Sea Limited Announces Financial Results For Q4 And Full Year 2020

Sea Limited announced today (March 2) its financial results for the fourth quarter and full year ended 31 December 2020.

In Q4 2020, the Group recorded a total GAAP revenue of US$1.6 billion, up 101.6 per cent year-on-year. Meanwhile, its total gross profit was US$533.7 million, up 101.5 per cent year-on-year.

Additionally, its total adjusted EBITDA was US$48.7 million compared to US$104.9 million in Q4 2019.

Digital Entertainment Sees Continued Growth Of User Base

garena digital entertainment q4 2020
Garena’s growth in digital entertainment in Q4 2020 / Image Credit: Sea

Bookings for Garena’s digital entertainment was US$1 billion, up 111.1 per cent year-on-year.

Adjusted EBITDA was US$663.5 million, up 149.1 per cent year-on-year. This represented 65.5 per cent of bookings for Q4 2020, compared to 55.5 per cent for Q4 2019.

Digital entertainment also recorded a GAAP revenue of US$693.4 million, up 71.6 per cent year-on-year.

Its quarterly active users (QAUs) reached 610.6 million, an increase of 72.1 per cent year-on-year. It also grew by 119.5 per cent year-on-year to 73.1 million, and represented 12 per cent of QAUs for Q4 2020 compared to 9.4 per cent for the same period in 2019.

According to App Annie, Garena’s self-developed global hit game Free Fire was the most downloaded mobile game globally for 2020, marking its lead for the second consecutive year.

App Annie’s data also revealed that Free Fire continued to be the highest grossing mobile game in Latin America and in Southeast Asia for the fourth quarter and for the full year of 2020. It has maintained this leading position for the past six consecutive quarters.

In addition, Free Fire was also the highest grossing mobile game in India for the fourth quarter and for the full year of 2020.

YouTube on the other hand, unveiled that Free Fire-related content recorded over 72 billon view counts across its platform globally in 2020.

This makes Free Fire the most viewed mobile-only video game globally on YouTube for both 2019 and 2020. It was also the third most viewed among all video games on YouTube in 2020.

Continuing Its Lead Position In E-Commerce

Shopee's growth in e-commerce in Q4 2020
Shopee’s growth in e-commerce in Q4 2020 / Image Credit: Sea

Shopee’s GAP revenue for Q4 2020 was US$842.2 million, up 178.3 per cent year-on-year.

This included US$627.6 million of GAAP marketplace revenue, up 175.4 per cent year-on-year; and US$214.6 million of GAAP product revenue, up 187.1 per cent year-on-year.

Shopee’s gross orders totalled 1 billion, an increase of 134.6 per cent year-on-year. Its gross merchandise value (GMV) was US$11.9 billion, an increase of 112.5 per cent year-on-year.

In Indonesia, where Shopee is the largest e-commerce platform, it registered over 430 million orders for the market in Q4 2020, or a daily average of around 4.7 million orders — an increase of over 128 per cent year-on-year.

Shopee also ranked first in Indonesia in terms of average monthly active users, total time spent in app on Android, and downloads in the Shopping category, for Q4 and for the full year of 2020, according to App Annie.

Shopee also ranked first in the Shopping category by average monthly active users, total time spent in app on Android, and downloads for the same period in both Southeast Asia and Taiwan.

Shopee was also the third most downloaded app globally in the Shopping category for the full year of 2020.

Additionally, Shopee ranked first in YouGov’s “Best APAC Buzz Rankings 2020” and ranked eighth in YouGov’s “Best Global Brands 2020”.

Shopee represents one of the only two e-commerce brands in YouGov’s top 10 global brand rankings.

Accelerating Adoption Of Digital Financial Services

SeaMoney's growth in digital financial services in Q4 2020
SeaMoney’s growth in digital financial services in Q4 2020 / Image Credit: Sea

In the fourth quarter, Sea continued to see strong growth in the adoption of SeaMoney’s offerings.

Its mobile wallet total payment volume exceeded US$2.9 billion for the quarter and US$7.8 billion for the full year of 2020.

Moreover, quarterly paying users for its mobile wallet services surpassed 23.2 million in the fourth quarter with monthly paying users in Indonesia surpassing 10 million during the quarter.

SeaMoney also continued to expand its suite of online and offline third-party use cases and partnerships.

For instance, it recently expanded its partnership with Google to offer its mobile wallet as a payment option for the Google Play Store in Indonesia, following its partnership with Google in Thailand from March 2020.

Other Notable Milestones

Sea has acquired Hong Kong-licensed global investment management firm Composite Capital Management, which is founded and led by David Ma.

Concurrent with the acquisition, Sea is also establishing Sea Capital, a platform to manage Sea’s overall investment efforts.

In this new venture, Ma will serve as the Chief Investment Officer, reporting directly to Sea’s chairman and group CEO Forrest Li.

Sea Capital will focus on partnering with entrepreneurs using technology to better serve consumers and small businesses.

“Through Sea Capital, we intend to invest into and support the growth of our broader ecosystem to create value for our users, business partners, and communities,” said Sea in a media statement.

“In line with this commitment, we are allocating an initial US$1 billion to be deployed by Sea Capital over the next few years.”

It is confident that the addition of the Composite team and the establishment of Sea Capital will further enhance its investment and capital allocation capabilities in support of Sea’s long-term growth strategies.

Sea's FY 2021 Guidance
Sea’s FY 2021 Guidance / Image Credit: Sea

For the full year of 2021, Sea expects bookings for digital entertainment to be between US$4.3 billion and US$4.5 billion. The midpoint of the guidance represents an increase of 38.1 per cent from 2020.

It also expects GAAP revenue for e-commerce to be between US$4.5 billion and US$4.7 billion. The midpoint of the guidance represents an increase of 112.3% from 2020.

Featured Image Credit: Sea

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