SE - Earnings call transcript Q2 2021

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Operator

Good morning and good evening. Welcome to the Sea Limited Second Quarter 2021 Results Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Ms. Song. Ju Min ahead. Please go

Min Ju Song

And Second hello, Song to you. and Sea's everyone, Earnings Conference XXXX office. Quarter Officer's Ju Chief Sea's Call. Group Thank Corporate welcome I'm from Min

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

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

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

Forrest Li

thank we XXXX. the and of you, for second today's that in are everyone, Hello, outperformance pleased always, I'm sustained joining call. as reporting very quarter

continues $X.X of to the to group shift XXXX, from results. level quarter growth. achieved markets of for XXX% billion. capture deliver our GAAP we At Our the strong efforts represents year-on-year to growth across the the This long-term clear second revenue and digitalization

And Shopee registered last wallet XXX% orders, volume increase. up year. total million, XXX% a of over $XXX to SeaMoney's year. year-on-year last up mobile $X.X services close XX% Garena was reached Bookings from year-on-year. X.X profit XXX% gross billion $X.X billion, recorded billion, growing for compared Our gross payment to

very This raising to see of standout half were year second strong observed are full guidance. most first growth Considering encouraged in the comparison form the are results lockdowns. our XXXX we our quarter the of for under across year-on-year markets businesses our strictest businesses. of We our such XXXX, in strong of to across our performance XXXX, when is the

entertainment portfolio year. outperformed our far digital Our expectations has so this

of over bookings exceeded also at expect of XXX% is revenue XXXX and results first in growth now revised E-commerce $X.X of the revised and guidance. representing billion, from $X.X our we midpoint billion, such, the the over $X.X half of growth at be As XX% expectations, billion and $X.X billion guidance. now midpoint between the XXXX the representing GAAP to expected between year-on-year

to our lifted quickly strict our have in In see of been the well needs of many our While second evolving year, our lockdowns end a the adapt to to demonstrate region and markets to cases. to we volume ability faster-changing of execute since of high last continue dynamic to environment, this circumstances COVID users. the mostly quarter continue serve

also are pandemic. the our hard brought challenges communities by We navigate the to near-term working help

and broader economy donated programs worked the this and supported medical to have and with various governments we example, supplies, initiatives For SMEs vaccination local on assist through partners period.

employment X,XXX aid local on with in people. pandemic to province establish as opportunities. mission doubling West to will more e-commerce partners ongoing we the communities, challenges partnership our down Java Shopee that related government million to and our and home plan to to quickly through our considering with are working are with populous we distribute Indonesia's to we and our the region, innovation the West close than efficiently. Also, information example better promoting use Working to Java most lives technology centers local An is there. to the is of our XX platforms villages addition, hubs serve by this In for Indonesia. government, creating

provide partners, in Vietnamese to launched have Shopee courses Vietnam, assistance training and we ShopeeFarm and farmers villagers farmers. to are their Together to enable to expect local with to digitalization syllabus We and schools related with centers, small Besides their we closely to vocational business In agricultural accelerate go infrastructure, also to West Shopee partnering help across onboard these include with cooperatives centers to initiative the across called journey. government Java Shopee official Shopee an works digital. Vietnam there curriculum.

Our This we ever to to organized the back been their Budget through spending through skills training technology wallet these social burden online and mobile government our urgency financial with agricultural wallet through underserved coming In qualified Shopee our platform. young initiative promote see Malaysia, give digital credit to first are have using XXXX and program giving producers through support. of sell ease to environment, serve commitment mobile other greater our help sessions eBelia program In services. every These reflect program. the digitalize. efforts Many the for on necessary mobile teams the and is participation cashless working teach current we mobile rural our the eBelia communities for in to the time. selected than the farmers a through to of in person to people. the our promote and the our and Malaysia's communities of in wallets aid is markets to an by promote done the for MYR XXX distribute to inclusion participation The under wallet products

hard linked we to we deliver ecosystem. value strongly performance of through and lives support that through our process is technology. maximize the offer working our this on business Indeed, with are to to ability We our believe our bettering mission closely

