Thank you and happy holidays!

2023-12-22

Dear Sailors,

Thank you for another year of hard work and strong results! 2023 has been busy but fulfilling. Let us look back together at all the things we have achieved.

Back in March, we reported our first profitable quarter across all three businesses, despite a very difficult external environment. In our drive toward self-sufficiency, our teams became laser-focused on improving business fundamentals and efficiencies. These efforts paid off.

We celebrated Sea’s 14th birthday in May and reported our second profitable quarter soon after. I was happy to announce that we had achieved self-sufficiency, much sooner than expected! We had acted earlier than most in our industry, and although painful, it meant that we were able to adapt more quickly. All of you displayed a lot of grit and commitment to get through it.

In August, we reported our third profitable quarter in a row. By this time, I could feel how we had fundamentally changed how we do things as a company: cost consciousness and the drive to constantly improve processes were now a part of our DNA.

September marked one year since the start of our drive toward self-sufficiency. By this time, we had built up a solid cash reserve and could start investing in growth again, especially since competition had heated up in our markets. I remember feeling a sense of anticipation and excitement about being able to return to full fighting mode.

When we marked our 6th IPO anniversary in October, I shared my reflection that, even though it is challenging being a public company, exposure to the market has made us stronger and wiser. And, as Warren Buffet once said, although the market is not always right in the short run, it will correctly value the quality of a company in the long run.

By our November results, we could already see early gains from our investments in growth. And even though we had begun reinvesting our profit, we were doing so much more prudently, such that we still managed to increase our group cash position for the quarter! This is significant, because our self-sufficiency was hard won, and we want to remain in financial control of our future.

And now, in December, I want to share some good news. Although the year is not yet finished, it looks like we are on track to post a profitable year for the first time as a public company. This is a big milestone, and a victory made even sweeter by the fact that we achieved it in a difficult year full of headwinds. We can be sure that we achieved this because of our determination and our quality, not just external tailwinds. Well done, Sailors!

The new year will continue to pose many exciting challenges for us. Competition remains intense, and we are still actively strengthening our market leadership. As I have said before: we thrive best when we are competing. I see 2024 as being a year we can thrive in, especially since we are entering it from a position of confidence and financial strength.

I also hope that 2024 will be another year of sharing with you and hearing from you. I will continue to write to you regularly, because it is important to me that you know what is going on with our company and understand each decision we make. The leadership team will also continue traveling to meet you across our markets, because whether through town halls, all-hands sessions, or simple meet-ups, we want to hear your views first-hand. For those who we didn’t manage to meet this year, thank you for still sharing your feedback with us through email, SeaTalk, and the engagement survey conducted by our People Team. All of these are important channels for us to communicate with each other, and we will continue to improve them.

In this year of ups and downs, there are many things I am proud of all of you for, but the thing that makes me proudest is that we always continued to put our customers first. When I travel to our markets, I often meet people who are excited to tell me how much they love to play our games, or how Shopee has brought them so much joy. These are the happiest moments for me. Bettering people’s lives is the purpose of all our hard work, and despite the constraints we faced this year, you have fulfilled our mission well.

It is now time for you to enjoy a well-deserved break. Spend time with your loved ones, rest, and recharge. Be happy knowing that you have pulled through the difficult challenges of 2023 and allowed us to end the year on a successful note. I am certain that you will be able to do the same in 2024.

Our footing is strong, and we are on the right track. All we need to do is to keep pushing in the same direction.

Thank you again for your effort, and my best wishes to you and your families this holiday season. See you in 2024!

Sincerely,
Forrest