Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q2 2020 Earnings Presentation
21 slides from Mercadolibre's earnings presentation, Aug 10, 2020
Slide 1: Investor presentation Second Quarter 2020 Results
Investor presentation Second Quarter 2020 Results August 10th, 2020
Slide 2: Safe Harbor
SAFE HARBOR A reconciliation of Non-GAAP measures can be found in our second 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 m
Slide 3: Second quarter 2020 Operational & Financial Highlights
Second quarter 2020 Operational & Financial Highlights US$5.0BN 76.3% 178.5MM US$878.4MM +102%LC YoY +122%LC YoY +101% YoY +123%LC YoY GMV GMV SHIPPED ITEMS SOLD NET REVENUES US$11.2BN US$5.2BN US$6.1BN 404.8MM +142%LC YoY +111%LC YoY +175%LC YoY +123% YoY TPV TPV ON TPV OFF TPN
Slide 4: Overview
Second quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 5: Quarterly Highlights: COVID-19 Actions Taken
Second quarter 2020 Quarterly Highlights COVID-19: Actions Taken Commerce Fintech ● Launched comprehensive support and training platforms for thousands of ● Continued to strengthen our presence and offer in the longtail and midtail SMEs and entrepreneurs in the region, facilitating the onboarding of
Slide 6: Overview
Second quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 7: Quarterly Highlights: Marketplace - Mercado Libre
Second quarter 2020 Quarterly Highlights Marketplace – Mercado Libre Gross Merchandise Volume (FX Neutral YoY Growth) General Performance • Sessions grew 48% YoY, which represents an increase of 28 percentage points growth 230% versus last quarter • Buyers on our marketplace surpassed the 30 million
Slide 8: Quarterly Highlights: Logistics - Mercado Envios
Second quarter 2020 Quarterly Highlights Logistics - Mercado Envios Consolidated Shipping Penetration* General Performance 80% 85% 88% 88% 91% ● Mercado Envios was able to ship without any significant disruptions 157 million items during the quarter, a 124% YoY increase ● Managed network has been ce
Slide 9: Quarterly Highlights: Payments - Mercado Pago
Second quarter 2020 Quarterly Highlights Payments - Mercado Pago General Performance Consolidated TPV ON (FX Neutral YoY Growth) ● Reached 52M payers, with 8 transactions per quarter per unique payer in average 111% ● Strong performance of online payments and resiliency of our physical solutions: mP
Slide 10: Quarterly Highlights: Credits - Mercado Credito
Second quarter 2020 Quarterly Highlights Credits - Mercado Credito Consolidated Credits Portfolio* (US$ M) Merchant & Consumer Credits ● Slowed our pace of originations in the second quarter in order to $207 $221 $209 $179 $170 manage our exposure to merchant and consumer credit risk ● Mitigated def
Slide 11: Quarterly Highlights: Financial Results
Second quarter 2020 Quarterly Highlights Financial Results Net Revenues (FX Neutral YoY) Financial Performance 123% • Net revenues for the second quarter were $878.4 million, a year-over- 102% 91% 84% year increase of 61% in USD and 123% on an FX neutral basis 70% • Gross profit was $427.2 million w
Slide 12: Overview
Second quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 13: Net Revenues boosted by marketplace and online payments
Net Revenues boosted by marketplace and online payments Net Revenues per Quarter (US$ M) $ 878 $ 674 $ 652 $ 603 $ 545 123% 102% 91% 84% 70% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Net Revenues FX Neutral YoY Growth
Slide 14: Net Revenues with commerce and online payments profitability improving
Net Revenues with commerce and online payments profitability improving Net Revenues (FX neutral YoY Growth) 224% 138% 123% 87% 81% 55% Argentina Brazil Mexico Q1 ‘20 Q2 ‘20
Slide 15: Commerce Net Revenues growth driven by low ASP items
Commerce Net Revenues growth mainly driven by a higher share in sales of low ASP items (essentials), which include flat fee in Argentina, Brazil and Mexico Commerce Net Revenues per Quarter (US$ M) FX Neutral YoY Growth $582 $389 $381 $346 $324 149% 105% 82% 74% 62% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Rev
Slide 16: Fintech Net Revenues continues to grow
Fintech Net Revenues continues to grow driven by further monetization of the wallet and cash advances offering, partially offset by more aggressive discounting on our MPOS devices and a diminished Credit revenues as we shrink the portfolio Fintech Net Revenues per Quarter (US$ M) FX Neutral YoY Grow
Slide 17: Overview
Second quarter 2020 Overview 1 COVID-19 Update 2 Quarterly Highlights 3 Financial Metrics 4 Margin Structures
Slide 18: Gross Profit Margin compression mainly attributable to higher shipping operating costs
Gross Profit Margin compression mainly attributable to higher shipping operating costs 1.8 1.3 0.1 0.3 0.0 0.0 0.2 1.5 3.6 0.1 0.7 50.0% 48.6% Gross Profit CE Expenses Amortization COGS Collection COGS Fraud Hosting Other** Shipping Sales Taxes Other Gross Profit Margin Q2'19 Overhead Fees Preventio
Slide 19: EBIT Margin improvements mostly due to lower marketing expenditure
EBIT Margin improvements were mostly due to lower marketing expenditure 1.6 2.1 2.5 0.7 0.2 0.1 1.8 1.1 11.3 11.3 (2.3%) EBIT Margin Marketing Bad Debt Chargebacks BPP Other S&M G&A P&D COGS (w/o Salaries and EBIT Margin Q2'19 Expenses & Expenses salaries) Wages Q2'20 Sales Expenses
Slide 20: Net Income Margin improvement mostly due to lower marketing expenditure
Net Income Margin improvement mostly due to lower marketing expenditure, partially offset by shipping operational costs 4.0 0.4 0.5 14.9 5.3 6.4% 1.3 3.0% Net Income Margin COGS OpEx Interest Income Financial Expenses ForEx & Other Tax Net Income Margin Q2'19 Q2'20
Slide 21: Thank You
Thank You Investor Presentation Second quarter 2020 Results