Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q1 2023 Earnings Presentation
25 slides from Mercadolibre's earnings presentation, May 3, 2023
Slide 1: Investor Presentation First Quarter 2023 Results
Investor Presentation First Quarter 2023 Results May 3rd, 2023
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives. These statements are based on currently available information and Certain monetary amounts included elsewhere in th
Slide 3: First Quarter 2023 Operational & Financial Highlights
First Quarter 2023 Operational & Financial Highlights US$9.4BN US$37.0BN US$27.0BN US$3.0BN +43% FXN1 YoY +96.1% FXN1 YoY +120.8% FXN1 YoY +58.4% FXN1 YoY GMV TPV TPV OFF MARKETPLACE NET REVENUES 309.0MM 93.4% US$3.0BN US$340MM +16% YoY +295bps YoY +26% YoY 11.2% Margin ITEMS SOLD MANAGED NETWORK2 C
Slide 4: First Quarter 2023 Key Messages
First Quarter 2023 Key Messages • We had a successful start to 2023, with strong momentum across the business. We surpassed the mark of 100mn unique active users in our ecosystem for the first time ever and delivered record EBIT for a first quarter of $340mn on strong revenue of $3.0bn. • Our first
Slide 5: Agenda
First Quarter 2023 Agenda ● Quarterly Highlights 1 ● Financial Metrics 2 ● Margins 3 ● Appendix 4
Slide 6: Marketplace Quarterly Highlights
First Quarter 2023 Marketplace Quarterly Highlights Gross Merchandise Volume (FX-Neutral YoY Growth) Successful Items Sold (YoY Growth) 107% 73%83% 43% 21% 24% 27% 29% 20% 23%22% 28% 21% 28%28% 32% 35% 17% 15% 16% 8% 11% 9% 11% -13% -14% -1% 3% 2% 1% Argentina Brazil Mexico Other Consolidated Argent
Slide 7: Logistics Quarterly Highlights
First Quarter 2023 Logistics Quarterly Highlights Same-day & Next-day Delivery (MM) Managed Network1 Penetration by Country (Q1’23) 100.4 99.0 93% 92% 97% 95% 91.0 95.1 91% 84.8 54% 55% 55% 53% 51% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Argentina Brazil Mexico Chile Colombia Same day + Next day Delivery (%)
Slide 8: Fintech Quarterly Highlights
First Quarter 2023 Fintech Quarterly Highlights Acquiring & Digital Account TPV1 (US$ BN) TPN & Unique Fintech Active Users2 (MM) YoY FX-neutral growth: 96% 35.8 38.2 41.6 43.7 44.5 50 36.0 37.0 30.2 32.2 2000 25.3 11.5 12.7 30 9.4 10.6 7.9 10 1000 1,677 1,875 20.8 21.6 24.5 24.3 1,262 1,439 -10 17.
Slide 9: Fintech: Digital Account and Acquiring Business
First Quarter 2023 Fintech Quarterly Highlights Digital Account Business Acquiring Business YoY FX-neutral growth: 164% YoY FX-neutral growth: 74% 18 24.2 30 22.4 23.3 30 20.2 21.4 13 20 20 8 11.5 12.7 20.8 21.6 24.5 24.3 9.4 10.6 10 10 17.4 7.9 3 0 -2 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 0 Q1'22 Q2'22 Q3'
Slide 10: Credits Quarterly Highlights
First Quarter 2023 Credits Quarterly Highlights Credit portfolio continues to grow modestly… … whilst also delivering healthy margin levels Credits Portfolio, Total & by Product (US$ M) Interest Margin After Losses3, Total (US$ M, % of Portfolio) On-line Merchant In-store Merchant Consumer Credit Ca
Slide 11: Credits: Portfolio, Past Dues and Provision Coverage
First Quarter 2023 Credits Quarterly Highlights 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 Provisioned / NPLs) Total Past Dues (1-360 days) Portfolio <90 dpd >90 dpd >30-
Slide 12: Agenda
First Quarter 2023 Agenda ● Quarterly Highlights 1 ● Financial Metrics 2 ● Margins 3 ● Appendix 4
Slide 13: Consolidated Net Revenue growing 58% FX-neutral
