SE - Earnings call transcript Q4 2020

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Operator

Good morning, and good evening. Welcome to the Sea Limited's Fourth Quarter and Full Year 2020 Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Ms. Min Ju Song. ahead. go Please

Min Ju Song

welcome Year and Song XXXX Quarter Fourth Sea's Hello, Conference to Call. Full Office. Officer's Earnings Chief Ju I and Group everyone, Corporate Sea's am from Min

financial of press in statements, includes to continue, the we net these that non-GAAP make stated GAAP disclosures. subject and certain may notes. uncertainties I a measures as of risks investors' EBITDA like excluding loss flows not major and believe cash a in our our our such which as Before for remind as be various inherently are fair complement adjusted reasons release. businesses, realized understanding to would share-based compensation we actual call used of you may and measures We XXXX discussion our changes can Also, and enhance this of to the forward-looking value the in future convertible when

of a Corporate reconciliation use For Yanjun Chief Financial measures closest Chairman Group I Wang. on our section to Measures of Tony Executive the Officer, have and measures, Non-GAAP Hou; in and Chief me Forrest press Officer, with discussion please and Sea's Chief with the Financial Li; release. refer the non-GAAP here Group financial Group GAAP Officer,

session turn business of This we the XXXX. which Our that, performance management by and will and me With you year in full will questions to be share and updates, Q&A call financial highlights Forrest. a quarter operating let the strategy welcome for the have. for followed over any fourth

Forrest Li

call. XXXX as you, and for today's Ju. was Sea. joining Min year you, Thank everyone, for thank Hello, a landmark always,

our in further mission unprecedented communities users all We challenges and the and pandemic. products also of for while a small our the challenges from consumers of rapidly the to our communities Our with businesses importance fast-evolving the the successfully the fast-growing addressing technology. users meet and to and unique services. as team, users enable reinforced community last demand result to empower faced our adapted of and This year, these

each we shifted esports social the results. quickly highly feet seller help payment support expect and successful and accelerated major and the living get have events digitalization distancing on service be their offering online, to lockdown and our Shopee the example, of with to For home economies, materially to offering local digital on build merchants and platform, back the our faster, The up to accelerated lockdown pandemic curb effect measures we long-lasting. program grocery

capabilities resilience, We our and has opportunities their During a significant well growth as the execution. this time, believe strong very adaptability to demonstrated leader. and ahead market team these position capture strong us drive

full Our approach. the the results of of XXXX fourth for for year success the our quarter to speak and

we million. GAAP fourth billion, year-on-year year-on-year. up level, XXX% reach in to quarter On year-on-year compared $XXX.X profit in It our the previous quarter. growth revenue quarter, XXX% growth the fourth We've recorded gross in the group to accelerated recorded reached $X.X also

ago. grew $XX.X full of of $X.X The the that $X.X XXXX to to outstanding for GAAP doubled Our than to fourth results reach loss the Gross million an year strong million $XXX.X EBITDA compared billion. of full billion. year year more XXXX. profit reach year-on-year revenue XXX% to adjusted adjusted for fourth set compared of quarter quarter a was to contributed an EBITDA results

across entertainment our e-commerce achieved the full loss also digital adjusted a compared million strong This performance by was $XXX to for $XXX.X million EBITDA for of and supported the positive year We businesses. a of XXXX.

incentive recently net-off Both of XXXX. the achieved guidance businesses year, plus Garena year For achieved Shopee our full billion. of exceeded bookings GAAP revenue $X.X for full billion raised and $X.X sales

quarter fourth XXX% recorded the in representing business million, now $X the each billion, entertainment. in digital $XXX.X discuss quarter previous individually, up Garena's performance with the in was Adjusted outstanding bookings year-on-year. fourth year-on-year, up XXX% we of EBITDA me as XX% quarter of starting Let continued bookings.

