Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q2 2014 Earnings Presentation
10 slides from Mercadolibre's earnings presentation, Nov 25, 2014
Slide 1: Second Quarter 2014 Results
August 2014 Investor Relations Second Quarter 2014 Results Exhibit 99.3
Slide 2: Forward-looking statements
This presentation may make 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 our current assumptions, expectations and projection
Slide 3: Q2 2014 Highlights
Payments outpaced solid Marketplace performance in MELI’s second quarter Total Revenues accelerated to +66% YoY in local currencies (+47% ex Venezuela), despite World Cup and Easter headwinds Local currency revenues accelerated in our largest market, Brazil: +34% YoY Total payments volume accelerate
Slide 4: Core Operating Metrics
20% 18% 36% 22% 19% 20% 27% 25% 20% YoY Growth 15% 5% 22% 7% 14% 18% 33% 31% 30% YoY Reported USD growth 58% 67% 37% 20% 21% 30% 45% 49% 49% YoY Constant USD growth 15.8 17.6 19.0 18.1 20.1 22.0 22.8 21.7 23.6 0 5 10 15 20 25 Millions Items Sold 1,299 1,436 1,647 1,563 1,725 1,878 2,139 1,797 1,805
Slide 5: Payments Operating Metrics
36% 40% 78% 65% 43% 38% 35% 32% 34% YoY Growth 25% 36% 39% 30% 30% 44% 40% 34% 42% YoY Reported USD growth 64% 77% 64% 55% 47% 62% 54% 55% 66% YoY Constant USD growth 5.5 6.4 6.7 6.7 7.4 8.4 9.0 9.2 10.3 0 2 4 6 8 10 12 Millions Total Payment Transactions 412 480 525 532 578 642 746 664 785 0 100 20
Slide 6: Net Revenues
12% 18% 28% 19% 20% 23% 26% 27% 30% YoY Reported USD Growth 50% 66% 47% 37% 31% 36% 38% 45% 50% YoY Constant USD Growth 88.8 97.3 103.8 102.7 112.2 123.1 134.6 115.4 131.8 0 20 40 60 80 100 120 140 160 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 U$ Millions Net Revenues Net Revenues
Slide 7: Gross Profit & EBIT
73% 72% 73% 74% 74% 72% 72% 72% 73% Gross Margin 29% 36% 35% 38% 28% 32% 30% 39% EBIT Margin * Adjusted measures, excluding one time effects of Venezuela devaluation in 2Q14. A reconciliation of these Non-GAAP measures can be found at the end of this presentation 33%* 65.0 71.6 76.4 74.1 81.1 88.9 9
Slide 8: COGS & OPEX
YoY change: +139 bps of margin contraction due to growth in MP, offset by scale in Sales Taxes, Customer Experience and Fraud Prevention YoY change: $49.5 M one-time Impairment charge on Venezuela long- lived assets, following the adoption of SICAD 2 FX rate in that country -279 bps of scale in sala
Slide 9: Net Income & EPS
26% 24%* 29% 27% 29% 17% 27% 24% 30% Net Income Margin 0.69 0.72* 0.45 0.57 0.59 0.69 0.40 0.67 0.66 EPS * Adjusted measures, excluding one time effects of Venezuela devaluation in 2Q14. A reconciliation of these Non-GAAP measures can be found at the end of this presentation 25.4 26.1 30.2 17.5 30.0
Slide 10: Non-GAAP Financial Measures
Three-months periods ended (**) June 30, 2014 June 30, 2013 Operating expenses (OPEX) (101.4) (45.7) Impairment of long-lived assets 49.5 - Adjusted Operating expenses (OPEX) (51.9) (45.7) Income from operations (EBIT) $ (5.9) $ 35.4 Impairment of long-lived assets 49.5 - Adjusted Income from operat