Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q1 2024 Earnings Presentation
26 slides from Mercadolibre's earnings presentation, May 2, 2024
Slide 1: Q1'24 Results Investor Presentation
Q1’24 Results Investor Presentation MercadoLibre, Inc. > May 2nd, 2024
Slide 2: Disclaimers
This presentation may contain forward-looking All the information included in this presentation is statements including, but not limited to, statements updated as of March 31st, 2024. Except as may be regarding MercadoLibre, Inc.'s expectations, required by applicable law, we assume no objectives an
Slide 3: Operational & Financial Highlights
Q1’24 RESULTS Operational & Financial Highlights First Quarter 2024 GMV ITEMS SOLD TOTAL TPV CREDIT PORTFOLIO US$11.4BN 385.1MM US$40.7BN US$4.4BN +20% YoY +25% YoY +35% YoY +46% YoY +71% FXN YoY +86% FXN YoY NET REVENUE INCOME FROM OPERATIONS NET INCOME US$4.3BN US$528MM US$344MM +36% YoY 12.2% Mar
Slide 4: Key Messages
• Mercado Libre delivered YoY growth of 30% in net revenue, 44% in income from operations and 76% in net income, on a comparable basis, in Q1’24. This was due to outstanding results in Brazil and Mexico, which offset weakness in Argentina. Key Messages • Commerce momentum remains strong: YoY FX-neut
Slide 5: Agenda
Q1’24 RESULTS Agenda 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
Q1’24 Results Quarterly Highlights 1
Slide 7: Marketplace Highlights
Q1’24 RESULTS Marketplace Highlights Strong growth momentum in Brazil and Mexico Gross Merchandise Volume (FX-Neutral YoY Growth) Items Sold (YoY Growth) Unique Active Buyers (MM) 235% 31% 32% 29% 28% 29% 214% 54.4 32% 25% 53.5 22% 50.3 17% 16% 14% 47.6 79% 46.1 17% 107% 35% 30% 71% 3% 5%10% 43% 28%
Slide 8: Marketplace Highlights
Q1’24 RESULTS Marketplace Highlights Frequency continues to rise on the back of strong service levels Items Sold per Unique Buyer (Units) Same-day & Next-day Shipments (MM) Shipments Penetration (%) 7.6 121.6 56% 116.3 114.7 54% 7.2 111.1 53% 52% 52% 7.1 6.8 99.0 6.7 4.0% 5.2% 2.0% 0.2% 0.2% Q1'23 Q
Slide 9: Fintech Services Highlights
Q1’24 RESULTS Fintech Services Highlights Engagement with Mercado Pago is rising Fintech Monthly Active Users1 (MM) Assets Under Management2 (US$ MM) Credit Portfolio (US$ M) 2,688 3,116 3,646 4,285 4,593 Originations 49.0 5,533 ($M) 45.8 4,625 41.5 4,132 4,448 37.9 3,555 3,778 35.6 2,919 3,049 3,25
Slide 10: Fintech Services Highlights
Q1’24 RESULTS Fintech Services Highlights Credit spreads remain healthy Net Interest Margin After Losses (% of avg portfolio) Past Dues 15-90 & >90 ( % NPLs / Total Portfolio) Provision Coverage (% Allowance of Uncollectibles Provisions / NPLs) 39.8% 36.8% 37.4% 28.2% 30.6% 31.5% 25.1% 153% 156% 149
Slide 11: Acquiring Highlights
Q1’24 RESULTS Acquiring Highlights Growth momentum in Acquiring remains strong Acquiring TPV (US$ BN) Acquiring TPV per Country (FX-Neutral YoY Growth) Monthly Active Sellers with Credit (% of total) 318% 16.9% 34.7 261% 29.7 30.6 14.2% 27.3 24.3 14.2 12.0 12.0 11.1 144% 9.9% 9.9 9.0% 80% 7.9% 20.5
Slide 12: Financial Metrics
Q1’24 Results Financial Metrics 2
Slide 13: Financial Metrics
Q1’24 RESULTS Financial Metrics Net Income grew more than 70% YoY, with a strong margin of 7.9% Net Revenues Income from Operations1 and Margin Net Income2 and Margin (US$ M, FX-Neutral YoY Growth) (US$ M, % of Net Revenues) (US$ M, %) 94% Operating Margin Operating Margin Comparable Net Income Marg
Slide 14: Financial Metrics: Commerce Take Rate
