Sea Limited (NYSE:SE) Q2 2023 Earnings Conference Call August 15, 2023 7:30 AM ET
Company Participants
Minju Song - Senior Manager, Group Chief Corporate Officer’s Office
Forrest Li - Chairman and Group Chief Executive Officer
Tony Hou - Group Chief Financial Officer
Yanjun Wang - Group Chief Corporate Officer
Conference Call Participants
Pang Vittayaamnuaykoon - Goldman Sachs
Alicia Yap - Citigroup Inc.
Piyush Choudhary - HSBC
Jiong Shao - Barclays
Ranjan Sharma - JPMorgan
Thomas Chong - Jefferies
Operator
Good morning and good evening. Welcome to the Sea Limited Second Quarter 2023 Results Conference Call. [Operator Instructions]. Please note, this event is being recorded.
I would now like to turn the conference over to Ms. Minju Song. Please go ahead.
Minju Song
Hello, everyone, and welcome to Sea's 2023 second quarter earnings conference call. I'm Minju Song from Sea's Group Chief Corporate Officer's office.
Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release.
Also, this call includes the discussion of certain non-GAAP financial measures, such as adjusted EBITDA. We believe these measures can enhance our investors' understanding of the actual cash flows of our major businesses when used as a complement to our GAAP disclosures. For a discussion of the use of non-GAAP financial measures and reconciliation with the closest GAAP measures, please refer to the section on non-GAAP financial measures in our press release.
I have with me Sea's Chairman and Group Chief Executive Officer, Forrest Li; Group Chief Financial Officer, Tony Hou; and Group Chief Corporate Officer, Yanjun Wang. Our management will share strategy and business updates, operating highlights and financial performance for the second quarter of 2023. This will be followed by a Q&A section in which we welcome any questions you have.
With that, let me turn the call over to Forrest
Forrest Li
Hello everyone and thank you for joining today’s call. In the second quarter of 2023, we delivered strong results, building upon many of the key initiatives we shared previously. We are pleased to see positive developments across all three segments of our business during the quarter. Shopee continued to enjoy significant improvement in margins and strong growth in revenue year-on-year. As we started to ramp up growth for Shopee, it saw double-digit increase in gross orders quarter-on-quarter. Garena showed sequential active user and paying user growth with bookings demonstrating more signs of stabilization. Moreover, Free Fire also started to see quarter-on-quarter growth in bookings. SeaMoney continued to achieve both strong growth and profitability while maintaining a relatively stable risk profile. As a result, at the group level, we saw not only top-line growth but also significant bottom-line improvement from the previous year, with our cash balance, which includes certain short-term and treasury investments, further strengthened to $7.7 billion.