Singapore-based Sea Limited reported second-quarter results early Tuesday that missed on revenue but beat on earnings. The company, however, said it will suspend guidance for its e-commerce unit, which accounts for about 60% of company revenue. SE stock plunged.
The company reported revenue of $2.9 billion, missing estimates of $2.98 billion. It lost 61 cents a share, better than the estimated loss of $1.14 a share, according to FactSet.
SE stock toppled 13.9% to close at 77.43 on the stock market today.
Sea has one of the largest e-commerce and digital entertainment platforms in the Southeast Asia region. It also provides financial services.
The company said its decision to suspend revenue guidance was driven by a highly volatile and unpredictable macro environment.
SE Stock: Prioritizing Growth
"We think the right thing to do in this time of continuing heightened macro volatility is to prioritize efficiency and self-sufficiency," Chief Executive Forrest Li said in written remarks in the Sea Limited earnings report
Sea's gaming unit, called Garena, accounts for about 31% of revenue.
"We are in an environment of increased macro uncertainty, with rising inflation, rising interest rates, local currency depreciations against the U.S. dollar, and ongoing reopening trends," said Li. "In this environment, being agile and adaptable is even more crucial to the long-term success of our business."
SE stock is down about 62% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