$XXX were users discuss due from XX% strong to The XXX XX% last $X.X segment over Bookings to of XX adjusted active second business reach the to XXXX. now same million, strong and year-on-year; year-on-year. of the up our quarterly each the up results me XX% period mainly XX% up million. billion, Garena of base year. paying greater recorded recorded And million, in our for Let are detail. EBITDA grew results grew continued user quarterly active globally. paying users growth while quarter We

games users believe active us, more We markets, Asia, America online As its X average that Game for and our game exceeded believe during India game straight has to and according Free mobile quarter the on few year. be quarters. XXX reached XX.X% multiple a Play. and Meanwhile, America game result, Fire's paying X highest record was users performance this new have Latin daily excellent Google improved Latin peak quarter, to this million Royal in straight delivered in records. billion across than milestone. first-ever Battle achieve mobile Play Furthermore, in during in its ratio from Asia last active quarter the Google App X according second cumulative the to now on results XX% and Annie. hit setting recently to India on user ranked Fire It is new Building continued quarters, App Fire Free global Southeast leadership scale. Free for for in to Southeast returned we second downloads quarter. the Annie. strong ever a globally the is globally by monthly the Free grossing This third Fire the The

quarters U.S., We on the in Free the of game Royal the U.S. certain Play across popular grossing App for markets have largest Fire game all the its as the one ecosystem Game on developed of the highest game highest-grossing mobile based in also Battle was worldwide. as and second scale X past gained exceptional most traction solidified like games categories Free where ranked was quarter The Annie. in global Fire and online the platforms mobile second has well. base user Google the

increasing also gamers new engagement and we believe our of Free success also core number with Fire experiences. enjoy gameplay Free the and continued increasingly stay deepening global the user just platform established frequently community We on its join engagement. on growing base built introduce. around Fire's content as not Battle is Royal platform our a and on long-lasting but focus and relentless high-quality An user to experiences immersive massive is

This virtual path game with their in-game Many modes provide the gamers new designed For game launched social and infiltration. and quarter, during our second their community. players the Free of of of take in other we more Rumble. a interact deduction Fire is social to highly part game PET the example, for members be ways to to friends are use mode can and cooperation where our to

and sports peak root the community and we of from while according become same as growing and view Charts. games of community level mass for our players. finals traditional e-sports We of In learning Fire large online together setting a World to concurrent the best Series records and terms million activate and and sports, general engagement are as teams With the expect are to connect professional more Singapore also to of great communities XXXX the culture. with to similarities esports in hit engage engagement. new esports appeal the plays Free way physical deeply more X.X Esports ingrained Esports fans viewers in May,

Mobile Moonlight game adding titles received game towards users. our larger game our In our that addition, diversify have portfolio we game has Moonlight portfolio is fantasy June, of massively Blade Blade combines our example been positive in role-playing genres. across online a is ongoing third-party of and growing multiplayer efforts launched number published to of Taiwan. and our Mobile arts reception further an a The from we to In martial very offerings.

our work more We exciting new global bring all closely markets. and to with to will content partners our to continue

our delivering to will high-quality base. to experiences know-how keep fast-expanding Looking ahead, we user leverage global insights our local and

experience Now Shopee and retail consumers turn to deliver superior let's our continued e-commerce. to merchants. to

by deepening on quarter, e-commerce gross our growing and third in in app average better a billion. declined the billion, quarter, to second cases Play total grew GMV the spending as continued downloaded billion year-on-year app globally. most XX% to for to face App challenges According first digital the also expand with stores attract market, by Annie, iOS users improved was market the from and time the and by in of buyers on Shopee remain Shopee to transformation XXX% Shopee growth the choices. Play build Southeast This with shopping both merchant Indonesia, the business and category orders our in total providing for second top-ranked recorded We platform and was Shopee's X.X numbers. consistent across experiences year. time downloaded triple-digit most continue Google During year-on-year revenue globally metrics. largest a while year-on-year. App X.X%. the those up reach monthly total driven and $X.XX. Google pandemic the In $XX quarter. in in focused hit $X.X region. the to remained mainly GAAP year-on-year app advertisement the spent category Indonesia percentage better and adjusted same revenue Shopee's Shopee active merchants successful the the XX% serve to We app ranked GAAP in growing surge across helping to marketing order last our in investments on reached Shopee combined in GMV EBITDA also sequentially monetization category buyers. their the with ranked wider across loss the with across year-on-year and communities its XXX% Asia order mobile the leadership quarter. to shopping Taiwan it app in shopping per

