Sea Limited reported robust Q1 results, with total revenue soaring 47% year-on-year to $7.1 billion, driven by significant growth in its e-commerce platform Shopee and the fintech arm SeaMoney. Notably, Shopee’s gross merchandise value (GMV) reached $37.3 billion, a 30% increase, while adjusted EBITDA surpassed $1 billion for the first time. However, Shopee’s adjusted EBITDA fell year-on-year due to heightened investments in logistics and user acquisition, highlighting the company’s strategic focus on long-term growth.
The results underscore Sea Limited’s strong market position, particularly in Southeast Asia and Brazil, where Shopee’s GMV from Brazilian sellers more than doubled. The company’s VIP membership program and content-driven sales strategies are proving effective, with over 10 million subscribers contributing significantly to GMV. Additionally, AI integration is enhancing operational efficiency, improving purchase conversion rates, and reducing customer service costs.
Investors should note Sea Limited’s commitment to balancing aggressive growth investments with financial discipline, as management reaffirms guidance for continued GMV growth and stable EBITDA margins in 2026.
Source: fool.com