Daily Brief Singapore: Sea Ltd, Ringcentral Inc Class A, Sirius Xm Holdings and more

In today’s briefing:

Sea Ltd: Free Fire Is Losing Active Players And Shopee’s Growth Momentum Is Broken
RingCentral, Inc.: Initiation of Coverage – Education Oriented Products, The New Webinar Launch, Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
Sirius XM Holdings Inc.: Initiation of Coverage – Business Strategy, Cost Advantage & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)

Sea Ltd: Free Fire Is Losing Active Players And Shopee’s Growth Momentum Is Broken

Consensus remains positive about Sea Ltd (SE US) with 12.3% QoQ revenue growth in Q2 and a 32.2% revenue CAGR over the next two years.
However, with Free Fire losing active players and Shopee’s growth momentum in South East Asia broken, we expect a disappointing Q2 from Sea Ltd.
Free Fire is on its last legs and Shopee has decided to halt its geographic expansion. Thus we think that there’s significant downside to Sea’s Q2 and medium-term consensus.

This is our first report on UCaaS player, RingCentral.
The company started off with 2022 reasonably well with solid revenue growth and expansion in both free cash flow and operating margins.
Currently, it is the only company that offers a fully integrated solution that combines UCaaS and CCaaS on one bill.

This is our first report on broadcasting giant, Sirius XM Holdings.
The company reported strong first-quarter growth in subscription and advertising revenue, as well as strong cash flow generation.
We initiate coverage on Sirius XM Holdings with a ‘Hold’ rating.

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