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Singapore e-commerce firm Sea Ltd. (NYSE:SE) rose 7% in premarket trading on Tuesday after it reported a decline in credit losses amid mixed first-quarter results.
Sea, which owns the popular Shopee platform, said credit losses for the period ending March 31 came in at $161.8M, down from the $177.4M in the year-ago quarter.
“SeaMoney has continued its strong growth momentum and profitability into 2024 while maintaining prudent risk management,” Forrest Li, Sea’s Chairman and Chief Executive Officer, said in a statement.
For the period, Sea lost $0.04 per share as revenue rose 22.7% year-over-year to $3.73B. Analysts had expected the company to earn $0.03 per share on $3.62B in revenue.
Total adjusted EBITDA for the period came in at $401.1M, down from $507.2M in the year ago period.
E-commerce led the way during the period, as gross volumes surged 56.8% year-over-year to 2.6B. Gross merchandise volume also jumped, up 36.3% year-over-year to $23.6B, while revenue attributed to e-commerce rose 32.9% year-over-year to $2.7B.
Revenue from digital financial services rose 21% year-over-year to $499.4M. The percentage of non-performing loans during the period was 1.4%, the same as the prior quarter.
Digital Entertainment revenue was $458.1M during the period, down from $539.7M year-over-year.
Looking ahead, Li said Se has a “clear roadmap for profitable growth” and added that it is “well on-track to deliver our full-year guidance.”
The company is holding a conference call to discuss the results.
