Before going into $SE Q3 earnings...
Here's a review of last quarter's transcript (Q2 2021)
I hope this helps refresh your memory.
Here's 5 things that stood out that's good to keep in mind:
Here's a review of last quarter's transcript (Q2 2021)
I hope this helps refresh your memory.
Here's 5 things that stood out that's good to keep in mind:
1. Free fire is not affected by competing battle royale mobile games
FF has competitors since some time back.
But they don't see any effect because people don't treat FF just like a shooter game.
It's a place where they go to hangout and socialize, enjoy new content.
FF has competitors since some time back.
But they don't see any effect because people don't treat FF just like a shooter game.
It's a place where they go to hangout and socialize, enjoy new content.
2. Much more room for monetization
Shopee still has lots of ad inventory.
Many of their sellers are not educated about ads and promotions.
So penetration is still low, and there's a long runway ahead to monetize.
They don't have to raise commissions and taxes just to make $$.
Shopee still has lots of ad inventory.
Many of their sellers are not educated about ads and promotions.
So penetration is still low, and there's a long runway ahead to monetize.
They don't have to raise commissions and taxes just to make $$.
3. Buying frequency in Indonesia is now 7x a month
This number was 4-5x a month last year.
It's now increased to 7x a month.
Shows the stickiness of the platform, and enduring habits kicking in.
This number was 4-5x a month last year.
It's now increased to 7x a month.
Shows the stickiness of the platform, and enduring habits kicking in.
4. Their ads and marketing spend are strategic
It's NOT just a defensive move
Some time back:
There was concern that a key risk for Shopee is if they stop spending on S&M, they will lose share to competitors.
It doesn't seem so now.
It's NOT just a defensive move
Some time back:
There was concern that a key risk for Shopee is if they stop spending on S&M, they will lose share to competitors.
It doesn't seem so now.
It's more of a managed outcome now.
They are spending to capture more users during festive seasons
Example: during Ramadan, where the ROI will be more efficient.
It's more of a strategic play.
They are spending to capture more users during festive seasons
Example: during Ramadan, where the ROI will be more efficient.
It's more of a strategic play.
5. Consistent thesis: go for scale and dominance, profits come naturally
YJ wang has been repeating this across several earnings calls.
The thesis is still the same.
And they have been consistent in their messaging.
Tells me their priorities are clear and focused:
YJ wang has been repeating this across several earnings calls.
The thesis is still the same.
And they have been consistent in their messaging.
Tells me their priorities are clear and focused:
Go for scale and dominance first...
And profits will take care of itself later.
Evidence of this playbook taking shape:
Malaysia EBITDA positive (before HQ costs), following in footsteps of Taiwan
And profits will take care of itself later.
Evidence of this playbook taking shape:
Malaysia EBITDA positive (before HQ costs), following in footsteps of Taiwan
If you like this, follow me at @heymaxkoh
I share my journey on:
- How I attained financial freedom before 30
- My investing strategies
- How I research companies to buy
Last but not least, always remember:
Buy everything on... (wait for it)...
Shopee - pi - pi - pi - pi!
I share my journey on:
- How I attained financial freedom before 30
- My investing strategies
- How I research companies to buy
Last but not least, always remember:
Buy everything on... (wait for it)...
Shopee - pi - pi - pi - pi!
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