Sea Group reports net loss of US$425.6 million in 3Q2020 despite stronger performance of digital entertainment and e-commerce segments. Sounds so contradictory. Why net loss when they did better? - Seedly
Seedly logo
Seedly logo
 

Stocks Investing

Investments

Anonymous

Asked 3w ago

Sea Group reports net loss of US$425.6 million in 3Q2020 despite stronger performance of digital entertainment and e-commerce segments. Sounds so contradictory. Why net loss when they did better?

I am personally a fan of Shopee.

0 comments

2 answers

Answer Now

Answers (2)

Sort By

Max Soo

Max Soo

Level 5. Genius

Answered 2w ago

Let me elaborate more about the net loss. A lot of growth companies nowadays are loss-making but it's mainly due to the sales and marketing expenses. If you take a look at their last 4 quaters, they've all been net loses as well. The great companies are doing all they can to market themselves (see Shopee making Ronaldo an ambassador) in the early stages so they can gain majority of the market share.

If you compare the likes of Shopee, Lazada and other e-commere in SG/other SEA countries, you will know how fast Shopee has grown and captured more and more users onto their platform. Once they gain enough market share, this S&M costs will decrease as time goes on.

All of their sectors in Gaming (Garena), E-commerce (Shopee) and Digital Finance (SeaMoney) are steadily growing too.

(Side note: I am vested in SEA.)

1

Question Poster

2w ago

Thank You!
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Normal for growth companies in the early stage

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post