MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com),
Latin America’s leading e-commerce technology company, today
reported financial results for the quarter ended March 31, 2020.
Pedro Arnt, Chief Financial Officer of
MercadoLibre, Inc., commented, “Given the difficult circumstances
the world is facing, we are optimistic about the results we've
delivered during the first quarter of 2020. Although less affected
than others, our business did register this impact, primarily
during the first weeks of the imposed lockdowns, with a rebound
throughout April. We remain committed to doing our part, by
empowering our merchants to continue operating and securing
deliveries of goods needed by households. We feel MercadoLibre has
the opportunity to emerge from this situation stronger and with an
even greater sense of purpose. We trust the dedication and
commitment being demonstrated by our entire organization will allow
us to continue executing our strategy with no significant
interruptions, and in doing so play our part in contributing to
making things less difficult to our users during these trying
times. Finally, and most importantly, our hearts go out to those
individuals and families affected by COVID-19, and our gratitude
and appreciation go out to all those brave individuals who are on
the front lines working through this unprecedented global health
crisis.”
Recent COVID-19 related key
trends
- Government-imposed total or partial
lockdowns instituted throughout Latin America in late March
impacted geographic segments and business lines differently.
Additionally, the magnitude of negative impact was greater in the
initial weeks following government mandated lockdowns, with gradual
improvements as time elapsed.
- The marketplace KPI’s hit a low
point during the week of the 18th to the 24th of March.
Year-over-year growth for items sold during that week troughed at
3.3%, with Fx Neutral GMV declining by 1.4%. From then onwards, we
have seen a strong rebound, with growth rates accelerating in April
to 75.8% year-over-year in Items Sold and 72.6% Fx Neutral
year-over-year in GMV for the full month.
- Initially, consumers seem to have
pulled back on expenditures on non-essential items. This led to a
mix shift in sales. Categories such as health, consumer packaged
goods and toys and games showed strength, with volume growth in
those categories exceeding 100% year-over-year on an FX neutral
basis in some markets. Conversely, certain higher ticket,
non-essential categories such as auto parts and consumer
electronics saw marked declines in growth rates.
- Managed logistics network continued
operating normally, guaranteeing timely deliveries for orders
shipped through it. Warehouses remain with no significant
disruptions, rapidly approaching having half of our shipments
already running on our own logistics network, not only improving
average cost per order and shipping times but also service
levels.
- The fintech business also
experienced an initial slowdown during the third week of March,
followed by sequential weekly improvements through the last week of
March and into April. Off marketplace TPV growth during the second
half of March was 95.4% year-over-year on an FX Neutral basis, and
TPN was 87.3% year-over-year. By April these growth rates had
accelerated to 155.6% and 119.8% respectively. Deceleration in
number and volume of payments processed was a consequence primarily
of lower foot traffic in physical retail, which had a direct impact
on lower mobile point of sale and QR total payment volume growth
partially offset by the relative strength in Merchant
Services.
- By the end of the quarter, the non
performing loan ratios had not shown a deterioration due to the
COVID-19 crisis.
- Nonetheless, to manage our exposure
to merchant and consumer credits amidst a global pandemic, we
slowed credit originations to both cohorts.
- In terms of liquidity and cash
management for the fintech business, all relevant funding sources
remained available, drawing on credit facilities to maximize
liquidity at a local subsidiary level. The consolidated Balance
Sheet currently holds approximately $2.3 billion dollars in cash,
cash equivalents and liquid securities.
First Quarter 2020 Business
Highlights
- Unique active users grew 30.9%
reaching 43.2 million.
- Total payment volume (“TPV”)
through Mercado Pago reached $8.1 billion, a year-over-year
increase of 43.5% in USD and 82.2% on an FX neutral basis. Total
payment transactions increased 102.0% year-over-year, totaling
290.7 million transactions for the quarter.
- Off platform TPV grew 84.2% in USD
and 139.5% year-over-year on a FX neutral basis reaching $4.7
billion in transactions and 217.3 million payments, a 146.2%
year-over-year growth.
