Sea Ltd. (SE) Misses Q3 EPS by 16c, Revenues Miss

Sea Ltd. (NYSE: SE) reported Q3 EPS of ($0.69), $0.16 worse than the analyst estimate of ($0.53). Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.4 billion.

Third Quarter 2020 Highlights

• Group
  • Total GAAP revenue was US$1.2 billion, up 98.7% year-on-year.
  • Total gross profit was US$407.6 million, up 100.6% year-on-year.
  • Total adjusted EBITDA1 was US$120.4 million compared to US$(30.8) million for the third quarter of 2019.

Guidance

We are raising the guidance for both digital entertainment and e-commerce for the full year of 2020.

In digital entertainment, we expect our very strong performance in the third quarter will sustain through the fourth quarter. As a result, we expect bookings for digital entertainment6 to exceed US$3.1 billion, representing over 75.4% growth from 2019. The revised guidance represents an increase of more than 59.0% from the midpoint of the previously disclosed guidance of between US$1.9 billion and US$2.0 billion.

We also expect GAAP revenue plus sales incentives net-off for e-commerce7 to exceed US$2.3 billion. The revised guidance represents a more than 144.1% increase from 2019, and a more than 31.4% increase from the midpoint of the previously disclosed guidance of between US$1.7 billion and US$1.8 billion.

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

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