SINGAPORE, Nov. 21, 2017 /PRNewswire/ -- Sea Limited (NYSE:
SE), a leader in Digital Entertainment, E-Commerce and Digital
Financial Services across Greater
Southeast Asia, today announced its financial results for
the quarter ended September 30,
2017.
"In the third quarter of 2017, Sea has continued to build on its
strong leadership position. We exceeded our internal performance
expectations and delivered strong organic growth," said
Forrest Li, Chairman and Group CEO
of Sea. "We are continuing to invest for the future and are
confident about the long-term potential of our business and the
Greater Southeast Asia
region."
Highlights for the Third Quarter
- Sea Limited -- pushing ahead with strong top line
growth
Total GAAP revenue plus change in Digital Entertainment
deferred revenue and E-Commerce commission income[1], was
US$151.7 million, up 73%
year-over-year from the third quarter in 2016, and up 21%
sequentially from the second quarter of 2017.
- Digital Entertainment -- momentum accelerating on
growing user base
Digital Entertainment GAAP revenue plus change in Digital
Entertainment deferred revenue[2], was US$134.5 million, up 62% year-over-year from
$83.2 million in the third quarter of
2016. Garena's quarterly active users increased 54% year-over-year
to 69.0 million, monthly active users in the last month of the
quarter increased 61% year-over-year to 42.7 million, and quarterly
paying users increased 38% year-over-year to 6.5 million.
- E-Commerce -- continued share gains on robust
growth
Shopee Gross Merchandise Value ("GMV") increased 219%
year-over-year and 30% quarter-on-quarter to US$1,064.8 million. Gross orders for the quarter
increased 204% year-over-year and 45% quarter-on-quarter to 65.9
million. E-Commerce GAAP revenue plus commission income[3] for the
quarter was US$5.7 million, up 111%
quarter-on-quarter. User engagement continues to be robust, with
5.9 million average monthly active buyers, up 247% year-over-year
from 1.7 million in the third quarter of 2016. Shopee achieved 3.7
monthly orders per active buyer and an average order value of
US$16.2. Consistent with our
mobile-centric strategy, more than 93% of Shopee orders in the
third quarter were transacted through our mobile app.
- Digital Financial Services -- rapid adoption
continues
AirPay Gross Transaction Value ("GTV") increased 172%
year-over-year and 29% quarter-on-quarter to US$448.2 million.
- Synergies across our three core platforms continue to
deepen, with early success in cross-selling Shopee to our
Garena users as well as increased integration between Shopee and
AirPay for payments.
"Industry-leading innovation remains core to our success," said
Group President Nick Nash. "The
application of data science and cross-platform synergies is a
crucial element of our strategy. A practical example can be seen in
our Garena business, where our gross billings grew even faster than
our quarterly active users, which speaks to our improving
monetization per user. Likewise, our recent initiative to
cross-sell Shopee to our Arena of Valor mobile game players has
generated strong results and is helping us develop deeper
relationships with our users."
Commentary on GAAP
Financials
Similar to many other leading online gaming companies, we
use Digital Entertainment GAAP revenue plus change in Digital
Entertainment deferred revenue as an approximation of Digital
Entertainment Gross Billings, which is closely related to the
operating metrics like quarterly active users.
As we grow, we accumulate a deferred revenue balance
to be recognized in future periods. Consequently, the GAAP
recognized revenue is often delayed relative to the actual cash
inflows. We disclose Digital Entertainment GAAP revenue
and also deferred revenue balance for this segment at the end of
each period to enable our investors to follow the trends in
gross billings over time.
In the E-Commerce segment, certain sales incentives that we
provide to our ecosystem as a result of concurrent sales
transacted on Shopee's platform are recorded as deductions from the
corresponding commission income we collected. These
deductions can be applied to the extent of the entire value of the
transaction commissions. The remaining sales incentives are booked
under sales and marketing expenses. As a result, the current
GAAP revenue only includes the advertising income but not the
commission income. We assess the monetization capability
of the E-Commerce business by adding back these transaction
commissions to the E-Commerce GAAP revenue. We disclose E-Commerce
GAAP revenue and also the commission income together with the sales
incentives deducted from such commission income to enable our
investors to follow the trends in our overall
monetization capability over time.
