MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com),
Latin America’s leading e-commerce technology company, today
reported financial results for the quarter ended June 30, 2019.
Pedro Arnt, Chief Financial Officer of
MercadoLibre, Inc., commented, “We are pleased and optimistic about
how 2019 is playing out for us. We delivered another very strong
quarter as we continue to grow and scale our leading e-commerce and
FinTech ecosystems across Latin America.”
Second Quarter 2019
Business Highlights1
- Total payment volume through
Mercado Pago surpassed $6.5 billion for the first time, reaching
$6.52 billion, a year-over-year increase of 47.2% in USD and 90.3%
on an FX neutral basis. Total payment transactions increased 112.5%
year-over-year, totaling 181.6 million transactions for the
quarter.
- Mercado Pago delivered successful
execution in off-platform payments (online and offline) through
merchant services, mobile point-of-sale (“MPOS”) devices and its
mobile wallet business. On a consolidated basis, off-platform total
payment volume grew 121.5% year-over-year in USD and 197.5% on an
FX neutral basis.
- For the first time ever,
off-platform payments processed almost $3.2 billion in
transactions, surpassing 120.0 million payment transactions in a
single quarter with 120.1 million payments. Off-platform reached an
important milestone in June, as it was the first month in our
history that off platform TPV surpassed on platform TPV.
- Our MPOS business continues to be
one of the fastest growing non-marketplace business units,
representing 41.9% of total off-platform payment volume during the
quarter. On a consolidated basis, MPOS total payment volume grew
172.2% year-over-year on an FX neutral basis.
- Mobile wallet reached 4.5 million
active payers during the quarter, while total payment volume from
mobile wallet in Argentina, Brazil and Mexico are all growing by
triple digits year-over-year.
- Our asset management product,
Mercado Fondo, is available in Argentina and Brazil, where we offer
our entire suite of FinTech solutions: MPOS devices, QR code
in-store payments, mobile wallet and asset management. Mercado
Fondo has invested over 70% and 50% of customer funds in Mercado
Pago in Brazil and Argentina, respectively.
- Gross merchandise volume (“GMV”)
increased surpassing again $3 billion mark reaching $3.4 billion,
representing an 8.4% and 33.0% increase in USD and on an FX neutral
basis, respectively.
- Items sold reached 88.7 million,
growing 3.8% year-over-year versus 38.8% during the same period
last year. The decrease in growth rates year-over-year is
attributable to Brazil, where in July of last year we launched the
R$5 flat listing fee on items below R$120 and removed listings
below R$ 6 as we shift towards incentivizing buyers to purchase
higher ticket items, as well as the implementation of the same
initiative in Argentina during the second quarter of 2019.
- Unique buyers numbers continue to
accelerate versus the prior quarter, growing 20.8% year-over-year
versus 10.8% in the first quarter.
- Live listings offered on
MercadoLibre’s marketplace surpassed 200 million for the second
time, reaching 224.1 million in the second quarter of 2019, a 50.6%
year-over-year increase.
- Mobile gross merchandise volume
grew 23.5% year-over-year on an FX neutral basis reaching 59.6% of
GMV.
- Items shipped through Mercado
Envios reached 70.2 million, a 33.0% year-over-year increase,
driven primarily by optimizations in our free shipping
program.
1
Percentages have been calculated using whole amounts rather than
rounded amounts.
The tables below present our gross billings and amounts
paid by us in connection with our free shipping
service.
