Sea Ltd. (Singapore) Q1 FY2025 earnings call

• All three businesses showed strong growth and improving profitability.
• Shopee sustained market leadership with improved profitability across Asia and Brazil, driven by scale expansion, cost optimization, and enhanced monetization (especially ad revenue).
• Monee had strong growth in multiple markets, with loan book expansion, stable asset quality, and new product rollouts.
• Garena had a stellar start with successful game collaborations and new game launches driving user engagement.

E-commerce (Shopee)

• GMV in first quarter reached a record high. Ad revenue grew by over 50% year-on-year. Average monthly active buyers grew by over 15% year-on-year. Logistics cost per order reduced: 6% in Asia and 21% in Brazil year-on-year. Piloted Shopee VIP membership program in Indonesia with over 1 million users subscribing by end of March.
• Revenue contribution: Not explicitly stated as a percentage but GMV was a key metric.

Digital Financial Services (Monee)

• Revenue and adjusted EBITDA grew by more than 50% year-on-year. Loan book grew by over 75% year-on-year to $5.8 billion. Active users for consumer and SME loan products exceeded 28 million. 90-day NPL ratio was 1.1%.
• Revenue contribution: Not explicitly stated as a percentage but significant growth in loan book.

Digital Entertainment (Garena)

• Total bookings grew 51% and adjusted EBITDA grew 57% year-on-year. Free Fire's collaboration with NARUTO was highly successful with over 300 million official video impressions. New game Delta Force Mobile had over 10,000,000 downloads since launch.

• Shopee confident of achieving full-year GMV growth guidance of 20% with improving profitability.
• Monee confident of achieving full-year growth guidance.
• Garena confident of delivering double-digit growth for user base and bookings in 2025.

• Macro-economic uncertainties could impact growth.
• Foreign exchange fluctuations may affect results.
• Intense market competition could pose challenges.

Q: On Shopee, what drives the profitability uptick and margin strain outlook? How confident are you in maintaining 20% GMV growth?

A: Factors include seasonality, improved take rates, cost optimization. Confident in 20% growth due to local marketplace focus, price competitiveness, and low e-commerce penetration in markets.

Q: What drives Monee's strong performance? Growth in loan book, new geographies, products?

A: Driven by Shopee penetration, non-Shopee growth (BCL products, SPL offline), and new product rollouts like two-wheel financing in Indonesia.

Q: Main driver for Brazil's sustainable growth and how long will fast growth last?

A: Key drivers are pricing advantage, infrastructure improvement (lower costs, shorter delivery times). Fast growth could continue as e-commerce penetration in Brazil is low.

Q: Impact of Shopee VIP membership on VAS revenue?

A: VIP membership boosts purchase frequency but doesn't conflict with VAS revenue; monetization will be adjusted based on seller feedback and market conditions.