Sea Ltd (NYSE:SE) stock rose 4.15% (As on May 15, 11:21:48 AM UTC-4, Source: Google Finance) after the company beat estimates for first-quarter revenue, driven by strong performance of e-commerce unit Shopee. Sales from e-commerce, its biggest unit, grew 33% to $2.7 billion in the March quarter, compared with LSEG estimates of $2.54 billion. Bookings at its digital entertainment business, which includes gaming platform Garena, were higher-than-expected at $512.1 million, however, growth in its digital financial services unit came in below expectations. Consumer and SME loans active users, defined as those with loans outstanding by the end of the quarter, increased 42% year-on-year to more than 18 million this quarter. As of March 31st 2024, our consumer and SME loans principal outstanding reached 3.3 billion dollars, up 29% year-on-year and up 5% quarter-on-quarter. Sea has reported a $23 million net loss compared with a $87.3 million profit a year earlier, as costs rose nearly 50%. The $37 billion-firm had a meteoric run in 2020 and 2021, when pandemic-led demand lifted revenues and helped it expand beyond the Southeast Asian markets. However, a global economic slowdown forced Sea to streamline businesses and cut thousands of jobs. Exiting India, Europe and some Latin American markets, among other initiatives, helped the company achieve its first annual profit last year.

Moreover, Garena is back to positive growth, with bookings up 11% year-on-year. This was led by Free Fire’s strong performance across markets: in the first quarter, Free Fire’s average MAU increased 24% year-on-year. The operational priorities for Free Fire will remain consistent in 2024: improving user acquisition, engagement, and retention.

SE in the first quarter of FY 24 has reported the adjusted loss per share of 4 cents, missing the analysts’ estimates for the adjusted loss per share of 2 cents. The company had reported the adjusted revenue growth of 23 percent to $3.73 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $3.56 billion, according to LSEG data. Total adjusted EBITDA was US$401.1 million, as compared to US$507.2 million for the first quarter of 2023. As of March 31, 2024, cash, cash equivalents, short-term investments, and other treasury investments2 were US$8.6 billion, representing a net change of US$(12.3) million from December 31, 2023. This included US$143.9 million of cash consideration used to repurchase US$171.9 million aggregate principal amount of the 0.25% convertible senior notes due 2026 during the first quarter.