Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q3 2024 Earnings Presentation
26 slides from Mercadolibre's earnings presentation, Nov 6, 2024
Slide 1: Q3'24 Results Investor Presentation
Q3’24 Results Investor Presentation MercadoLibre, Inc. > November 6th, 2024
Slide 2: Disclaimers
This presentation may contain forward-looking A reconciliation of Non-GAAP measures can be statements including, but not limited to, statements found in our Third Quarter 2024 earnings press regarding MercadoLibre, Inc.'s expectations, release, available on our investor relations website, objectives
Slide 3: Operational & Financial Highlights
Q3’24 RESULTS Operational & Financial Highlights Third Quarter 2024 GMV ITEMS SOLD TOTAL TPV CREDIT PORTFOLIO US$12.9BN 455.9MM US$50.7BN US$6.0BN +14% YoY +28% YoY +34% YoY +77% YoY 1 +71% FXN YoY +73% FXN YoY NET REVENUE AND INCOME FROM ADJUSTED FREE NET INCOME FINANCIAL INCOME OPERATIONS CASH FLO
Slide 4: Key Messages
• Outstanding operational KPIs: Unique Buyers grew at 21% YoY to almost 61mn. This is the fastest growth since the Covid pandemic and was driven by all our initiatives aimed at driving offline retail online. Fintech MAU* also grew strongly, up 35% YoY to 56mn. Key Messages • Strong GMV trends: FX-ne
Slide 5: Agenda
Q3’24 RESULTS Agenda 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
Q3’24 Results Quarterly Highlights 1
Slide 7: Marketplace Highlights
Q3’24 RESULTS Marketplace Highlights Strong GMV and Items Sold growth with Unique Buyers rising at the fastest rate since 2021 Gross Merchandise Volume Items Sold Unique Active Buyers (FX-Neutral YoY Growth) (% YoY Growth) (MM) 252% 37% 38% 60.8 218% 32% 30% 29% 56.6 83% 27% 27% 26% 26% 28% 54.4 147
Slide 8: Marketplace Highlights: Frequency and Shipping
Q3’24 RESULTS Marketplace Highlights Frequency continues to build on the back of strong service levels Items Sold per Unique Buyer Same & Next Day Shipments Same & Next Day Shipments Penetration (Units) (MM) (% of total) 134.6 127.3 121.6 54% 7.6 116.3 52% 53% 114.7 52% 51% 7.5 7.4 7.2 7.1 Q3'23 Q4'
Slide 9: Fintech Services Highlights
Q3’24 RESULTS Fintech Services Highlights Engagement with Mercado Pago is strengthening Fintech Monthly Active Users1 Assets Under Management2 Credit Portfolio (MM) (US$ MM) (US$ M) 56.2 7,966 3,646 4,285 4,593 5,562 6,436 Originations ($M) 52.0 49.0 6,615 6,016 45.8 5,533 4,904 41.5 4,448 1,168 4,6
Slide 10: Fintech Services Highlights: Credit Quality
Q3’24 RESULTS Fintech Services Highlights Lower spreads amidst portfolio growth and asset quality improvement Net Interest Margin After Losses Past Dues 15-90 & >90 Provision Coverage (% of avg portfolio) ( % NPLs / Total Portfolio) (% Allowance of Doubtful Accounts / NPLs) 39.8% 37.4% 31.5% 31.1% 1
Slide 11: Acquiring Highlights
Q3’24 RESULTS Acquiring Highlights Growth momentum in Acquiring remains strong Acquiring TPV Acquiring TPV per Country Monthly Active Sellers with Credit (US$ BN) (FX-Neutral YoY Growth) (% of total) 329% 34.7 36.0 33.7 294% 21.8% 29.7 30.6 19.5% 13.7 16.9% 14.2 13.3 186% 14.2% 12.0 12.0 75% 9.9% 51
Slide 12: Financial Metrics
Q3’24 Results Financial Metrics 2
Slide 13: Financial Metrics
Q3’24 RESULTS Financial Metrics Record quarterly revenue, which continues to show very strong growth Net Revenues Income from Operations1 and Margin Net Income2 and Margin (US$ M, FX-Neutral YoY Growth) (US$ M, % of Net Revenues) (US$ M, %) 113% Operating Margin Operating Margin Comparable Net Incom
Slide 14: Commerce Monetization and Take Rate