- On a consolidated basis MPOS TPV
grew 103.3% on an FX neutral basis.
- Mobile wallet delivered this
quarter $1.3 billion in transactions on a consolidated basis,
leading to a 299.2% year-over-year growth on a FX neutral basis for
the full first quarter 2020. Our mobile wallet consumer base grew
by 155.1% compared to the first quarter 2019, surpassing the 8
million unique payers mark. TPV from mobile wallet in Argentina,
Brazil and Mexico continues to grow by triple digits
year-over-year.
- Our asset management product,
Mercado Fondo, is now available in Argentina, Brazil and Mexico.
Mexico was launched during the quarter, leading Mercado Fondo with
more than $ 350 million under management and more than 7.3 million
users across Latin America.
- Our online off-platform payments
solution, Merchant Services, had the lowest deceleration during the
quarter growing on a consolidated basis 81.7% year-over-year on a
FX Neutral basis.
- Gross merchandise volume (“GMV”)
reached $3.4 billion, representing an increase of 10.6% in USD and
34.2% on an FX neutral basis.
- Items sold reached 105.7 million,
growing 27.6% year-over-year.
- Live listings offered on
MercadoLibre’s marketplace reached 267.4 million, a 29.8%
year-over-year growth.
- Mobile gross merchandise volume
grew 197.6% year-over-year on an FX neutral basis, reaching 69.8%
of GMV.
- Items shipped through Mercado
Envios reached 90.2 million, a 44.6% year-over-year increase,
driven primarily by optimizations in our free shipping
program.
First Quarter 2020 Financial
Highlights
- Net revenues for the first quarter
were $652.1 million, a year-over-year increase of 37.6% in USD and
70.5% on an FX neutral basis.
- Commerce revenues increased 32.7%
year-over-year in USD and 62.0% on an FX neutral basis, while
Fintech revenues increased 45.2% year-over-year in USD and 83.4% on
an FX neutral basis.
- Gross profit was $312.8 million
with a margin of 48.0%, compared to 50.0% in the first quarter of
2019.
- Total operating expenses were
$342.5 million, an increase of 51.0% year-over-year in USD. As a
percentage of revenues, operating expenses were 52.5%, compared to
47.9% during the first quarter of 2019. The $34.7 million
improvement in operating expenses quarter-over-quarter was mostly
driven by a decrease of $60.2 million in marketing expenditure,
partially offset by a deterioration in bad debt.
- Loss from operations was $29.7
million, compared to a loss of $68.9 million during the prior
quarter. As a percentage of revenues, the loss from operations
reached 4.6% improving 567 bps sequentially.
- Interest income was $36.8 million,
a 50.5% increase year-over-year, as a result of equity offering
during March 2019, which generated more invested volume and
interest gain, and a higher float in Argentina.
- The Company incurred $23.6 million
in financial expenses this quarter, mainly attributable to secured
financial loans and interest expenses from our trusts related to
our factoring business in Argentina.
- Net loss before taxes was $16.7
million, up from a loss of $63.0 million during last quarter.
- Income tax expense was $4.4
million.
- Net loss was $21.1 million,
resulting in basic net loss per share of $0.44.
The following table summarizes certain
key performance metrics for the three months periods ended March
31, 2020 and 2019.
|
|
|
|
|
|
|
|
|
|
Three-month Periods Ended March 31,
(*) |
(in
millions) |
|
|
2020 |
2019 |
|
|
|
|
|
|
|
Unique active users |
|
|
43.2 |
|
|
33.0 |
Number of confirmed new
registered users during period |
|
|
13.0 |
|
|
12.3 |
Gross merchandise volume |
|
$ |
3,414.1 |
|
$ |
3,087.8 |
Number of successful items
sold |
|
|
105.7 |
|
|
82.8 |
Number of successful items
shipped |
|
|
90.2 |
|
|
62.4 |
Total payment volume |
|
$ |
8,094.5 |
|
$ |
5,639.1 |
Total volume of payments on
marketplace |
|
$ |
3,203.3 |
|
$ |
2,896.1 |
Total payment
transactions |
|
|
290.7 |
|
|
143.9 |
Capital expenditures |
|
$ |
53.5 |
|
$ |
33.0 |
Depreciation and
amortization |
|
$ |
21.6 |
|
$ |
15.7 |
(*) Figures have been calculated using rounded
amounts. Growth calculations based on this table may not total due
to rounding.