On a GAAP basis, total consolidated revenue for the third
quarter was US$94.1 million and
consolidated gross profit for the third quarter was US$10.8 million. GAAP sales and marketing
expenses for the quarter were US$131.6
million, GAAP general and administrative expenses were
US$33.3 million, and GAAP research
and development expenses were US$7.7
million.
Interest income, interest expense, investment gain, and net
foreign exchange gain / (loss) was a net gain of US$25.8 million in the third quarter of 2017.
This result was primarily attributable to an investment gain from
the disposal of an equity investee in Vietnam and net gain on the re-measurement of
investments from other holdings, partially offset by interest
expense. As a result, Sea had losses before income tax and share of
results of equity investees of US$134.9
million in the third quarter of 2017.
US$2.1 million third quarter
negative income tax reflects deferred tax assets recognized on
increasing deferred revenue arising from the Digital Entertainment
segment. Note that we did not recognize any deferred tax
assets arising from Sea's new growth businesses like Shopee.
As a result, Sea had a net loss of US$132.8 million for the quarter. Adjusted net
loss, which is net loss adjusted to remove share-based compensation
expense, was US$127.1 million for the
quarter[4].
Sea had US$581.5 million in cash
and cash equivalents as of September 30,
2017, which does not reflect proceeds of US$939.9 million, net of underwriting discounts,
from our October 20th
initial public offering and over-allotment exercise.
Guidance
For fiscal year 2017, we currently expect total GAAP revenue
plus change in Digital Entertainment deferred revenue and
E-Commerce commission income to be US$540.0
million to US$550.0 million for the fiscal year 2017,
representing a year-over-year growth of 53% to 56% compared to the
fiscal year 2016.
For the E-Commerce segment, we currently expect GMV to be
between US$3.8 billion to US$4.0
billion for the fiscal year 2017, representing a
year-over-year growth of 230 % to 248% compared to the fiscal year
2016.
Webcast and Conference Call Information
Mr. Forrest Li, Founder, Chairman
and Group Chief Executive Officer; Mr. Nick
Nash, Group President; Mr. Tony
Hou, Group Chief Financial Officer; and Mr. Alan Hellawell, Group Chief Strategy Officer,
will host a conference call today to review Sea's business and
financial performance.
Details of the conference call and webcast are as follows:
Date and
time:
|
7:00 PM U.S. Eastern
Time on 21 November
|
|
8:00 AM Singapore/
Hong Kong Time on 22 November
|
|
|
Webcast link:
|
http://mms.prnasia.com/SE/20171121/default.aspx
|
|
|
Dial in numbers:
|
US Toll Free:
1-888-317-6003
|
Hong Kong:
800-963976
|
|
International:
1-412-317-6061
|
China:
4001-206115
|
|
|
Passcode for
participants:
|
7463763
|
PowerPoint slides will be presented during the live webcast and
will be available on our website for download.
A replay of the conference call will be available at the
Company's investor relations website
(http://www.seagroup.com/investor/financials). Archived webcast
will be available at the same link above.
About Sea Limited
Sea's mission is to better the lives of the consumers and small
businesses of Greater Southeast
Asia with technology. Greater Southeast Asia includes the key
markets of Indonesia, Taiwan, Vietnam, Thailand, the
Philippines, Malaysia and
Singapore, which collectively had
585.3 million people and US$3.0
trillion of GDP in 2016. Sea operates three platforms across
Digital Entertainment, E-Commerce, and Digital Financial Services,
known as Garena, Shopee, and AirPay, respectively. Sea's platforms
are supported by over 6,000 employees across seven markets.
Forward Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, statements that are not historical facts, including
statements about Sea's beliefs and expectations, the business and
financial outlook and projections from management in this
announcement, as well as Sea's strategic and operational plans,
contain forward-looking statements. Sea may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: Sea's goals and strategies; its future business
development, financial condition and results of operations; the
growth in, and market size of, the digital entertainment,
e-commerce and digital financial services industries in GSEA,
including segments within those industries; changes in its revenue,
costs or expenditures; its ability to continue to source and offer
new and attractive online games and to offer other engaging digital
entertainment content; the growth of Digital Financial Services
platform; the growth of E-Commerce platform; the growth in its user
base and level of engagement; its ability to continue to develop
new technologies and/or upgrade its existing technologies; growth
of and trends of competition in its industry; government policies
and regulations relating to its industry; and general economic and
business conditions in the markets it has businesses. Further
information regarding these and other risks is included in Sea's
filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and Sea undertakes no obligation to update any
forward-looking statement, except as required under applicable
law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements,
which are prepared and presented in accordance with U.S.
