Categories AlphaGraphs, Earnings, LATEST, Technology

Sea Limited’s Q2 loss widens on higher expenses

The Singapore-based firm Sea Limited (NYSE: SE) reported its second quarter 2019 results today. The online media and e-commerce company’s loss widened in the recently ended quarter to $280 million from $251 million in the second quarter of 2018. Revenue on an unadjusted basis, jumped 137% year-over-year to $436 million.

Sea stock, which reached its 52-week high ($38.00) in early August, was down more than 10% in the pre-market trading hours and was down 10% when the market opened today.

Sea Limited;s (SE) loss widens in Q2 2019

Net loss, excluding share-based compensation and changes in fair value of the 2017 convertible notes, was $215.1 million and $198.7 million in the second quarter of 2019 and 2018, respectively. Adjusted revenue increased by 203% to $665.4 million in the second quarter of 2019 from $219.6 million in the prior-year quarter.

Total expenses in the quarter increased 46% to $332 million. Digital Entertainment segment’s revenue surged 112% and 219%, on an unadjusted basis and adjusted basis, respectively. This increase was due to the growth in the active user base as well as the deepened paying user penetration. E-commerce and other services segment revenue jumped more than 200%, both on unadjusted and adjusted basis.

Read: iQiyi (IQ) stock plunges after reporting Q2 results

For fiscal 2019, Sea lifted its adjusted revenue guidance. The company now expects adjusted revenue for digital entertainment segment to be between $1.6 billion and $1.7 billion, representing 142.0% to 157.2% growth from 2018. This compares to the previously disclosed guidance of between $1.2 billion and $1.3 billion, representing 81.5% to 96.7% growth.

Also Read:  Who is leading the self-driving car race?

Adjusted revenue for e-commerce segment is now expected to be between $780 million and $820 million, representing 168.3% to 182.1% growth from 2018. This compares to the previously disclosed guidance of between $630 million and $660 million, representing 116.7% to 127.0% growth.

SE stock had rallied about 220% so far this year and 166% in the past 52 weeks.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Cloudera (CLDR) posts narrower loss in Q1, beats estimates

Cloudera Inc. (NYSE: CLDR) reported a narrower loss in the first quarter of 2021 driven by lower costs and expenses as well as higher revenue. The results exceeded analysts' expectations.

CrowdStrike (CRWD): Shift to digital transformation presents huge expansion opportunity

CrowdStrike Holdings Inc. (NASDAQ: CRWD) has witnessed strong momentum with the stock gaining over 96% since the beginning of the year. The company delivered strong results for the first quarter

Why Zscaler (ZS) stock reached all-time high on Monday?

Internet security has been evolving over time, aided by the rapid adoption of cloud computing, the ubiquity of mobile phones, and the growing threats that cause serious problems to enterprises

Tags

Top