🌊 NYSE:SE - Shopee: The King of S&M (sales & marketing exp)

Evaluating ASEAN e-commerce marketplace Shopee's performance - using GAAP accounting metrics (e.g. revenue), rather than non-GAAP metrics (e.g. adjusted EBITDA/GMV)

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• In this report, we shall attempt to evaluate the historical performance of SEA Ltd’s e-commerce marketplace Shopee - using GAAP accounting metrics, considering how unreliable non-GAAP metrics have been in the recent past.

• Evaluating the business performance of startups (e.g. Shopee) can be performed via two measures, by asking: 1) Is There Product Market Fit? and 2) Does Operating Leverage Exist?

• We can answer these two questions by observing SE’s historical GAAP accounting metrics rather than management’s promises - and from there, draw reliable conclusions with regards to their future outlook and potential valuation…