The numbers are not only talking but also a pressure for administrators, the profit figure at Shopee is still the same, still a negative number, which has led to a series of cost reduction policies.
E-commerce platforms in Vietnam call Shopee as a prominent name, as of the first quarter of 2022, Shopee has 84.5 million website visits per month, 2.6 times more than the total number of visits. of the next two major exchanges, Lazada and Tiki.
According to many sources from Sea Limited, Shopee’s parent company – is going through the most forgettable time since its founding. When Shopee itself is having to cut staff in departments as well as adjust expenses to the lowest level, even in employee benefits such as team building or breakfast, the cause may be due to other activities. business is not effective
As the parent company of Shopee, Sea currently has 3 business segments including entertainment (Garena), e-commerce (Shopee) and financial services (SeaMoney). In particular, Shopee’s e-commerce segment is bringing the group’s main revenue. After 2 years of struggling with Covid19, Sea faced many difficulties such as the tension between China and India (two major markets of Shopee), war, inflation or drastic monetary policy from the government. Governments are putting the global economy at risk of recession and dragging down consumer demand.
At the same time, the flow of capital mobilized from investors for technology companies also fell into a state of congestion when money was no longer cheap.
From the announcement of the financial situation at the beginning of 2022, it has been shown that although Shopee contributes to 58% of total revenue. However, the cost of revenue of this segment accounted for 72%.
However, Shopee only earned $1.7 billion in the second quarter, lower than expected $1.9 billion, but lost EBITDA (adjusted profit before interest, tax and amortization) of about 648.1 million. USD, up 11% over the same period last year. Adjusted EBITDA loss per order is about $0.33.
Shopee lost VND 2,411 billion in 2019. But two years later, the company’s loss gradually narrowed to VND 1,610 billion and VND 772 billion, respectively. But Shopee still has to bear a growing debt, from VND 396 billion in 2017 to VND 4,888 billion in 2020 and VND 6,404 billion in 2021.
As of 2020, Shopee also fell into negative equity. By the end of last year, the company’s equity was negative 2,234 billion dong.
With the meager numbers, no one can predict where Shopee will go, but with the current situation, it will probably take a long time for Shopee to recover.