Q1’24 RESULTS Financial Metrics Commerce monetization improved YoY, with higher Ads penetration and lower Argentina mix Commerce Net Revenues per Quarter Commerce Take Rate1 (YoY evolution) (US$ M, %) 113% 91% 76% 2.70% 0.50% 0.40% 0.10% 22.0% 65% 2,461 2,496 54% 17.8% 0.50% 3.2% 18.3% 2,128 368 3P
Slide 15: Financial Metrics: Fintech Take Rate
Q1’24 RESULTS Financial Metrics Higher take rate in Mexico and Brazil on an annual basis, offset by Argentina Fintech Net Revenues per Quarter Fintech Take Rate1 (US$ M, %) (YoY evolution) 89% Other Fintech Revenues Credit Revenues 86% 83% 73% 74% 1,948 1,799 1,837 9 0.4% 5.0% 1,649 9 10 0.1% 1,510
Slide 16: Net Revenue Breakdown by Products and Services
Q1’24 RESULTS Net Revenue Breakdown by Products and Services First Quarter 2024 Q1’241 & Q1’232 Brazil Argentina Mexico Others Total (US$ M) 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 1Q23 Commerce Services (a) 1,313 762 176 224 531 338 108 91 2,128 1,415 Commerce Product Sales (b) 250 145 24 49 8
Slide 17: Margins
Q1’24 Results Margins 3
Slide 18: Gross Profit Margin
Q1’24 RESULTS Gross Profit Margin Broadly stable gross margin on a comparable basis, despite pressure from Argentina -400 bps As Reported in 10-Q Q1’24 comparable with -30 bps Q1’23 as reported in comparable 2023 50.7% 50.6% 0.3% 0.4% 0.3% 0.2% 50.3% 0.3% 46.7% (0.1)% (1.3)% (0.2)% 1 (3.9)% +50bps f
Slide 19: Income from Operations Margin
Q1’24 RESULTS Income from Operations Margin Strong performance in Brazil and Mexico drive YoY margin expansion on a comparable basis -90 bps As Reported in 10-Q Q1’24 comparable with 120 bps Q1’23 as reported in comparable 2023 13.1% 1.0% 0.9% 12.4% 12.2% 1.2% 11.2% 0.4% 0.2% (0.2)% (1.2)% 0.1% (1.9
Slide 20: Net Income Margin
Q1’24 RESULTS Net Income Margin Gains led by strong operational performance and easing distortions from Argentina’s dual FX rate 160 bps As Reported in 10-Q 240 bps Q1’24 comparable with comparable Q1’23 as reported in 2023 0.4% 9.0% 2.0% 1.4% 7.9% (0.1)% (0.2)% 0.3% 6.6% 1.2% (0.9)% 6.3% (0.2)% (2.
Slide 21: Cash Flow & Leverage
Q1’24 RESULTS Cash Flow & Leverage CFO generation remains strong, partially offset by Argentina Total Cash Q1 2024 x Q4 2023 Leverage Evolution (US$ M) (US$ M) 1.25x Restricted cash and cash equivalents Cash and cash equivalents 1.07x 0.54x 0.55x 0.48x 1,512 -148 13 5,520 5,528 5,333 5,286 3,848 3,8
Slide 22: Appendix
Q1’24 Results Appendix 4
Slide 23: Operational & Financial Factsheet
Q1’24 RESULTS Operational & Financial Factsheet First Quarter 2024 Volumes (US$ M, %) Users (MM) Net Revs. per Country1 (US$ M, %) GMV (FX-Neutral growth) 11,365 71.0% Unique Active Buyers (units) 53.5 16.0% Brazil 2,571 56.9% Items Sold (units) 385 24.6% Fintech Monthly Active Users (units) 49.0 37
Slide 24: Reclassification of MercadoPago interest income & expense
Q1’24 RESULTS Reclassification of MercadoPago interest income & expense Three Months Three Months For the year Three Months Three Months Ended March 31, 2023 Ended June 30, Ended Ended ended The table shows a recast of our 2023 September 30, December 31, December 31, 2023 quarterly results to reflec
Slide 25: Changes in Mercado Envios' Terms & Conditions
Q1’24 RESULTS Changes in Mercado Envios’ Terms & Conditions As a result of changes to Mercado Envios Terms & Conditions (T&C), certain shipping revenue will now be recognized on the basis of Mercado Libre acting as Principal (where previously it acted as Agent). This means that revenue is recognized
Slide 26: Thank you
Q1’24 Results Thank you MercadoLibre, Inc. > May 2nd, 2024