Taiwan share to has Shopee positive to Malaysia of common happy market adjusted allocation record that headquarters' after become our are expenses. EBITDA We a before second

the we opportunities ahead maximize with Given continue long-term to invest highly sustainable value. in attractive of to efficiency growth us, growth

events, of fluctuations to to with and we economics will our run continue our While we drive merchants improving scale. delivering an long see period-to-period Consistently important business. over may seasons the as driver value we remain shopping

number support diverse a base. and features programs the launched of we seller to During quarter, new our

average see most monthly higher that significantly have drive memberships Taiwan. second increase in and were active second growing Shopee strong and in for by encouraged for and This I'm Brand and app in It According first Mall Annie, to to shopping more the also retention introduce spend example, Asia purchases by and category the note own conversions adopters offers Southeast Brazil. the recently total a within mobile repeat quarter. programs tool we popular For continued their loyalty platform. management spending ranked to Shopee buyers app early Brazil repeat members. App material Shopee users which Brands allows brands new on the ranked customer and to by results in including downloads across deployed time Shopee our supported traction in to program brands.

the increasingly substantial portion the Shopee see for the that are we operates future in our in While potential high that Therefore, is invest a remains and growth consistent is mind, markets long-term ecosystem. digitalization efficiently markets and of our With highly platform diverse, to that the our population benefiting in Shopee services. market. trend localized growing in continue highly we of will the improving the towards from

the SeaMoney, Finally, our adoption digital second business, continued in our quarter as payment financial deepened perform digital services in markets. to well

more XX wallet by and in In up expanding usage user XXX% mobile Our volume particular, growth are off-platform payment with mobile use $X.X payment frequent use both users This to million close paying over wallet we over growing of services services digital recorded second quarterly our cases. billion, the was total with quickly quarter to driven of year-on-year. increasing cases.

payment will users For allow chains the our the at stores, its offline increasing at and outlets that pay accept with partnership our mobile recently to Google store, besides MasterCard expanded Thailand. example, XXX,XXX-plus on our convenience of any This points touch wallet service Contactless. in MasterCard Play F&B

strong government and financial of online, assistance the over need still mentioned SeaMoney more to received that X, partnering in the off-line also and credit long-term Consumers mobile can commercial financial for X.X Even chains offer. such with to other close creating applicants credit online in chose our their to transactions at wallet in highly accept the Malaysia, businesses claim payment can mobile our be largest of attributed in to activities across nationwide payments. development, stage by our we is mobile over which was to faster-growing One helping network effects million small any consumption wallet program. adoption the opportunity Indeed, of We with in the million services eBelia XXX the wallet are touch partly moving young encouraged the Philippines, example our its though acceptance the Puregold, our strong X wallet region. be the to greater earlier. Malaysia. the mobile in could the significant. that see in the in addressable of recorded to the one Of of points is popularity over with mobile as mobile are the participating June and a SeaMoney stores. its wallets markets program The the Moreover, digital distribute used is wallet XXX,XXX accept are adoption of people, to early of their supermarket drive eBelia wallet and run the as

we our all to To We more cases, continue has relationships built conclude, performance efficiently have of even utilizing products segments consumer By are strong base, and segments. year existing with a our more our local with use closely stakeholders expanding features markets with we of the been working to first various our half in and bring the to serve the across to growing merchant users. user business look technology. and

Our conviction well the very are these of in as positioned for size as reflected long-term growth grown. guidance in and the only across full Shopee. the our communities we This revised and long-term is cycles opportunities. addressing impact virtual opportunities also both core to and business, believe has our we Garena are network Leveraging we within year are we both capture our the the making positive effects in well

invite to efficiency we've prudence More our focus With demonstrated and record, our growth. I by long-term importantly, Tony that, in managing financials. discuss as sustainable will on to track continued consistent