Year-over-year USD Revenue Growth Rates
by Quarter
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Revenues |
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Q1’20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
64 |
% |
74 |
% |
77 |
% |
61 |
% |
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
(8) |
% |
14 |
% |
39 |
% |
46 |
% |
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
220 |
% |
267 |
% |
146 |
% |
86 |
% |
74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year Local Currency Revenue
Growth Rates by Quarter
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Revenues |
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Q1’20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
91 |
% |
89 |
% |
77 |
% |
74 |
% |
55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
83 |
% |
115 |
% |
119 |
% |
133 |
% |
123 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
|
227 |
% |
261 |
% |
153 |
% |
80 |
% |
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
The Company will host a conference call and
audio webcast on May 5th, 2020 at 4:30 p.m. Eastern Time. The
conference call may be accessed by dialing (877) 303-7209 / (970)
315-0420 (Conference ID –6697812–) 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
Unique Active User – New or existing user who
performed at least one of the following actions during the reported
period: (1) made one purchase, or reservation, or asked one
question or MercadoLibre Marketplace or Classifieds Marketplace (2)
maintained an active listing on MercadoLibre Marketplace or
Classifieds Marketplace (3) maintained an active account in Mercado
Shops (4) made a payment, money transfer, collection and/or advance
using Mercado Pago (5) maintained an outstanding credit line
through Mercado Credito or (6) maintained a balance of more than $5
invested in a Mercado Fondo asset management account.
Foreign Exchange (“FX”) Neutral – Calculated by
using the average monthly exchange rate of each month of 2019 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 Mercado
Libre 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.
Commerce - Revenues from core marketplace fees,
shipping fees (net out of shipping subsidies), ad sales, classified
fees and other ancillary services.
Fintech - Revenues includes fees from payments
revenue stream.
Items sold – Measure of the number of items that
were sold/purchased through the Mercado Libre 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 Mercado Libre
Marketplace and confirmed their registration, excluding Classifieds
users.
Operating margin – Defined as income from
operations as a percentage of net revenues.
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, 2019, “Item 1A-Risk Factors”
in Part II of our Form 10-Q for the quarter ended March 31, 2020,
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)
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2020 |
|
|
|
2019 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,071,217 |
|
|
$ |
1,384,740 |
|
Restricted cash and cash equivalents |
|
194,166 |
|
|
|
66,684 |
|
Short-term investments (353,162 and 522,798 held in guarantee) |
|
1,558,325 |
|
|
|
1,597,241 |
|
Accounts receivable, net |
|
34,060 |
|
|
|
35,446 |
|
Credit cards receivable, net |
|
366,803 |
|
|
|
379,969 |
|
Loans receivable, net |
