Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q4 2023 Earnings Presentation
24 slides from Mercadolibre's earnings presentation, Feb 22, 2024
Slide 1: Q4 Results Investor Presentation
PcezeRosuts Investor Presentation MercadoLibre, Inc.
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 December 31st, 2023. Except as may regarding MercadoLibre, Inc.'s expectations, be required by applicable law, we assume no objectives
Slide 3: Operational & Financial Highlights
Q4’23 RESULTS Operational & Financial Highlights Fourth Quarter 2023 US$13.5BN US$4.3BN US$240MM US$165MM 1 +79% FXN YoY +83% FXN YoY 5.6% Margin 3.9% Margin GMV NET REVENUES INCOME FROM OPERATIONS2 NET INCOME 413.1MM US$56.5BN US$42.3BN US$3.8BN +29% YoY +153% FXN YoY +182% FXN YoY +33% YoY ITEMS S
Slide 4: Key Messages
• Q4’23 was another quarter of strong growth & profitability. Revenue of $4,261mn grew at 42% YoY, its fastest pace since Q3’22. Income from operations for Q4’23 was $240mn and was negatively impacted by one-off expenses** of $351mn associated with contingent tax liabilities mostly related to previo
Slide 5: Agenda
Q4’23 RESULTS 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
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Slide 7: Marketplace Highlights
Q4’23 RESULTS Marketplace Highlights Momentum remains strong, with Items Sold growth accelerating again Gross Merchandise Volume (FX-Neutral YoY Growth) Items Sold (YoY Growth) Total Unique Buyers (Units, MM) 235% 7.6 7.0 6.7 6.8 7.1 54.4 38% 47.6 50.3 46.0 46.1 147% 31% 32% 79% 27% 27% 29% 22% 35%
Slide 8: Logistics Highlights
Q4’23 RESULTS Logistics Highlights Fulfillment reached a new record of almost 50% of shipments, growing in all geographies Same-day & Next-day Delivery (MM, %) 53% 56% 54% 52% > Almost 122mn same-day & next-day shipments in Q4’23 51% MercadoLibre shipped 407 million items in Q4’23, growing at 31% ye
Slide 9: Fintech Highlights
Q4’23 RESULTS Fintech Highlights Growth accelerated sequentially on a widespread basis Acquiring & Digital Account1 TPV TPN2 Unique Fintech Active Users3 and Wallet Payers (US$ BN, FX-Neutral YoY Growth) (Units, MM) (Units, MM) Digital Account TPV: +258.8% Year-on-Year growth: 76.2% Acquiring TPV: +
Slide 10: Credits Highlights
Q4’23 RESULTS Credits Highlights Healthy profitability with continued growth in Consumer and Cards > Portfolio grew by 33% YoY and NIMAL reached 39.8% in Q4, showing modest annual increase with sequential expansion. This can be explained Net Interest Margin After Losses3, Total by: (% of avg portfol
Slide 11: Credits Highlights
Q4’23 RESULTS Credits Highlights Total NPLs below 30%, thanks to continued flight to asset quality and product and geography mix Past Dues 15-90 & >90 Past dues and PDA1 Provision Coverage ( % NPLs / Total Portfolio) (US$ M, % of Total Portfolio) (% Allowance for Doubtful Accounts / NPLs) 29.6% 28.2
Slide 12: Financial Metrics
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Slide 13: Financial Highlights
Q4 ’ 2 3 R E S U L T S Financial Highlights Revenue growth remains strong overall and across geographic segments Net Revenues Income from Operations1 and Margin Net Revenues Growth by Segment (US$ M, %) (US$ M, % of Net Revenues) (FX-Neutral YoY Growth, %) 83% 69% 18.2% 56% 58% 57% 16.3% 237% 4,261
Slide 14: Financial Highlights: Commerce revenue
Q4’23 RESULTS Financial Highlights Commerce revenue growth remained strong, despite the tailwind from Shipping Fees in previous 2023 quarters becoming a headwind Commerce Net Revenues per Quarter Commerce Take Rate1 (US$ M, %) (YoY Growth) 91% 18.7% 0.40% 0.20% 0.50% 0.10% 18.3% 17.3% 76% 2.9% 3.7%
Slide 15: Financial Highlights: Fintech revenue
Q4’23 RESULTS Financial Highlights Fintech revenue growth remained strong, despite some pressure on monetization Fintech Net Revenues per Quarter Fintech Take Rate1 (US$ M, %) (YoY Growth) 93% 64% 61% 73% 48% 3.73% 1,800 3.45% 3.18% 1,632 (0.10)% 1.56% (0.16)% 1,479 (0.25)% (0.04)% 1,361 1.42% 1,341
Slide 16: Net Revenue Breakdown by Products and Services
Q4’23 RESULTS Net Revenue Breakdown by Products and Services Fourth Quarter & 12-month period 2023 4Q231 & 4Q222 Brazil Argentina Mexico Others Total (US$ M) 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 1,040 708 309 212 493 334 117 95 1,959 1,349 305 143 67 73 114 85 16 11 502 312 1,345 851 37
Slide 17: Margins
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Slide 18: Gross Profit Margin
Q4’23 RESULTS Gross Profit Margin Gross margin was negatively impacted by 2.1ppts of one-off expenses, as well as investments in our 1P and logistics operations and a lower contribution from credit revenues -269 bps 48.6% 0.5% 0.2% —% 45.9% 1 (0.2)% 2 (0.1)% (0.7)% (0.2)% (1.2)% (0.9)% (0.1)% 1 Dilu
Slide 19: Income from Operations Margin
Q4’23 RESULTS Income from Operations Margin Q4’23 margin was negatively impacted by one-off expenses equivalent to 8.2ppts of revenue -600 bps 11.6% 0.2% (2.1)% 1 Includes one-off expenses equivalent to 6.1ppts of revenue, as discussed in the Q4’23 Shareholder Letter 0.5% 5.6% 0.2% 0.1% 0.1% 2 Dilut
Slide 20: Net Income Margin
Q4’23 RESULTS Net Income Margin Excluding one-off expenses, net income margin would have been 9.0% -160 bps 1 5.5% 4 1 Lower income from operations margin, driven by one-off expenses equivalent to 8.2ppts of revenue 3.3% 3.9% 2 Reduction of financial expenses following redemption of convertible 1 bo
Slide 21: Cash Flow & Leverage
Q4’23 RESULTS Cash Flow & Leverage Cash generation remains robust, while leverage metrics remain healthy and promising Total Cash Q4 2023 x Q3 2023 Leverage Evolution (US$ M) (US$ M) 1.49x 1.25x 1.07x 1,928 0.60x 0.64x 85 (180) 3,848 5,414 5,520 5,528 5,240 5,333 3,256 (582) (143) 2 4 (516) 1,292 2,
Slide 22: Appendix
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Slide 23: Operational & Financial Factsheet
Q4’23 RESULTS Operational & Financial Factsheet Fourth Quarter 2023 13,450 79.5% 144.7 49.7% 2,230 45.6% 413 28.7% 54.4 18.3% 1,345 58.0% 418 3.1% 53.1 21.5% 885 30.0% 94.4% 73 bps 30.0 28.8% 923 29.5% 56,514 153.2% 30.4 93.6% 376 31.9% 14,185 80.6% 547 27.8% 42,329 181.6% 919 51.4% 34,742 103.6% 4,
Slide 24: Thank You
Q4’23 Results Thank You > February 22nd, 2024