Sea Reports Record Profits in 2024
Singapore-based internet company Sea has announced record profits for the second consecutive year in 2024, driven by strong growth in its e-commerce and fintech divisions. The company, listed in the US, saw its shares surge by 7.14% to US$132.31 on March 4 following the release of its financial results.
Financial Performance
In 2024, Sea reported a profit of US$447.8 million, marking a significant increase of 175.2% from the previous year’s figure of US$162.7 million. The company’s revenue also showed robust growth, rising by 28.8% to US$16.8 billion compared to US$13.1 billion in the prior year. For the fourth quarter of 2024, Sea’s revenue reached US$5 billion, a 36.9% increase year-on-year.
Business Segments
- Sea’s e-commerce arm, Shopee, was the primary driver of the company’s strong performance in 2024, with revenue increasing by 37.9% to US$12.4 billion.
- The financial services provider SeaMoney also saw significant growth, with revenue up by 34.6% to US$2.4 billion.
- The gaming and digital unit, Garena, faced a slight decline in revenue but reported an 18.7% increase in user spending to US$2.1 billion.
CEO’s Remarks
Sea’s CEO, Forrest Li, expressed confidence in the company’s future profitability, stating that all business segments are expected to remain profitable and self-sufficient. He emphasized the importance of strategic decision-making and efficient execution in achieving the company’s success.
Future Outlook
Looking ahead to 2025, Sea anticipates continued growth and profitability, particularly in Shopee, which is projected to achieve a 20% increase in gross merchandise value (GMV). The company is also focused on leveraging artificial intelligence (AI) to enhance its operations and improve user experiences.
Analysts’ Perspectives
According to research analysts, Shopee is expected to maintain its growth trajectory in 2025, with a forecasted 20% increase in GMV. Sea’s overall positive performance in 2024 has led to a significant uptrend in its share price, though some analysts caution that the stock may have limited upside potential at current levels.
Conclusion
Sea’s strong financial results in 2024 underscore its position as a leading player in the e-commerce, fintech, and digital entertainment sectors. With a focus on innovation and profitability, the company is well-positioned for continued success in the coming years.
FAQs
What contributed to Sea’s record profits in 2024?
Sea’s e-commerce platform, Shopee, played a significant role in driving the company’s strong financial performance in 2024, with substantial revenue growth and improved profitability.
How is Sea leveraging artificial intelligence in its operations?
Sea is utilizing artificial intelligence tools to enhance product listings, customer service, and overall operational efficiency across its various business segments, including Shopee and SeaMoney.
What are analysts’ projections for Sea’s performance in 2025?
Analysts forecast continued growth for Sea in 2025, particularly in Shopee, with an expected 20% increase in gross merchandise value. However, some analysts caution that Sea’s stock may have limited upside potential given its recent price appreciation.