GAAP, we use the following non-GAAP financial measures to
help evaluate our operating performance:
- "Digital Entertainment Gross Billings" represent GAAP revenue
of the Digital Entertainment segment plus change in Digital
Entertainment deferred revenue. This financial measure is used as
an approximation of cash spent by our users during in the
period for the Digital Entertainment segment. We believe that
such measure provides useful information to investors about the
segment's core operating results, enhancing their understanding of
the past performance and future prospects. However, other companies
may calculate gross billings differently or not at all, which
reduces its usefulness as a direct comparative measure.
- "E-Commerce Monetization" represents GAAP revenue (currently
consisting of advertising income) of the E-Commerce segment plus
commission income (before deducting sales incentives from
commission income). This financial measure
enables our investors to follow trends in our
E-Commerce monetization capability over time and is a useful
performance measure.
- "Group Monetization" represents total GAAP revenue plus change
in Digital Entertainment deferred revenue and E-Commerce commission
income as an approximation of overall monetization capability. This
measure provides useful information to investors for the reasons
above.
- "Adjusted Net Loss" represents net loss excluding share based
compensation expense. We believe that the adjusted net loss
helps to identify underlying trends in our business that could
otherwise be distorted by the effect of certain expenses that are
included in net loss. The use of adjusted net loss has its
limitations in that it does not include all items that impact the
net loss or income for the period, and share-based compensation is
a recurring significant expense.
These non-GAAP financial measures have limitations as analytical
tools. None of the above financial measures should be considered in
isolation or construed as an alternative to GAAP revenue, net
loss/income, or any other measure of performance or as an indicator
of our operating performance. These non-GAAP financial
measures presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to Sea's
data. We compensate for these limitations by reconciling
the non-GAAP financial measures to their nearest U.S. GAAP
financial measures, all of which should be considered when
evaluating performance. We encourage you to review our
financial information in its entirety and not rely on a single
financial measure.
The tables below present details on the non-GAAP financial
measures that are most directly comparable to GAAP financial
measures and the related reconciliations between the financial
measures. Amounts are expressed in thousands of US dollars
("$").
1
DIGITAL ENTERTAINMENT GROSS BILLINGS
|
|
|
|
For the Three Months
ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
Digital Entertainment
GAAP revenue
|
86,178
|
79,799
|
245,578
|
258,844
|
Change in Digital
Entertainment deferred revenue
|
(2,982)
|
54,749
|
6,209
|
101,736
|
|
|
|
|
|
|
|
|
|
|
|
83,196
|
134,548
|
251,787
|
360,580
|
|
|
|
|
|
2 E-COMMERCE
MONETIZATION
|
|
|
|
For the Three Months
ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
E-Commerce GAAP
revenue
|
--
|
2,786
|
--
|
4,052
|
E-Commerce commission
income, gross
|
--
|
2,883
|
--
|
4,330
|
|
|
|
|
|
|
|
|
|
|
|
--
|
5,669
|
--
|
8,382
|
|
|
|
|
|
3 GROUP
MONETIZATION
|
For the Three Months
ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Total GAAP
revenue
|
90,523
|
94,094
|
257,209
|
289,586
|
Change in Digital
Entertainment deferred revenue
|
(2,982)
|
54,749
|
6,209
|
101,736
|
E-Commerce commission
income, gross
|
--
|
2,883
|
--
|
4,330
|
|
|
|
|
|
|
|
|
|
|
|
87,541
|
151,726
|
263,418
