Sea Ltd. (NYSE: SE) reported Q2 EPS of ($0.68), $0.26 worse than the analyst estimate of ($0.42). Revenue for the quarter came in at $1.29 billion versus the consensus estimate of $1.06 billion.

Second Quarter 2020 Highlights

Group

• Total adjusted revenue was US$1,287.2 million, up 93.4% year-on-year from US$665.4 million for the second quarter of 2019.
• Total gross profit was US$200.8 million, up 106.1% year-on-year from US$97.4 million for the second quarter of 2019.
• Total adjusted EBITDA was US$7.7 million compared to US$(11.0) million for the second quarter of 2019.

Digital Entertainment

• Adjusted revenue was US$716.2 million, up 61.6% year-on-year from US$443.2 million for the second quarter of 2019.
• Adjusted EBITDA was US$436.2 million, up 65.4% year-on-year.
• Adjusted EBITDA margin increased to 60.9% for the second quarter of 2020 from 59.5% for the second quarter of 2019.
• Quarterly active users (“QAUs”) reached 499.8 million, an increase of 61.0% year-on-year from 310.5 million for the second quarter of 2019.
• Quarterly paying users grew by 91.2% year-on-year to 49.9 million, which represented 10.0% of QAUs for the second quarter compared to 8.4% for the same period in 2019.
• Average adjusted revenue per user was US$1.4, in line with that for the second quarter of 2019.
• Our self-developed global hit game, Free Fire, achieved a new record high of over 100 million peak daily active users and, according to App Annie1, was the highest grossing mobile game in Latin America and in Southeast Asia in the second quarter. Free Fire also ranked third globally by downloads in the mobile games category in the second quarter, according to App Annie1.
• In July 2020, Garena hit a new record high in monthly adjusted revenue. Free Fire also achieved a new record in monthly paying users in July, which more than doubled year-on-year.
• Our esports and community building efforts continued to attract significant followings in the second quarter. Free Fire esports tournaments accumulated over 120 million online views for the quarter. In June, we hosted Free Fire Asia All-Stars 2020, a pan-regional two-day event for both professional teams and influencers, which recorded over 20 million online views to date.
• We have also engaged global partners to create new in-game content for our users. For example, in July, Free Fire announced its partnership with Netflix for a special in-game crossover with the global hit Netflix show, Money Heist, which is expected to launch in September.

E-commerce

• Adjusted revenue was US$510.6 million, up 187.7% year-on-year.
• Adjusted revenue included US$378.7 million of adjusted marketplace revenue2, up 174.8% year-on-year, and US$131.9 million of adjusted product revenue3, up 232.5% year-on-year.
• Gross orders totaled 615.9 million with accelerated growth of 150.1% year-on-year, compared to a growth rate of 111.2% year-on-year in the first quarter of 2020. Gross orders from Shopee Mall grew at an even faster pace with a year-on-year increase of over 210%.
• Gross merchandise value (“GMV”) growth further accelerated to 109.9% year-on-year to reach US$8.0 billion for the second quarter, compared to 74.3% year-on-year in the first quarter of 2020.
• Adjusted revenue as a percentage of total GMV increased to 6.4% in the second quarter. Adjusted marketplace revenue as a percentage of total GMV increased to 4.7%.
• Adjusted EBITDA was US$(305.5) million, compared to US$(248.3) million for the second quarter of 2019. Adjusted EBITDA loss per order decreased by 50.5% year-on-year to US$0.50, compared to US$1.01 for the second quarter of 2019.
• In Indonesia, where Shopee is the largest e-commerce platform, it registered over 260 million orders for the market in the second quarter, or a daily average of over 2.8 million orders, an increase of over 130% year-on-year. Shopee also ranked first in Indonesia by average monthly active users, downloads, and total time spent in app on Android, in the Shopping category in the second quarter, according to App Annie1.
• Shopee continued to rank number one in the Shopping category by downloads in Southeast Asia, and was among the top three worldwide in the same category, for the second quarter, according to App Annie1.
• Both in Southeast Asia and in Taiwan, Shopee continued to rank number one in the Shopping category by average monthly active users, and total time spent in app on Android, for the second quarter, according to App Annie1.
• We consistently focus on enhancing user engagement on Shopee by expanding the depth and breadth of social content on our app. Shopee Live, our in-app live-streaming offering, has recorded over 30 million hours watched in the second quarter. We further broadened the types of content that we offer to Shopee Live viewers. For example, in June, we partnered with the organizers of KCON, one of the most popular K-pop music festivals, to stream their annual concert series on Shopee.

For earnings history and earnings-related data on Sea Ltd. (SE) click here.