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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2023
SEGMENT REPORTING [Abstract] |
SEGMENT REPORTING |
21. | SEGMENT REPORTING
The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The CODM reviews the performance of each segment based on revenue and certain key operating metrics of the operations and uses these results for the purposes of allocating resources to and evaluating financial performance of each segment. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. Description of Reportable Segments E-commerce – Shopee’s platform is a mobile-centric, social-focused marketplace. It provides users with a convenient, safe, and trusted shopping environment with integrated payment, logistics infrastructure and comprehensive seller services. Products from manufacturers and third parties are also purchased and sold directly to buyers on the Shopee platform. Digital financial services – SeaMoney provides a variety of payment services and loans to individuals and businesses. It is an important payment infrastructure supporting the Company’s digital entertainment and e-commerce businesses. In addition, SeaMoney also integrates with third-party merchant partners and covers a broad set of consumption use cases. Revenue from the Company’s digital financial services segment primarily consists of interest earned from Consumer and SME loans provided to both Shopee buyers and sellers. Digital entertainment – Garena offers mobile and PC online games and develops mobile games for the global market. Garena also promotes eSports. A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other services”. Information about segments for the years ended December 31, 2021, 2022 and 2023 presented were as follows:
|  | Year ended December 31, 2021 |
|  | E-Commerce $ |  |  | Digital Financial Services $ |  |  | Digital Entertainment $ |  |  | Other Services $ |  |  | Unallocated expenses(1) $ |  |  | Consolidated $ |
Revenue |  |  | 5,122,959 |  |  |  | 469,774 |  |  |  | 4,320,013 |  |  |  | 42,444 |  |  |  | – |  |  |  | 9,955,190 |
Operating (loss) income |  |  | (2,766,566 | ) |  |  | (640,422 | ) |  |  | 2,500,081 |  |  |  | (177,633 | ) |  |  | (498,520 | ) |  |  | (1,583,060 | )
Non-operating loss, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (132,124 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (332,865 | )
Share of results of equity investees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,019 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,043,030 | )
|  | Year ended December 31, 2022 |
|  | E-Commerce $ |  |  | Digital Financial Services $ |  |  | Digital Entertainment $ |  |  | Other Services $ |  |  | Unallocated expenses(1) $ |  |  | Consolidated $ |
Revenue |  |  | 7,288,677 |  |  |  | 1,221,996 |  |  |  | 3,877,163 |  |  |  | 61,869 |  |  |  | – |  |  |  | 12,449,705 |
Operating (loss) income |  |  | (2,013,360 | ) |  |  | (277,264 | ) |  |  | 1,971,416 |  |  |  | (252,162 | ) |  |  | (916,138 | ) |  |  | (1,487,508 | )
Non-operating loss, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13,025 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (168,395 | )
Share of results of equity investees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11,156 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,657,772 | )
|  | Year ended December 31, 2023 |
|  | E-Commerce $ |  |  | Digital Financial Services $ |  |  | Digital Entertainment $ |  |  | Other Services $ |  |  | Unallocated expenses(1) $ |  |  | Consolidated $ |
Revenue |  |  | 9,000,848 |  |  |  | 1,759,422 |  |  |  | 2,172,009 |  |  |  | 131,281 |  |  |  | – |  |  |  | 13,063,560 |
Operating (loss) income |  |  | (550,470 | ) |  |  | 490,209 |  |  |  | 1,177,871 |  |  |  | (56,728 | ) |  |  | (836,104 | ) |  |  | 224,778 |
Non-operating income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 207,616 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (262,680 | )
Share of results of equity investees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,032 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 162,682 |
| (1) | Unallocated expenses are mainly relating to share-based compensation, impairment of goodwill of prior acquisitions that are not under the Company’s reportable segments, and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segments results as they are not reviewed by the CODM as part of segment performance.
Revenue from external customers is classified based on the geographical locations where the services were provided.
|  | Year ended December 31, |
|  | 2021 $ |  |  | 2022 $ |  |  | 2023 $ |
Revenue |  |  |  |  |  |  |  |  |
Southeast Asia |  |  | 6,316,782 |  |  |  | 8,321,249 |  |  |  | 9,179,527 |
Latin America |  |  | 1,850,861 |  |  |  | 2,043,918 |  |  |  | 2,193,758 |
Rest of Asia |  |  | 1,394,342 |  |  |  | 1,727,187 |  |  |  | 1,496,433 |
Rest of the world |  |  | 393,205 |  |  |  | 357,351 |  |  |  | 193,842 |
Consolidated revenue |  |  | 9,955,190 |  |  |  | 12,449,705 |  |  |  | 13,063,560 |
Long-lived assets consist of property and equipment, operating lease ROU assets and intangible assets.
|  | As of December 31, |
|  | 2022 $ |  |  | 2023 $ |
Long-lived assets |  |  |  |  |  |
Southeast Asia |  |  | 1,804,846 |  |  |  | 1,699,461 |
Rest of Asia |  |  | 348,116 |  |  |  | 258,078 |
Rest of the world |  |  | 257,792 |  |  |  | 316,962 |
|  |  | 2,410,754 |  |  |  | 2,274,501 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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