Tony Hou

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

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

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

due to as better growth grew our needs our active our to Digital For primarily year-on-year deepened billion. paying to strong we e-commerce, of as with content by increased growth we was up engage share better. penetration our ability a of compared of was game primarily the billion year-on-year demonstrated $XX mainly GAAP of billion. as opportunities increasing loss an expand growth adjusted growth of year-on-year increase we in loss This due as Adjusted value and continued result E-commerce e-commerce capture through to was our year-on-year $XXX period committed of On our game, continuously user up enhance the new and accelerated overall, users. to increased the XXXX. Digital quarter Returning The fully service deepening our a same of among revenue loss our increase million penetration, services investments strong bookings. XXXX. continued efficiently nonoperating The was to total remain as numbers. in the XXXX. offerings. to $X.X revenue revenue investing We to nonoperating markets. especially million, financial up offerings XXX% million quality wallet in our $X Sea continue year-on-year and $X well EBITDA self-developed e-commerce user to of our the create to Digital support business was quarter million. million, This million serve growth of line GAAP continue XX%. consolidated of suite features recognized $XXX included GAAP ecosystem base total our compared marketplace in and driven our immersive loss the mobile year-on-year; our was due The drive of XXX% to primarily XXXX was to the product and to represents $XX growth GAAP users' as net of million experiences. for to we adoption. bookings by digital $X.X self-developed community GAAP of $X $X.X and million business, revenue entertainment adjusted $XX these EBITDA platform in $XXX our top was billion. capture to income entertainment of net quarter second of as scale to to was This efforts XX% to growing greater of XX% Fire. Free in second our we programs entertainment was and We revenue driven million $XXX quarter our growth from of GAAP opportunities in second EBITDA the XXX% our the XXX% year-on-year. users continue traction $XXX of revenue This million, second the a mainly an

the a withholding loss due our XXXX tax in was the income net second million our of had to XXXX, convertible due tax second corporate expense in primarily quarter tax to quarter of notes. recognized business. nonoperating Our was and $XX We expenses on of interest outstanding primarily digital entertainment income which in

share-based loss Min result, the second me was to the quarter million for Ju. As $XXX million let a same XXXX. turn net excluding $XXX period call of the that, to With compared XXXX compensation in as in

Min Ju Song

Thank you, Forrest and Operator? open are questions. to the Tony. And ready for we now call

Operator

comes Jefferies. Our Instructions] question from from first [Operator Chong Thomas

Thomas Chong

set I on of very a have X Congratulations questions. strong results.

online is question about first business. The Garena, gaming our

Would Free Southeast the as think for similar game my the the guidance. into expected regarding the that question a about then Fire as we should business. for want the peers new Fire how revised coming just revenue affect seen get genre our games to to want about is of strong Shopee get much And games LatAm. our I is just in potential growth? a competition sense a contribution, second have about in And well user then months. Asia new how We the developing sense and very Free performance

trends Shopee. given are people We category any see how have the the that to the for grocery? the situation growth we seen in in very the would seeing Are Or buy half? dynamic strong more trend product on COVID color -- online we categories be is But second going grateful. now, right different

Yanjun Wang

you, Thomas. Thank

about of believe driven. we question business. we mainly and the Fire game And particular discussed is it's before, case think Free the Free type in content a in user such I of is as that and user more on which not Regarding It the competition-driven competition, highly active lot type of made has base. base DAU across Fire, large content more a game, ever-growing engagement with is social it world our over and

we in types market. other the currently, also genres of past the and see better in So

And strong elements a Free play, base of has are and so as without see as -- having any in Fire our user with a year. similar types users, very well we lot best its incorporating market even being casual user of kind far, Fire to IP social things. of type effect last of Free pay we be comp to different as see fantasy robustly platform growing continued a any increasingly that very Again, targeting game been since base have elements quarter-on-quarter encouraged strong we from well market, growth as from against

elements, to using growing into introducing IP, social other and game for the So this types on play platform focus a game. we'll elements of and game more that different continue as base

In as contribution current of are are pipeline. discuss terms of we for game games. And as that revised course, all well on the pipeline our the expectation specifically games our But usual, already don't in. pipeline development guidance, new they guidance as built published, revised publishing in games the any our new to based is of

top of have terms remain effect and The categories. and and so we the home living high-margin quite category health far, to that long-tail, be In see categories been COVID category stable. on trends, the fashion, trends & these its beauty, our

we also living in COVID, see and growth home in including more. category over users well FMCG, to We've home services with been a home. our the provide the our home need the start to as as more see particular work convenience we category people grocery, stay popular as people efficiently become During to delivery tend from as demand. XPLs more working and they at And time and to to high their

think COVID I clear are trends down as go probably not resurgence regions. in cases And forward, there can it's going and be back know, might of In when that might be to cases the normal. still all life -- this terms of cases the you or

inclusion During we of same operations the our and meet users' COVID on Forrest that demand at our shared, again, as as to rate in the markets, markets our digital and services. long-term the in progress efficiently step-up And we time, focus which, is period make is we for focus see sustainable to manage evidenced digitization of this accelerated across believe in as digitization opportunities continuing as on we our growth time our continues growth stay. going we to sure for

