Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q2 2024 Earnings Presentation
26 slides from Mercadolibre's earnings presentation, Aug 1, 2024
Slide 1: Q2'24 Results Investor Presentation
Q2’24 Results Investor Presentation MercadoLibre, Inc. > August 1st, 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 Second Quarter 2024 earnings press regarding MercadoLibre, Inc.'s expectations, release, available on our investor relations website, objective
Slide 3: Operational & Financial Highlights
Q2’24 RESULTS Operational & Financial Highlights Second Quarter 2024 GMV ITEMS SOLD TOTAL TPV CREDIT PORTFOLIO US$12.6BN 420.9MM US$46.3BN US$4.9BN +20% YoY +29% YoY +36% YoY +51% YoY +83% FXN YoY +86% FXN YoY NET REVENUE AND INCOME FROM ADJUSTED FREE NET INCOME FINANCIAL INCOME OPERATIONS CASH FLOW
Slide 4: Key Messages
• Mercado Libre grew strongly in Q2’24 with revenue of $5.1bn up 42% YoY and net income up 103% YoY to $531mn. This was driven primarily by rapid growth in Brazil and Mexico, with improving trends in Argentina. Key Messages • Unique buyers (+19% YoY) and items sold (+29% YoY) both grew at the highes
Slide 5: Agenda
Q2’24 RESULTS Agenda 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
Q2’24 Results Quarterly Highlights 1
Slide 7: Marketplace Highlights
Q2’24 RESULTS Marketplace Highlights Growth accelerating: Items Sold and Unique Buyers rising at the fastest rate since 2021 Gross Merchandise Volume Items Sold Unique Active Buyers (FX-Neutral YoY Growth) (% YoY Growth) (MM) 252% 56.6 37% 214% 32% 34% 30% 54.4 53.5 28% 29% 83% 25% 50.3 71% 119% 20%
Slide 8: Marketplace Highlights
Q2’24 RESULTS Marketplace Highlights Frequency continues to build on the back of strong service levels Items Sold per Unique Buyer Same & Next Day Shipments Same & Next Day Shipments Penetration (Units) (MM) (% of total) 127.3 121.6 56% 7.6 116.3 54% 114.7 53% 7.4 111.1 52% 52% 7.2 7.1 6.8 Q2'23 Q3'
Slide 9: Fintech Services Highlights
Q2’24 RESULTS Fintech Services Highlights Engagement with Mercado Pago is rising Fintech Monthly Active Users1 Assets Under Management2 Credit Portfolio (MM) (US$ MM) (US$ M) 52.0 6,615 Originations 3,116 3,646 4,285 4,593 5,562 49.0 ($M) 5,533 45.8 41.5 4,625 4,132 4,904 37.9 3,555 4,448 3,402 3,77
Slide 10: Fintech Services Highlights
Q2’24 RESULTS Fintech Services Highlights Portfolio growth with sequential improvement in short NPLs and stable spreads Net Interest Margin After Losses Past Dues 15-90 & >90 Provision Coverage (% of avg portfolio) ( % NPLs / Total Portfolio) (% Allowance of Doubtful Accounts / NPLs) 39.8% 36.8% 37.
Slide 11: Acquiring Highlights
Q2’24 RESULTS Acquiring Highlights Growth momentum in Acquiring remains strong Acquiring TPV Acquiring TPV per Country Monthly Active Sellers with Credit (US$ BN) (FX-Neutral YoY Growth) (% of total) 329% 318% 19.5% 34.7 33.7 29.7 30.6 16.9% 27.3 14.2 13.3 14.2% 12.0 12.0 11.1 156% 80% 63% 75% 9.9%
Slide 12: Financial Metrics
Q2’24 Results Financial Metrics 2
Slide 13: Financial Metrics
Q2’24 RESULTS Financial Metrics Net Income more than doubled YoY, with the margin of 10.5% at its highest since Q1’17 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 Com
Slide 14: Financial Metrics: Commerce Monetization
Q2’24 RESULTS Financial Metrics Commerce monetization improved YoY, with higher Ads penetration and lower Argentina mix Commerce Net Revenues per Quarter Commerce Take Rate1 (US$ M, % FXN growth) (YoY evolution) 131% 113% 2,970 4.1% 0.4% 0.3% 0.2% 23.5% 91% 22.0% 76% 0.1% 3.7% 18.4% 3.2% 65% 2,461 2
Slide 15: Financial Metrics: Fintech Take Rate
Q2’24 RESULTS Financial Metrics Take rate pressure primarily due to Argentina, plus the move upmarket strategy in Brazil Fintech Net Revenues per Quarter Fintech Take Rate1 (US$ M, %) (YoY evolution) 92% Other Fintech Revenues Credit Revenues 86% 83% 73% 74% 2,103 1,948 13 1,799 1,837 0.91% 4.83% 0.