The Company presents net revenue net of amounts
paid in connection with the Company’s free shipping initiative,
when the Company acts as an agent, rather than including these
amounts in the cost of net sales, as previously recorded. For the
three-month period ended June 30, 2019 the Company incurred $60.5
million of shipping subsidies that have been netted from
revenues.
|
|
|
|
|
|
|
|
|
|
In Millions (*) |
|
|
|
Q2
2019 |
|
|
Q2
2018 |
|
Brazil |
$ |
385.1 |
|
$ |
270.5 |
Gross |
Argentina |
$ |
121.6 |
|
$ |
105.9 |
Billings |
Mexico |
$ |
70.7 |
|
$ |
31.3 |
|
Others |
$ |
28.3 |
|
$ |
24.3 |
|
Total |
$ |
605.7 |
|
$ |
432.0 |
|
|
|
|
|
|
|
|
|
|
In Millions (*) |
|
|
|
Q2 2019 |
|
|
Q2 2018 |
|
Brazil |
$ |
(44.3 |
) |
|
$ |
(74.7 |
) |
Free Shipping |
Argentina |
$ |
(7.7 |
) |
|
$ |
(5.7 |
) |
service cost |
Mexico |
$ |
(6.3 |
) |
|
$ |
(13.8 |
) |
|
Others |
$ |
(2.2 |
) |
|
$ |
(2.4 |
) |
|
Total |
$ |
(60.5 |
) |
|
$ |
(96.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
In Millions (*) |
|
|
|
Q2 2019 |
|
|
Q2 2018 |
|
Brazil |
$ |
340.9 |
|
$ |
195.8 |
Net |
Argentina |
$ |
113.9 |
|
$ |
100.1 |
Revenues |
Mexico |
$ |
64.4 |
|
$ |
17.5 |
|
Others |
$ |
26.1 |
|
$ |
21.9 |
|
Total |
$ |
545.2 |
|
$ |
335.4 |
|
|
|
|
|
|
|
*The table above may not total due to rounding.
Second Quarter 2019
Financial Highlights
- Net revenues for the second quarter
were $545.2 million, a year-over-year increase of 62.6% in USD and
102.1% on an FX neutral basis.
- Enhanced marketplace revenues
increased 84.6% year-over-year in USD and 122.7% on an FX neutral
basis, while non-marketplace revenues increased 43.4%
year-over-year in USD and 73.0% on an FX neutral basis.
- Gross profit was $272.4 million
with a margin of 50.0%, compared to 47.6% in the second quarter of
2018.
- Total operating expenses were
$284.9 million, an increase of 51.6% year-over-year in USD. As a
percentage of revenues, operating expenses were 52.3%, as compared
to 56.1% during the second quarter of 2018.
- Loss from operations was $12.5
million, compared to a loss of $28.2 million during the second
quarter of 2018. As a percentage of revenues, the loss from
operations reached 2.3%.
- Interest income was $33.7 million,
a 239.7% increase year-over-year, as a result of the proceeds of
the 2028 Convertible Notes and equity offering in 2019, which
generated more invested volume and interest gain, a higher float in
Brazil and a higher interest rates in Argentina.
- The Company incurred $14.7 million
in financial expenses in the second quarter of 2019, mainly
attributable to interest expense related to the 2028 Convertible
Notes.
- Foreign exchange gain for the
second quarter of 2019 was $0.8 million, primarily as a result of
the strengthening of the Brazilian Reais over our U.S. dollar net
liability position in Brazil during the second quarter of
2019.
- Net income before taxes was $7.3
million, up from a loss of $19.0 million during the second quarter
2018.
- Income tax gain was $8.9 million
during the second quarter driven by tax loss carry forward in
Mexico partially offset for the income tax in Argentina and Brazil,
yielding a negative effective tax rate for the period of
122.1%.
- Net income was $16.2 million,
resulting in basic net income per share of $0.31.
- Operating cash flow was $27.6
million. Net decrease in cash, cash equivalents, restricted cash
and cash equivalents was $177.9 million mostly driven by purchase
of investments and a broader credit line offering.
