Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q3 2023 Earnings Presentation
24 slides from Mercadolibre's earnings presentation, Nov 1, 2023
Slide 1: Q3'23 Results Investor Presentation
Q3’23 Results Investor Presentation MercadoLibre, Inc. > November 1st, 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. Third Quarter 2023 These statements are based on currently available Certain monetary amounts included
Slide 3: Operational & Financial Highlights
Q3’23 RESULTS Operational & Financial Highlights Third Quarter 2023 US$11.4BN 357.0MM 94.2% US$3.8BN +59% FXN YoY +26% YoY +231 bps YoY +69% FXN1 YoY GMV ITEMS SOLD MANAGED NETWORK2 NET REVENUES US$47.3BN US$35.3BN US$3.4BN US$685MM +121% FXN YoY +145% FXN YoY +23% YoY 18.2% Margin TPV TPV OFF MARKE
Slide 4: Key Messages
• > Q3’23 was another quarter that showed our ability to deliver operating leverage as Key Messages we scale on the back of continued strong growth, resulting in another record for quarterly Income from Operations of $685mn, with a margin of 18.2%. We have Third Quarter 2023 achieved this whilst con
Slide 5: Agenda
Q3’23 RESULTS Agenda 1. Quarterly Highlights 2. Financial Metrics 3. Margins 4. Appendix
Slide 6: Quarterly Highlights
Q3’23 RESULTS Quarterly Highlights
Slide 7: Marketplace Highlights
Q3’23 RESULTS Marketplace Highlights Momentum remains strong, with Items Sold growth accelerating across-the-board Gross Merchandise Volume Items Sold Total Unique Buyers (FX-Neutral YoY Growth) (YoY Growth) (Units, MM) > GMV growth accelerating in Brazil and > Items sold accelerated for the fourth
Slide 8: Logistics Highlights
Q3’23 RESULTS Logistics Highlights Fulfillment penetration reaches a new record of 48% of shipments, growing in all geographies Same-day & Next-day Delivery (MM, %) > Over 115mn same-day & next-day shipments in Q3’23 Mercado Libre shipped almost 350 million items in Q3’23, growing at 27% year-on-year
Slide 9: Core Fintech Highlights
Q3’23 RESULTS Core Fintech Highlights Growth accelerated sequentially on a widespread basis Acquiring & Digital Account1 TPV TPN Unique Fintech Active Users2 and Wallet Payers (US$ BN, FX-Neutral YoY Growth) (Units, MM) (Units, MM) Digital Account TPV: +188.7% Year-on-Year growth: 74.2% Acquiring TP
Slide 10: Credits Highlights
Q3’23 RESULTS Credits Highlights Consolidated profitability expansion with largely stable credit portfolio > NIMAL reached 37.4% in Q3, showing an annual expansion with sequential Net Interest Margin After Losses3, Total stability. This can be explained by: (% of avg portfolio) Steady portfolio growt
Slide 11: Credits Highlights
Q3’23 RESULTS Credits Highlights Broadly stable 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 Provis
Slide 12: Financial Metrics
Q3’23 RESULTS Financial Metrics
Slide 13: Financial Highlights
Q3’23 RESULTS Financial Highlights Margin expansion driven by cost dilution on the back of continued strong revenue growth Net Revenues Income from Operations and Margin Consolidated Net Revenues per Quarter (US$ M, %) (US$ M, % of Net Revenues) (FX-Neutral YoY Growth, %)| > Net revenue up more than
Slide 14: Financial Highlights: Commerce Revenue
Q3’23 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) 2.9% 3.3% 2.8% 14.2% 15.8% 15.1% 3P
Slide 15: Financial Highlights: Fintech Revenue
Q3’23 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) 1.69% 1.42% 1.42% 2.12% 2.03% 2.10% Other Fintech Revenues Credit Revenues Fintech revenues are
Slide 16: Net Revenue Breakdown by Products and Services
Q3’23 RESULTS Net Revenue Breakdown by Products and Services Third Quarter & 9-month period 2023 Brazil Argentina Mexico Others Total 3Q231 & 3Q222 (US$ M) 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 Commerce Services (a) 1,007 669 260 221 429 257 100 76 1,796 1,223 Commerce Products Sales (b)
Slide 17: Margins
Q3’23 RESULTS Margins
Slide 18: Gross Profit Margin
Q3’23 RESULTS Gross Profit Margin Gross margin expansion driven by cost dilution and efficiency, as well as lower POS device sales +295 bps 4 5 3 2 1 1 Dilution of Customer Experience costs 2 Higher volumes through our own acquirer 3 Gains from lower POS device sales and better first-party product margi
Slide 19: Income from Operations Margin
Q3’23 RESULTS Income from Operations Margin Strong margin gains on the back of operating leverage as the business continues to scale +724 bps 3 1 Higher Product Development expenses, partly due to increase in 1 2 headcount. 2 Dilution of operating expenses, particularly G&A 3 Better asset quality al
Slide 20: Net Income Margin
Q3’23 RESULTS Net Income Margin Strong Net Income margin expansion, driven by higher Income from Operations and margin expansion +489 bps 1 Higher interest income from balances stored in the MercadoPago 1 wallet, particularly in Brazil and Argentina, and interest income on 2 2 corporate cash balance
Slide 21: Cash Flow & Leverage
Q3’23 RESULTS Cash Flow & Leverage Available cash rose by US$311M, resilient CFO and healthy leverage ratio Total Cash Q3 2023 x Q2 2023 Leverage Evolution (US$ M) (US$ M) 2 3 4 1 5 1,964 1,085 Total Cash Q2’23 vs. Q3’23: US$ -568m 1,860 2,171 Cash and cash equivalents Restricted cash and cash equiv
Slide 22: Appendix
Q3’23 RESULTS Appendix
Slide 23: Operational & Financial Factsheet
Q3’23 RESULTS Operational & Financial Factsheet Third Quarter 2023 Volumes (US$ M, %) Users (MM) Cons. Net Revs. per Country1 (US$ M, %) GMV (FX-Neutral growth) 11,360 59.3% Unique MELI Active Users (units) 119.8 35.7% Brazil 2,006 40.2% Items Sold (units) 357 25.6% Unique Marketplace Buyers (units)
Slide 24: Thank You
Q3’23 Results Thank You MercadoLibre, Inc. > November 1st, 2023