Mercadolibre, Inc. · NASDAQ:MELI

Mercadolibre — Q1 2018 Earnings Presentation

26 slides from Mercadolibre's earnings presentation, May 10, 2018

  1. Slide 1: Mercado Libre First Quarter 2018 Results

    Mercado Libre First Quarter 2018 Results Investor Relations

  2. 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 project

  3. Slide 3: Maintaining Momentum in Brazil

    Maintaining Momentum in Brazil GMV Growth Evolution per Quarter Items Sold Growth Evolution per Quarter 39% 48% 63% 71% 71% 73% 62% 67% 74% 66% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 1Q17 2Q17 3Q17 4Q17 1Q18 GMV LC YoY Growth GMV USD YoY Growth 53% 56% 68% 68% 68% 1Q17

  4. Slide 4: Business in Argentina Continues to Recover

    16% 14% 39% 59% 53% 8% 4% 20% 40% 22% 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% 1Q17 2Q17 3Q17 4Q17 1Q18 GMV LC YoY Growth GMV USD YoY Growth 12% 10% 25% 46% 44% 1Q17 2Q17 3Q17 4Q17 1Q18 Items Sold YoY Growth GMV Growth Evolution per Quarter Items Sold Growth Evolution per Quarte

  5. Slide 5: Mexico Continues to be Strongest Performer

    GMV Growth Evolution per Quarter 33% 53% 76% 91% 77% 19% 49% 85% 100% 91% -10% 10% 30% 50% 70% 90% 110% -10% 10% 30% 50% 70% 90% 110% 1Q17 2Q17 3Q17 4Q17 1Q18 GMV LC YoY Growth GMV USD YoY Growth 71% 95% 128% 126% 106% 1Q17 2Q17 3Q17 4Q17 1Q18 Sold Items YoY Growth Mexico Continues to be Strongest P

  6. Slide 6: Chile and Colombia Beginning to Take Shape as Complementary Engines of Growth

    Items Sold Growth Evolution per Quarter GMV Growth Evolution per Quarter Chile and Colombia Beginning to Take S hape as Complementary Engines of Growth - 15% - 2% 30% 51% 58% - 8% 0% 34% 58% 71% -20% 0% 20% 40% 60% 80% -20% 0% 20% 40% 60% 80% 1Q17 2Q17 3Q17 4Q17 1Q18 GMV LC YoY Growth GMV USD YoY Gr

  7. Slide 7: Another Quarter of Great Performance in GMV and Items

    Items Sold Growth Evolution per Quarter 53.2 61.5 74.2 81.2 80.1 48.2 80.1 39% 41% 56% 57% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 1Q18 Items Sold YoY Growth 66% YoY GMV Growth Evolution per Quarter $ 2,334 $ 2,72

  8. Slide 8: Unique Buyers Sustaining High Growth

    Unique Buyers Sustaining High Growth 13.3 14.6 16.3 17.7 17.0 12.3 17.0 20% 23% 31% 34% 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 1Q18 Unique Buyers (M) Unique Buyers YoY Growth 38% YoY Consolidated Unique Buyers G

  9. Slide 9: Selection Continues to Deepen

    Selection Continues to Deepen 84.7 94.6 105.9 114.1 127.1 83.7 127.1 58% 50% 51% 56% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 1Q18 Live Listings (M) YoY Growth 52% YoY Consolidated Live Listings * * * Excluding Venezuela

  10. Slide 10: Payments Gaining Traction On Marketplace

    Payments Gaining Traction O n Marketplace MP On Marketplace Penetration (TPV On as % of GMV) Total On Marketplace TPV by Country (TPV On as % of GMV) 77% 81% 83% 81% 90% 79% 71% 82% 85% 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1Q17 2Q17 3Q17 4Q17 1Q18 MP On T

  11. Slide 11: 4th Quarter of Triple Digit Growth in Off Marketplace TPV

    4th Q of Triple Digit Growith in Off Marketplace TPV TPV OFF Growth by Country (LC) 99% 163% 79% 118% 42% 128% 126% 105% 154% 63% 157% 59% 127% 127% Arg Bra Mex Chi Col MELI MELI Q4'17 Q1'18 MercadoPago Off platform grew at a ~100% YoY peace 98% 104% 108% 128% 127% 96% 127% 22% 23% 24% 26% 27% 0 0.0

  12. Slide 12: MPOS TPV Aggressively Growing in Brasil and Argentina

    MPOS TPV Agressively Growing in Brasil and Argentina 2053% 318% 679% 1135% 449% 687% Arg Bra MPOS Total 4Q17 1Q18 MPOS TPV FX Neutral Growth Consolidated MPOS Devices Sold Growth 91% 76% 447% 1162% 1046% 1Q17 2Q17 3Q17 4Q17 1Q18 YoY Growth MercadoPago MPOS grew at a +450% YoY pace

