Southeast Asia’s technology giant sea limited on monday Recorded its first surplus In an effort to protect market share alibabaLazada and TikTok owned by.
Net income in 2023 was $162.7 million and net loss in 2022 was $1.7 billion. Net loss for the fourth quarter of 2023 was $111.6 million. Net income for the year-ago period was $422.8 million. .
“In 2023, we aim to achieve profitability, strengthen the market leadership of our e-commerce business, grow our digital financial services business and “We have stabilized the performance of the entertainment business.” Previously, Sea had barely made a profit and had billions of dollars in losses since it was founded in 2009.
Sea operates in the Southeast Asian market and has businesses in e-commerce (Shopee), financial services (SeaMoney) and gaming (Garena).
“We have a stronger balance sheet with our cash position increasing to $8.5 billion at the end of 2023, a testament to the discipline and prudence we have applied to our investments over the past year. ” said Lee.
Sea’s New York-listed shares closed 5.58% higher on Monday. Lee said the company expects 2024 to be another profitable year.
Sea’s e-commerce arm Shopee achieved “significant market share growth” in 2023 despite “increasing competition in Southeast Asia,” the company announced on Monday. Mr. Shi also said that Shopee’s market share in the region is “consolidating” and that the company intends to “maintain market share in 2024.”
Shopee faces stiff competition from players such as: alibabaThe region is owned by Lazada and Indonesia’s Tokopedia. Tokopedia will merge with Indonesia’s TikTok Shop to form an expanded Tokopedia entity, with TikTok holding a 75.01% controlling interest.
In August, Sea said it would focus on growth rather than profits, a reversal from recent cost-cutting measures in the face of economic uncertainty. Analysts said the shift was a move to protect market share.
SeaMoney reported its first year of profit in 2023. The company also expects its flagship game, Free Fire, to “achieve double-digit year-over-year growth in both user base and number of reservations in 2024.”
“We are pleased to see positive trends in both growth and profitability across all three of our businesses. Looking ahead, we continue to invest in the future with discipline and focus. I am here,” Shi said in a written statement. Monday’s press statement.
“The guidance has been very positive and amazing,” said Sachin Mittal of DBS Bank. Following the earnings report, the bank upgraded Sea from a “hold” rating to a “buy” rating with a price target of $75.
“It has to do with the fact that TikTok was not as active in Indonesia. They achieved what they wanted.” [with] We have reported it to Tokopedia and are currently working on regulatory compliance,” Mittal told CNBC on Tuesday.
CGS-CIMB Securities analyst Kan Chuen Ong on Tuesday upgraded Sea’s stock from “hold” to “add” and raised his price target from $46 to $74 per share, representing a 37% upside. becomes.
Wedbush on Monday raised its price target on Sea from $45 to $72 and maintained an “outperform” rating on the stock.
“Given the growth and margin trajectory implied by management’s outlook, we are increasingly positive on the stock, as competitive pressures ease and investments in live streaming, user acquisition and fulfillment continue to grow. We believe Sea is in the early stages of a successful turnaround as it begins to bear fruit,” Wedbush analysts said.