Shopee's Parent Company Stock Price Rose Nearly 10%
Obama 15 Nov 2024 08:21
Yesterday, Shopee's parent company Sea released its third-quarter financial report. Driven by steady growth in e-commerce, entertainment and financial services businesses, its revenue exceeded expectations and its pre-market share price rose nearly 10%.
It is worth noting that Shopee not only achieved adjusted core profits in Asia and Brazil, but its revenue accounted for two-thirds of the group's total revenue.
Specific data showed that Shopee's total order amount reached 2.8 billion this quarter, a year-on-year increase of 24.2%; GMV (gross merchandise transaction volume) was US$25.1 billion, a year-on-year increase of 25.2%; revenue was US$3.2 billion, a year-on-year increase of 42.6%. Sea Group's total revenue was US$4.3 billion, a year-on-year increase of 30.8%.
This performance eased some of the market's concerns about Shopee's prospects. Although Shopee faces competitive pressure from platforms such as Lazada and TikTok Shop, both platforms have tried to weaken Shopee's dominance in the region by implementing artificial intelligence features such as chatbots.
In addition, new competitors such as Shein and Temu are also targeting the Southeast Asian market. "As we continue to focus on delivering growth, we expect Shopee to remain profitable in the future," Sea founder Forrest Li said in a statement.
"Shopee has raised the commissions it charges merchants by about a third in many core markets since the beginning of the year despite fierce market competition. The price increase puts Shopee's fees much higher than its competitors, showing Shopee's confidence in its ability to attract and retain merchants.
It is worth noting that Shopee not only achieved adjusted core profits in Asia and Brazil, but its revenue accounted for two-thirds of the group's total revenue.
Specific data showed that Shopee's total order amount reached 2.8 billion this quarter, a year-on-year increase of 24.2%; GMV (gross merchandise transaction volume) was US$25.1 billion, a year-on-year increase of 25.2%; revenue was US$3.2 billion, a year-on-year increase of 42.6%. Sea Group's total revenue was US$4.3 billion, a year-on-year increase of 30.8%.
This performance eased some of the market's concerns about Shopee's prospects. Although Shopee faces competitive pressure from platforms such as Lazada and TikTok Shop, both platforms have tried to weaken Shopee's dominance in the region by implementing artificial intelligence features such as chatbots.
In addition, new competitors such as Shein and Temu are also targeting the Southeast Asian market. "As we continue to focus on delivering growth, we expect Shopee to remain profitable in the future," Sea founder Forrest Li said in a statement.
"Shopee has raised the commissions it charges merchants by about a third in many core markets since the beginning of the year despite fierce market competition. The price increase puts Shopee's fees much higher than its competitors, showing Shopee's confidence in its ability to attract and retain merchants.