The following table summarizes certain
key performance metrics for the six and three months periods ended
June 30, 2019 and 2018.
|
|
Six-month Periods Ended June 30, (*) |
|
|
Three-month Periods Ended June 30, (*) |
(in
millions) |
|
2019 |
2018 |
|
|
2019 |
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of confirmed registered
users at end of period |
|
|
292.5 |
|
|
234.9 |
|
|
292.5 |
|
|
234.9 |
Number of confirmed new
registered users during period |
|
|
24.7 |
|
|
23.0 |
|
|
12.4 |
|
|
11.8 |
Gross merchandise volume |
|
$ |
6,485.5 |
|
$ |
6,276.6 |
|
$ |
3,397.7 |
|
$ |
3,135.4 |
Number of successful items
sold |
|
|
171.4 |
|
|
165.6 |
|
|
88.7 |
|
|
85.4 |
Number of successful items
shipped |
|
|
132.6 |
|
|
105.3 |
|
|
70.2 |
|
|
52.8 |
Total payment volume |
|
$ |
12,156.5 |
|
$ |
8,601.4 |
|
$ |
6,517.4 |
|
$ |
4,426.1 |
Total volume of payments on
marketplace |
|
$ |
6,016.1 |
|
$ |
5,603.8 |
|
$ |
3,120.0 |
|
$ |
2,794.3 |
Total payment
transactions |
|
|
325.6 |
|
|
159.8 |
|
|
181.6 |
|
|
85.5 |
Unique buyers |
|
|
28.6 |
|
|
25.0 |
|
|
20.4 |
|
|
16.9 |
Unique sellers |
|
|
6.9 |
|
|
6.8 |
|
|
4.3 |
|
|
4.2 |
Capital expenditures |
|
$ |
71.4 |
|
$ |
46.8 |
|
$ |
38.4 |
|
$ |
23.7 |
Depreciation and
amortization |
|
$ |
33.0 |
|
$ |
22.6 |
|
$ |
17.3 |
|
$ |
11.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Figures have been expressed using rounding
amounts. Growth calculations using this table may not total due to
rounding.
Table of Year-over-year USD Revenue
Growth Rates by Quarter
Consolidated Net Revenues |
Q2’18 |
|
|
Q3’18 |
|
Q4’18 |
|
Q1’19 |
|
Q2’19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
25 |
% |
|
25 |
% |
34 |
% |
64 |
% |
74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
14 |
% |
|
(8 |
)% |
(16 |
)% |
(8 |
)% |
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
62 |
% |
|
152 |
% |
157 |
% |
220 |
% |
267 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Table of Year-over-year Local Currency
Revenue Growth Rates by Quarter
Consolidated Net Revenues |
|
Q2’18 |
|
|
Q3’18 |
|
Q4’18 |
|
Q1’19 |
|
Q2’19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
40 |
% |
|
56 |
% |
58 |
% |
91 |
% |
89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
68 |
% |
|
68 |
% |
77 |
% |
83 |
% |
115 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
71 |
% |
|
168 |
% |
170 |
% |
227 |
% |
261 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
The Company will host a conference call and
audio webcast on August 7th, 2019 at 4:30 p.m. Eastern Time. The
conference call may be accessed by dialing (877) 303-7209 / (970)
315-0420 (Conference ID –5289808–) and requesting inclusion in the
call for MercadoLibre. The live conference call can be accessed via
audio webcast at the investor relations section of the Company's
website, at http://investor.mercadolibre.com. An archive of the
webcast will be available for one week following the conclusion of
the conference call.
Definition of Selected Operational
Metrics
Gross Billings - Total accrued fees,
commissions, interest, and other sales received from users.
Foreign Exchange (“FX”) Neutral – Calculated by
using the average monthly exchange rate of each month of 2018 and
applying it to the corresponding months in the current year, so as
to calculate what the results would have been had exchange rates
remained constant. Intercompany allocations are excluded from this
calculation. These calculations do not include any other
macroeconomic effect such as local currency inflation effects or
any price adjustment to compensate local currency inflation or
devaluations.
Gross merchandise volume – Measure of the total
U.S. dollar sum of all transactions completed through the
MercadoLibre Marketplace, excluding Classifieds transactions.
Total payment transactions – Measure of the
number of all transactions paid for using Mercado Pago.