Operator

The from JPMorgan from next Singapore. question comes Sharma Ranjan

Ranjan Sharma

Congratulations on the results. side. Two my questions from

Firstly, you your food a back first also if that are softness come quarter. seeing think plans secondly, ShopeeFood Indonesia. half half. revenues gaming other trends? But guidance? any parts have I as Are of the softening aggressively gaming can delivery? we growing to upside especially guidance, about the the for Or you in ASEAN What in the second seen well? and the had be pretty in the please there in We the you is guidance second strong could rollout should talk And to indicating gaming

Yanjun Wang

Thank you, Ranjan.

quarter. of if both Vietnam And the second as and as well in by market reception course, at as the development, communities services report make as But if we positive see terms this strong users in anything have point. focus we our to to performance continue Any we don't we In very users. of -- to our in driver ShopeeFood, the our Indonesia at on well the market, anything of announcement. new there's will quality -- any

and a lockdown. showed to indicated our XX% year, compared grow which guidance well from potential how And terms our okay, as this user base we I across the performance continue we of track growth our can base regarding our platform, and year views we game metrics we're growth. than game, commencement be And also continue world more the us first markets pay think to for are to In strong good believe even already. as And the in overall of record grow the for known is as last terms of in a has a and strong gaming again, commercialization the that also very various year-on-year difficult is as guidance to at to user that the to generally past shown foremost, have in with commercialization. our to you markets is focus, tell record see

not social the with we very to allows content an being ecosystem a even commercialize grow So making stronger game to really continue in that worried it But the base re-tap platform about our us and not are focus able it. to download. user elements built larger to strong

Operator

The next question comes HSBC from Piyush Choudhary from Singapore.

Piyush Choudhary

Congratulations for results. set a of Two strong questions.

and marketing to some increase on you Secondly, to dynamic Can the take have the have factors in e-commerce, expenses what And potential cost? has Has changed? rate? give quarter. some retention which a which an and on increase? countries on in seen Firstly, color during increase surge the customer how give sales are take you highest we driving e-commerce, could color in the countries led the competitive in lowest rate that and

Yanjun Wang

Piyush. you, Thank

dynamics, mainly platform. Shopee to of increased in it's And take And adoption particular by tools on the and driven attributable of sales and are of driven is now by marketing our we and marketing again, discussed various competitive market strong a time. at -- as our more good of position that about leadership, In terms is across increase not -- the related mostly sellers I one by we're is the our board, to terms advertisement of advertisement investment sales markets market. any in points the given efficiency across adoption view it before, rate, our of we think marketing various the various this e-commerce into market and

of shopping pace promote managed brand, on the strategy point season, any is et in that And manner more to natural in our about For at any opportunities in view cetera. the outcome, of And our growth example, this growth. market depends efficient time. any this event a the of particular is capturing

we not And from the our multiple are rate, in can you also by tell rate. at than the a affected competitive while faster if dynamics lets our are region, we growing is say, in market. larger competitors it So times growth

Operator

Mubayi Our question from Piyush from next comes Sachs. Goldman

Piyush Mubayi

are Your possible be very you're you're on, of has novice any Would on the some shed GMV well-established dramatically, a one market, and risen particular, to understand but are there strongly. region the that that in competitor. taking embarking new the We popularity grew light tactic on? nuances color to you it on into? app moving And no

that on? on So your would okay. could something where done you in rate burn on the you've side, past, you cash And the burn comment what is weakness then market, area in proceeding the second based strength, if cash how all possible, the at

wanted to look that is? it's a understand where And that per on like basis, order rising. at Just when looks that you