|
141,419 |
|
|
|
182,105 |
|
Prepaid expenses |
|
35,294 |
|
|
|
45,309 |
|
Inventory |
|
12,114 |
|
|
|
8,626 |
|
Other assets |
|
96,876 |
|
|
|
88,736 |
|
Total current assets |
|
3,510,274 |
|
|
|
3,788,856 |
|
Non-current assets: |
|
|
|
Long-term investments |
|
269,955 |
|
|
|
263,983 |
|
Loans receivable, net |
|
6,879 |
|
|
|
6,439 |
|
Property and equipment, net |
|
239,249 |
|
|
|
244,257 |
|
Operating lease right-of-use assets |
|
183,534 |
|
|
|
200,449 |
|
Goodwill |
|
82,283 |
|
|
|
87,609 |
|
Intangible assets, net |
|
17,133 |
|
|
|
14,275 |
|
Deferred tax assets |
|
102,296 |
|
|
|
117,582 |
|
Other assets |
|
46,477 |
|
|
|
58,241 |
|
Total non-current assets |
|
947,806 |
|
|
|
992,835 |
|
Total assets |
$ |
4,458,080 |
|
|
$ |
4,781,691 |
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
295,500 |
|
|
$ |
372,309 |
|
Funds payable to customers |
|
718,454 |
|
|
|
894,057 |
|
Salaries and social security payable |
|
100,059 |
|
|
|
101,841 |
|
Taxes payable |
|
46,394 |
|
|
|
60,247 |
|
Loans payable and other financial liabilities |
|
316,508 |
|
|
|
186,138 |
|
Operating lease liabilities |
|
23,025 |
|
|
|
23,259 |
|
Other liabilities |
|
76,560 |
|
|
|
114,469 |
|
Total current liabilities |
|
1,576,500 |
|
|
|
1,752,320 |
|
Non-current liabilities: |
|
|
|
Salaries and social security payable |
|
16,165 |
|
|
|
26,803 |
|
Loans payable and other financial liabilities |
|
616,295 |
|
|
|
631,353 |
|
Operating lease liabilities |
|
169,147 |
|
|
|
176,673 |
|
Deferred tax liabilities |
|
98,048 |
|
|
|
99,952 |
|
Other liabilities |
|
16,515 |
|
|
|
12,627 |
|
Total non-current liabilities |
|
916,170 |
|
|
|
947,408 |
|
Total liabilities |
$ |
2,492,670 |
|
|
$ |
2,699,728 |
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
Redeemable convertible
preferred stock, $0.001 par value, 40,000,000 shares
authorized, |
|
|
|
100,000 shares issued and
outstanding at March 31, 2020 and December 31, 2019 |
$ |
98,843 |
|
|
$ |
98,843 |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Common stock, $0.001 par value, 110,000,000 shares authorized, |
|
|
|
49,709,955 shares issued and outstanding at March 31, |
|
|
|
2020 and December 31, 2019 |
$ |
50 |
|
|
$ |
50 |
|
Additional paid-in capital |
|
2,068,048 |
|
|
|
2,067,869 |
|
Treasury stock |
|
(720 |
) |
|
|
(720 |
) |
Retained earnings |
|
295,913 |
|
|
|
322,592 |
|
Accumulated other comprehensive loss |
|
(496,724 |
) |
|
|
(406,671 |
) |
Total Equity |
|
1,866,567 |
|
|
|
1,983,120 |
|
Total Liabilities, Redeemable convertible preferred stock and
Equity |
$ |
4,458,080 |
|
|
$ |
4,781,691 |
|
MercadoLibre, Inc.Consolidated
Statements of IncomeFor the three-month
periods ended March 31, 2020 and 2019(In
thousands of U.S. dollars, except for share data)
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
|
Net revenues |
|
$ |
652,091 |
|
|
$ |
473,770 |
|
Cost of net revenues |
|
|
(339,277 |
) |
|
|
(236,766 |
) |
Gross profit |
|
|
312,814 |
|
|
|
237,004 |
|
Operating expenses: |
|
|
|
|
Product and technology development |
|
|
(73,435 |
) |
|
|
(52,369 |
) |
Sales and marketing |
|
|
(206,507 |
) |
|
|
(130,676 |
) |
General and administrative |
|
|
(62,566 |
) |
|
|
(43,820 |
) |
Total operating expenses |
|
|
(342,508 |
) |
|
|
(226,865 |
) |
(Loss) income from
operations |