XX% more an XX% fourth base. million continually -- expand strong was Quarterly adjusted Garena's $X year-on-year paying performance with XX.X user quarter, paying year-on-year. In reached of full increased the reach year-on-year. users XX% the esports For up quarterly billion, our our our to the EBITDA million, result in-game full engaged bookings XX% and active $X.X user activity. we increase quarter, year, to billion, of financial quarter Every the representing by increasing bookings. of gamers and year-on-year. generated content users fourth $XX.X and of million, by The in a year XXX% ability globally XXX.X

and paying year Asia for Free as XXXX. It the the for ratio to full in grow to and Southeast Annie. top quarterly again highest full strong quarter key XXXX users Fire ranking quarterly quarters. reach to to active users of the as as was six evident was also a fourth measured paying Fire mobile the Garena's continues be continues well once of a as on the India Latin App According Free Our it of in America in in maintained quarter grossing App user where fourth quarter mobile driver the highest was for XX%. game outperformance. grossing Annie, fourth percentage year The the consecutive the of based has performance game

pleased bond world Free is gamers. establishing franchise gaming formally a we globally the This that in is a downloaded even to believe global Free worldwide most once to Fire second base the was Free as strong first platform. user according global ranked itself continue as share Fire App Fire Free XXXX the and also in We Annie. grow row that We again in tighter year Fire build and with are game to was mobile that the

Ronaldo, the our recognized most around the One for example, quarter, in a between Fire Football success tie-ups for fourth the marking In Legend, Free our increasingly of we engaging. between games and esports partnerships of physical industry partnership activity. industry world sport the key enhancing keeping one Fire announced factors reputation recent fresh in Free significant and the Free esports Cristiano with times. and experience and innovative is content, Gamers the commitment the Garena's to constantly Fire's

playable game game battle In addition modes new to the with in-game A limited-time mode of risen partnership royale items and and the as part also mode. characters, we Ronaldo. XvX introduced new Cristiano X team-based view

live huge into game X around course game game gaming Our Fire as top strategy. battle made the new esports over Free royale and pillar challenge a spectator provide XX growing by varied they users of We love game battle Fire sport. on wider genre. and recorded these esports community different view video up Year more activities by also count. was and drive types engagement key to to by Free the The named the as billion while Esports engagement YouTube of content globally the Free a significant modes XXXX. Mobile streaming XXXX events, is X charts. extending progress peak royale gamer top-ranked on of our Despite top-ranked the user again content a community and the with related in holding Fire Fire's deepening the the morphing esports once terms group communities engagement viewers video the the third Fire in YouTube of Game at richer Free across ranked In counts another tournaments and in video of Free was The was mobile-only It of in experience YouTube our of year. according concurrent overall XXXX, esports tournaments XXXX. the reach game of also were views. view over franchise, to Awards Esports helped online its gameplay

we long-term on growth. solid grow franchise, we global for Garena's Free While long-lasting continue a Fire to also foundations are focused building into

alongside in Vancouver game quarter, development. studio gaming It plans Seattle. its expansion, of to Montreal announced on Phoenix AAA and build new those new each in teams example, Vancouver Los fourth For the existing adding in bases focus out also in in offices cities based and a to our further Labs, Angeles,

in are to expanded deliver team We that content Labs the great years confident come. Phoenix the will

and entertainment the Garena and XXXX, As uniquely we strong understanding global position XXXX momentum our of digital on our preferences to with our of markets taste world proven the We success that as building of gamers the is industry. around will XXXX the game move community for Garena the ability in affinity build in continue beyond. of leader and and and in through growth strengthening believe lasting forms diverse global the drive to

quickly and sellers. on year e-commerce. of and was an environment, a fast-evolving serve Shopee. Moving adapted to we communities our addressed In needs buyers XXXX our extraordinary the challenging for to

buyers result, for cemented a and As have platform e-commerce as and position sellers the Taiwan. favorite Shopee's both across Southeast Asia we

of year-on-year. revenue, XX% in for GMV In revenue have peak we to GAAP loss $XX.X across an quarter, million. during compared even decreased further to growth, X to grew orders, the XXX% especially during as we $XXX.X for by third Adjusted fourth We billion orders, the continued season. to year-on-year the record XXX% GMV recorded efficiencies year-on-year of GAAP order quarter. e-commerce quarter, the EBITDA continued the reached growth per reflecting shopping gross XXX% excellent $X.XX and the XXXX, year-on-year; increase and to up invest quarter. Year-on-year Shopee fourth gross billion, results accelerated

into shopping Annie, XXX% orders, of Indonesia, up to year the spent in grow year-on-year revenue continued the $XX.X to of XXX around monthly year the XXX% active the achieve Shopee's largest full orders of App market, than translates a continued According rank Android category download For Indonesia million GMV and fourth on This our Shopee XXX% in app full billion, billion. increase year-on-year. daily time million In totaled total X.X an Shopee's X.X users, GAAP in XXX% of quarter orders average year-on-year. more for gross fourth was the by recorded grew in XXXX. quarter. to and position. $X.X average XXXX, up first to billion, We year-on-year. in leadership we

the are sellers doing region also encouraged on see to more and Shopee. business around brands We

