Sea, one of Southeast Asia largest internet companies, continues to see losses although its growing e-commerce business helped it hit record revenue.
The Tencent-backed company went public back in October when it raised around $1 billion through an NYSE listing.
Its latest earningsreleased today show revenue broke $200 million for the first time ($219.6 million) but losses continue to pile up.
Revenue was up 71 percent year-on-year to hit the record figure but Sea losses continue to stack up.
The company lost $250.8 million in Q2, up significantly from a $92.1 million loss one year previous and $216.2 million negative in the previous quarter.
Sea main business, its Garena gaming unit, grew 19 percent to reach $116.9 million in revenue, butthe firm is placing a lot of emphasis on its Shopee e-commerce service — which is the benefactor of a recent $500 million capital raise — and its growth continues to be promising.
Shopee GMV, the total value of all goods sold on the service, grew 171 percent to $2.2 billion.
That doesn&t include take-home revenue, but for the first time that figure has been broken: Shopee grossed$58.8 million in sales.
That figure is up over 2,000 percent annually, but Sea has only just begun to monetize the service which is reflected in the huge rise.
For now, a lot of that revenue looks to be based on aggressive user acquisition as Shopee battles with rivals that include Lazada, the e-commerce service owned by Alibaba that has a large budget to work with.
Sea cost of marketing across all services — Shopee, Garena and its AirPay service — jumped 131 percent year-on-year to reach $175.2 million in Q2.
But, it pointed out that sales and marketing as a percentage of GMV shrunk to 6.2 percent from 6.8 percent and 6.6 percent in the previous two quarters.
&Shopee continued to expand rapidly across all markets, strengthening its leadership in the region.
Our monetization strategy for Shopee is delivering ahead of expectations, even at this early stage,& said Sea CEO Forrest Li in a statement.
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