In this video, I will discuss Sea Limited's (SE 6.94%) Q2 earnings and whether now is a good time to open a position with the stock down 60% year to date.

  • Garena is still experiencing headwinds from the reopening, with quarterly active users down 15% year over year (YOY), but it is slightly up quarter over quarter (QOQ). Paying users were down 39% YOY. 
  • Shopee and Sea Money are still growing fast but are also unprofitable. This is why Garena's continued profitability is extremely important.
  • Total gross profits in Q2 grew 17% year over year to $1.1 billion, but they're down QOQ from $1.2 billion.
  • Net loss increased to $931.2 million from $433.7 million in the prior-year quarter.
  • The company previously guided for full-year GAAP revenue for e-commerce to grow 71.8% at the midpoint but has now removed that guidance due to the ever-changing macro environment. 

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*Stock prices used were the closing prices of Aug. 15, 2022. The video was published on Aug. 16, 2022.