Sea Limited (SE) declined in the current market after announcing its fourth quarter and fiscal 2021 results. SE values at $134.33, losing more than 7.73% compared to yesterday’s closing price. The stock closed at $145.60 at the end of the last trading session. The stock volume traded in the previous trading session was around 11.03 million shares. The current market cap of the company is about $81.21 billion.
SE: Q4 and Fiscal 2021 Key Financials
- Sea Limited’s revenue in Q4 2021 was $3.2 billion. It is an increase of more than 105% compared to the revenue of $1.5 billion in Q4 2020.
- Fiscal 2021 revenue was $9.9 billion, 1275 more than the revenue of $4.3 billion in fiscal 2020.
- The company’s net loss in Q4 2021 was around $616 million, 17.5% more than compared to the net loss of $524 million in Q4 2020.
- SE net loss in fiscal 2021 was around $1.5 billion, 25.8% more than compared to the net loss of $1.3 billion in fiscal 2020.
- The Q4 2021 loss per share was $0.88, compared to a net loss of $0.87 of Q4 2020.
- For fiscal 2021, the loss per share was $2.96, compared to $2.78 in fiscal 2020.
SE 2022 Guidance
We now project digital entertainment bookings to reach between US$2.9 billion and US$3.1 billion in 2022. Following the fourth quarter and into this year, we have seen a slowdown in online activity and swings in user engagement.
Also, owing to unexpected government measures, Free Fire is presently inaccessible in India on Google Play and iOS. The advice considers these headwinds. While we estimate reservations for 2022 to be comparable to those for 2020, we have factored in the uncertainty in India.
The company expects e-commerce revenue to be between $8.9 and $9.1 billion. The midpoint is a 75.7% increase from 2021. SE expects digital financial services revenue to be between US$1.1 and US$1.3 billion. The midpoint indicates a 155.4 percent increase from 2021.
Conclusion
The company is expecting to resolve the issue of Free Fire in India as they have a significant chunk of market share there. The uncertain situation of the current ban on Free Fire in India will affect the upcoming quarters.
