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SEGMENT REPORTING
 12 Months Ended
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