order On a there's GMV, basis, on trends are interesting. also some the that per

comment you that. could If on

Yanjun Wang

Yes. Piyush. you, Thank

new In you're terms to the believe markets. markets, of LatAm referring I

shared very according is As for launched even And very downloads in focus though see the players based continue markets top very runway penetration. Again, These markets of with this continue and these level share to will market. blue segments. us earnings we on competition been also a opportunities Brazil, at in grow we growth se and per think our to our MAU still and e-commerce their the not with strong performance that it's market in particular very quarter's in -- in and market -- I local market markets, for the so We those as and has we operations before, various on there. are Annie. have to strategy are for and multi because and practices ranking e-commerce still that these recently to focus App adapt their low a various far looking we long the ocean stage in us, to in our large -- into we're ranking this early business did

markets, in as model So continue in newer to primarily I business in sellers on we the in to those will core continue a focus business and think businesses focus categories, to promote Southeast small business and And the of social-focused growth a marketplace native, the and helping markets. our doesn't on some with grow model. high-margin efficient the Asia with It those local their -- we -- model, promote and categories long-tail marketplace. mobile the

think markets on burn, just markets approach as Asia. Southeast the well I is terms of a managed And question, is the outcome. the I same the and newer it previous as our current of as thesis more our mentioned in the cash for in

As have into to we Ramadan e-commerce opportunities, largest market And and season where the a efficient. QX, time this market, in look at markets the we including example, Indonesia. promote our of is investment the timing for the adoption is growth very in

frequency than a also more month, we efficiently. buy Indonesia, per it our has our to new platform. to we to healthy in user buyers overall continue have believe active exceeded increase our marketplace we And which and that Xx is invest And We the as in and recruit users month. base increased for Xx very new believe we region, continue

terms economics, should of doesn't changed. scale to a are profitable on of said, we efficiency highly it it second, note and that e-commerce to one term, This that strengthening then thesis to efficiency on continue pursuing; naturally market-based leadership. the model long growth of in in never continue and with continued unit is and we important economics However, improve happens our big view will and our growth change. our focus our an Because improvement market continuing model view long-term that picture this

continuing we'll that, we to So market the on think that trends, and I invest efficiently. are monitor

Operator

Alicia Our Citigroup. Yap next question comes from from

Alicia Yap

question Management, those the in perceive Or And to then coming can the orders question fee on the if opportunity percentage of terms better is AoV on the Brazil. very in that it And and LatAm the cross-border, of for is LatAm. or more more Any me? monetization if than is you the that elaborate percentage operating because the in ranking, color My Yes, it rate revenue the Shopee from hear could Brazil fee? market results. cost Okay. Malaysia. or of the you be congrats commission efficiency? because quickly strong second those contribution better or your Is Or Asia? this share the on monetization advertising? you can and in you logistics higher positive the Brazil And by Southeast EBITDA management goals And rate? us for currently? will the from actually from do expectation also remind for could of contributed of be

Yanjun Wang

you, Thank Alicia.

think But market positive very it's expectations for us. orders still break And down the and don't growth the sellers we there. early see us, growth Brazil, focus we contribution I and stage of involving terms or we by for country. in operations is to continue revenue shared, In as this we'll for by our and reception buyers, driving and LatAm, on efficient

there. continue to of So improvement market users continued and stay focus to about continue service the on we operations and will the to offshore and our humble learn

In of as quarter, the on transaction-based advertisements our advertisement of terms to in commissions increase i.e., of by the stage know, quarter including most more early of in us. -- our high-margin including adoption advertisement. take the so types. importantly, and monetization these And for fees, is handling we're well as from from And number types our rate revenue, placing to types increasing attributable cetera, monetization sellers very for various fees, of came on contribution attributable ranking, et the quarter as second adoption, still seeing platform. particular, maybe But you and

much to more advertisement our and we rate to inventory and low, rolled think is I out still adopted. be take be have

seller get explained with takes at to still the of allow we tools we increasing adopting our on our tools trained is we platform. editing familiar our and community platform, time, believe the platform be marketing for our our marketing focus adoption we increasing ecosystem, our time shopping types and it as sales and e-commerce As the well effectiveness shows communities advertising are at stage leverage creating that. on markets on as more early that returns voluntarily to of same can communities marketing them for our on advertising the their for and And that various before, seller

and tell is early stage early for terms given of Asia, to Southeast Brazil our too Again, in the the AoV LatAm of this So versus us for operations there.

