Sea Limited (SE) 14 May 242024 Q1 Earnings call transcript

Good morning and good evening to all, and welcome to the Sea Limited First Quarter 2024 Results Conference Call. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Mr. M.C. conference. the begin to Koh Please go ahead.

such forward-looking welcome Hello, future uncertainties Earnings our this and XXXX these release. inherently for this make Quarter may not in reasons, Sea's actual of Call. of everyone, our understanding financial a measures, discussion measures the call, to call certain believe I'm complement the We enhance a in and may as includes On various and Also, Conference cash Director. M.C., First EBITDA. our Relations as are our realized investors' when to press of major Sea's to can risks adjusted used disclosures. which statements non-GAAP be we subject flows Investor stated GAAP businesses as

of release. financial non-GAAP For the to the reconciliation with please non-GAAP press GAAP on the section use our and of closest in measures measures, refer measures a financial discussion

me Chris Officer, Sea's Executive Chairman Chief Chief I Hou. Tony and have Officer, Feng; with and President, Li; Forrest Financial

Our highlights any the that and business This session, financial updates, you a in turn welcome With me management over call questions the Forrest. operating which will Q&A have. for quarter XXXX. we first and let performance share to will followed be by strategy

our everyone, All profile. we X pleased for profit businesses are growth Hello, and delivered an a joining that improved quarter. you have I'm to kicking with share thank today's call. strong off with XXXX solid

The years through this journey. of macro been us environment with the been you in past few have Many has challenging.

leaner, period savvier. this and through made us fitter Going has

quickly changing of our are we well environments. While confident ability more and new we headwinds will challenges, face much always to to weather adapt now

performance. e-commerce. you let through each With take me Starting with business that,

gross order Unit up Shopee delivered basis, We are quarter, economics on was quarterly improved. also was achieving revenue up In growth strong its was up XX%. and and XX% to a GMV revenue. the year-on-year ever quarter, orders XX%, highest report first GMV this pleased has that

overall adjusted our $XX narrowed EBITDA quarter. million. a achieved positive of adjusted EBITDA million loss this And Our to $XX Asian market

to competitiveness, ecosystem for Shopee's for continue quality and operational our XXXX enhancing our priorities strengthening buyers. our improving content be service price

ecosystem, in making are chain our competitiveness, On Indonesia easily to to on on average sell help Shopee price to streaming in platform live upstream continue unit first continued we these quarter-on-quarter. also all with has enhancing daily on e-commerce streaming the largest become fronts. Live sellers quarter. improve good access e-commerce our live strengthening Shopee. the streaming order We progress economics supply based more content On

buyers, On has service factor improving our our become differentiating a service quality for quality. capability integrated of logistics key

XX% for X cost customer work our within And because in fastest of reduce in for decreased the Asia put were have enhancing Asia hard and in is the today, our SPX quarter. Brazil the experience. it per of operator Express steadily quarter, first into placement. we first delivered market, in year-on-year In a managed order by We above achieved XX% and cost. its quickly to have one market, of our most Express. scale And lot we days Express' have XX% of logistics the intensive SPX of SPX orders order

our that allows Having buyers. provides This as such us features roll Asia. on-time Southeast program appreciated buyers, launched by SPX the delivery ecosystem the guaranteed orders, for this time certainty Shopee in also we is that new our a Express program benefit to out well in and efficiently guarantee

of first resolution resolved about time. is In quarter, return implemented Another day. manage increase XX% Shopee cases This process. refund directly initiative a and XX% year-on-year we having has within in the were the resulted X in

as reputation these improve and experience destination. customer operational a increased together, Shopee's taken reinforce efficiency, reliable efforts So shopping

on in more and push the to coming priorities operational year. We quarter will these continue

expect sellers. bring and buyers greater efforts to value its We both and to our competition from further Shopee these differentiate

to turning Digital Services. Next, Financial

maintaining pleased profitability We management. report while and are risk strong SeaMoney to prudent that growth has continued XXXX into its momentum

produced In user than both with outstanding growth users, grew this of the and has the as XX%, quarter. user XX% end efforts SME quarter, the active Our in XX% increased XX EBITDA revenue loan Digital loans million first grew book the year-on-year quarter, significant and Consumer to by more Services adjusted numbers year-on-year. on loan acquisition defined Financial our and those size.

