Sea Limited is a Singapore-based consumer internet company. It operates three growing business lines — digital entertainment, e-commerce and digital financial services — in regional markets across Asia. Its growth is fueled by scaling spending power and a moat that protects it from competition.
The company’s main revenue driver is the e-commerce platform Shopee, which accounts for around 60% of its gross merchandise value. It also generates revenue from Garena, a video game publisher, and from its digital financial service platform, SeaMoney.
Its e-commerce platform is a huge advantage for the company because it enables it to sell products directly to customers, avoiding middlemen. As a result, Sea’s GMV has increased dramatically over the past year and its gross orders have gone up.
This strategy has allowed it to build a strong brand in the region. Its e-commerce business is now one of the largest in Southeast Asia in terms of GMV and its revenues are growing rapidly.
However, the company faces some major challenges ahead of it. In addition to China’s recent anti-gaming ban, the company has faced a string of other setbacks this year.
While the company has been able to recover from these setbacks, it is still struggling in some areas. For example, the Indian government banned its popular free-to-play game, Free Fire, in early 2022.
According to a statement from Sea’s management, the company is now focused on profitability and is making strides in that direction. It has cut 7,000 jobs to reduce costs and reach positive cash flows.
It has also shut down operations in India and several European and Latin American markets, reducing the size of its workforce significantly.
These cost cuts show that Sea is finally turning a corner and that it is now willing to prioritize profitability over growth. It’s a strategy that is needed to survive and thrive in the long run.
The company’s management has a clear vision of how it will achieve profitability in the near term, with an eye towards becoming self-sufficient by the end of 2024. It has put a lot of effort into reorienting its businesses to become more efficient and profitable in the future, which will help it meet its goals faster.
While it is still far from breaking even, the stock has rallied in the last few days largely on its new focus on profitability and gaining self-sufficiency. It has also been praised for its efforts to cut costs.
Forrest Li, CEO of Sea, said that the company is ready to take action in order to overcome its challenges and move forward. He also added that it will continue to invest in e-commerce and digital payments.
In addition, it is focusing on logistics and building its infrastructure to support high-volume delivery for its e-commerce business, Shopee. This will allow the company to better compete with other online retailers, such as Amazon and Walmart.
The company has also trimmed its workforce in a number of markets, including Indonesia and France. It has also reduced the amount of funding it will provide to subsidiaries and has started to monetize non-core assets.
