Sea Limited Shares Drop After Earnings Miss

  • Investing.com
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Sea Limited Shares Drop After Earnings Miss

By Sam Boughedda

Investing.com -- Sea Ltd (NYSE: SE ) fell Tuesday after the company reported its fourth-quarter data before the open, revealing an earnings miss.

The Singapore-based company announced a loss per share of 88 cents on revenue of $3.22 billion. Analysts polled by Investing.com anticipated a per-share loss of 84 cents on revenue of $3.03 billion.

Sea stock plunged 12% Tuesday.

Sea's e-commerce revenue climbed 89% to $1.6 billion in the fourth quarter, while digital entertainment revenue was $1.4 billion, up 104.1% year-on-year. In addition, financial services saw an enormous leap in revenue to $197.5 million, up 711.1% year on year.

For the full year of 2022, the company expects bookings for digital entertainment to be between $2.9 billion and $3.1 billion.

Revenue for e-commerce is expected to be between $8.9 billion and $9.1 billion. In addition, digital financial services revenue is forecast to be between $1.1 billion and $1.3 billion.

Sea said its guidance considers that many economies are reopening, and they have observed some moderation in online activities and fluctuations in user engagement. In addition, it acknowledged that its Free Fire game is currently unavailable in the Google (NASDAQ: GOOGL ) Play and iOS app stores in India after being banned.

“With our growing scale, market leadership and strong cash balance, we believe we are well placed to increasingly leverage efficiencies across our ecosystem for growth and manage the levers of our business to reach profitability across more markets and segments in 2022 and beyond,” said Forrest Li, Sea’s Chairman and CEO.

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