"Sea's operating expenses also jumped by 28%, as its e-commerce arm Shopee tries to strengthen its competitive edge of rivals like Alibaba's Lazada and ByteDance's TikTok Shop. A key focus was strengthening Sea's logistics arm: "We are making our buyers happier while reducing [delivery] costs," Forrest Li, the company's chairman and CEO, said during an earnings briefing. Li pointed to Taiwan, where buyers prefer to pick up goods themselves instead of home delivery."
"To meet demand, Sea expanded their automated locker store network, opening over 2,500 locations in less than three years. The lockers help lower cost per order by 30%, and Sea passes the savings on to consumers Li said. Sea's CEO also claimed that expanded delivery networks allowed Sea to reduce average delivery times by two days compared to a year earlier, allowing Shopee to sell more upmarket products."
"Sea's three business divisions-Shopee, video game developer Garena, and fintech unit Monee-all grew their revenue by double digits last quarter. "After a very strong first half of the year, our momentum has continued into the third quarter," Li said in prepared remarks. Shopee, the biggest contributor to Sea's business, has now achieved five consecutive quarters of sequential gross merchandise value (GMV) growth. This quarter, Shopee's GMV rose by 28.4% year-on-year, hitting a new high of $32.2 billion."
Sea reported revenue of $6 billion for the quarter ending Sep. 30, up almost 40% year-on-year, and net income rose 145% to $375 million. Shares plunged after profits missed analysts' $433 million expectation. Operating expenses rose 28% as Shopee increased spending to compete with Lazada and TikTok Shop, focusing on logistics expansion. Sea opened over 2,500 automated locker locations in under three years, lowering cost per order by 30% and reducing average delivery times by two days. Shopee's GMV rose 28.4% to $32.2 billion, marking five consecutive quarters of sequential GMV growth.
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