We be the appropriate will continue to observe and to reach. see will what

and XPLs really market. are a that more of noted outcome of the input not it's types each category of of is target output but we in a categories goods than And mix for an As an for right perspective. relevant natural as before, the the from terms AoV our us

focus on generate that will mix for right will the market. the we right driving AoV the category So

And see time so market. assess the might market dynamically right evolves mix the and mix -- mix to we the and market the mix whether conditions category as is for product over each

that time over from to of the market Malaysia very become it terms better Shopee we're again, as course, well is the monetization improving over Malaysia, as has our achieve to positive business. EBITDA operational efficiency of of time. happy followed In Taiwan second report after positive EBITDA for And results by

seller be strong a terms the generating well. strong communities, road. basically is is to a we our And to by As able ability we our and, make to with profit generate this that, will the our deliver value proven down marketplace e-commerce and and increasing as clear to leadership value model before value that shareholders communities to and scale in highly stressed profitability to and of market

Operator

from Ahuja Suisse. comes Varun Credit question next The from

Varun Ahuja

Yes.

It's this new Garena, from very active Number one, user the it again, grew accelerated around have So X at It look has your if you base users XX strong. you quick quarters. added. few quarter, quarterly questions. last for

understand market, despite it color market to so seeing any additional new in such being very where growth the are game a markets? in would be existing Is there the wanted still for helpful. long, Any markets? Just you

Secondly, differently. a on Brazil, bit little try it let me

some markets give ASEAN. in obviously, of And can you sequential you the increase in you seen X e-commerce. color, already have in investments mentioned profitable If are that

increased much think much Some on qualitative is? into will So colors helpful. a basis we Or about any like-for-like how Brazil? on should it investments as going how color it be how on ASEAN,

logistics leaders the logistics third-party their significant clearly, in ecosystem the on on has made in investments and e-commerce side, great. isn't that the LatAm, Thirdly, side,

how logistics. gap in and next leader about we Are LatAm? with seen the the So to thinks investments have more on that make market in does increasing looking part increasing you ASEAN, even years? by Shopee few And bridge Shopee that investments over

on So front that would be color any helpful.

Yanjun Wang

Yes. Thank you.

all believe strong terms we seeing Free it X we're game I user our the of still very investments, of from of we're Fire. report especially a at as LatAm the Southeast rest of has -- we're actually came terms world. as that the stage. Asia regions also market And again, been very think games, early for In and therefore, Brazil diversification in And the happy very growth, to well

for unit evaluate to as Brazil well offerings in our Brazil well and as And in growth you also to improving operations sellers who growth. we of know, continue with obviously, continue continue on as we there. recently rates we'll certain efficiency Brazil stay absolute into investment there. economics commensurate Our adopt programs. is and adoption our to we to raised focus the And about as as And take we see XX% our XX% efficient of services

growth potential been it's user good assess there. we But to continue investment. market the receptions again, we that will, strong, and continued believe the a have So we very for believe

enjoy be Part or services bit third-party also of lack In are platforms, been platform, in growth very e-commerce surrounding Asian traffic also Shopee but drawn and and there that of e-commerce time, or because the for terms broadly logistics the and phase as same are contribution of it is well of ecosystem we some our is platforms on within a of in is and initial that not more different services, early when we've XPLs Brazil region growth growth problem, most And with the growth on region, market e-commerce also digitization we probably terms well e-commerce the into strong the services hopeful the growing using scenarios the of logistics. that the their across in just also in growth is partnering partners LatAm of these lot trends more to not much Shopee. But there third-party And the markets. and this more seen in our one volume hasn't then the focus as a region market. LatAm, for of global hopefully their of XPLs to could with may egg some we close hand, opportunities growing own a end markets bringing see demand of the as ecosystem. at the chicken And is logistics make investors also a been including of the those can environment there bringing there helps little Southeast think in with similar between partnership the in very I of a opportunity region. successfully generated opportunities,

or during we new very to our do each XPLs appropriate, the forward market at complement adopt volume especially happy other as Shopee see we any in in as the or model Brazil peak markets within if the Express have capacity, time holiday cetera. time, going that But are to services et -- We same to continue events, well. season lockdown there's

focus and as front, to an the accordingly. service that relevant continue will lot well operations ecosystem as as as model on But to on in observe we with again, the makes from adapt well our we stakeholders' user operation what perspective efficiency. connection So sense growth a

Operator

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

Min Ju Song

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

Operator

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

may now disconnect. You

Sea Limited (SE) 17 Aug 212021 Q2 Earnings call transcript