|
395,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 ADJUSTED
NET LOSS
|
For the Three Months
ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(65,592)
|
(132,831)
|
(152,719)
|
(298,026)
|
Share-based
compensation
|
5,376
|
5,698
|
18,586
|
17,059
|
|
|
|
|
|
|
|
|
|
|
|
(60,216)
|
(127,133)
|
(134,133)
|
(280,967)
|
|
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Amounts expressed
in thousands of US dollars ("$") except for number of shares &
per share data
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months ended September 30,
|
For the Nine
Months ended September 30,
|
|
Note
|
2016
|
2017
|
2016
|
2017
|
|
|
$
|
$
|
$
|
$
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Digital
Entertainment
|
|
86,178
|
79,799
|
245,578
|
258,844
|
Others
|
1
|
4,345
|
14,295
|
11,631
|
30,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
2
|
90,523
|
94,094
|
257,209
|
289,586
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
Digital
Entertainment
|
|
(46,496)
|
(55,577)
|
(138,016)
|
(157,746)
|
Others
|
|
(12,253)
|
(27,698)
|
(31,405)
|
(68,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
revenue
|
|
(58,749)
|
(83,275)
|
(169,421)
|
(225,819)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
31,774
|
10,819
|
87,788
|
63,767
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(expenses):
|
|
|
|
|
|
Other operating
income
|
|
367
|
959
|
1,688
|
1,340
|
Sales and marketing
expenses
|
3
|
(51,530)
|
(131,571)
|
(125,609)
|
(269,556)
|
General and
administrative expenses
|
|
(27,934)
|
(33,262)
|
(71,079)
|
(86,114)
|
Research and
development expenses
|
|
(5,591)
|
(7,661)
|
(15,023)
|
(20,652)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
(84,688)
|
(171,535)
|
(210,023)
|
(374,982)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(52,914)
|
(160,716)
|
(122,235)
|
(311,215)
|
Interest
income
|
|
184
|
1,689
|
470
|
2,162
|
Interest
expense
|
|
(5)
|
(8,461)
|
(14)
|
(17,458)
|
Investment (loss)
gain
|
|
(5,103)
|
34,302
|
(5,587)
|
33,943
|
Foreign exchange gain
(loss)
|
|
1,052
|
(1,728)
|
(1,516)
|
(2,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax and share of results of equity investees
|
|
(56,786)
|
(134,914)
|
(128,882)
|
(295,085)
|
Income tax
expense
|
|
(3,522)
|
2,147
|
(9,593)
|
(2,015)
|
Share of results of
equity investees
|
|
(5,284)
|
(64)
|
(14,244)
|
(926)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(65,592)
|
(132,831)
|
(152,719)
|
(298,026)
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
|
664
|
150
|
2,092
|
201
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Sea Limited's ordinary shareholders
|
|
(64,928)
|
(132,681)
|
(150,627)
|
(297,825)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
loss
|
|
(60,216)
|
(127,133)
|
(134,133)
|
(280,967)
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
Basic and
diluted
|
|
(0.38)
|
(0.75)
|
(0.88)
|
(1.69)
|
|
|
|
|
|
|
Shares used in loss
per share computation:
|
|
|
|
|
|
Basic and
diluted
|
|
171,548,248
|
177,902,368
|
170,971,653
|
175,970,648
|
1
REVENUE - OTHERS
Among Revenue - Others includes zero commission income and
$2,786 advertising income for
E-Commerce segment for the quarter ended September 30, 2017. Zero commission income and
$4,052 advertising income were
recognised for E-Commerce segment for the nine months ended
September 30, 2017. Details of the
commission income are further analysed as follows:
|
For the Three Months
ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
Commission
income
|
--
|
2,883
|
--
|
4,330
|
Shopee coins and
other sales
Incentives
|
--
|
(2,883)
|
--
|
(4,330)
|
|
|
|
|
|
|
|
|
|
|
|
--
|
--
|
--
|
--
|
|
|
|
|
|
|
|
|
|
|
Sales incentives in excess of the commission income are
recognized as selling and marketing expenses.
