Sea reported strong revenue growth in the third quarter, with management highlighting sustained momentum in e-commerce, digital finance, and gaming. While revenue and adjusted EBITDA surpassed Wall Street expectations, GAAP profit fell short, reflecting higher investments and shifting business mix. CEO Forrest Li emphasized, “Our focus remains the same: continuing to deliver high and profitable growth across all three of our businesses,” pointing to Shopee’s expanding market share, increased user engagement, and Garena’s robust bookings as primary drivers.

Is now the time to buy SE? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Sea’s Q3 Earnings Call

• Pang Vitt (Goldman Sachs) asked about growth drivers and margin trends for Shopee; CFO Tony Hou pointed to investments in logistics and user engagement, noting margins should improve year over year despite quarter-to-quarter fluctuations.
• Divya Kothiyal (Morgan Stanley) questioned new market entry and the rationale for winding down operations in Chile and Colombia. Hou explained a focus on leveraging operational synergies in Brazil and Argentina, with a selective, low-investment approach for new regions.
• Alicia Yap (Citigroup) inquired about competitive intensity and investment cycles, especially regarding live-streaming rivals. Hou said the competitive landscape is stable and current investments are ongoing rather than front-loaded, aiming to strengthen long-term capabilities.
• Piyush Choudhary (HSBC) requested details on Shopee’s logistics penetration and Garena’s outlook. Hou confirmed over half of orders use the in-house logistics network, with ongoing improvements in cost and speed, and stated Garena’s content partnerships and AI integration should drive future gaming growth.
• Jiong Shao (Barclays) sought clarification on the Shopee VIP program’s unit economics and AI strategy. Hou acknowledged early-stage investment in VIP but expects higher retention and engagement to drive profitability, while AI applications will focus on practical enhancements rather than infrastructure-heavy projects.

Catalysts in Upcoming Quarters

In the coming quarters, our analyst team will be monitoring (1) the pace of Shopee’s logistics and fulfillment rollout across key markets, (2) adoption rates and profitability of the Shopee VIP program and AI-driven platform features, and (3) sustained growth and engagement in Garena’s gaming portfolio, especially from new IP collaborations. Progress in expanding digital finance solutions and maintaining asset quality will also be critical signposts for Sea’s multi-segment growth ambitions.

Sea currently trades at $145.56, down from $155 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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