Total volume of payments on marketplace -
Measure of the total U.S. dollar sum of all marketplace
transactions paid for using Mercado Pago, excluding shipping and
financing fees.
Total payment volume – Measure of total U.S.
dollar sum of all transactions paid for using Mercado Pago,
including marketplace and non-marketplace transactions.
Enhanced Marketplace - Revenues from the
Enhanced Marketplace service, include the final value fees and
shipping fees charged to the Company’s customers.
Items sold – Measure of the number of items that
were sold/purchased through the MercadoLibre Marketplace, excluding
Classifieds items.
Items shipped – Measure of the number of items
that were shipped through our shipping service.
Local Currency Growth Rates – Refer to FX
Neutral definition.
Net income margin – Defined as net income as a
percentage of net revenues.
New confirmed registered users – Measure of the
number of new users who have registered on the MercadoLibre
Marketplace and confirmed their registration, excluding Classifieds
users.
Operating margin – Defined as income from
operations as a percentage of net revenues.
Total confirmed registered users – Measure of
the cumulative number of users who have registered on the
MercadoLibre Marketplace and confirmed their registration,
excluding Classifieds users.
Unique Buyers – New or existing users with at
least one purchase made in the period, including Classifieds
users.
Unique Sellers – New or existing users with at
least one new listing in the period, including Classifieds
users.
About MercadoLibre
Founded in 1999, MercadoLibre is the largest
online commerce ecosystem in Latin America, serving as an
integrated regional platform and as a provider of the necessary
online and technology- based tools that allow businesses and
individuals to trade products and services in the region. The
Company enables commerce through its marketplace platform
(including online classifieds for motor vehicles, vessels,
aircraft, services and real estate), which allows users to buy and
sell in most of Latin America.
The Company is listed on NASDAQ (Nasdaq: MELI)
following its initial public offering in 2007.
For more information about the Company visit:
http://investor.mercadolibre.com.
The MercadoLibre, Inc. logo is available at
https://resource.globenewswire.com/Resource/Download/6ab227b7-693f-4b17-b80c-552ae45c76bf?size=0
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 statements regarding MercadoLibre, Inc. involve
known and unknown risks, uncertainties and other factors that may
cause MercadoLibre, Inc.’s actual results, performance or
achievements to be materially different from any future results,
performances or achievements expressed or implied by the
forward-looking statements. Certain of these risks and
uncertainties are described in the “Risk Factors,” “Forward-Looking
Statements” and “Cautionary Note Regarding Forward-Looking
Statements” sections of MercadoLibre, Inc.’s annual report on Form
10-K for the year ended December 31, 2018, and any of MercadoLibre,
Inc.’s other applicable filings with the Securities and Exchange
Commission. Unless required by law, MercadoLibre, Inc. undertakes
no obligation to publicly update or revise any forward-looking
statements to reflect circumstances or events after the date
hereof.