2
REVENUE BY REPORTABLE SEGMENT
|
For the Three
Months ended September 30,
|
For the Nine Months
ended September 30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Digital
Entertainment
|
86,178
|
80,516
|
245,578
|
260,635
|
E-Commerce
|
--
|
3,181
|
--
|
4,366
|
Digital Financial
Services
|
5,938
|
12,719
|
13,155
|
32,114
|
All others
|
2,531
|
11,496
|
7,476
|
19,377
|
Inter
segment
|
(4,124)
|
(13,818)
|
(9,000)
|
(26,906)
|
|
|
|
|
|
|
|
|
|
|
|
90,523
|
94,094
|
257,209
|
289,586
|
|
|
|
|
|
3 SALES
AND MARKETING EXPENSES
During the quarter ended September 30,
2016 and 2017, sales and marketing expenses relating to our
Digital Entertainment segment accounted for 21% and 16% of our
total sales and marketing expenses respectively, while sales and
marketing expenses relating to our E-Commerce segment accounted for
70% and 78% of our total sales and marketing expenses
respectively.
During the nine months ended September
30, 2016 and 2017, sales and marketing expenses relating to
our Digital Entertainment segment accounted for 24% and 17% of our
total sales and marketing expenses respectively, while sales and
marketing expenses relating to our E-Commerce segment accounted for
65% and 76% of our total sales and marketing expenses
respectively.
4 DEFERRED
REVENUE FOR DIGITAL ENTERTAINMENT
|
As of September
30,
|
|
2016
|
2017
|
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
|
|
|
Deferred revenue for
Digital Entertainment
|
257,947
|
360,629
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed
in thousands of US dollars ("$")
|
|
|
|
|
As
of
December
31,
|
As
of
September
30,
|
|
2016
|
2017
|
|
$
|
$
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
170,078
|
581,474
|
Restricted
cash
|
18,607
|
69,426
|
Accounts receivable,
net
|
35,074
|
57,830
|
Prepaid expenses and
other assets
|
79,443
|
149,382
|
Inventories,
net
|
3,947
|
7,272
|
Amounts due from
related parties
|
2,735
|
1,384
|
|
|
|
|
|
|
Total current
assets
|
309,884
|
866,768
|
|
|
|
Non-current
assets
|
|
|
Property and
equipment, net
|
31,123
|
47,934
|
Intangible assets,
net
|
29,963
|
42,048
|
Long-term
investments
|
45,072
|
27,132
|
Prepaid expenses and
other assets
|
32,299
|
54,492
|
Restricted
cash
|
2,139
|
2,280
|
Deferred tax
assets
|
35,295
|
44,775
|
Deferred initial
public offering costs
|
–
|
4,818
|
Goodwill
|
–
|
30,952
|
|
|
|
|
|
|
Total non-current
assets
|
175,891
|
254,431
|
|
|
|
|
|
|
Total
assets
|
485,775
|
1,121,199
|
|
|
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed
in thousands of US dollars ("$")
|
|
|
|
|
As
of
December
31,
|
As
of
September
30,
|
|
2016
|
2017
|
|
$
|
$
|
|
|
(unaudited)
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
5,990
|
9,338
|
Accrued expenses and
other payables
|
102,086
|
218,451
|
Advances from
customers
|
15,459
|
24,061
|
Amount due to related
parties
|
9,696
|
25,251
|
Short-term bank
borrowings
|
1,858
|
1,976
|
Deferred
revenue
|
122,218
|
161,784
|
Income taxes
payable
|
6,449
|
8,973
|
|
|
|
|
|
|
Total current
liabilities
|
263,756
|
449,834
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Accrued expenses and
other payables
|
4,480
|
4,870
|
Deferred
revenue
|
137,259
|
200,882
|
Convertible
promissory notes
|
–
|
674,411
|
Unrecognized tax
benefits
|
855
|
2,362
|
|
|
|
|
|
|
Total non-current
liabilities
|
142,594
|
882,525
|
|
|
|
|
|
|
Total
liabilities
|
406,350
|
1,332,359
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts expressed
in thousands of US dollars ("$")
|
|
|
|
|
As
of
December
31,
|
As
of
September
30,
|
|
2016
|
2017
|
|
$
|
$
|
|
|
(unaudited)
|
|
|
|
Mezzanine
equity
|
|
|
Seed contingently
