Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Investor Presentation (2024)
26 slides from Mercadolibre's investor presentation, 2024
Slide 1: We Are Mercado Libre
TO INVESTORS WE ARE MERCADO LIBRE
Slide 2: The leading ecommerce and fintech company in Latin America
The leading ecommerce and fintech company in Latin America 19 countries $96BN $50BN 94MM $182BN 56MM 600+M Population Market Gross Commerce Fintech Total Fintech Cap Merchandise Unique Payment Volume Monthly $5.5 Trillion GDP Volume (GMV)* Buyers* (TPV)* Active Users (Q3’24) NASDAQ: MELI since 2007 (
Slide 3: MELI benefits from a strong ecommerce and fintech ecosystem
MELI benefits from a strong ecommerce and fintech ecosystem Marketplace Digital Account Investments 3P, Retail, CBT Payments Our Logistics Loyalty Insurance Network Program Credits Advertising Credit Card Personal/Merchant Loans Classifieds Buy Now Pay Later (BNPL) Vehicles, Real Estate Acquiring
Slide 4: Our ecommerce business has been growing very rapidly, with plenty of growth ahead
Our ecommerce business has been growing very rapidly, but there is still plenty of growth ahead Market leader in eCommerce GMV $BN Ecommerce Penetration 2023 R CAG 28% Source: Morgan Stanley for market data; “LTM” = last 12 months, up to (and including) Q3’24.
Slide 5: Largest and most sophisticated logistic network in the region
Over the years, we have built the largest and most sophisticated logistic network in the region
Slide 6: Our fulfillment centers carry more than 50% of items sold
Our fulfilment centers carry more than 50% of items sold at Mercado Libre
Slide 7: Cross docking facilities
Cross docking facilities
Slide 8: Fleet of trucks for long haul transportation
Fleet of trucks for long haul transportation…
Slide 9: Thousands of vans for last mile delivery
… and thousands of vans for last mile delivery
Slide 10: Fully dedicated aircraft fleet in Brazil, Mexico and Chile
Fully dedicated aircraft fleet in Brazil, Mexico and Chile
Slide 11: Crowd transportation with 100K+ independent drivers
Crowd transportation in large cities with 100K+ independent drivers to offer same day delivery
Slide 12: Our logistic network handles 94% of items sold
Our logistic network handles 94% of the 1.7 billion items sold in Mercado Libre Items Shipped MM Managed network Third party carriers (drop shipping) R CAG 45% 94% 94% 92% 85% 63% 7% 14% 33%
Slide 13: Advertising is growing at a rapid pace
Advertising is growing at a rapid pace and representing a large profit pool for MELI… Advertising Revenue $MM CAGR 73 % Digital Advertising Market Share 1.0% 1.2% 1.8% 2.6% 3.7% Source: eMarketer for market data
Slide 14: A large advertising opportunity going forward
… however there is a large opportunity going forward Advertising Penetration Market Growth Our Ads revenue/TGMV is 2% vs. 5% Over the next 5 years, the online retail for international peers media market is expected to grow 3x to more than $5 billion in size Product Diversification Off-platform Expansi
Slide 15: Mercado Play: free streaming service
Mercado Play: millions of users are already interacting with our free streaming service
Slide 16: Fintech Services and Acquiring
Fintech Services CREDIT & DEBIT CARDS CONSUMER & MERCHANT CREDIT SAVINGS & INVESTMENTS INSURTECH Acquiring ONLINE & OFFLINE PAYMENTS & TRANSFERS
Slide 17: Mercado Pago positioned to become leading digital bank in Latin America
Mercado Pago is positioned to become the leading digital bank in Latin America Fintech Monthly Active Users MM R CAG 32% 2020 2021 2022 2023 Q3’24
Slide 18: Our credit offering is a critical part of our fintech strategy
Our credit offering is a critical part of our Fintech strategy Credit Portfolio $MM Credit Card R Merchant Credits 8% CAG 39% 9 BNPL & Personal Loans 19% 42%
Slide 19: Strong growth of AUM attracting new users
Strong growth of AUM also contributing to attract new users and gain principality Assets Under Management $MM R CAG 88%
Slide 20: Mercado Pago is one of the largest digital acquirers in the region
Mercado Pago is one of the largest digital acquirer in the region… Acquiring TPV $BN Instore (MPOS+QR) Online Payments CAGR 43% 41% 59% Cross sell opportunity: software, credits (working capital loans and credit cars), other banking services
Slide 21: Serving over 11MM merchants online and instore
… serving over 11MM merchants of all sizes, both online and instore Long Tail SMB Large Retailers Cross-selling opportunity: credits, insurtech and software
Slide 22: Diversified mix of revenue with large growth opportunities
MELI has a diversified mix of revenue with large growth opportunities Net Revenue $MM GR % CA 56 42% 70% CAGR 47% CAGR 58%
Slide 23: Solid and sustainable profitability
Solid and sustainable profitability Income from Operations $MM and Margin % Source: Income from Operations for 2023 excludes one-off expenses related to prior years; 2022 is adjusted to include DIFAL and Withholding tax provisions as reported in the Q4’23 Shareholder Letter. Other periods are as repor
Slide 24: 25-year history of generating shareholder value
25-year history with a consistent track record of generating shareholder value 2000 1500 30% post-IPO CAGR MELI share price ($) 1000 31% 5-year CAGR 500 31% 10-year CAGR 0 AUG 07 FEB 09 AUG 10 FEB 12 AUG 13 FEB 15 AUG 16 FEB 18 AUG 19 FEB 21 AUG 22 FEB 24 OCT 24 Source: Bloomberg
Slide 25: Summarizing the MELI opportunity
Summarizing the MELI opportunity → Leading ecommerce and fintech ecosystem in Latin America → Unique pan-regional logistics network → Management team with over 25 years of strong record of execution → Extraordinary growth opportunities in all of our businesses: ● Commerce ● Fintech Services (digital
Slide 26: The best is yet to come...
THE BEST IS YET TO COME... So