MercadoLibre, Inc.Consolidated
Balance Sheets(In thousands
of U.S. dollars, except par value)
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2019 |
|
|
|
2018 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,118,662 |
|
|
$ |
440,332 |
|
Restricted cash and cash equivalents |
|
9,660 |
|
|
|
24,363 |
|
Short-term investments (339,299 and 284,317 held in guarantee) |
|
1,789,354 |
|
|
|
461,541 |
|
Accounts receivable, net |
|
40,175 |
|
|
|
35,153 |
|
Credit cards receivable, net |
|
433,046 |
|
|
|
360,298 |
|
Loans receivable, net |
|
192,881 |
|
|
|
95,778 |
|
Prepaid expenses |
|
18,618 |
|
|
|
27,477 |
|
Inventory |
|
5,950 |
|
|
|
4,612 |
|
Other assets |
|
68,086 |
|
|
|
61,569 |
|
Total current assets |
|
3,676,432 |
|
|
|
1,511,123 |
|
Non-current assets: |
|
|
|
Long-term investments |
|
207,047 |
|
|
|
276,136 |
|
Property and equipment, net |
|
216,005 |
|
|
|
165,614 |
|
Operating lease right-of-use assets |
|
157,843 |
|
|
|
— |
|
Goodwill |
|
90,375 |
|
|
|
88,883 |
|
Intangible assets, net |
|
16,808 |
|
|
|
18,581 |
|
Deferred tax assets |
|
184,926 |
|
|
|
141,438 |
|
Other assets |
|
46,056 |
|
|
|
37,744 |
|
Total non-current assets |
|
919,060 |
|
|
|
728,396 |
|
Total assets |
$ |
4,595,492 |
|
|
$ |
2,239,519 |
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
314,703 |
|
|
$ |
266,759 |
|
Funds payable to customers |
|
778,128 |
|
|
|
640,954 |
|
Salaries and social security payable |
|
78,007 |
|
|
|
60,406 |
|
Taxes payable |
|
45,672 |
|
|
|
31,058 |
|
Loans payable and other financial liabilities |
|
162,983 |
|
|
|
132,949 |
|
Operating lease liabilities |
|
13,957 |
|
|
|
— |
|
Other liabilities |
|
56,059 |
|
|
|
34,098 |
|
Total current liabilities |
|
1,449,509 |
|
|
|
1,166,224 |
|
Non-current liabilities: |
|
|
|
Salaries and social security payable |
|
23,648 |
|
|
|
23,161 |
|
Loans payable and other financial liabilities |
|
619,670 |
|
|
|
602,228 |
|
Operating lease liabilities |
|
147,555 |
|
|
|
— |
|
Deferred tax liabilities |
|
98,997 |
|
|
|
91,698 |
|
Other liabilities |
|
11,501 |
|
|
|
19,508 |
|
Total non-current liabilities |
|
901,371 |
|
|
|
736,595 |
|
Total liabilities |
$ |
2,350,880 |
|
|
$ |
1,902,819 |
|
|
|
|
|
Commitments and Contingencies
(Note 7) |
|
|
|
|
|
|
|
Redeemable convertible
preferred stock, $0.001 par value, 40,000,000 shares authorized,
100,000 shares issued and outstanding at June 30, 2019 (Note
10) |
$ |
98,843 |
|
|
$ |
— |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Common stock, $0.001 par value, 110,000,000 shares authorized,
49,318,543 and 45,202,859 shares issued and outstanding at June 30,
2019 and December 31, 2018 |
$ |
49 |
|
|
$ |
45 |
|
Additional paid-in capital |
|
2,009,497 |
|
|
|
224,800 |
|
Retained earnings |
|
524,672 |
|
|
|
503,432 |
|
Accumulated other comprehensive loss |
|
(388,449 |
) |
|
|
(391,577 |
) |
Total Equity |
|
2,145,769 |
|
|
|
336,700 |
|
Total Liabilities, Redeemable convertible preferred stock and
Equity |
$ |
4,595,492 |
|
|
$ |
2,239,519 |
|
|
|
|
|
|
|
|
|
MercadoLibre, Inc.Consolidated
Statements of IncomeFor the six and three
month periods ended June 30, 2019 and 2018(In
thousands of U.S. dollars, except for share data)
|
Six Months Ended June 30, |
|
Three Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net revenues |
$ |
1,019,012 |
|
|
$ |
656,353 |
|
|
$ |
545,242 |
|
|
$ |
335,377 |
|
Cost of net revenues |
|
(509,578 |
) |
|
|
(333,847 |
) |
|
|
(272,812 |
) |
|
|
(175,629 |
) |
Gross profit |
|
