Sea’s Third Quarter 2023 Results

2023-11-14

Dear Sailors,

Earlier today we reported our results for the third quarter of 2023, a summary of which is attached.

I am happy to share that we have achieved another quarter of strong results! In my note to you on last quarter’s results, I talked about how our successful pivot to profitability had laid a strong foundation for us to invest in future growth opportunities. We have started doing so this quarter, investing to further strengthen Shopee’s market leadership and capture the growing live streaming opportunity that is emerging in our markets.

We are already seeing good progress on both fronts. Growth in Shopee’s users, gross orders, and GMV all accelerated sequentially this quarter. And in Southeast Asia, our average daily orders from live streaming have already reached more than 10% of the total order volume for October. Your hard work and dedication have produced this early fruit from our investments, and I am excited to see that momentum continue.

Garena has also done well this quarter, with bookings growing from last quarter. Free Fire was the most downloaded mobile game globally this quarter while Arena of Valor hit a new peak in quarterly active users, and Call of Duty: Mobile achieved its highest quarterly bookings yet. SeaMoney also delivered another strong quarter, with its credit business continuing to contribute meaningfully to our group, and digital banks showing good progress with new features and product offerings.

I am glad to see how, even as we shift our operational focus back to investing in growth, we are doing so much more efficiently and prudently than before. In fact, despite our ramp-up in investments, compared to a year ago, we were able to grow our group cash position by 600 million dollars to 7.9 billion dollars this quarter! This is important, because our self-sufficiency was hard-won, and we want to remain in control of our future rather than becoming dependent again on external funding. Maintaining a deep well of resources means that we can continue to pursue more competitive and growth-focused strategies for years to come.

Our markets continue to hold many attractive growth opportunities. Let’s continue to fight to strengthen our market leadership. I look forward to seeing what we can continue to achieve together!

Sincerely,
Forrest