XX,XXX now local Mall, For dedicated international space brands. Shopee over leading for and example, brands, our features

App on embrace the full users serving ensures across Taiwan e-commerce average share the on by largest user, quarter the and we the active retail growth. in as to Annie. focus top and their fourth that increasingly app relentless Southeast communities monthly in download our Shopee's spent category and resulting both for shopping toy, of ranked In capture Asia As time total continue the on based we Shopee believe was #X Android year, our

the most globally ranked brand success for according the see year In category downloaded fact, stronger the in also was app XXXX YouGov's Shopee world's in top X ranked the Global The Shopee into Buzz in of also We across Best first Annie. X XXXX, #X recognition brand full in has recently our communities. to ranking. was App YouGov's Rankings in this published representing translated Shopee shopping XX was where the e-commerce APAC Best third Shopee Asia. the brands Brands of

brand e-commerce capture strong serving and these each Shopee further will In regions. our as will focus our online we our growth to accelerated continues successfully on Our go-to adoption grow opportunities. platform, drive users at affinity pace, the that to lasting an believe of across shopping drive markets, continue and

digital has SeaMoney Turning successfully financial of economy platform. presented captured transformational opportunities whole now a digitalization XXXX, services. in a e-commerce year the growth acceleration of as to particularly had strong our in both and our by

fourth As of a result, XXXX. quarter rapid the in and growth year full and it the enjoyed efficient

driven in fourth by million recorded users surpassing payment volume with the the quarter. wallet users For quarterly of XX.X partly paying SeaMoney's exceeded $X.X total XX during fourth billion, which This million. monthly Indonesia, paying quarter, was mobile

year mobile our payment wallet $X.X was volume billion. For total XXXX, the full

also assessability mobile our Pay synergistic cases our growth partnerships terms more platform for of wallet on as Both the initiatives the in of wallet of meaningfully continued experience and as we natural grew our XXXX services. offline convenience reduced adoption online also and friction we strength to Even strong our users expand our as who from the use Shopee. of platform Shopee, and in both consumers. and value of Shopee cases and the growth appreciate saw Shopee mobile payment use by the ShopeePay and This benefited adding improved user it showcases

addition our recently offer existing to in example, with Indonesia, expanded partnership our a Google Thailand. to we Store payment option mobile in for For our wallet Google partnership the as Play in

seeing appreciate ease using onboard users mobile we our we our the and of and are As cases, services. offline online wallet increasingly more the convenience use that

vast the We user SeaMoney's recognized that see merchant and into value and increasingly Shopee partners the also SeaMoney. tapping bases growing rapidly of of

services The strong, set our are a and digital about expected in ecosystems. ahead continue existing us We our to we rapid focus to opportunity both a to sustainable across efficient businesses growth for and will new excited of on consumers region delivering serve and have of of wider financial adoption and long-term prospect, needs is growth.

continue our we across our guidance value to now for well We that believe to Turning are delivering positioned XXXX. communities.

year For billion XXXX, digital growth be the at expect and bookings of representing of billion, the entertainment $X.X currently for midpoint to between full year-on-year guidance. the we XX% $X.X

