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Sea Limited in Three Words: Southeast Asia E-commerce

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Background

Sea Limited is the dominant e-commerce and digital financial services provider in Southeast Asia. In latest quarterly results published in May, the company delivered e-commerce GMV of $23.6 billion (+36% YoY) and total revenue (for e-commerce, digital financial services, plus digital entertainment) of $3.7 billion (+22.8% YoY).

Although 2023 was Sea Limited’s first full year of annual profit since its IPO in 2017, Q1 generated a modest net income loss of $23 million, primarily driven by continued higher levels of sales and marketing spend, which were $770 million for the quarter (+92% YoY, but notably -23% QoQ).

The company’s operational priorities for Shopee in 2024 are to enhance price competitiveness, strengthen the content ecosystem, and improve service quality for buyers. One aspect of this is for the company to increase the percentage of orders delivered through Shopee Express in both Asia and Brazil, which will deliver improved unit economics, and reinforce the company’s competitive moat.

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