Why is Sea Limited (SE) stock soaring today? - Kalkine Media

November 15, 2022 07:24 AM PST | By Rupam Roy
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  • The SE stock was up over 31 per cent on Tuesday, November 15.
  • Revenue of Sea Limited jumped over 17 per cent YoY in Q3 FY22.
  • The company revised its annual booking outlook citing increasing macro uncertainties.

The shares of the technology conglomerate company, Sea Limited (NYSE: SE) were among the top gainers in the morning trading hours on Tuesday, November 15.

Soon after Wall Street trading started on Tuesday, the price of the SE stock was up over 31 per cent following the company's latest quarter earnings release.

Now, many people might be wondering why the stocks are soaring following its earnings announcement.

Let's take a closer look into its financial highlights with Kalkine Media®:

Sea Limited Q3 FY22 earnings results:

Sea Limited is a Singapore-based global consumer internet firm, that engages in several services like digital entertainment, e-commerce, digital payments, and financial solutions, etc.

The company reported its Q3 FY22 earnings results on November 15, before the opening bell of the US stock market.

On a GAAP basis, Sea Limited said that its revenue rose 17.4 per cent YoY to US$ 3.2 billion in Q3 FY22, and its total gross profit totaled US$ 1.2 billion, reflecting a jump of 21.7 per cent YoY.

The technology conglomerate firm's net loss totaled US$ 569.3 million in the reported quarter, which was flat on an annual basis, and an improvement of 38.9 per cent from the prior quarter.

Meanwhile, the company said that its total net loss excluding share-based compensation improved by 16.6 per cent YoY and 34.4 per cent QoQ to US$ 373.5 million.

Looking at its segment-wise revenue, Sea Limited's e-commerce revenue rose 32.4 per cent YoY to US$ 1.9 billion, its digital entertainment revenue was down 18.8 per cent to US$ 892.9 million, while the revenue from the digital financial services segment jumped 147.2 per cent YoY to US$ 326.9 million.

The company, currently expects its annual bookings to be between US$ 2.6 billion and US$ 2.8 billion, down from its prior guidance range of US$ 2.9 billion to US$ 3.1 billion, citing the increasing macro uncertainties.

Third quarter earnings highlights of Sea Limited (SE)Source: ©Kalkine Media®; © Canva via Canva.com

Bottom line:

The price of the SE stock was US$ 60.15 at 9:34 am ET on Tuesday, November 15, up 31.33 per cent from its previous closing price. The trading volume of the tech conglomerate's stock was over 4.24 million at that time.

Meanwhile, the company said that its sales and marketing expenses declined 19.1 per cent YoY to US$ 816.7 million in Q3 FY22.


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