Consolidated Net Revenue +$789 million compared to same period last year, growing at 58% on an FX-neutral basis Net Revenues (FX-Neutral YoY Growth) Operating Margin (%) 2,248 2,597 2,690 3,002 3,037 139 250 296 349 340 11.0% 11.6% 11.2% 9.6% 67% 61% 58% 6.2% 57% 56% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1
Slide 14: Net Revenue growth broad-based across countries
Net Revenue growth at country-level was once again broad-based, with double-digit expansion in all segments Consolidated Net Revenues per Quarter (FX-Neutral YoY Growth) 143% 151% 110% 55% 59% 53% 46% 48% 28% 26% 30% 18% Argentina Brazil Mexico Other Q1 ‘22 Q4 ‘22 Q1 ‘23 14
Slide 15: Commerce Net Revenues and take rate
Commerce Net Revenues of almost $1.7bn was driven by higher monetization and faster GMV growth. Ads growth and some repricing helped drive higher take rate. Commerce Net Revenues per Quarter (US$ M) Commerce Take Rate1 (YoY Growth) 54% 44% 2.8% 33% 36% 23% 3.1% 1,661 1,676 15.0% 1,404 1,465 13.5% 1,
Slide 16: Fintech Net Revenues and take rate
Over $1.3bn in Fintech Net Revenues, with growth slowing as we lap the prior year’s rapid growth in credit revenues. Repricing helped drive a sequentially higher take rate in other fintech revenues. Fintech Net Revenues per Quarter (US$ M) Fintech Take Rate1 (YoY Growth) 113% 115% 107% 93% 64% 1.59%
Slide 17: Net Revenue Breakdown by Products and Services
First Quarter 2023 Net Revenue Breakdown by Products and Services Brazil Argentina Mexico Others Total 1Q231 & 1Q222 (US$ M) 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 Commerce Services (a) 762 567 224 181 338 213 91 76 1,415 1,037 Commerce Products Sales (b) 145 122 49 59 60 49 7 10 261 240
Slide 18: Agenda
First Quarter 2023 Agenda ● Quarterly Highlights 1 ● Financial Metrics 2 ● Margins 3 ● Appendix 4
Slide 19: Gross profit margin expansion
Gross profit margin expansion, with dilution of fixed costs, more efficiency in collection fees and shipping costs and lower 1P mix +285 bps Higher net Higher funding Better 1P shipping revenue costs Expense dilution margins, and and more efficient lower mix of 1P shipping in consolidated operations
Slide 20: Operating margin expansion
Operating margin expansion driven by lower COGS, G&A dilution and more efficient marketing spend, partially offset by PD headcount +499 bps Higher Product Development Better asset quality expenses alongside limited growth in originations Overall G&A dilution Product Total Marketing & Operating COGS
Slide 21: Net income margin expansion
Sound net income margin expansion, driven by strong income from operations +373 bps Net Income COGS OPEX Interest Income Financial Equity in Foreign Income Tax Net Income Margin Q1’22 Expenses Earnings of Exchange Margin Q1’23 Unconsolidated Entity 21
Slide 22: Q1 cash flow from operations and leverage
Solid Q1 CFO generation amounted to US$ 859 MM, with leverage ratios continuing 2022 trend of improvement Total Cash Q1 2023 x Q4 2022 (US$ M) Leverage Evolution (US$ M) Cash and cash equivalents Restricted cash and cash equivalents Total Debt*** Cash, cash equivalents Net Debt / Adjusted EBITDA****
Slide 23: Agenda
First Quarter 2023 Agenda ● Quarterly Highlights 1 ● Financial Metrics 2 ● Margins 3 ● Appendix 4
Slide 24: Operational & Financial Factsheet
First Quarter 2023 Operational & Financial Factsheet GMV (FX-Neutral growth) 9.434 43.3% Unique MELI Active Users (units) 100.6 24.5% Brazil 1,579 26.1% Successful Items Sold (units) 309 15.9% Unique Marketplace Buyers (units) 46.1 16.5% Commerce 907 31.6% Consolidated Net Revenues per Country1 (US$
Slide 25: Thank you
Thank you Investor Presentation First Quarter 2023 Results May 3rd, 2023