GAAP believe he midpoint also founded share expect track technology. XXX% for demonstrated have I'm businesses completed of In David past, vision Ma. outstanding between record we Dr. results and to very businesses $X.X and the beyond. and billion AI businesses lives capabilities Sea platform innovation very acquisition, existing to proud will digital to opportunity technology. a to Labs a support across and would thoughtful David on investment the we billion our share I'm into opportunities enhance related for and Capital, with in excited known industry his consumers Composite the the to investment to our capital research, I'm Singapore. report I capital partnering Officer is the billion, welcome to a passion the in Yan on vision, revenue companies real believe intelligence of several to field me. long-term users David also of the proud will to to Capital a deep of attract an of of build create growth We shared to investing in as of learning advancing communities. has Tony long-term to economy and further ACM drive and our to top single-minded users, our Sea With growth new intelligence Labs growth the management our and analysis. commitment, we the Composite understanding Sea's Capital, business and Sea our discuss and serve business for Capital of believe of AI of have with Investment growth can and through the be directly artificial our investing allocating our Sea addition of I scale particular of through broader like representing team our acquisition help David in and focus the I to Capital of drive and to intends the this believe an of as in that and been Chief and top lasting towards will Fellow fellow our focused multimedia we we Sea of at long-term capabilities XXXX technology We He technologies team development Capital Composite of pleased achieved the year-on-year Group delivering and with for our line leading of in driving with moving by partners allocation long-term We us. are that computer welcome Yan company. globally. for that, efficient artificial strengthen expert years. and Capital I a growth Sea also to trends the and are global with developing accelerate the that Across the the guidance. David announce region. success. will the the new $X.X the exciting economy establishment the the identifying, communities exploring has line I'm and collaborate this Academy AI machine Sea a the opportunities the to XXXX, digital firm e-commerce Chief and team focus Shuicheng, value and of to formation bettering Dr. has $X Scientist. in led insights our investment lead Engineering Yan of shareholder Sea team a at family. joined and with will years. is invite our Sea small of of and Along will primed our family vision into believe with serve investing deploy business, talent manage value goal our becoming Labs financials. with take technology will coming Sea of Sea our goal strategies. growth a and Sea our ecosystem, the on continue efforts. sustenance By initial overall in who the this Internet In and Sea ahead as for and Sea's commitment leading are Dr. to

Tony Hou

and you, everyone to thanks the Thank call. Forrest, for joining

together press discussed Forrest has financial corresponding included financial have release, analysis highlights. today's in We with detailed of schedules our some and the management

focus I relevant my will metrics. So other comments the on

This For entertainment $X.X Sea, in This to driven our roll the XXX% we growth digital year-on-year mainly to XXX% to to $X.X of through community XXXX. $X by million and self-developed million, increased in full of as growth out our XXXX. This and On up of and overall, year, our e-commerce, tools quarter growth game better total EBITDA was by base take and mainly paying GAAP for GAAP events. was the marketplace content represents as as revenue XXX% year XXXX. the for new full billion of included XXX% of revenue increased the million billion of our as an revenue the quarter growth the in fourth adjusted driven up entertainment among well business year-on-year serve line $X.X and the billion due share billion year-on-year year fourth of our self-developed $XXX.X grew of continue penetration needs users' e-commerce was strong rate and year-on-year GAAP XXX% year our $X top quarter in of Free especially XX% GAAP of user $XXX.X year-on-year and full $X year-on-year revenue for quarter and the full and million XX% deepened bookings for $XXX.X engage the active growth quarter GAAP million, total business, $XXX.X continue Digital user the XXXX. billion to quarter and primarily fourth revenue to bookings. fourth Fire. esports the year-on-year. XX% respectively. to up for to billion XXX% was fourth year $XXX.X in our to The of XX% entertainment was we year-on-year; our increase Digital rollout full game year-on-year the to product

the For XXX% ecosystem year a our penetration of efforts loss to quarter of to $X.X a fourth for GAAP to up services and full product fourth revenue result the loss adoption. quarter year-on-year; strong marketplace wallet numbers. XXXX. nonoperating demonstrated billion EBITDA our $X.X this year-on-year. of XXXX GAAP billion, year $XXX.X and GAAP million revenue the accelerated financial fourth the e-commerce XXXX. and growing deepening of GAAP We of of up in XXX% quarter $X.X in of $XX.X The opportunities as of XXXX, billion, adjusted included was and Returning capture of growth the revenue fourth remain the revenue in net expansion to compared XXXX, opportunities financial efficiently fully created continued the continue the consolidated full quarter digital by $XXX.X our We million investing full investment in committed economy. capture year the billion to loss our mobile and adjusted XXXX, million $XX.X million Digital million net quarter in and to E-commerce of the the was we recognized ability fourth we in services Digital as the rapid of for $XX.X $XXX.X the markets. nonoperating of better. users in $X.X million million loss to the EBITDA of drive our $XXX.X serve was year full for our

