The miss shows that sustained profitability still isn’t guaranteed for Singapore-based Sea, which embarked on a brutal cost-cutting drive to reverse years of losses.
Sea had its worst day in more than a year after earnings missed estimates and gaming revenue plunged 43%, raising questions around its nascent profitability drive.
Despite posting its second consecutive quarterly profit, Sea said revenue grew just 5% and a goodwill impairment charge of more than $100 million slashed net income to US$88.1 million, missing the US$224.4 million analysts expected. Its US-listed shares fell the most since February 2022, dropping 18% to close Tuesday at US$72.45 in New York.
