Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q2 2023 Earnings Presentation
24 slides from Mercadolibre's earnings presentation, Aug 2, 2023
Slide 1: Q2'23 Results Investor Presentation
Q2’23 Results Investor Presentation MercadoLibre, Inc. > August 2nd, 2023
Slide 2: Disclaimer
> This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and Disclaimer product and technology initiatives. Second Quarter 2023 These statements are based on currently available Certain monetary amounts include
Slide 3: Operational & Financial Highlights
Q2’23 RESULTS Operational & Financial Highlights Second Quarter 2023 US$10.5BN 325.3MM 93.9% US$3.4BN +47% FXN YoY +18% YoY +288 bps YoY +57% FXN1 YoY GMV ITEMS SOLD MANAGED NETWORK2 NET REVENUES US$42.1BN US$31.0BN US$3.3BN US$558MM +97% FXN YoY +129% FXN YoY +21% YoY 16.3% Margin TPV TPV OFF MARKE
Slide 4: Key Messages
• > MercadoLibre delivered another strong performance in Q2’23, setting another record for quarterly Income from Operations of $558mn, with a margin of 16.3%. Revenue and profit growth was broad-based across geographies and business lines, demonstrating our increasing ability to drive leverage in our
Slide 5: Agenda
Q2’23 RESULTS Agenda 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
Q2’23 RESULTS Quarterly Highlights
Slide 7: Marketplace Highlights
Q2’23 RESULTS Marketplace Highlights Momentum remains strong, with Mexico accelerating and Brazil continuing to stand out Gross Merchandise Volume Items Sold Total Unique Buyers (FX-Neutral YoY Growth) (YoY Growth) (Units, MM) > Strong GMV growth, with Brazil solid and > Items sold accelerated for t
Slide 8: Logistics Highlights
Q2’23 RESULTS Logistics Highlights A new record of same- and next-day deliveries as Fulfillment penetration continues to rise Same-day & Next-day Delivery (MM, %) > Over 100mn same-day & next-day shipments in Q2’23, with penetration at record levels Mercado Libre shipped almost 319 million items in Q
Slide 9: Core Fintech Highlights
Q2’23 RESULTS Core Fintech Highlights Growth remains robust, with solid gains on the acquiring and the digital account businesses Acquiring & Digital Account1 TPV TPN Unique Fintech Active Users2 and Wallet Payers (US$ BN, FX-Neutral YoY Growth) (Units, MM) (Units, MM) Digital Account TPV: +181.8% Y
Slide 10: Credits Highlights
Q2’23 RESULTS Credits Highlights Consolidated profitability expansion with largely stable credit portfolio > NIMAL reached 36.8% in Q2, showing both a quarterly and an annual Net Interest Margin After Losses3, Total (% of avg portfolio) expansion. This can be explained by: 1 Total portfolio maintaine
Slide 11: Credits Highlights
Q2’23 RESULTS Credits Highlights Resilient past dues thanks to improved asset quality and product and geography mix Total Portfolio and Past Dues <90 & >90 Past dues and PDA1 Provision Coverage (US$ M, % NPLs / Total Portfolio) (US$ M, % of Total Portfolio) (% Allowance of Uncollectibles Provisions
Slide 12: Financial Metrics
Q2’23 RESULTS Financial Metrics
Slide 13: Financial Highlights
Q2’23 RESULTS Financial Highlights Continued strong Revenue growth alongside a major gain in the Income from Operations margin Net Revenues Income from Operations and Margin Consolidated Net Revenues per Quarter (US$ M, %) (US$ M, % of Net Revenues) (FX-Neutral YoY Growth, %)| > Consolidated Net Rev
Slide 14: Financial Highlights: Commerce Revenue
Q2’23 RESULTS Financial Highlights Commerce Revenue growth accelerated due to faster 3P GMV growth, a higher share of 1P and continued monetization efforts that drove the take rate higher Commerce Net Revenues per Quarter Commerce Take Rate1 (US$ M, %) (YoY Growth) 3.3% 2.9% 15.1% 13.5% 3P Revs. & GM
Slide 15: Financial Highlights: Fintech Revenue
Q2’23 RESULTS Financial Highlights Fintech Revenue growth remained high, but slowed as it lapped the 2022 peak of Credits growth Fintech Net Revenues per Quarter Fintech Take Rate1 (US$ M, %) (YoY Growth) 1.76% 1.45% 1.42% 2.19% 2.23% 2.10% Other Fintech Revenues Credit Revenues Fintech revenues are
Slide 16: Net Revenue Breakdown by Products and Services
Q2’23 RESULTS Net Revenue Breakdown by Products and Services Second Quarter & First Half 2023 Brazil Argentina Mexico Others Total 2Q231 & 2Q222 (US$ M) 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 Commerce Services (a) 846 641 243 200 393 232 102 82 1,584 1,155 Commerce Products Sales (b) 203
Slide 17: Margins
Q2’23 RESULTS Margins
Slide 18: Gross Profit Margin
Q2’23 RESULTS Gross Profit Margin Gross margin expansion driven by cost dilution and efficiency, as well as lower POS device sales +100 bps 3 4 2 5 1 1 Dilution of Customer Experience costs 2 Higher volumes through our own acquirer 3 Gain from lower POS device sales, partially offset by a headwind from
Slide 19: Income from Operations Margin
Q2’23 RESULTS Income from Operations Margin The 6.7ppts margin gain was broad-based across geographies and business lines +670 bps 1 Higher Product Development expenses 2 Dilution of operating expenses, particularly G&A 3 3 Better asset quality alongside limited growth in originations in the credit
Slide 20: Net Income Margin
Q2’23 RESULTS Net Income Margin Strong Net Income margin expansion, driven by higher Income from Operations and margin expansion +295 bps 1 Higher interest income from balances stored in the MercadoPago wallet, particularly in Brazil and Argentina, and interest income on 2 corporate cash balance 2 1
Slide 21: Cash Flow & Leverage
Q2’23 RESULTS Cash Flow & Leverage Solid CFO generation, with resilient Available Cash Total Cash Q2 2023 x Q1 2023 Leverage Evolution (US$ M) (US$ M) 2 3 4 5 1 1,381 1,964 Total Cash Q1’23 vs. Q2’23: US$ +300m 2,143 1,860 Cash and cash equivalents Restricted cash and cash equivalents > Cash flow fro
Slide 22: Appendix
Q2’23 RESULTS Appendix
Slide 23: Operational & Financial Factsheet
Q2’23 RESULTS Operational & Financial Factsheet Second Quarter 2023 Volumes (US$ M, %) Users (MM) Cons. Net Revs. per Country1 (US$ M, %) GMV (FX-Neutral growth) 10,506 47.2% Unique MELI Active Users (units) 108.6 28.8% Brazil 1,780 22.7% Items Sold (units) 325 18.2% Unique Marketplace Buyers (units
Slide 24: Thank You
Q2’23 Results Thank You MercadoLibre, Inc. > August 2nd, 2023