14th June 2024
Singapore-based Sea reported a shock third-quarter loss because the Southeast Asian tech large prioritized development over earnings by pouring cash into its e-commerce enterprise, sending its shares greater than 17% decrease on Tuesday.

Rising competitors from Alibaba Group’s Lazada and ByteDance’s TikTok, together with new entrants like PDD’s Temu, have compelled Sea to revamp its playbook this 12 months, with warnings that the elevated ecommerce investments could result in losses in some quarters.

Elevate Your Tech Prowess with Excessive-Worth Talent Programs

Providing School Course Web site
Indian College of Enterprise ISB Product Administration Go to
IIT Delhi IITD Certificates Programme in Information Science & Machine Studying Go to
IIM Lucknow IIML Govt Programme in FinTech, Banking & Utilized Threat Administration Go to

“The doorway of latest gamers has intensified competitors in our markets … we are going to prioritise investing within the enterprise (e-commerce) to extend our market share and additional strengthen our market management,” mentioned CEO Forrest Li.
The corporate additionally expects to spice up investments, it mentioned, forward of the important thing vacation purchasing season within the fourth quarter.

Sea has spent closely in what is named “ecommerce reside streaming”, the place merchandise are offered over reside movies, a mannequin well-liked in China.

The corporate posted a lack of 26 cents per share for the quarter ended Sept. 30, ending its streak of three straight worthwhile quarters. Analysts have been anticipating a revenue of three cents per share, in response to LSEG information.

Uncover the tales of your curiosity

The $26 billion-firm had a meteoric run in 2020 and a part of 2021, when pandemic-led demand lifted revenues and helped it broaden past Southeast Asian markets. Nonetheless, a world financial slowdown hit e-commerce and digital leisure, forcing Sea to undertake hefty price cuts together with shedding hundreds of workers.

Sea’s quarterly income grew 4.9% to $3.Three billion, with the ecommerce section rising greater than 16%.

Keep on high of expertise and startup information that issues. Subscribe to our each day e-newsletter for the newest and must-read tech information, delivered straight to your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.