  13. Slide 13: Other Fintech Initiatives: Mobile Wallet & Merchant Credit

    Other Fintech Initiatives : Mobile Wallet & Merchant Credit MercadoLibre App MercadoPago App ~ 14x DAU’s * * Daily Active Users/Internal Company Data MercadoCredito Merchant Credit x Greater Merchant Sales Volume x Synergies with Markerplace x Higher Merchant Loyalty & Retention

  14. Slide 14: Financial Results

    Financial Results First Quarter 2018 Results

  15. Slide 15: Impact of New Revenue Recognition Standard (ASC 606)

    Impact of New Revenue Recognition Standard (ASC 606) (1) Total accrued fees, commissions, interest, and other sales received from users (2) Prior to the adoption of ASC 606, this amount was presented as a component of cost of net Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 201

  16. Slide 16: Net Revenues

    Net Revenues 25% USD YoY Revenues per Quarter Balances are adjusted to the adoption of ASC 606 *Subsidized shipping netting them from revenues **Excluding Venezuela Consolidated $ 269.7 $ 283.9 $ 304.9 $ 358.1 $ 321.0 $ 255.3 $ 321.0 - $ 4 - $ 33 - $ 66 - $ 79 - $ 112 - $ 4 - $ 112 70% 41% 32% 45% 1

  17. Slide 17: Net Revenues by Country

    Net Revenues LC Revenue Growth 62% 35% 41% 6% 25% 96% 69% 44% 80% 19% 39% 0% 35% 91% 30% 37% Arg Bra Mex Chi Col Uru MELI MELI Q4'17 Q1'18 By Country * * * Excluding Venezuela

  18. Slide 18: Enhanced Marketplace & Non-Marketplace Revenues

    Enhaced Marketplace & Non - Marketplace Revenues Enhanced Marketplace Revenues Non - Marketplace Revenues - 14% YoY $ 92 $ 104 $ 123 $ 159 $ 180 $ 109 $ 180 45% 20% 28% 50% 96% 0% 20% 40% 60% 80% 100% 120% $ - $ 20 $ 40 $ 60 $ 80 $ 100 $ 120 $ 140 $ 160 $ 180 $ 200 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 1Q18

  19. Slide 19: Non-Marketplace Revenues

    Non - Marketplace Revenues $ 63 $ 73 $ 92 $ 124 $ 145 73% 45% 76% 99% 130% 0% 20% 40% 60% 80% 100% 120% 140% $ - $ 20 $ 40 $ 60 $ 80 $ 100 $ 120 $ 140 $ 160 1Q17 2Q17 3Q17 4Q17 1Q18 USD (M) YoY Growth 37% YoY Balances are adjusted to the adoption of ASC 606 *Other Revenues includes: Classifieds, Adv

  20. Slide 20: Cost Structure

    Cost Structure First Quarter 2018 Results

  21. Slide 21: Q1 2018 Gross Margin

    Q1 2018 Gross Margin 62,6% 50.7% 1.1% 0.2% 0.0% 1.8% 0.0% 4,1% 0.2% 4.5% LY CX + S&W FP Fraud Prevention D&A Hosting Billing Costs Collection Fees Sales Taxes MPOS & Other Costs Actual Lower Net Revenues , driven by adoption of ASC 606, impacting Gross Margins

  22. Slide 22: Q1 2018 EBIT Margin vs. Last Year

    Q1 2018 EBIT Margin vs. Last Year 23,5% - 9.2% 11.7% 8.3% 5,1% - 1.6% - 0.2% - 1.1% - 0.8% - 0.7% - 2.9% LY COGS Marketing BPP Bad Debt Other Chargebacks Other S&M PD G&A Actual 5,1%

  23. Slide 23: Q1 2018 Net Income Margin vs. Last Year

    Q1 2018 Net Income Margin vs. Last Year 21,1% 18,0% - 4.0% 11.7% 20,5% 1,7% 0,8% 1,5% 11,8% LY COGS Opex Interest Income Financial Expenses Forex & Other Tax Actual

  24. Slide 24: Forward-looking statements

    Forward - looking statements. Any statements herein regarding MercadoLibre , Inc. that are not historical or current facts are forward - looking statements. These forward - looking statements convey MercadoLibre , Inc.’s current expectations or forecasts of future events. Forward - looking statement

  25. Slide 25: mercado libre

    mercado libre

  26. Slide 26: Q&A First Quarter 2018 Results

    Q&A First Quarter 2018 Results

Mercadolibre — Q1 2018 Earnings Presentation on 6ix