XX, As outstanding the profit quarter-on-quarter. principal SeaMoney's business reached currently of X% year-on-year primary and $X.X up up is driver consumer of loan XXXX, SME March Credit revenue and and billion, our XX% growth.

Shopee's benefits model user from Our credit and base. business transaction

cash In and SME loans By are outstanding. include addition, we which total first loans. end SPayLater quarter, growth loans over off-Shopee our accounted loans loans, in consumption strong XX% for consumer off-Shopee the off-Shopee of and of also the seeing

grow. Going forward, off-Shopee we we to see across further improve upside as different continue to penetration markets our

maintain As credit we prudent approach We to limit, generally low credit by users to history. business, management. build a we to risk our their up continue loans begin credit build granting to short-tenured

good we tenure offering. product the users record, increase credit track gradually with and For loan credit limit,

growth business remained a SME stable loans our more by than each anticipate data, X.X%. percentage risk Digital days the control. past we our business total loans model while gain and throughout more further risk users of we We more continuously as for year. Financial market. This As consumer for us to Nonperforming maintaining allows due the and fine-tune grow at XX good Services

in we grow users' healthily to the financial be a of As future. we meet our user our will to set broader able base, offer needs services

Finally, turning business. to Digital our Entertainment

year-on-year. that XX% the was MAU Fire's performance across XX% positive to growth, strong up to Garena are first markets. share led expects This Fire's bookings Free In Free year-on-year. average by with We quarter, pleased increased

remain engagement Our acquisition, operational priorities retention. Free consistent in improving will XXXX, Fire and for user

to sustain play huge high high Fire and Free new -- player launch its features base. to all at engagement frequency, continue introduce high with We a modes, allowing content at redesign user a

April, allowing version launched Chaos, addition update to to feature the interactive And we Chaos launched for allowing version we team players players game update, pVp gameplay. events combat This In key mechanical Euro the in to highly vote major a to monster Mechadrake in a the up made in setting. successful. has January,

new the users' downloaded Tower, first is to user product constant the to the key games largest highly and Our quarter. mobile and frequently its understand issues exciting address in seventh from efforts introduce scale Sensor by in attracting mobile a needs, the paying Free the Fire According Fire in effective most and was remains globally perspective users. In game world off. are of year, content Free still one fresh

able Fire's Free user of franchise. building global of we track being to into sustain this Free Fire base, Given grow evergreen and record an massive confident are

clear for profitable road a conclude, To we growth. map have

will Our guidance. our our given to I results With a that, quarter full to start financials. Tony strong are have to the first deliver us XXXX, discuss year and in on track well invite we

Thank and thanks the you, Forrest, to joining everyone for call.

total revenue $X.X GAAP primarily our For was growth year-on-year XX% This driven business. of our the GMV Sea billion. to e-commerce credit by increased growth and overall, of business

first was adjusted in of first compared in of million Our XXXX. of to EBITDA the million XXXX $XXX the $XXX total an quarter adjusted EBITDA quarter

consisting compared XX% GAAP XXXX. e-commerce, and and $X.X an first revenue, $X.X consisting quarter revenue year-on-year. revenues XX% revenue of our revenue, logistics of up $X.X included GAAP mainly transaction-based to of quarter first in of billion, was revenue advertising billion, was Value-added $X.X XXXX marketplace billion. adjusted marketplace year-on-year, core product of $XXX X% related On revenues, was up of adjusted in marketplace loss services up billion, quarter Within revenue, fees GAAP billion of EBITDA GAAP the services, first to E-commerce mainly million year-on-year. of million EBITDA $XX the $X.X

during quarter meaningfully of narrowing adjusted markets, compared $XXX Contribution first $XX improved EBITDA loss of to losses order $X.XX. $XX by adjusted year-on-year In in our loss million when negative XX% quarter other we of were year, margin to For the million EBITDA million. was an our reach an from the Asian Brazil last $XX in markets, XXXX. per the EBITDA nearly had million, adjusted

$XXX XX% $XXX to by million. Services million. million. Digital Adjusted was XX% bookings $XXX Adjusted $XXX were $XXX to GAAP was was Financial EBITDA year-on-year year-on-year Digital million. Entertainment up was revenue GAAP million. by EBITDA up revenue

of to XXXX. compared net We million expense a consolidated $XX the a had recognized income in net XXXX $XX million XXXX. XXXX million tax first We quarter the of a our to first in net income compared first net nonoperating of numbers. in of quarter quarter of quarter nonoperating loss expense the $XX million in of $XX of the tax first to Returning of income

net XXXX. the million compared loss result, net quarter first of as a XXXX As of was income in of the to $XX million in first quarter $XX