509,434 |
|
|
|
322,506 |
|
|
|
272,430 |
|
|
|
159,748 |
|
Operating expenses: |
|
|
|
|
|
|
|
Product and technology development |
|
(106,292 |
) |
|
|
(71,833 |
) |
|
|
(53,923 |
) |
|
|
(33,437 |
) |
Sales and marketing |
|
(311,368 |
) |
|
|
(231,939 |
) |
|
|
(180,692 |
) |
|
|
(121,216 |
) |
General and administrative |
|
(94,123 |
) |
|
|
(76,395 |
) |
|
|
(50,303 |
) |
|
|
(33,337 |
) |
Total operating expenses |
|
(511,783 |
) |
|
|
(380,167 |
) |
|
|
(284,918 |
) |
|
|
(187,990 |
) |
Loss from operations |
|
(2,349 |
) |
|
|
(57,661 |
) |
|
|
(12,488 |
) |
|
|
(28,242 |
) |
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
Interest income and other financial gains |
|
58,128 |
|
|
|
19,110 |
|
|
|
33,684 |
|
|
|
9,915 |
|
Interest expense and other financial losses |
|
(30,238 |
) |
|
|
(23,936 |
) |
|
|
(14,679 |
) |
|
|
(13,202 |
) |
Foreign currency (losses) gains |
|
(2,886 |
) |
|
|
18,178 |
|
|
|
783 |
|
|
|
12,577 |
|
Net income (loss) before
income tax gain |
|
22,655 |
|
|
|
(44,309 |
) |
|
|
7,300 |
|
|
|
(18,952 |
) |
|
|
|
|
|
|
|
|
Income tax gain |
|
5,426 |
|
|
|
20,138 |
|
|
|
8,917 |
|
|
|
7,700 |
|
Net income (loss) |
$ |
28,081 |
|
|
$ |
(24,171 |
) |
|
$ |
16,217 |
|
|
$ |
(11,252 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
Three Months Ended June 30, |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Basic
EPS |
|
|
|
|
|
|
|
Basic net income (loss) |
|
|
|
|
|
|
|
Available to shareholders per common share |
$ |
0.45 |
|
$ |
(0.55 |
) |
|
$ |
0.31 |
|
$ |
(0.25 |
) |
Weighted average of outstanding common shares |
|
47,658,610 |
|
|
44,157,364 |
|
|
|
49,318,522 |
|
|
44,157,364 |
|
Diluted
EPS |
|
|
|
|
|
|
|
Diluted net income (loss) |
|
|
|
|
|
|
|
Available to shareholders per common share |
$ |
0.45 |
|
$ |
(0.55 |
) |
|
$ |
0.31 |
|
$ |
(0.25 |
) |
Weighted average of outstanding common shares |
|
47,658,610 |
|
|
44,157,364 |
|
|
|
49,318,522 |
|
|
44,157,364 |
|
|
|
|
|
|
|
|
|
MercadoLibre, Inc.Consolidated
Statement of Cash FlowsFor the six month
periods ended June 30, 2019 and 2018
|
|
|
|
|
Six Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
Cash flows from
operations: |
|
|
|
Net income (loss) |
$ |
28,081 |
|
|
$ |
(24,171 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Unrealized devaluation loss, net |
|
13,366 |
|
|
|
6,976 |
|
Depreciation and amortization |
|
32,975 |
|
|
|
22,566 |
|
Accrued interest |
|
(24,753 |
) |
|
|
(7,845 |
) |
Non cash interest and convertible notes amortization of debt
discount and amortization of debt issuance costs |
|
11,140 |
|
|
|
9,684 |
|
LTRP accrued compensation |
|
32,208 |
|
|
|
16,792 |
|
Deferred income taxes |
|
(34,743 |
) |
|
|
(54,818 |
) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
(6,900 |
) |
|
|
(21,807 |
) |
Credit card receivables |
|
(61,562 |
) |
|
|
97,097 |
|
Prepaid expenses |
|
8,857 |
|
|
|
(10,143 |
) |
Inventory |
|
(1,191 |
) |
|
|
(6,299 |
) |
Other assets |
|
(12,651 |
) |
|
|
(24,441 |
) |
Payables and accrued expenses |
|
41,798 |
|
|
|
42,771 |
|
Funds payable to customers |
|
118,421 |
|
|
|
32,513 |
|
Other liabilities |
|
3,587 |
|
|
|
20,213 |
|
Interest received from investments |
|
17,292 |
|
|
|
8,066 |
|
Net cash provided by operating activities |
|
165,925 |
|
|
|
107,154 |
|
Cash flows from investing
activities: |
|
|
|
Purchase of investments |
|
(2,332,544 |
) |
|
|
(1,248,452 |
) |
Proceeds from sale and maturity of investments |
|
1,086,461 |
|
|
|
1,390,713 |
|
Purchases of intangible assets |
