LONDON, UK / ACCESSWIRE / June 20, 2018 / If you want access to our free earnings report on Sea Ltd (NYSE: SE), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SE. The Company reported its first quarter fiscal 2018 operating and financial results on May 15, 2018. The multimedia and graphics software Company raised its adjusted revenues and GMV guidance for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Sea's total revenues increased 65.0% to $155.0 million in Q1 2018 from $93.9 million in Q1 2017. The Company's total adjusted revenues increased 81.2% to $197.0 million in the reported quarter from $108.8 million in the year earlier same quarter.
During Q1 2018, Sea's total sales and marketing expenses soared 138.1% to $152.1 million from $63.9 million in Q1 2017. The Company's general and administrative (G&A) expenses increased 76.5% to $44.5 million in the reported quarter versus $25.2 million in the year earlier comparable quarter, primarily due to the expansion of its staff force; an increase in office facilities and related expenses; as well as a rise in other expenses.
For Q1 2018, Sea's research and development (R&D) expenses rose 71.3% to $10.7 million versus $6.3 million in Q1 2017, primarily due to an increase in R&D staff force. The Company recorded a net non-operating loss of $18.2 million in the reported quarter compared to a net non-operating loss of $2.5 million in the prior year's corresponding quarter. This was primarily due to fair value loss of $18.8 million recognized in Q1 2018, arising from the fair value accounting treatment for convertible promissory notes and interest expenses on those promissory notes.
Sea reported net losses of $216.2 million, or $0.64 loss per diluted share, in Q1 2018 compared to net losses of $73.1 million, or $0.42 loss per diluted share, in Q1 2017. The Company's adjusted net loss was $205.5 million in the reported quarter and $67.0 million in the year earlier same quarter.
During Q1 2018, Sea's Digital Entertainment segment's revenues surged 26.3% to $110.7 million compared to $87.6 million in Q1 2017. The segment's adjusted revenues increased 42.6% to $146.0 million in the reported quarter from $102.4 million in the year earlier comparable quarter. This increase was primarily due to the growth of the Company's quarterly active users (QAUs) to 126.7 million in Q1 2018 from 56.4 million in Q1 2017, as Sea launched new games and expanded its existing games into new markets, which in turn increased the number of the Company's paying users.
For Q1 2018, the Digital Entertainment segment's average revenue per user (ARPU) was $1.2 compared to $1.8 in Q1 2017. The segment's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $55.0 million in the reported quarter, reflecting an increase of 48.6% from $37.0 million in the year earlier corresponding quarter.
Sea's Ecommerce segment's revenues were $27.3 million in Q1 2018, including $15.6 million of marketplace revenues and $11.7 million of product revenues. The Ecommerce segment's adjusted revenues were $33.7 million in the reported period. There was negligible ecommerce revenues during Q1 2017.
During Q1 2018, the segment's gross merchandise value (GMV) was $1.9 billion, reflecting an increase of 199.5% from $648.3 million in Q1 2017. The segment's gross orders totaled 111.4 million in the reported quarter, reflecting an increase of 217.4% from 35.1 million in the prior year's same quarter.
For Q1 2018, the Ecommerce segment's adjusted EBITDA were negative $179.6 million compared to negative $62.7 million in Q1 2017.
Sea's Digital Financial Services segment's revenues soared 81.9% to $3.7 million in Q1 2018 from $2.0 million in Q1 2017. The segment's adjusted revenues increased 92.9% to $3.9 million in the reported quarter from $2.0 million in the prior year's corresponding quarter. The increase was primarily attributable to the addition of use cases to Sea's AirPay platform and a further deepening of the Company's market penetration.
During Q1 2018, the Digital Financial Services segment's gross transaction value as a whole (GTV) was $1.7 billion, reflecting an increase of 428.6% from $322.0 million in Q1 2017.
For the full fiscal year 2018, Sea is forecasting total adjusted revenues to be between $780 million and $820 million compared to its earlier guidance range of $730 million and $770 million.
The Company also revised its ecommerce GMV guidance, expecting it to be between $8.2 billion and $8.7 billion for FY18, representing a growth of 99.4% to 111.5% from 2017. This compares to the previously disclosed guidance of between $7.5 billion and $8.0 billion.
Stock Performance Snapshot
June 19, 2018 - At Tuesday's closing bell, Sea's stock declined 2.96%, ending the trading session at $15.10.
Volume traded for the day: 2.69 million shares, which was above the 3-month average volume of 1.48 million shares.
Stock performance in the last month – up 15.53%; previous three-month period – up 40.86%; past six-month period – up 25.83%; and year-to-date – up 13.28%
After yesterday's close, Sea's market cap was at $5.06 billion.
The stock is part of the Technology sector, categorized under the Multimedia & Graphics Software industry.
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