Thank you, Tony. Forrest and

ready now questions. call are the to open Operator? to We

comes Sachs. line question of first from The [Operator Instructions] Vitt Pang of Goldman the

do that? solid and and way a to you evening morning, set profitability? especially derive questions me. of results. X, to to for to a react once you good team, the Two Good able you start how confidence there number towards will If question from you growth, more your is competitors turn move one. drive That's be sustainable aggressive, lower management decide probably that subsidies towards for congratulations Number

on to gaming, year? you second in color run rate the are how what And forward given seeing exactly of a Can going first and the any you provide On X, on growth? rest you derive strong done towards as thoughts number results, of trends very and order trends quarter margin on quarter well? have

I the It's side. e-commerce question Chris on take first here. will the

the think long-term competitive e-commerce. to for most mode on the us, for is I work important thing

one, the than have to is sellers to the the competition work platforms. upper we closely serve buyer our make lower as I is that especially buyer for X number sure product, the chains, price to same always. to the a value to the the always cost. that price we think lower in that offer the can us, in I cost To we the call, can better our the and the to price that Number sellers, ensure platform do transactions of previous is make with to sure other shared to serve product that

of the Number is quality three services.

also far a et the not this that As quite customer the to consumers, service and improve mentioned services only experiences, but is key delivery times, what focusing return the few we're on I to cetera. services areas our the as

businesses. contribute I think for e-commerce our competitiveness our things X will all the long-term to

we than we to operate as can we well, the this so we value the can we grow do market our buyer that believe sellers deliver in. long can As better that better

they time, And did you more a if aggressive, it. how few -- do is the I same market regarding the past stable they if look in the did overall competition what the point exactly that at more think observe get to evaluate At mentioned. we does to the in you months, situation competitor stable we have and

market, best We will by response evaluate have. to we look market what's at the by category category

in But well X be all we we the it's create all, mentioned market, of that for consumers on value in short company our long believe grow regardless do should as things term, competitor I sellers. does long we our and what term. And our to mode well in the do that, to the will as long-term earlier, the

the to I bring us better in over years. think will position a that the market

there fluctuation the but term, shouldn't might Of down, short it course, picture. be long-term change up in the and

pretty in very QX, result the of these And it's general, in trend. right? happy trends pretty have about continued gaming are QX see in strong to are And see we the year. strong a a the we we On achieved the what rest we so side, and optimistic far. And

past we last the current right? whole year. right? specific quarter, right? much the pretty growth, we the think for to kind have Fire, what in is like what the not in We done expected past And growth of I quarter actually years, achieve, we're reflection -- have shared reflected I going trend double-digit the the done and just the and For in a of as we Free what think X

into challenges gone -- always after aspiration an have but is and we evergreen I some right? And faced we some okay, think like and Fire especially ambition franchise. Free COVID, And building through believe, tremendous headwind, our

a play. rush monetizing very very, the game in don't we not what continually much the and And to conducted with fundamental like they -- of very, they go to the also ask the to the of development Fire, we all received. down of experience game past trip may And X and completely have a study -- about on to we way why right? a go years, on and to kind kind continue until like to that approach, belief, until on feedback like right right is surveys, we've on fine-tune the gone. been and And lot what user try based product Free spent with So didn't and kind they the the play very to why on do it's tremendous and the effort fine-tune of focused user-centric a much talk gamers,

through of focus I through those after seen observed that almost think have what whole mention is kind situation gone kind years now want the on I X has another factor post-COVID the the we've we of efforts. like kind gameplay. accumulated now market And of the of we period, like is gamers, kind and X that result of we an been is to --

options much used during of the play of shared a burned focus we there's the of gamers trends, entertainment, right? right right? and out. after the time there's start other that's kind they on to And game, feel not tremendous like entertainment. gamer COVID, a like like other to a kind lot during why As before, [Indiscernible], And for COVID And