|
|
(29,694 |
) |
|
|
10,139 |
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
Interest income and other financial gains |
|
|
36,784 |
|
|
|
24,444 |
|
Interest expense and other financial losses |
|
|
(23,584 |
) |
|
|
(15,559 |
) |
Foreign currency losses |
|
|
(186 |
) |
|
|
(3,669 |
) |
Net (loss) income before
income tax expense |
|
|
(16,680 |
) |
|
|
15,355 |
|
|
|
|
|
|
Income tax expense |
|
|
(4,429 |
) |
|
|
(3,491 |
) |
Net (loss) income |
|
$ |
(21,109 |
) |
|
$ |
11,864 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
Basic
EPS |
|
|
|
|
Basic net (loss) income |
|
|
|
|
Available to shareholders per common share |
|
$ |
(0.44 |
) |
|
$ |
0.13 |
Weighted average of outstanding common shares |
|
|
49,709,955 |
|
|
|
45,980,255 |
Diluted
EPS |
|
|
|
|
Diluted net (loss) income |
|
|
|
|
Available to shareholders per common share |
|
$ |
(0.44 |
) |
|
$ |
0.13 |
Weighted average of outstanding common shares |
|
|
49,709,955 |
|
|
|
45,980,255 |
|
|
|
|
|
MercadoLibre, Inc.Consolidated
Statement of Cash FlowsFor the three months
ended March 31, 2020 and 2019
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
Cash flows from
operations: |
|
|
|
|
Net (loss) income |
|
$ |
(21,109 |
) |
|
$ |
11,864 |
|
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities: |
|
|
|
|
Unrealized devaluation loss, net |
|
|
18,505 |
|
|
|
1,886 |
|
Depreciation and amortization |
|
|
21,550 |
|
|
|
15,694 |
|
Accrued interest |
|
|
(22,352 |
) |
|
|
(8,699 |
) |
Non cash interest, convertible notes amortization of debt discount
and amortization of debt issuance costs and other charges |
|
|
20,787 |
|
|
|
3,018 |
|
Financial results on derivative instruments |
|
|
(16,767 |
) |
|
|
— |
|
Stock-based compensation expense — restricted shares |
|
|
179 |
|
|
|
— |
|
LTRP accrued compensation |
|
|
15,664 |
|
|
|
13,441 |
|
Deferred income taxes |
|
|
(4,199 |
) |
|
|
(14,456 |
) |
Changes in assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
19,748 |
|
|
|
337 |
|
Credit card receivables |
|
|
(33,303 |
) |
|
|
35,893 |
|
Prepaid expenses |
|
|
8,560 |
|
|
|
3,316 |
|
Inventory |
|
|
(5,272 |
) |
|
|
1,652 |
|
Other assets |
|
|
(5,796 |
) |
|
|
(5,085 |
) |
Payables and accrued expenses |
|
|
(43,101 |
) |
|
|
(491 |
) |
Funds payable to customers |
|
|
(21,344 |
) |
|
|
63,730 |
|
Other liabilities |
|
|
(32,206 |
) |
|
|
12,735 |
|
Interest received from investments |
|
|
14,805 |
|
|
|
3,536 |
|
Net cash (used in) provided by operating activities |
|
|
(85,651 |
) |
|
|
138,371 |
|
Cash flows from investing
activities: |
|
|
|
|
Purchase of investments |
|
|
(1,323,631 |
) |
|
|
(1,624,226 |
) |
Proceeds from sale and maturity of investments |
|
|
1,249,960 |
|
|
|
439,712 |
|
Receipts from settlements of derivative instruments |
|
|
3,668 |
|
|
|
— |
|
Payment for acquired businesses, net of cash acquired |
|
|
(7,561 |
) |
|
|
— |
|
Purchases of intangible assets |
|
|
(93 |
) |
|
|
(34 |
) |
Changes in principal of loans receivable, net |
|
|
(27,250 |
) |
|
|
(42,609 |
) |
Purchases of property and equipment |
|
|
(45,175 |
) |
|
|
(32,928 |
) |
Net cash used in investing activities |
|
|
(150,082 |
) |
|
|
(1,260,085 |
) |
Cash flows from financing
activities: |
|
|
|
|
Proceeds from loans payable and other financial liabilities |
|
|
