Path to profit paced with layoffs and single-ply toilet paper
“Business-class flights were banned; everyone would fly economy, no matter how far. Daily meal expenses were capped at US$30, hotels at US$150 a night. Snacks disappeared from offices. Sea replaced the local luxury tea brand TWG with Lipton. In at least some restrooms, two-ply toilet paper gave way to one-ply.”
“We cared about every single dollar, every single cent,” Li said at his office in Singapore, his first interview in more than two years. “You can have a big dream and a big ambition, but what if you cannot survive? You always have this kind of noise back in your mind saying we may be running out of money.”
“Li’s shock treatment paid off. In March, Sea reported the first quarterly profit in its 14-year history, US$427 million in Gaap-sanctioned net income. Its stock soared 22 per cent. Last week, it said it would hand out 5 per cent raises to most staff. Sea has now more than doubled its market value since November.”
I’m really impressed by how Sea made it through in 1 year, which is no mean feat in the tech world as much focus was on growth and not profits. Guess this demonstrates that with focus, grit, decisiveness, discipline and a sound business model, a high growth unicorn company can also be profitable when the situation calls for it.
#tech #sea #unicorn #business #profitability #comeback #jenetalksabouttech
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