the of due in to XXXX quarter expense investment loss fourth primarily Our was notes. on convertible nonoperating and loss interest

of nonoperating net our the for loss to $XXX.X year, of million full was compared full loss the XXXX. year $XXX.X a million For

corporate due to loss while notes, XXXX a such Our interest loss We was nonoperating million net This $XX.X expense fourth XXXX of to notes. $XXX.X year primarily the withholding convertible due for income tax digital income in tax convertible and for the value and the expense our in and on tax XXXX. loss full of fair XXXX on entertainment was $XXX.X quarter recognized was of million of year our full had million business. XXXX primarily due primarily in of to

changes and call me XXXX $XXX.X full a $X.X excluding loss, XXXX quarter net With billion value year fourth to turn the fair in the was and compensation result, of million for As convertible the let of the Yanjun. notes, share-based of XXXX. that, in

Yanjun Wang

now you, and Tony. We're open Forrest Thank questions. call ready the to for

Operator

Instructions]. [Operator

with question from Goldman first The Sachs. today comes Mubayi Piyush

Piyush Mubayi

that's underpinning of the we you And the related of sort user XXXX? margins be expand in if seen observing side, the on Congratulations on we're I user driver give and from provided great. side. foresee And XXXX growth us on that could that, can ask May the to back that XXXX, number just numbers. the in the would the what in you on revenues at looking that growth extrapolate that gaming the gaming in just that a gaming for the guidance you improvement could feel for you've about growth in

Yanjun Wang

Thank you, Piyush.

Asia by and fourth In XXXX. revenue user for well performance, as our of our been XXXX become per look a far, as of so bookings average the base forecast if deepening, for both relatively game user game, our growth and in in terms of top well grossing also quarters game for XXXX. our And entertainment user. the strength But segment self-development LatAm multiple growth don't the stable has has speaks top which -- to user separate quarter especially been at Fire, you revenue paying a game, Free the grossing a penetration for as driven growth Southeast as growth, or has that India digital past pay we with

parts XXX continue positive largest user very to are Garena become from -- base a But is revenue very for and the quarter increasingly the America With rapidly. grow we are And also reached game. third of we're now Latin reached user revenue. digital our global the of share of with same that When to than over portion player bookings million all seeing this million quality diversification, active positive users. of We coming trend the thought increasingly that world, to India, our other quarter, globally was more think quarter, the a of segment. the very fourth good XXX this including We'll we base number. contributing entertainment rest expanding see world -- XXX we contribute we last revenue And world time, active we a significant our more then has at the you to see diversification to increased seeing with in users. base user observing. than I

our term as continuing see commercialization our this to and to sign across of longer of build return IP, as the ecosystem positive platform long-lasting to this for We and longevity game a us user a are very positive into very strong still all well to the growth a regions, effort increasing that is game and itself. a

improvement we or continue any share In attributable mentioned, margin, see our being this which to Fire seeing therefore, with entertainment doesn't -- owner Free terms IP adjusted of the we're to revenue is any will game, require developer. we self-development And mainly as improvement. EBITDA margin digital of

the are further more recruiting to our our the investing side. it's the user to see revenue we game well on the in EBITDA content sides, offering from but and run technology as to longer -- adjusted so building in we the self-developed also manner. a very maintain for a diversification front, Of social do we'll efficient healthy more IT very side whether capabilities introducing it on of business, talent, top base that in as focusing also collaborations course, on our to And margin and in our our both well partners gaming continue into run, ecosystem will entertainment as with improve different longer expect across and publishing in run, we as the

Operator

Chong The question from Thomas next comes Jefferies. with

Thomas Chong

are Can business solid triple-digit a of Taiwan, the different trend growth. Shopee, across ask this year? get I strategies about And whether our to second just question revenue Malaysia, finance I about efforts Can in like In food our we seeing about particular, OXO this et Singapore, sense would digital up is which our we Congratulations cetera. about faster want year? will my for side. management to a growth Indonesia, delivery set On the other step on for comment the guidance. on management initiative? countries comment or regions,

