Sea Ltd. (NYSE:SE) reported mixed financial results for the fiscal Q2/24, leading to a 10% surge in its shares intra-day today. The consumer internet company posted earnings per share of $0.14, missing the analyst consensus of $0.17. However, revenue for the quarter exceeded expectations, reaching $3.81 billion compared to the projected $3.74 billion.
The company also reported stronger-than-expected adjusted EBITDA of $448.5 million, surpassing the anticipated $397.4 million. In its Digital Entertainment segment, adjusted EBITDA came in at $302.8 million, higher than the expected $270.2 million. The Digital Financial Services segment also outperformed, with an adjusted EBITDA of $164.7 million, above the estimate of $156.4 million.
Sea's Chairman and CEO, Forrest Li, highlighted the company's ongoing momentum, noting strong growth and increased profitability across all three of its business segments. Li pointed to the success of Garena, which saw more than 20% year-on-year growth in bookings, largely driven by the popular game Free Fire.
Looking ahead, Li stated that Shopee is on track to achieve adjusted EBITDA profitability in the third quarter. Additionally, the company has revised its guidance for Shopee’s full-year GMV growth in 2024, now expecting it to be in the mid-20% range.