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URL:  https://boards.fool.com/q220-pr-34677667.aspx

Subject:  Re: Notes on Sea Ltd Date:  11/25/2020  2:23 AM
Author:  CMF_muji Number:  73711 of 78000

Q220

PR: https://cdn.garenanow.com/webmain/static/resource/seagroup/p...
Slide deck: https://cdn.garenanow.com/webmain/static/resource/seagroup/p...
Infographic: https://cdn.garenanow.com/webmain/static/resource/seagroup/i...
CC transcript: https://www.fool.com/earnings/call-transcripts/2020/08/18/se...


Market share increasing: https://twitter.com/frank_investing/status/13113022633280102...
Roach take: https://boards.fool.com/october-portfolio-34634773.aspx
Twitter takes:
https://twitter.com/andrewnutter1/status/1312571785477582854...
https://twitter.com/seifelcapital/status/1311823022538489859...


Adj Revenue 1.29B +93.4%, +40.8% seq !!
- Digital Ent 716.2M +61.6%
- E-commerce 510.6M +187.7% !!
-- Marketplace Rev 378.7M +174.8%
-- Product Rev 131.9M +232.5% !!
- Digital Finance 11.9M +327.7%

Gross Profit 200.8M +106% !!
Adj EBITDA 7.7M (vs -11.0M) swung pos
- Digital Ent 436.2M +65.4% !!
- E-commerce -305.5M (vs -248.2M)
... margin -59.8% (vs -140%) !!
- Digital Finance -110.1M (vs -18.1M)

Opex 573.6M +72.8%
- R&D +115%
- S&M +95%
Cash 3.4B


Digital Entertainment (Gaming):

QAUs 499.8M +61%
QPUs 49.9M +91% !!
ARPU 1.40

* Free Fire >100M peak DAUs
* highest grossing mobile game in LatAm and SEAsia, 3rd globally

E-commerce:

GMV 8.0B +109.9% !!
Gross Orders 615.9M +150.1%, +3890bps seq !!
- Shopee Mall +210%
- Indonesia 260M +130%
GMV 8.0B +109.9% !!, +3560bps seq !!

* top 3 worldwide in Shopping

Digital Finance:

TPV 1.6B
QPUs 15M

* 45% of Indonesia Gross Orders used it

----

11.11 shop day: https://kr-asia.com/shopee-sets-new-record-with-200-million-...

* 200M items sold +186%
* 20M hrs of livestreams on Shopee Live
* 2.5B in-game games played
* Charity concerts on Shopee Live watched 1.2M times

----

Thread on Brazil strategy. https://twitter.com/emparadigmshift/status/13278788943770009...
* Launched 14th mo ago (Aug 2019) as 8th market
- Phase 1: Local team and marketing, social media blitz w/ influencers, cross-sell with FreeFire, target young and underserved in T2 cities, free shipping.
- Phase 2: Now target Brazil sellers w/ no commission, launch in-app games in Shopee. Streaming to come.
* Search, downloads & social media trending up. No details yet on #s.
* If works, can spread into other countries w/ young gaming segment

----

Q320

PR: http://cdn.seagroup.com/webmain/static/resource/seagroup/web...
Slide deck: https://cdn.seagroup.com/webmain/static/resource/seagroup/we...
Infographic: https://cdn.seagroup.com/webmain/static/resource/seagroup/we...
CC transcript: https://cdn.seagroup.com/webmain/static/resource/seagroup/we...

Mads video CC walkthru: https://www.youtube.com/watch?v=w1xqcwgjNbo

Julie Young recap: https://twitter.com/juliey4/status/1328711528791429120?s=21


Revenue 1.2B +98.7%, +37% seq !!
- Digital Ent 569.0M +72.9%
- E-commerce 618.7M +173.3% !!
-- Marketplace Rev 467.1M +163.5%
-- Product Rev 151.6M +208.4%
- Digital Finance 14.4M +747% !!

Gross Profit 407.6M +100.6%
Adj EBITDA 120.4M (vs -30.8M) swung pos
... margin 10% (vs -5%)
- Digital Ent 584.5M +119.8% !!
- E-commerce -$301.6M (vs -253.7M)
... margin -48.7% (vs -112%) !!
- Digital Finance -149.3M (vs -33.6M)

Opex 772M +95%
- R&D +139%
- S&M +87%
Cash 3.5B


Digital Entertainment (Gaming):

Bookings 944.7M +109.5%
QAUs 572.4M +78.3%
QPUs 65.3M +124% ^^ !!!!
... 11.4% of ttl (vs 9.1%) +230bps

* >50% derived outside SE Asia !!
* FreeFire is highest growing mobile game in LatinAm and SEAsia
* localized content & experiences
* adding more social/community features (migrating to platform?), like hang-out spaces
* avg 1/4 users per day used new hang-out spaces
* launched Fantasy Town farming sim w/ local content (Indonesian landmarks)
* Esports tournaments for Free Fire have had 150M views online so far

E-commerce:

Gross Orders 741.6M +130.7% !!
Gross Merch Value 9.3B +102.7% !!
Adj EBITDA/GO -0.41 (vs -.79) !!

* Shopee was 2nd most d/l app globally in Shopping category
* #1 in SE Asia in downloads, MAU & time spent
* Double 11 (11/11) Sale - Shopee subsidized all shipping
* 48M hours watched of Shopee Live streaming
* Indonesia 310M orders, daily avg 3.4M 124%


Digital Finance:

TPV 2.1B
QPUs 17.8M of mobile wallet

* >30% of Shopee tx paid by mobile wallet in Oct'20
* Taiwan approved license for e-payments on 11/17/20 (only foreign co to)
https://www.taipeitimes.com/News/biz/archives/2020/11/18/200...
* w/in 6 months can apply for add’l license for P2P payments
* was approved as Tencent only owns 20% (30% makes it “Chinese owned” in Taiwan’s eyes)



-muji
long SE
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