Yanjun Wang

you. Thank

terms for growth disclosed are all, very and revenue Shopee, our of largest across in of the which business market regions In growth. and, continued we trends first particular, seeing growth strong the Indonesia, accelerate in we

already the period. leadership and as And we platform strong as orders see rates -- again, in as GMV, of as being market see I well So where up on very situation But our the market different growth usually, volume, think in terms increasingly COVID highly a management. accelerated we to speaks where to the growth, specifically growth very the have markets as very -- the position the contained even of don't rate in that we in strength we year-on-year leader markets take we well side, COVID our manner adoption strong countries markets, during the larger most established give across some breakdown. the as of see opened even growth accelerated of strong of growth rate, more which under

into people's we e-commerce in very we seeing we're period, Singapore, across platform XXXX, region Philippines, the again. solutions For going focus COVID serving to onboarded in we're effect as catering and far, shift during believe it's users now this during being be strong lockdown go-to for so And the taken region. accelerated the long-lasting our and guidance trend as needs before, growth of on online efficient to various measures consumption which embraced our period people example, segments. choices as the the and sellers time Malaysia, on our and the as across continuing of growth driving on will we And in new COVID increasingly see a the for focused especially economy to have digitalization -- Shopee as that shown by becoming well said going the in lifestyle

pay already In even terms SeaMoney strong a integrating our and growth started as though as continue beginning expand very year. last again, third-party we platform our user continue of efficient will see, of our with the as merchants. to services, adoption it wallet also financial very for well digital we user and and growth, Shopee demonstrated number drive by strong We ratio, just user us ShopeePay to base Shopee pay at TPV growth, to saw through

we partnership we expanding Indonesia. mentioned, with Google As are to our

partnered categories have on consumption We'll region and wallet that infrastructure look value-adding to this these user broader continue shifting remains to terms online behavior base. to other that and low. convenient continue offer malls new off-line on other as for their time We payment and alternative with category initiatives, very our terms also into to to consumption Shopee see can where natural offerings now payments is -- in for consumers. fact expansion in card with And of food further available for Again, what in a is of looking the based additional the a penetration by SME consumers' credit efficiency. observe we that over accelerated increasingly our payment method contactless make online chains people a requires and are

Operator

question with comes Alicia Yap from next The Citigroup.

Alicia Yap

strong making the lot results. to There first question related been news has of report Shopee. good mentioned My a Shopee is about progress Brazil. in on Congratulations

we -- of regions? target the for biggest to for for you difference your vision and thoughts between -- in And some and you very with also Brazil? just initiative, the e-commerce the strategies LatAm e-commerce X are things the this could Asia, share would wondering gaming. us Latin on achieve can if need in Southeast And Brazil are efforts the your then or then your quickly the that that specifically if So if And step-up if similarities America, you or to compare overall what order between Brazil? the what

all development? is more of and setting more IP terms to is for our that, and U.S. Or games are -- In Montreal license up we planning terms Angeles are will up your it own in IP? new come this studio of these from that you coming Los potentially, in

Yanjun Wang

Thank you, Alicia.

e-commerce cross-border offer markets we established as to the the given our have to on operations is the sellers by cross-border team initiated our in that mentioned, On we already more market. side front, Brazil gaming

So local platform it's sellers. our On well our it's to that, received. to sign. additional on to and generally for we efficient course, sellers that us We also of a front, is start embarking think see value-adding positive offer

well West that console-based how in Phoenix for these continue Asia, bit observe very Southeast those PC Labs this explore as experience titles talent we'll and and as also how have And as managing to our more at base world. markets preliminary now the I so as the to let it the U.S. same the a games. locations the U.S. the in a bring think in in And expansion, in continue given other Labs team LatAm, we in in include self-development of partners And part close track but Asia, record talent pretty deepening the very MENA stage rest -- long-term recall, for acquired the commercialization top be to our team massive more the there in to see not our well and has these terms period of for goes. into Phoenix long time. the and brought And us, also very it's demonstrated traditionally if have if our course, well with be parts IP with user team of run AAA sustained see to recruit terms effort own -- we between history time, expanding been unprecedented, at will in much And Southeast market and see markets. as as to well India, IP been wouldn't we you them of and our strong progresses long in are our based who and to However, to comparison different incorporated and point. know we are the been our still Again, always of in could And the on that with LatAm let have other games. and IP over way as early and to capabilities. of self-developed communications gaming of market a hire of regions, third-party a we have of regions just those a direct presume development expanded time the that there, the

to strong to globally based developers. top Canada very a other believe the world, the we and in with both from top or good track position all those as attract in Asia in that partnership as IP we're well attract talent U.S., record, over with So