Free that trend this But game across I years, another gamers for and of the just after at start we happened right not operated. the think gamer start a Fire. and X kind community market is of trend the back we kind basically single specific and that in gameplay globally, coming the whole have the all And to see now rejoined actually markets, a happened like

very pretty product I market summary, gamers the kind we I Fire enjoy on a for they for very, we the happened are right? has in is as based Fire right at think market done a in the and And good much think timing feed, gameplay. have what like Free make Free ideal product So have strong appetite an -- when -- like of to for what

hopefully and do will base the Fire, monetization to And to year. continue best our as also grow trend, to we the well for the right? part of Free So continue this rest user the

of line question Citigroup. comes next from Your of the Alicia Yap

have question related Shopee. I to a

were share commission your the also countries? aggressive? much to can take getting while indeed profitability defend room wondered, can further competition if look And how excluding still take to your What pull willing you allow you is trend? we Just more maintaining your to to we at the rate, to return defend share loss-making the commission rate raise advertising, actually if different the across other levers you more

still the a not commission the On commission meaningful room terms probably although aggressive in rate, of see is year take increase we rate, there as take not to increase. generally, -- aggressive as last

meaningful rate at. room also We a we look take there's on the can that see ad

the I think that other in still that we well previous lower ad our than I as shared rate believe this is that in call peers see markets. slightly take we the

the important the for to to the in market. outcompete competitiveness, short experience. the stable changes, And price term, So observed a the competitor those there. And the few most to way And to it what months. long-term competition more best to us us thing that some long-term all us past And it of environment competition, the respond country the core there country, on is will a bring study room that. service cost competitiveness I we the have will by evaluate similar In question category. by we in think been focus meaningful the category has raised, in if advantage terms things that for previous the us, -- the

UBS. the Your question from of next Killa Navin comes line from

Actually of I couple had a questions.

seen haven't digit growth. the is of about that to GMV are guess How in changed Clearly, this GMV is your the you the that? therefore, context was noticed given that in strategy. around think we high -- you one movement have just sorry, single high I teens year? to trying attributable results. how that I guidance the second some I'm the starting logistics on wondering that, And understand Lebaran to of just -- I we see guess, the of question for e-commerce. first much The strength seasonality And

see If the platform? in percentage some medium evolving do number own of long term? that delivered you And that to on are your how you share could orders the numbers on

QX, in strong GMV year, For both New opening, is into versus as in Ramadan QX contributing This past the that Year, into we And falls and see holiday don't the part we Lunar Forrest have Ramadan did falls patterns reason. of also QX. the think we in GMV, the the years. said the that's But the different only few And by the very growth. seasonality.

think reasons. I of contributing part that's

for Another reason part top and line have that have hand to giving do terms that. terms also only both us It's hard we the impact hard benefits benefit The is in are probably that bottom line the I and seasonality, the of coming but past been not the But both. actually. line split, split few quarters the improvement give also in bottom -- all done on it's really the of to the the line. top is emphasize in start of us work growth on execution we exact doing work

Asia, through in we the now, XX% percentage of more be our time. SPX own do have looking Brazil, our logistics, than half will orders at For than over Express. increasing we and we probably more In deliver

I will over think increase both time.

of from the Kothiyal comes Stanley. Morgan line Divya of question next Your

back marketplace? levels also do we X% this of in get comment what parts of year. My for business. marketing over The about DFS SeaMoney of Could unit question you And think GMV if can you live able for terms can profitability have that talk the e-commerce are of this the scenario in on is second these being and say Could we beginning is question XX% kind to last that to marketing build the you we've And from expense are of regards e-commerce talk in allocated seeing? remained the with especially elevated you're the of first the spends to My business. on growth quarter-on-quarter would quarter. were e-commerce you about to? segment, for cases? growth achieve line actually drivers sales economics streaming seen may be you that fair versus this And the new reduction where traction deviate in to which what as top segment's forward we it in going

Yes.

from by to side -- see to the that the marketing. the and in do of also performance general contributing from of that QX. of better reduction stream the questions. UE part sales on general. we We is in see computing QX On But a The better is part e-commerce that sizable just the that live marketplace contributed

continue for still So volumes do little actually improved that general, see various a for there's our bit coming live streaming, that, we the growing of for patterns context our stream. in see of I And UE in in most on we will significantly I think quarters, live to the But stream markets. improve markets. live our similar UE think will

terms we GMV, In EBITDA go think will to I of for the eventually that.

