its lowest level since November 2022 after reporting second-quarter revenue that fell short of analysts’ expectations. SE stock is down nearly 29% on the day.

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The Singapore-based company reported earnings of 54 cents per share for the quarter ended in June on revenues of $3.1 billion. However, analysts polled by FactSet were expecting sales of $3.26 billion and earnings per share of 65 cents.

In the year-ago period, Sea lost $1.67 per share on sales of $2.9 billion..

Sea stocks fell by 28.7%, closing at 40.58. With Tuesday’s stumble, shares are now down 22% year-to-date.

Sea shifts away from cost cut

Sea is one of the largest Internet service providers in Southeast Asia, operating businesses in digital entertainment, e-commerce, digital payments and financial services. Products include Sea Shopee, an e-commerce platform serving Southeast Asia and Taiwan; SeaMoney, a digital payments and financial services provider, and Garena, a global online game developer.

A cost-cutting overhaul the company began last year that included layoffs and reduced marketing spending brought Sea’s first quarterly profit in the last three months of 2022. But e-commerce spending slowed due to the company’s boost from the pandemic in 2021. , when its total sales reached triple-digit annual growth.

“In the past two quarters, we have not only achieved self-sufficiency, but also demonstrated the profitability of our model and our ability to manage rapid and significant shifts in operational focus as we see fit,” Chief Executive Officer Forrest Lee said on a conference call. With Analysts Tuesday.

He says the company will now ramp up its investment in growing its e-commerce business.

“Such investments will have an impact on our bottom line and may lead to losses for Shoppee and our group as a whole in certain periods,” Lee said.