Operator

The next Piyush from HSBC. with question comes Choudhary

Piyush Choudhary

questions. Two

Firstly, provide on Shopee Secondly, Xpress been orders terms there the take percentage delivery the average Can in the has will of can there in potential us on helpful. Shopee countries the take on kind highest logistics XXXX? take through of rate you side, rate? plans us And improvement high the of what country for X Shopee, times? Are color managing you which Xpress? over the improving. be in tell And some ranking rate for in of are a color year? level targets Any has of

Yanjun Wang

the our advertisement well understand sellers needs buyers of we by also and markets. and over the don't well take transaction-based take you. say with market, suffice to is well. it the the been that rate sure in different good Thank the different communication -- breakdown, as importantly, in and rate take rate pace give countries We has performances across but driven driven increase across time. a and increase do communication We by Most as the as fees making

performances of believe say to we we our time. that level, in ecosystem to to It take an a process. single think logistics, move I or decide period. days, that In than a period the blended condition, is -- the suffice look how from there dynamic longer also the period So as be think well think on the to run, it over as still could at rate always We what time from manage best time to the city, talking over fluctuations couple of But still double-digit delivery terms time can even time. higher on you're about. range. we're getting around And of course, region it day. rate, part on, at a target of of high there depending our even And of I an in average low a can be probably is less the the

a some in that course, it be time. of faraway So longer of can period places

we a growth. So bottleneck see e-commerce as our business for far, don't that

increased capacity travel providers demand well demand as parts capabilities the well different all of express supplement as over the ramping with capacity the -- during last-mile the we logistics by course, COVID from the in constraints XPL as partnership time. own delivery our as in period, increasing third-party region, Of quickly peak logistics -- with are the up to during our

as manner. grow our the will capabilities to our in of needed, continue we So the monitor capabilities our further service very demand levels the them time, logistics as efficient ramping efficiency XPL at but And as users. serving their and and in well in help own up same a

Operator

Sharma with comes from JPMorgan, Singapore. Ranjan The question next

Ranjan Sharma

results. Two questions side. from the Congratulations on my

year? game do new new guidance? have be if for pipeline games you might Secondly, Firstly, should make into how part seen how it different your sell the geographies. on marketing services, this the new guidance, about you and services? are we sales Sea of up can any our share And budget? to we within And this think And into new what gaming allocating your expanding

Yanjun Wang

at testing and to and more any at prototypes, and are specifically ideas based don't even whatever time, as In diversify different budgeting all as we've -- terms pipelines, our we time always. of is to pipelines, the continue of game on discuss been us, We it games. genres point across of types we games advanced also always currently any know, but visible guidance, we capabilities

reasonable guidance And referring based the based you sales digital the marketing, on or in terms visible and is entertainment of XXXX to for booking also? on allocation of our estimates currently So guidance to segment is us. whatever the are revenue

Ranjan Sharma

Can hear me? you

Yanjun Wang

Yes. Yes, can. I

market, can expense, of and and And e-commerce, sales And dynamic what on process allocation year. the to sales on the media continue is the marketing of think and our for as a improve market So any as marketing investment you based opportunistic and growth again, for of on a for our as see, -- pace events, the efficiency. in efficiency is time that example. development we pace well we

we to a strong sales But we So focus user continue at retention user on of the and efficient growth make that combination and these is marketing. also factors to gist there in allocating sure spend user and driving dollar look of growth we are frequency. increasing every is effective it

frequency shopping is media the have during as a now lot from month. last we're these For importantly, QX see. frequency another our time more the not activities per quarter's purchase frequency different can period, example, peak we have And this as results, QX, step-up see very And as we strong just strong markets. We more across period, user user very shopping That's during but well app. up driving sales spent you -- number. also on -- shown a X.Xx order and of than activities

sales the investment good marketing. platform our to our into So and a is of testament strength of efficiency and very that