number number think I X% believe is I mentioned to in that a And we a at. think to term, that the I look think X% look at. to shared that we reasonable you long X%, that's meaningful number

just I a previous the think question on make that don't I that. sure, bit miss I to little add --

on the high-teen the guidance I the for was for question growth GMV e-commerce. think on the

seeing even see the single-digit GMV the we well. the number high of half achieving think have the latest in and markets the in us second good a trend we both year. much stronger confidence in QX that, in terms growth has given been as of I And

I monitor numbers. the think we will

the update when through will we the quarter. We the see market

that the in of But see are Part numbers. U.S. the we market cetera. there update exchange of is the that I et more also just rate, seasonality. factors of ForEx think we numbers. Part of I when is think will terms many the impacting

do the for by Regarding DFS last opening. the I as that part credit DFS of the businesses, DFS, think, believe shared still in the the we contributed we

cash the part by within PayLater, Shopee If better in other that time, penetration loan, at point the part is do which Shopee with the take not cash credit is we there's Shopee contributed of many call we for Shopee, businesses a you Besides to see spend It's PayLater. the payment look BCL, flow, Shopee out cases growing PayLater, any sizeable this over which use places. also time a it other still in like Shopee system. you buy together of although is at can

in And scenarios, other the Shopee we PayLater. for off-line also, are the example, increasing use cases

for scan to using example, you And -- QR can credit code can [Indiscernible] a experience. ShopeePay similar a card QR You that code. pay to and SPL, in scan with a

in markets. handphone have also expanding other loans as to well, We reach

I expand think all ecosystem. the beyond use our will businesses financial cases those Shopee

the case sales the still a is a from been of has I you stage our very Shopee terms our the is during EBITDA. good early other stage, the loans penetration time, of and stage. during have in the and marketing, cash fairly In business stage. see same margin, businesses At as the many early early think can The use in early

some spend see quarters, a UE we acquisition And bit, saw in acquisition we financial so economics a users quarters, In see little launching we potential depends products It new a ecosystem, And there are cetera. intention service cost the some to on et new see our what are the we there acquire users, is actual little have So just the over to a change given to so the we in new our see channels. mix there time. unit we there marketing different will and practice. fluctuate digital we product very because from out, coming an seen products the more markets. new plus that grow the bit customer far. big huge on good do in

next of from of America. from question Your line comes Sachin Salgaonkar Bank the

X I numbers. of questions. Congrats have on a good set

on First question Shopee EBITDA. is

EBITDA achieved breakeven in for Asia. Southeast Shopee already You

directly we here? seasonality to think there quarter, sustainable and we EBITDA factor should going some Or could in was So out EBITDA should specifically improvement in improve? or ahead it in should this i.e., is we see some see continue this volatility

gaming business. lower We be in on the average is second historical And than saw per the revenue it trends. user question

wanted a check Or just happened quarter? to going trend anything this specific in I new is ahead? the So

Thank you.

are On the of margin does partially because well. the market the EBITDA it side, Simply by we contribution as seasonality contribute positive. in most

So observing It top quarter. as to the on similar the we how the market top on us trend evolves The the during higher we well. line, see a help will line. EBITDA -- are the

months are we quarter. X.X the about into think I

shared guidance, are of pretty think And changes there [Indiscernible] Our market, we yes. with whether confident I that. will we that, to share the any achieving is

a For I -- we users. there like like have but when then new the effectively experience come there in reflects think play the And we been the will the and like believe for play, have time. game year, in of the players a new more new for very their more gamers game, like I right? still the gamers come that like the engagement a -- higher can longer into That's better very kind who its Fire, the to new Free of our we be the to attract has average right? lot users And the And simply like time Free general, game long like Fire the for relatively we compared is monetization. think very, low, specifically like very, like of they to and why is gamers, we spending seventh even have go really game game kind played kind of chance for will is

a growth in very kind it's game fact user monetization, the about there specifically nothing there's for the is that QX. strong just -- the the of that's reflect very, think I So

line Your HSBC. Choudhary of comes next the question from from Piyush

set And a results. congratulations of Two for questions. strong

the thus be has and an unchanged? competition will first Indonesia, been That guidance, upwards? after turning in helpful. performance, in expect you in XH upcoming If after question. Firstly, and color the again, -- strong guidance on such there to comment been Tokopedia, volatility TikTok EBITDA Do positive keeping ASEAN has going can you're increase the of not across competitive Any quarter? like is back intensity of XXXX revised why over guidance and in Shopee merger there you like,

