Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q1 2020 Earnings Presentation
22 slides from Mercadolibre's earnings presentation, May 5, 2020
Slide 1: Investor presentation First Quarter 2020 Results
Investor presentation First Quarter 2020 Results May 5th, 2020
Slide 2: Safe Harbor
SAFE HARBOR A reconciliation of Non-GAAP measures can be found in our first This presentation may make quarter 2020 earnings press release available on our investor relations website. forward-looking statements relating All of the information included in this presentation is updated as of to such ma
Slide 3: Operational & Financial Highlights
First Quarter 2020 Operational & Financial Highlights US$3.4BN 75.5% 105.7MM US$652.1MM +34%LC YoY +45%LC YoY +28% YoY +70%LC YoY GMV GMV SHIPPED ITEMS SOLD NET REVENUES US$8.1BN US$3.4BN US$4.7BN 290.7MM +82%LC YoY +36%LC YoY +139%LC YoY +102% YoY TPV TPV ON TPV OFF TPN
Slide 4: First Quarter 2020 Overview
First Quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 5: Quarterly Highlights: COVID-19 Actions Taken
First Quarter 2020 Quarterly Highlights COVID-19: Actions Taken Workforce Protection Commerce ● Continued operating under remote work arrangement in place since ● Launched new "Supermarket" navigation in Brazil and Mexico March 16th ● Launched new branding campaign communicating "Stay at Home, we ar
Slide 6: Quarterly Highlights: COVID-19 Business Impact
First Quarter 2020 Quarterly Highlights Fintech COVID-19: Business Impact Fintech business also experienced an initial slowdown during the third week of March, Commerce followed by sequential weekly improvements through the last week of March and into April. Marketplace KPI’s hit a low point during
Slide 7: First Quarter 2020 Overview
First Quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 8: Quarterly Highlights: Marketplace - Mercado Libre
First Quarter 2020 Quarterly Highlights Marketplace – Mercado Libre Gross Merchandise Volume (FX Neutral YoY Growth) General Performance ● Gross merchandise volume reached $3.4 billion, representing 10.6% YoY 81% growth in USD and 34.2% on an FX Neutral Basis 70% 48% 55% ● Items sold reached 105.7 m
Slide 9: Quarterly Highlights: Logistics - Mercado Envios
First Quarter 2020 Quarterly Highlights Logistics - Mercado Envios General Performance ● In spite of lockdowns due to COVID-19, managed network has been approved Consolidated Shipping Penetration* for business continuity, guaranteeing deliveries for orders shipped 88% ● Brazil saw a significant shif
Slide 10: Quarterly Highlights: Payments - Mercado Pago
First Quarter 2020 Quarterly Highlights Payments - Mercado Pago Off Platform ● Off platform TPV decelerated during the quarter, growing 139.5%YoY on a Consolidated TPV ON (FX Neutral YoY Growth) FX neutral basis, with Brazil growing 101.8%, Mexico 114.6% and 46% Argentina 221.2% 40% 41% 35% 36% Poin
Slide 11: Quarterly Highlights: Credits - Mercado Credito
First Quarter 2020 Quarterly Highlights Credits - Mercado Credito Merchant & Consumer Credits Consolidated Credits Portfolio (US$ M) ● Total outstanding portfolio reached USD $ 177.6 million during the first $193 $189 quarter $176 $135 $148 ● In local currency, Argentina's portfolio grew 15.4%, in B
Slide 12: Quarterly Highlights: Financial Results
First Quarter 2020 Quarterly Highlights Financial Results Net Revenues (FX Neutral YoY) • Consolidated net revenues grew 70.5% YoY and 37.6% on an FX Neutral 93% 102% and USD basis respectively, reaching $652.1 million dollars 91% 84% 70% • Commerce* now represents 58.4% of our total net revenues co
Slide 13: First Quarter 2020 Overview
First Quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 14: Net Revenues
Net Revenues Brazil and Argentina revenues affected by COVID-19, partially offset by Chile and Uruguay Net Revenues per Quarter (US$ M) $ 674 $ 652 $ 603 $ 545 $ 474 93% 102% 91% 84% 70% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Net Revenues FX Neutral YoY Growth
Slide 15: Net Revenues by country
Net Revenues Mexico continues to grow at a healthy clip, mainly attributable to the flat fee implementation as well as consumer and in-store Credits revenues. Argentina and Brazil decelerated due to marketplace and shipping revenues Net Revenues (FX neutral YoY Growth) 133% 123% 80% 81% 74% 55% Arge
Slide 16: Commerce Net Revenues
Commerce Net Revenues growth due to lower free shipping subsidies and a higher flat fee in Argentina, Brazil and Mexico Commerce Net Revenues per Quarter (US$ M) FX Neutral YoY Growth $390 $381 $345 $322 $287 107% 105% 82% 74% 62% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Revenues from Commerce transactions are
Slide 17: Fintech Net Revenues
Fintech Net Revenues continues to grow driven by Wallet monetization in Brazil of 100bps, partially offset by deceleration of other financial services given the COVID-19 impact Fintech Net Revenues per Quarter (US$ M) $285 FX Neutral YoY Growth $271 $257 $221 $187 99% 103% 101% 76% 83% Q1'19 Q2'19 Q
Slide 18: First Quarter 2020 Overview
First Quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 19: Gross Profit margin compression driven by higher shipping costs
Gross Profit margin compression was driven by higher shipping operation costs 0.3% 1.7% 0.1% 0.1% 0.0% 0.9% 2.6% 0.7% 5.2% 0.6% 0.2% 50.0% 48.0% Gross Profit CX Collection Amortization Fraud COGS Cost of Sales Sales Taxes Hosting Shipping Other Others** Gross Profit Margin Q1'19 Fees Prevention Over
Slide 20: EBIT margin contraction from marketing and bad debt
EBIT margin contraction attributable to marketing and Bad debt due to changes in provision methodology in Credits 2.1% 3.1% 0.0% 0.7% 2.2% 0.6% 0.4% 0.0% (4.6)% 0.2% 2.5% EBIT Margin Marketing BPP G&A Bad Debt Chargebacks P&D Salaries and Other S&M COGS (w/o EBIT Margin Q1'19 Expenses Wages Expenses
Slide 21: Net loss due to higher shipping, marketing and bad debt costs
Net loss due to higher costs in shipping operation costs, marketing and bad debt as well as greater financial expenses 2.1% 2.5% (3.2)% 4.6% 0.1% 0.7% 0.5% 0.3% Net Income Margin Cogs Opex Interest Income Financial Expenses Forex & Other Tax Net Loss Margin Q1'19 Q1'20
Slide 22: Thank You
Thank You Investor Presentation First Quarter 2020 Results