Shares of Sea Ltd. (NYSE:) are up almost 12% in premarket trading Tuesday after the company reported better-than-expected results.

The estimated loss per shares of $1.15 was offset by Sea’s loss of $1.04. Topping the consensus estimate of $2.8 trillion, revenue reached $2.9 billion. Sea earned $1.5 billion from its ecommerce operations while analysts projected $1.7 billion.

According to consensus, digital entertainment revenues topped $927.3 million by $1.14 billion. An adjusted EBITDA loss (or loss) of $509.9million was reported by the company, which is a significant increase from an $88.1 million profit for the same period last fiscal year. Analysts had expected a loss to be $506.2 million.

Sea Ltd. projects ecommerce revenue between $8.5 billion and $9.1billion. This is up from the $8.9 billion to 9 billion it previously forecast, as opposed to analyst estimates of $8.95billion.

“We recorded solid results across our business in the first quarter of 2022, despite challenging comparisons to the same period last year during heightened COVID-related restrictions,” said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.

“As a result, we are well on track to achieve our previously shared projections of profitability in our Asia markets, while continuing to scale our businesses and capture market share globally.”

Citi analyst Alicia Yap said Sea delivered better-than-feared results, “especially on outperformance of digital entertainment” revenue. She added that the management’s commentary on adjusted EBITDA profitability in 2023 is encouraging.

Thomas Chong, a Jefferies analyst said Sea also delivered better than expected results and also noted revised guidance for e-commerce revenues.

By Senad Karaahmetovic