E-commerce and gaming company Sea (NYSE: SE) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Sea beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $5.26 billion, up 32.5% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ number of paying users estimates and an impressive beat of analysts’ EBITDA estimates. It reported 61.8 million users, up 17.7% year on year.
Is Sea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sea’s revenue to grow 28.5% year on year to $5.64 billion, slowing from the 32.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sea has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.3% on average.
Looking at Sea’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 20.3%, beating analysts’ expectations by 4.3%, and Shutterstock reported revenues up 3.8%, topping estimates by 1.6%. EverQuote traded up 8.3% following the results while Shutterstock’s stock price was unchanged.
Read our full analysis of EverQuote’s results here and Shutterstock’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the online marketplace stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. Sea is down 17.5% during the same time and is heading into earnings with an average analyst price target of $196.27 (compared to the current share price of $150.59).
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