|
(34 |
) |
|
|
(242 |
) |
Advance for property and equipment |
|
— |
|
|
|
(4,426 |
) |
Changes in principal of loans receivable, net |
|
(97,468 |
) |
|
|
(66,629 |
) |
Purchases of property and equipment |
|
(71,361 |
) |
|
|
(42,092 |
) |
Net cash (used in) provided by investing activities |
|
(1,414,946 |
) |
|
|
28,872 |
|
Cash flows from financing
activities: |
|
|
|
Purchase of convertible note capped call |
|
(88,362 |
) |
|
|
(45,692 |
) |
Proceeds from loans payable and other financial liabilities |
|
95,603 |
|
|
|
146,666 |
|
Payments on loans payable and other financing liabilities |
|
(55,236 |
) |
|
|
(14,893 |
) |
Payment of finance lease obligations |
|
(889 |
) |
|
|
— |
|
Dividends paid |
|
— |
|
|
|
(6,624 |
) |
Dividends paid of preferred stock |
|
(844 |
) |
|
|
— |
|
Proceeds from issuance of convertible redeemable preferred stock,
net |
|
98,688 |
|
|
|
— |
|
Proceeds from issuance of common stock, net |
|
1,867,215 |
|
|
|
— |
|
Net cash provided by financing
activities |
|
1,916,175 |
|
|
|
79,457 |
|
Effect of exchange rate
changes on cash, cash equivalents, restricted cash and cash
equivalents |
|
(3,527 |
) |
|
|
(79,732 |
) |
Net increase in cash, cash
equivalents, restricted cash and cash equivalents |
|
663,627 |
|
|
|
135,751 |
|
Cash, cash equivalents,
restricted cash and cash equivalents, beginning of the period |
$ |
464,695 |
|
|
$ |
388,260 |
|
Cash, cash equivalents,
restricted cash and cash equivalents, end of the period |
$ |
1,128,322 |
|
|
$ |
524,011 |
|
|
|
|
|
|
|
|
|
Financial results of reporting
segments
|
|
Three Months Ended June 30, 2019 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
|
Other Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
340,858 |
|
|
$ |
113,913 |
|
|
$ |
64,383 |
|
|
|
$ |
26,088 |
|
|
$ |
545,242 |
|
Direct costs |
|
|
(275,917 |
) |
|
|
(83,909 |
) |
|
|
(85,216 |
) |
|
|
|
(24,441 |
) |
|
|
(469,483 |
) |
Direct contribution |
|
|
64,941 |
|
|
|
30,004 |
|
|
|
(20,833 |
) |
|
|
|
1,647 |
|
|
|
75,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
(88,247 |
) |
Loss from operations |
|
|
|
|
|
|
|
|
|
|
|
(12,488 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest income and other
financial gains |
|
|
|
|
|
|
|
|
|
|
|
33,684 |
|
Interest expense and other
financial losses |
|
|
|
|
|
|
|
|
|
|
|
(14,679 |
) |
Foreign currency gains |
|
|
|
|
|
|
|
|
|
|
|
783 |
|
Net income before income tax
gain |
|
|
|
|
|
|
|
|
|
|
$ |
7,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
|
Other Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
195,839 |
|
|
$ |
100,110 |
|
|
$ |
17,540 |
|
|
|
$ |
21,888 |
|
|
$ |
335,377 |
|
Direct costs |
|
|
(176,987 |
) |
|
|
(68,051 |
) |
|
|
(39,534 |
) |
|
|
|
(21,088 |
) |
|
|
(305,660 |
) |
Direct contribution |
|
|
18,852 |
|
|
|
32,059 |
|
|
|
(21,994 |
) |
|
|
|
800 |
|
|
|
29,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
(57,959 |
) |
Loss from operations |
|
|
|
|
|
|
|
|
|
|
|
(28,242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest income and other
financial gains |
|
|
|
|
|
|
|
|
|
|
|
9,915 |
|
Interest expense and other
financial losses |
|
|
|
|
|
|
|
|
|
|
|
(13,202 |
) |
Foreign currency gains |
|
|
|
|
|
|
|
|
|
|
|
12,577 |
|
Net loss before income tax
gain |
|
|
|
|
|
|
|
|
|
|
$ |
(18,952 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
To supplement our consolidated financial
statements presented in accordance with U.S. GAAP, we use
foreign exchange (“FX”) neutral measures.