if Secondly, outlook is margins about costs, or bit even is in for talk cost the customer higher drop? higher little margin DFS, you led it -- DFS? the a which acquisition to And has can in funding

the of of have market competition. signs the different what of signs doing, similar terms On competitors competition. competition, we any didn't see changes. course, didn't we been we seen We To see has are be the any stable honest, of relatively but cannot predict particular in

very again, the we the are QX. think see On in by number encouraged we guidance, I

confident achieving pretty to months coming shared. QX. in on think are we We I what And X.X are we

think the I at look more. will we a bit market

time look think on market I the sense or guidance. the will other in we how the have a reasons, share numbers, the of with we better competition that no at we of when reason from forward-looking yes. There's particular

the fluctuations DFS costs question, coming -- from For the customer on cost. rather more the the margin acquisition than the funding

the in spend market a long And In the what launches we to bring will new on for users product much term. we fact, on also and various markets. better us our funding on cost, lot the cost they how acquisition have is actually getting better see the -- in quarter-on-quarter. versus depending acquiring depends Again, we

Sharma comes the question from JPMorgan. Ranjan line next of Your from

please. questions, Two

to seems comments the fintech expense, side. on is of your same And expect on -- on you X.X% have second the for marketing of level the e-commerce GMV competition, as reduced second sales Based are business. we should seeing question spend and well? the quarter to the in Firstly, the on

some business you color the shed your be of lending the focus strategy of the competitors is will on coming can our whether much book some loan in If market? for that from or Brazil of given the how

Yes.

believe optimized. We down. general of spending need continue come of that I investment quarter, much streaming different our the spending. us so sales the optimize that to and that is expect and QX reasons. e-commerce, live by last spend due do see in Part the big the QX we many that give marketplace marketing we On start we'll that trend benefits. the do to and sales reduction in for -- to the there In is to last QX is will year general believe don't in And a the done part marketing coming

Although, ForEx for of there our yes. honestly, at reasons, coming reasons fluctuations look some month-to-month, if even be et -- cetera, will you

the believe a good that for For loan book, business. can high very have aspiration do Brazil be market Brazil. a We our we digital do financial service for

short Although gives of a to year, our us mid-last loan we Brazil accumulate book. start time only very period which

right entire a just small the book book So can the think But a don't say, let's share good future. relatively smaller closed Brazil of growth the split potential driver now, be is a we our it in yes, country-by-country I book. still, of and for it's loan businesses. loan it, loan part

next line Barclays. Your Jiong from of question the comes Shao of

that, percentage asking the e-commerce QX the now. quick in on why in which you the One in side. about improvement I is Two terms orders related Congrats is, wondering, throughout leading quarter? of think talk could there first And follow-ups streaming And was I the that's are that's economics not unit results. the on live of you. to strong a question, point breakeven is people for the why your

had the SPX business. Express a Shopee then And question I on follow-up

fulfilled information in that the target by Is the will number Any Shopee for orders XX% be orders done over are any appreciated. SPX? your or unit Asia worse? the very have economics or from margin orders XX% Express or in through contribution Brazil. color Do point or average for better through very, you Shopee about talked different done or data and You and percentage a Express for like

percentage orders, of versus in quarter. it's stable live of terms the last For streaming,

around quarter. we Asia last I in South XX% percentage of think the share

relatively is I think stable.

optimized increase some the bucket this the size during category because of the mix Although and we UE. quarter

top Actually, over The the and shared logistics general we the marketplace of well costs of live about streaming driver UE which things that, on both. see improvement, earlier, also cost improvement. drives down talked the a we fundamentally. for I terms In better the as the of part it's logistics, improvement time, improved as

we In the target own I just, markets. market of logistics, terms the of so evolve the all for our don't each think orders percentage probably through a fixed have slightly might

markets. right have be largely very, specific logistics average, we what than a target of share is Although what all But I It SPX. we set a can own we'll now. part go see for the say the wouldn't will should probably very bigger in to we our more of think

In orders, we order every order for is economic economics to per cost here. essentially own the deliver that improvement lower essentially the able terms of part will unit part than that per those of order a be SPX see we save XPL unit the market, the given our which for that in-house, cost for our for of in cost, you contributed

to improve I think UE over market is even most degree slightly the stable I further. time difference think we by across are pretty market, the this of varies that markets the able but trend is

