Sea Limited (NYSE:SE) Q3 2023 Earnings Call Transcript

In terms of the live [Ph] expenses, the percentage I think mentioned in the earlier comments was for the region. The — if you look forward, I think the percentage of the penetration might be country by country. So if you put everything together, it might not be fair. Let’s take — if you take the biggest market, like Indonesia, the way you look at things is we look at the content, e-commerce as a whole, content, including live streaming, including videos actually, which is another part of the — important part of the content. The — if you look at everything together, the — in Indonesia as a market, we do believe, let’s say, somewhere a range around 20% to 30% is a reasonable which we look at. The — probably still a little bit kind of lower than what you see from China, but has the reasonable side.

In the other markets, maybe slightly lower than that, but the — it wouldn’t be too far. But again, this is a very early time that we develop the market and we see how it develops. Generally, we are on the more positive side than the negative side in terms of the potential for these businesses. For Indonesia, of course, mathematically, after TikTok closed the shop, the market share — everybody’s market share grew a little bit, of course. And we do see good traction on the sellers and creators who joined our platform. I do believe they joined some other platform as well as they are looking for the growth opportunities. So generally, it has been — we have seen the behavior. The — in terms of the breakeven level, I think we are happy with the fact that we breakeven at the group.

But I think, as Forrest mentioned very early, we would like to balance between the gross market share and profitability. And that might — we will have to make decisions based on how the mine condition moves.

Operator: Due to interest at the time, we will be concluding our question-and-answer session. I’d now like to turn the conference back over to Miss. Minju Song for any closing remarks.

Minju Song: Thank you all for joining today’s call. We look forward to speaking to all of you again next quarter. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s session. You may now disconnect.