This non-GAAP measure should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with U.S. GAAP and may be
different from non-GAAP measures used by other companies. In
addition, this non-GAAP measure is not based on any comprehensive
set of accounting rules or principles. Non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with our results of operations as determined in
accordance with U.S. GAAP. This non-GAAP financial
measure should only be used to evaluate our results of operations
in conjunction with the most comparable U.S. GAAP
financial measures.
Reconciliation of this non-GAAP financial
measure to the most comparable U.S. GAAP financial
measures can be found in the tables included in this quarterly
report.
The Company believes that reconciliation of FX
neutral measures to the most directly comparable GAAP measure
provides investors an overall understanding of our current
financial performance and its prospects for the future.
Specifically, we believe this non-GAAP measure provide useful
information to both management and investors by excluding the
foreign currency exchange rate impact that may not be indicative of
our core operating results and business outlook.
The FX neutral measures were calculated by using
the average monthly exchange rates for each month during 2018 and
applying them to the corresponding months in 2019, so as to
calculate what our results would have been had exchange rates
remained stable from one year to the next. The table below excludes
intercompany allocation FX effects. Finally, this measure does not
include any other macroeconomic effect such as local currency
inflation effects, the impact on impairment calculations or any
price adjustment to compensate local currency inflation or
devaluations.
The following table sets forth the FX neutral
measures related to our reported results of the operations for the
three-month period ended June 30, 2019:
|
|
Three-month Periods Ended June 30, (*) |
|
|
As reported |
|
FX Neutral Measures |
|
As reported |
|
|
(In millions, except percentages) |
|
|
2019 |
|
|
|
2018 |
|
|
Percentage Change |
|
|
2019 |
|
|
|
2018 |
|
|
Percentage Change |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
Net revenues |
|
$ |
545.2 |
|
|
$ |
335.4 |
|
|
62.6 |
% |
|
$ |
677.9 |
|
|
$ |
335.4 |
|
|
102.1 |
% |
Cost of net revenues |
|
|
(272.8 |
) |
|
|
(175.6 |
) |
|
55.3 |
% |
|
|
(345.0 |
) |
|
|
(175.6 |
) |
|
96.4 |
% |
Gross profit |
|
|
272.4 |
|
|
|
159.7 |
|
|
70.5 |
% |
|
|
332.9 |
|
|
|
159.7 |
|
|
108.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
(284.9 |
) |
|
|
(188.0 |
) |
|
51.6 |
% |
|
|
(384.9 |
) |
|
|
(188.0 |
) |
|
104.8 |
% |
Loss from operations |
|
|
(12.5 |
) |
|
|
(28.2 |
) |
|
-55.8 |
% |
|
|
(52.0 |
) |
|
|
(28.2 |
) |
|
84.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The table above may not total due to rounding.
CONTACT: MercadoLibre, Inc.Investor
Relationsinvestor@mercadolibre.com
http://investor.mercadolibre.com
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