Sachs. question next ahead. line Vitt Please the from of Pang Goldman go Your comes from

Thank questions you very much. And X my from follow-up side.

number versus walk see two, Firstly, you or off that greater ad little Shopee Express did explain Can on rate done what's you how share to us economics unit achieve? is current Question And well? how for unit logistics the able you take That's XPL. efficiencies for for you've seen still long-term are economics as Shopee? rate, number Can share question Shopee? that Shopee target a global versus And there well, and Express you can advertisement one. achieve on for the earlier, on have you a XPL this you what you've especially Shopee currently as through peers room for versus it take mentioned the bit better differently?

Yes.

drives a logistics are On of reasons couple front, better there the UE. it

I actually margin think, is XPL number there's one, that a the takes.

I CapEx in split different for as still total plan the Even better margin, One number our is, out, but the our a of because to able simple as reasons. are is if different think we retained in routes, that better that, to one. we that's forecast take So we're cetera. you volume, are just our we volume a period time business only long et evolving. able regions, how Not over few

So this one. operating and CapEx our of model time. to a period optimize long helps That's us for our

be. next Second a week, operation given upstream, volume help our day order planning will good better. would the This that volume volume next have what the do the a us to term one we be short in in -- the even in is for or on forecast, example, what lot will our of

and for want want you to For pickup many today how work trucks later. X to tomorrow, many versus come how days you or workers to in prepare tomorrow example,

to day help on to essentially this improve think us day will I the operating efficiency.

we optimize quite a logistics. of is to X the even behaviors beyond lot retool planning, to are seller for able Number the our

the pack we for seller fulfillment. way optimize when the should sellers, we those quite example, the that For drop the the from downstream seller should pick all an to do and up whether can the upstream their influence product, versus off on pickup things,

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follow-up comes next question Your from...

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the room to increase is for there So take meaningful rate. ad us

few do there can a we that to are tools I that. deploy think

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technology. Number through X is efficiencies to increase ad

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all that the increase few the X ad is potential to see a take So rate we meaningful quarters. doing over the there things, by next

UBS. question comes The next follow-up Navin Killa from from

question started on your obviously What's buybacks cash, and your about wanted even strong know the use buybacks. have thinking of ask to a continues of with several have grow. I just cash talking which I to remains balance? regards and announced to the your peers

currently Yes. have buybacks any Thanks on thing. sort We or for of don't any the sense question.

be are strong, much, these. on of and quite kind of each our confident operation Our results outlook lines and we'll the are business on pretty we for focusing

follow-up The from comes Alicia next question Citigroup. Yap from

contribution missed but me relaunched then in in the revenue the could be if it, upside be the or profitability the not for to growth fintech future, One the the services line Can [Indiscernible] on India assuming second, or product Two And for if the -- and the DFS. by the is the this sure management products of what sometime incremental user I'm this will become if ranking here. I you in reality? and your quarter? by share ranking the

-- a I are Shopee -- that The have. BCL, biggest think time, is outstanding, that businesses, this UE than contribution, main you For PayLater, at if our product. loans. point the the in the terms the higher of still few And look SPL, other buy the the have, will off-line and product that SPL UE, at we the buy cash in EBITDA cash the we But loan Shopee have we DFS product a business main PayLater.

a think if that's kind like picture, you of will. rough I

very, market. potential in is And local but in the best at relaunch bookings big India, Fire what and -- year like the taking the a partners, successful, are to And with is India. of is our that the this regulators, of at -- a working very we like the just plan considering the double-digit the right? if Fire to for in is of of for the Free clarify, this relaunch meaningful users a into consideration our be terms relaunch that moment the terms the think India like growth, this outlook well, figure not moment, including the And upside order For of rest India. right? Free in I potential actively stakeholders, out -- And to will

our for we market and Free come it to business, So have what that's basically, basically -- of the when the make seen outlook current out kind guidance for trend the the the based current on with -- of Fire. we existing

to now closing back remarks. conference any to This like turn concludes I session. the Mr. Koh for would our Q&A over M.C.

speaking today's quarter. joining for of all next We you again Thank to forward look to you call. all

you Thank presentation. conference has The for concluded. today's attending now

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