% year-on-year, adjusting for currency fluctuations.