Shopee-owner Sea shares increased 14% after a much stronger revenue

Shopee owner Sea shares increased 14 after a much stronger revenue

May 19, 2022: -On Tuesday, Shares of Southeast Asia’s e-commerce and gaming firm Sea Group popped up after its first-quarter revenue beat analysts’ expectations.

Sea’s U.S.-listed shares surged 14% to close at $80.21 after the Singapore-based internet firm reported revenue exceeding analysts’ expectations in this first quarter of the year.

Sea’s revenue increased by 64.4% from the year before. Still, it came down nearly 9.5% from the $3.2 billion it made in revenue in the last quarter, which shows that growth will plateau after two years of pandemic-driven sales.

Its online shopping platform Shopee and gaming arm Garena increased as countries opened up.

The company is warning that inflation and supply chain disruptions could affect business, even as it continues to be loss-making.

“As we enter a new period, we recognize that the current macro trend and uncertainties could affect our region and world in the near term,” said Forrest Li, Sea’s chief executive officer, and co-founder, in the earnings call.

Both Shopee and Garena, Sea’s two main money-making divisions, which was facing fewer revenues than the previous quarter.

E-commerce revenues generated by Shopee were $1.52 billion in the first quarter, down from $1.59 billion in the last quarter. Heavy logistics and marketing expenses led to $810 million in losses, $131 million less than the previous quarter.

The company revised its full-year revenue guidance for Shopee to $8.5 billion and $9.1 billion, which cited “elevated macro uncertainties.”

Sea’s chief corporate officer Yanjun Wang pointed out that the company was not lowering its guidance but widening it as a way of caution. Its previous guidance was from $8.9 billion to $9.1 billion.

But according to Kristine Lau, an analyst at research firm Third Bridge, how much people spend on each order could trend downwards.

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Shopee-owner Sea shares increased 14% after a much stronger revenue
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Shopee-owner Sea shares increased 14% after a much stronger revenue
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Shares of Southeast Asia’s e-commerce and gaming firm Sea Group popped up after its first-quarter revenue beat analysts’ expectations.
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The Women Leaders
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