Sea Ltd - ADR

Strong Overall Growth and Profitability: Sea Limited reported a 30% year-on-year increase in total GAAP revenue to $4.8 billion in Q1 2025. Adjusted EBITDA rose significantly from $401 million in Q1 2024 to $947 million in Q1 2025, highlighting improved efficiency and cash generation across all business segments.

E-commerce (Shopee) Performance and Future Guidance: Shopee achieved a record gross merchandise volume (GMV) of $28.6 billion, up 22% year-on-year, and improved profitability with an adjusted EBITDA of $264 million (up from a loss in Q1 2024). The company maintains a full-year GMV growth guidance of 20%, citing strong pricing strategies, cost optimization, and operations improvements. Key risks include potential forex fluctuations and macroeconomic impacts, although local market strength appears resilient.

Digital Financial Services Expansion (Monee): Monee (formerly SeaMoney) showed a remarkable 50% year-on-year growth in revenue, with the loan book expanding over 75% to $5.8 billion. The company is focusing on prudent risk management and expanding new credit products in various markets, including Brazil, which helps diversify risk. The challenging aspect is maintaining asset quality amid rapid expansion, with a stable 90-day non-performing loan ratio at 1.1%.