redeemable convertible preference shares
|
500
|
500
|
Series A contingently
redeemable convertible preference shares
|
10,000
|
10,000
|
Series B contingently
redeemable convertible preference shares
|
194,575
|
194,575
|
|
|
|
|
|
|
Total mezzanine
equity
|
205,075
|
205,075
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary
shares
|
88
|
91
|
Additional paid-in
capital
|
370,615
|
410,156
|
Accumulated other
comprehensive income
|
8,587
|
9,025
|
Statutory
reserves
|
46
|
46
|
Accumulated
deficit
|
(505,006)
|
(843,885)
|
|
|
|
|
|
|
Total Sea Limited
shareholders' deficit
|
(125,670)
|
(424,567)
|
Non-controlling
interests
|
20
|
8,332
|
|
|
|
|
|
|
Total
shareholders' deficit
|
(125,650)
|
(416,235)
|
|
|
|
Total liabilities,
mezzanine equity and shareholders' deficit
|
485,775
|
1,121,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts expressed
in thousands of US dollars ("$")
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
2016
|
2017
|
2016
|
2017
|
|
$
|
$
|
$
|
$
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
Net cash used in
operating activities
|
(36,477)
|
(89,814)
|
(72,608)
|
(220,986)
|
Net cash used in
investing activities
|
(13,401)
|
(50,081)
|
(42,792)
|
(67,474)
|
Net cash generated from
financing activities
|
31,541
|
69,466
|
199,624
|
696,442
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
359
|
843
|
1,506
|
3,414
|
Net (decrease) increase
in cash and cash equivalents
|
(17,978)
|
(69,586)
|
85,730
|
411,396
|
Cash and cash
equivalents at beginning of the period
|
219,911
|
651,060
|
116,203
|
170,078
|
Cash and cash
equivalents at end of the period
|
201,933
|
581,474
|
201,933
|
581,474
|
|
|
|
|
|
SUPPLEMENTAL
OPERATIONAL METRICS
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
2017
|
|
|
|
|
Digital
Entertainment
|
Unit
|
Timeframe
|
|
|
|
|
|
Quarterly active
users
|
millions
|
period
|
69.0
|
Monthly active users
(last month)
|
millions
|
last month of
period
|
42.7
|
Quarterly paying
users
|
millions
|
period
|
6.5
|
|
|
|
|
E-Commerce
|
|
|
|
|
|
|
|
Gross GMV
|
US$
millions
|
period
|
1,064.8
|
Gross
orders
|
millions
|
period
|
65.9
|
Gross GMV (last
month)
|
US$
millions
|
last month of
period
|
389.2
|
|
|
|
|
Market breakdown (by
% orders)
|
|
|
|
Indonesia
|
%
|
period
|
36% - 38%
|
Taiwan
|
%
|
period
|
33% - 35%
|
Vietnam
|
%
|
period
|
9% - 11%
|
Thailand
|
%
|
period
|
7% - 9%
|
Philippines
|
%
|
period
|
4% - 6%
|
Singapore
and Malaysia
|
%
|
period
|
5% - 7%
|
|
|
|
|
Category breakdown
(by % GMV)
|
|
|
|
Fashion
|
%
|
period
|
29%
|
Health
& Beauty
|
%
|
period
|
16%
|
Baby
Products
|
%
|
period
|
11%
|
Home
& Living
|
%
|
period
|
12%
|
Computers, Cellphones, and
Cameras
|
%
|
period
|
10%
|
Others
|
%
|
period
|
22%
|
|
|
|
|
Quarterly average
monthly active users
|
millions
|
period
(average)
|
14.0
|
Quarterly average
monthly active sellers
|
millions
|
period
(average)
|
1.9
|
Quarterly average
monthly active buyers
|
millions
|
period
(average)
|
5.9
|
|
|
|
|
% of mobile
orders
|
%
|
period
|
93%
|
|
|
|
|
Digital Financial
Services
|
|
|
|
|
|
|
|
GTV
|
US$
millions
|
period
|
448.2
|
[1]
|
For a discussion of
the use of non-GAAP financial measures, see "Non-GAAP Financial
Measures"
|
[2]
|
For a discussion of
the use of non-GAAP financial measures, see "Non-GAAP Financial
Measures"
|
[3]
|
For a discussion of
the use of non-GAAP financial measures, see "Non-GAAP Financial
Measures"
|
[4]
|
For a discussion of
the use of non-GAAP financial measures, see "Non-GAAP Financial
Measures"
|
View original
content:http://www.prnewswire.com/news-releases/sea-limited-reports-third-quarter-2017-results-300560170.html
SOURCE Sea Limited