Q3’24 RESULTS Financial Metrics Commerce monetization improved YoY, with higher Ads penetration Commerce Net Revenues per Quarter Commerce Take Rate1 (US$ M, % FXN growth) (YoY evolution) 131% 121% 113% 1.3% 24.3% 4.0% 0.3% 23.5% 91% 3,139 1P 4.2% 3.7% 76% 2,970 18.7% 0.1% -0.1% 3P 538 2.9% 2,461 2,
Slide 15: Fintech Revenues and Take Rate
Q3’24 RESULTS Financial Metrics Most pressure on take rate was due to lower financial income (lower rates in Argentina) and the move upmarket in Brazil, which pressures transactional and net financing fees Fintech Net Revenues per Quarter Fintech Take Rate1 (US$ M, %) (YoY evolution) 92% Other Finte
Slide 16: Net Revenue Breakdown by Products and Services
Q3’24 RESULTS Net Revenue Breakdown by Products and Services Third Quarter 2024 Q3’241 & Q3’232 Brazil Mexico Argentina Others Total (US$ M) 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 Commerce Services (a) 1,452 1,007 647 429 358 260 144 100 2,601 1,796 Commerce Product Sales (b) 357 204 111
Slide 17: Margins
Q3’24 Results Margins 3
Slide 18: Gross Profit Margin
Q3’24 RESULTS Gross Profit Margin Lower gross margin on a comparable basis due primarily to 1P mix effect and investments in logistics -740 bps As Reported in 10-Q Q3’24 comparable -230 bps with Q3’23 as comparable reported in 2023 53.3% 53.1% 1.1% 50.8% (0.2)% 0% 45.9% (1.9)% (0.8)% (0.2)% (0.5)% (
Slide 19: Income from Operations Margin
Q3’24 RESULTS Income from Operations Margin Higher bad debt, due to growth and mix shift of the credit portfolio, was the main driver of margin pressure; other headwinds include G&A and the LTRP (for more detail, see our Shareholder Letter) -950 bps As Reported in 10-Q Q3’24 comparable -740 bps with
Slide 20: Net Income Margin
Q3’24 RESULTS Net Income Margin Lower FX losses and a lower tax rate helped to partially offset margin pressure from higher opex -160 bps As Reported in 10-Q -110 bps Q3’24 comparable comparable with Q3’23 as reported in 2023 9.1% 0.4% 9.5% 2.0% 8.4% 7.5% 5.5% (0.2)% (2.2)% (0.7)% 1.2% (5.2)% (2.4)%
Slide 21: Cash Flow & Leverage
Q3’24 RESULTS Cash Flow & Leverage Broadly stable available cash and investments, paired with improving leverage Quarterly Total Cash Leverage Evolution (US$ M) (US$ M) Total cash, restricted cash 8,312 6,812 Q2’23 0.69x and investments Q2’24 0.53x 0.55x 0.48x Available cash and B 3,368 0.33x 4,427
Slide 22: Appendix
Q3’24 Results Appendix 4
Slide 23: Operational & Financial Factsheet
Q3’24 RESULTS Operational & Financial Factsheet Third Quarter 2024 Volumes (US$ M, %) Users (MM) Net Revs. per Country1 (US$ M, %) GMV (FX-Neutral growth) 12,907 71.2% Unique Active Buyers (units) 60.8 20.8% Brazil 2,913 41.2% Items Sold (units) 456 27.7% Fintech Monthly Active Users (units) 56.2 35
Slide 24: Reclassification of Mercado Pago interest income & expense
Q3’24 RESULTS Reclassification of MercadoPago interest income & expense Three Months For the year Three Months Three Months The table shows a recast of our Ended March Ended June Three Months Ended September 30, 2023 Ended ended 31, 2023 30, 2023 December 31, December 31, 2023 quarterly results to r
Slide 25: Changes in Mercado Pago TPV
Q3’24 RESULTS Changes in Mercado Pago TPV In Q1’24, we updated the definition of TPV which excluded peer-to-peer transfers within Mercado Pago. This impacts Total and Fintech Services (previously “Digital Account”) TPV, but Acquiring TPV is unchanged. We think the change creates a better metric for
Slide 26: Thank you
Q3’24 Results Thank you MercadoLibre, Inc. > November 6th, 2024