+ Growth drivers still performing well, with Shopee close to positive adjusted EBITDA per order. SE recorded revenues of US$2.9bn for 2Q22, up 29% YoY. Shopee grew 51% YoY, with gross orders up 42% YoY, and gross margins improving sequentially QoQ as a result of faster growth in higher profit margin items like transaction-based fees and ad revenue. Shopee also generated more international (ex-China) revenue than e-commerce giant Alibaba for the first time. Adjusted EBITDA loss per order before HQ costs was >US$0.01, improving 95% YoY, with expectations that this would turn positive by year end. SeaMoney grew 214% YoY as a result of increasing synergies with Shopee, with Total Payment Volume (TPV) up 36% YoY. Quarterly Active Users (QAU) grew 53% YoY, with around 40% of buyers on Shopee using SeaMoney products.
– Wider-than-expected net loss, due to higher expenses and goodwill impairment loss. SE’s net loss for 2Q22 grew 115% YoY, largely due to a doubling of R&D and G&A expenses YoY, and a US$177mn goodwill impairment loss due lower valuations of prior acquisitions. G&A expense jumped 96% YoY, mainly due to higher allowances for credit losses from SeaMoney which was driven by loans growth. R&D expense increased 115% YoY as a result of increasing headcount growth due to expansion of tech capabilities. Net loss for 1H22 was at 79% of our FY22e forecasts.
– Shopee revenue guidance suspended for FY22e. SE suspended its Shopee revenue guidance for FY22e, with its original guidance in the range of US$8.5bn to US$9.1bn, stating increasing volatility, continuing macro uncertainties, and a strategic shift towards focusing on efficiency and optimization for the long-term as reasons for the suspension of guidance.