Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — Q3 2020 Earnings Presentation
19 slides from Mercadolibre's earnings presentation, Nov 4, 2020
Slide 1: Investor Presentation Third Quarter 2020 Results
Investor Presentation Third Quarter 2020 Results November 4th, 2020
Slide 2: Safe Harbor
SAFE HARBOR A reconciliation of Non-GAAP measures can be found in our Third Quarter 2020 earnings press release available on our investor relations website. This presentation may make forward- All of the information included in this presentation is updated as of looking statements relating to such S
Slide 3: Third Quarter 2020 Operational & Financial Highlights
Third Quarter 2020 Operational & Financial Highlights US$5.9BN 82.6% 205.7MM US$1,115.7MM +117%LC YoY +139%LC YoY +110% YoY +148%LC YoY GMV GMV SHIPPED ITEMS SOLD NET REVENUES US$14.5BN US$6.1BN US$8.4BN 559.7MM +161%LC YoY +123%LC YoY +197%LC YoY +147% YoY TPV TPV ON TPV OFF TPN
Slide 4: Third Quarter 2020 Overview
Third Quarter 2020 Overview 1 Quarterly Highlights 2 Financial Metrics 3 Margin Structures
Slide 5: Marketplace – Mercado Libre Quarterly Highlights
Third Quarter 2020 Marketplace – Mercado Libre Quarterly Highlights Gross Merchandise Volume (FX Neutral YoY Growth) Items Sold (YoY Growth) 168% 242% 138% 142% 104% 118% 110% 230% 88% 61% 117% 101% 80% 74% 109% 115% 19% 82% 141% 17% 24% 58% 47% 37% 122% 10%69% 102% -2% -3% Argentina Brazil Mexico O
Slide 6: Logistics – Mercado Envios Quarterly Highlights
Third Quarter 2020 Logistics - Mercado Envios Quarterly Highlights Consolidated Shipping Penetration* Shipping Penetration by Country (Q3'20) 85% 88% 88% 91% 92% 97% 98% 93% 91% 86% Argentina Brazil Mexico Chile Colombia Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 * Shipments paid with Mercado Envios / Items Sold
Slide 7: Payments – Mercado Pago Quarterly Highlights
Third Quarter 2020 Payments - Mercado Pago Quarterly Highlights Consolidated TPV ON (FX Neutral YoY Growth) Consolidated TPV OFF (FX Neutral YoY Growth) 111% 123% 190% 176% 175% 197% 139% 41% 46% 36% 57% 58% 55% 54% 93% 94% 94% 94% 96% 52% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Slide 8: Credits – Mercado Credito Quarterly Highlights
Third Quarter 2020 Credits - Mercado Credito Quarterly Highlights Consolidated Credits Portfolio* (US$ M) Portfolio past due QoQ (% of total portfolio) $284 $221 (0.6)% (0.3)% (3.3)% $209 $179 $170 14.3% 10.2% Q2'20 1-30 days 31-60 days 61-90 days Q3'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 *Loans receivabl
Slide 9: Financial Results Quarterly Highlights
Third Quarter 2020 Financial Results Quarterly Highlights Net Revenues (FX Neutral YoY) EBIT (Margin) 148% 11% 7% 123% 91% 84% 70% -5% -10% -14% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 General Performance • Interest income was $24.6 million, a 13.7% decrease YoY • Net revenues fo
Slide 10: Third Quarter 2020 Overview
Third Quarter 2020 Overview 1 Quarterly Highlights 2 Financial Metrics 3 Margin Structures
Slide 11: Net Revenues boosted by Commerce continued acceleration
Net Revenues boosted by Commerce continued acceleration and reaching highest historical growth rate Net Revenues per Quarter (US$ M) $ 1,116 $ 878 $ 674 $ 652 $ 603 148% 123% 91% 84% 70% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Net Revenues FX Neutral YoY Growth
Slide 12: Net Revenues with commerce and online payments profitability improving
Net Revenues with commerce and online payments profitability improving Net Revenues (FX neutral YoY Growth) 260% 224% 138% 140% 112% 87% Argentina Brazil Mexico Q2 ‘20 Q3 ‘20
Slide 13: Commerce Net Revenues grew as a result of increases in LC GMV
Commerce Net Revenues grew as a result of increases in LC GMV in Argentina, Brazil and Mexico Commerce Net Revenues per Quarter (US$ M) $725 FX Neutral YoY Growth $582 $389 $381 $346 181% 149% 82% 74% 62% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Revenues from Commerce transactions are mainly generated from: Ma
Slide 14: Fintech Net Revenues growth generated by off-platform transactions and credits
Fintech Net Revenues growth generated by increases in off-platform transactions, financing and credits business Fintech Net Revenues per Quarter (US$ M) FX Neutral YoY Growth $391 $285 $297 $257 $271 103% 101% 105% 83% 86% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Fintech revenues are generated from payments fe
Slide 15: Third Quarter 2020 Overview
Third Quarter 2020 Overview 1 Quarterly Highlights 2 Financial Metrics 3 Margin Structures
Slide 16: Gross Profit decrease resulted from increase in shipping operating costs
Gross Profit decrease resulted from an increase in shipping operating costs as we opened new centers 0.9% 0.0% 0.0% 1.6% 2.1% 0.0% 0.0% 0.3% 4.0% 0.6% 0.3% 47.2% 43.0% Gross Profit CE Expenses Amortization COGS Collection Cost of sales Fraud Hosting Other Shipping Sales Taxes Other Gross Profit Marg
Slide 17: EBIT expansion led by marketing efficiencies
EBIT expansion led by marketing efficiencies achieved as a result of the pandemic consumer behavior. 1.4% 0.3% 1.0% 4.2% 0.2% 0.4% 0.0% 2.5% 3.2% 7.4% 16.8% -13.6% EBIT Margin Marketing Bad Debt Chargebacks BPP Other S&M S&M G&A P&D COGS (w/o Salaries and EBIT Margin Q3'19 Expenses & Expenses Interc
Slide 18: Net Income improvement mostly due to lower marketing expenditure
Net Income improvement mostly due to lower marketing expenditure, partially offset by shipping operational costs 1.3% 2.5% 0.2% 9.8% -24.2% 3.0% 25.1% 4.1% Net Income Margin COGS OPEX Interest Income Financial Expenses ForEx Tax Net Income Margin Q3'19 Q3'20
Slide 19: Thank You
Thank You Investor Presentation Third Quarter 2020 Results November 4th, 2020