Slide 16: Net Revenue Breakdown by Products and Services
Q2’24 RESULTS Net Revenue Breakdown by Products and Services Second Quarter 2024 Q2’241 & Q2’232 Brazil Argentina Mexico Others Total (US$ M) 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 2Q23 Commerce Services (a) 1,411 846 261 243 686 393 144 102 2,502 1,584 Commerce Product Sales (b) 290 203 46 59
Slide 17: Margins
Q2’24 Results Margins 3
Slide 18: Gross Profit Margin
Q2’24 RESULTS Gross Profit Margin Higher gross margin on a comparable basis, despite pressure from Argentina -450 bps As Reported in 10-Q Q2’24 comparable 110 bps with Q2’23 as comparable reported in 2023 51.1% 50.4% 0.3% 1.1% 0.7% 0.1% 51.5% 0.1% 46.6% (0.7)% (0.2)% (0.9)% (5.0)% Gross Margin Merca
Slide 19: Income from Operations Margin
Q2’24 RESULTS Income from Operations Margin Margin pressure due to lower interest income (primarily Argentina), higher provisions (due to the credit card book’s growth) and shipping reporting updates (dilutive to margin but neutral to profit) -440 bps As Reported in 10-Q Q2’24 comparable -120 bps wi
Slide 20: Net Income Margin
Q2’24 RESULTS Net Income Margin Increase YoY supported by EBIT growth and reduction of FX losses related to Argentina 320 bps As Reported in 10-Q 410 bps Q2’24 comparable comparable with Q2’23 as reported in 2023 3.1% 11.8% 10.5% (0.2)% 1.1% 4.1% (1.1)% 7.3% 0.4% 7.7% (2.4)% 1.0% (2.8)% Net Income M
Slide 21: Cash Flow & Leverage
Q2’24 RESULTS Cash Flow & Leverage Robust increase in available cash and investments, paired with improving leverage Quarterly Total Cash Leverage Evolution (US$ M) (US$ M) 0.96x Total cash, restricted cash 7,738 6,281 Q1’23 and investments Q1’24 0.53x 0.55x 0.48x Available cash and B 3,413 0.33x 3,
Slide 22: Appendix
Q2’24 Results Appendix 4
Slide 23: Operational & Financial Factsheet
Q2’24 RESULTS Operational & Financial Factsheet Second Quarter 2024 Volumes (US$ M, %) Users (MM) Net Revs. per Country1 (US$ M, %) GMV (FX-Neutral growth) 12,647 83.1% Unique Active Buyers (units) 56.6 18.9% Brazil 2,786 51.2% Items Sold (units) 421 29.4% Fintech Monthly Active Users (units) 52.0 3
Slide 24: Reclassification of MercadoPago interest income & expense
Q2’24 RESULTS Reclassification of MercadoPago interest income & expense Three Months Three Months For the Year Three Months The table shows a recast of our Ended March Three Months Ended June 30, 2023 Ended Ended Ended 31, 2023 September 30, December 31, December 31, 2023 quarterly results to reflec
Slide 25: Changes in Mercado Pago TPV
Q2’24 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
Q2’24 Results Thank you MercadoLibre, Inc. > August 1st, 2024