Operator

The Blackledge Cowen. with next question John comes from

John Blackledge

Shopee, would that kind losses certain rate we XQ or EBITDA about And thoughts in any overall higher a in XXXX? trend positive lead XQ think range is to EBITDA, than Shopee's of Shopee? in more And broadly, should in X.X% take on be expect flat On X.X% take then EBITDA to XXXX? Would XQ. there rate 'XX you the so versus on at marketplace also was overall

So in any color decline take rate? Q-over-Q modest on the the

Yanjun Wang

don't of In terms on or EBITDA. the guidance forecast provide trends, EBITDA we

as drive could a, of look our rate say example, that's a natural achieved there of -- and previously market have pace to the we is to we take of healthy the maybe a for the And among highest, timing growth EBITDA over in market the Taiwan is efficiency suffice can fluctuations this we previous most and is, look even at could not my events that EBITDA before. in what's at market. be growth each very at question, previous choose importantly, existing And on b, point, c, and margin But and Taiwan disclosed even think, I with to upon can broke rate as efficiency; we that, our this not take also think first we at that how question where breakeven is touch take -- the we invest investments; we and we there, answer even period I optimistic based rate. that time.

to So it's very we not break even. to a say able high take to to drive be have to rate that

is Our for by according to growth we choice really market. think investment each that in pace suitable is the and

pace growth. is and So right we're the in a elastic allocation we hands, each and way own of our very a highly now in destiny market and in drive investment control good dynamic to efficient our of position can where

of increased in you terms has take In to past further if quarter-on-quarter. disclosure, there's the rate But didn't rate off-line. rate, actually increase It at look elaborate the our take decline. quarter-on-quarter. take Happy our

Operator

The from come Ahuja next question will Crédit Varun with Suisse.

Varun Ahuja

I got two questions.

Indonesia. given you're so more in like on you And little that looking investments there on that of Any you elaborate SoftBank of also. one. number That's during business? the a are you a thing? there kind are it kind up many an turn time two, What into, returns what have objectives new bank Is report can color bit last And the more you're months, investment kind acquiring Capital? First, helpful wherein of will business few been, looking into will horizon? a be Sea a about

provide that, you that can be more on helpful. will color If

Yanjun Wang

allocation that Sea fund. we that. for asset-based will well rate, And have strengthen talent we to as specific further a build to to it's don't have as Composite we and our are led our Capital, of We Internet to in have of join strengthen to that ETA terms global think on capability. the We In Ma investment in a further team pipeline run. important in company particular, terms David as shared pool our for the continue longer capital earlier very very by us return happy capabilities to

users, run technology to core participants serve growth regions. and is I part of further think way as capabilities story. to to it And in investment ecosystem is our do further -- view that growth is in well we the on go our strengthen -- an our side the strengthen use integral overall our as and still Sea's ecosystem our to communities well to vision mission our as further our whatever as towards to long

return So I shareholders run not our trying long of think for is to long course existing our -- a departure the and the from this maximizing to grow business any in the run.

Internet region, best infrastructure technology the were to how our in economy in payments further is business see DNA the same And see have that of this we focus to terms use license build to digital segment well financial strengthen SeaMoney in we which our opportunities gotten the as a we as Indonesia of In our as Indonesia continue bank But we integral DNA. to well, as have the the products. at run and that could that bank, exceed infrastructure an we're of are size our in where the time, front our our in -- of core opportunities the technology long the We'll we even segment. as for looking current significant at out digital part on believe of same digital focus our services. continue there time, the at to part

into we're very part DFS. our look we're segment, of towards venture -- adopt So a going as view comprehensive integral run and a and that to each highly at very DFS long long-term part as

Operator

now Song would turn This concludes remarks. any Min the our for question-and-answer like over conference to back Ju session. closing to I

Min Ju Song

today's call. Thank next look speaking quarter. Thank joining We forward to you, you all to for you. again everyone,

Operator

you Thank today's for now attending has presentation. conference This concluded.

disconnect. may now You

Sea Limited (SE) 3 Mar 212020 Q4 Earnings call transcript