749,617 |
|
|
|
33,977 |
|
Payments on loans payable and other financing liabilities |
|
|
(593,497 |
) |
|
|
(23,816 |
) |
Payment of finance lease obligations |
|
|
(564 |
) |
|
|
(662 |
) |
Dividends paid of preferred stock |
|
|
(1,000 |
) |
|
|
— |
|
Proceeds from issuance of convertible redeemable preferred stock,
net |
|
|
— |
|
|
|
98,688 |
|
Proceeds from issuance of common stock, net |
|
|
— |
|
|
|
1,866,500 |
|
Net cash provided by financing
activities |
|
|
154,556 |
|
|
|
1,974,687 |
|
Effect of exchange rate
changes on cash, cash equivalents, restricted cash and cash
equivalents |
|
|
(104,864 |
) |
|
|
(11,407 |
) |
Net (decrease) increase in
cash, cash equivalents, restricted cash and cash equivalents |
|
|
(186,041 |
) |
|
|
841,566 |
|
Cash, cash equivalents,
restricted cash and cash equivalents, beginning of the period |
|
$ |
1,451,424 |
|
|
$ |
464,695 |
|
Cash, cash equivalents,
restricted cash and cash equivalents, end of the period |
|
$ |
1,265,383 |
|
|
$ |
1,306,261 |
|
Financial results of reporting
segments
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Other Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
397,447 |
|
|
$ |
132,875 |
|
|
$ |
94,753 |
|
|
$ |
27,016 |
|
|
$ |
652,091 |
|
Direct costs |
|
|
(322,628 |
) |
|
|
(101,025 |
) |
|
|
(114,762 |
) |
|
|
(27,604 |
) |
|
|
(566,019 |
) |
Direct contribution |
|
|
74,819 |
|
|
|
31,850 |
|
|
|
(20,009 |
) |
|
|
(588 |
) |
|
|
86,072 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
(115,766 |
) |
Loss from operations |
|
|
|
|
|
|
|
|
|
|
(29,694 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
Interest income and other financial gains |
|
|
|
|
|
|
|
|
|
|
36,784 |
|
Interest expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
(23,584 |
) |
Foreign currency losses |
|
|
|
|
|
|
|
|
|
|
(186 |
) |
Net loss before income tax
expense |
|
|
|
|
|
|
|
|
|
$ |
(16,680 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Other Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
302,384 |
|
|
$ |
93,776 |
|
|
$ |
54,561 |
|
|
$ |
23,049 |
|
|
$ |
473,770 |
|
Direct costs |
|
|
(225,343 |
) |
|
|
(67,492 |
) |
|
|
(65,585 |
) |
|
|
(20,447 |
) |
|
|
(378,867 |
) |
Direct contribution |
|
|
77,041 |
|
|
|
26,284 |
|
|
|
(11,024 |
) |
|
|
2,602 |
|
|
|
94,903 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
(84,764 |
) |
Income from operations |
|
|
|
|
|
|
|
|
|
|
10,139 |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
Interest income and other financial gains |
|
|
|
|
|
|
|
|
|
|
24,444 |
|
Interest expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
(15,559 |
) |
Foreign currency losses |
|
|
|
|
|
|
|
|
|
|
(3,669 |
) |
Net income before income tax
expense |
|
|
|
|
|
|
|
|
|
$ |
15,355 |
|
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 2019 and
applying them to the corresponding months in 2020, 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 March 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month Periods Ended March 31, (*) |
|
|
As reported |
|
FX Neutral Measures |
|
As reported |
|
|
(In millions, except percentages) |
|
|
2020 |
|
|
|
2019 |
|
|
Percentage Change |
|
|
2020 |
|
|
|
2019 |
|
|
Percentage Change |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
Net revenues |
|
$ |
652.1 |
|
|
$ |
473.8 |
|
|
37.6 |
% |
|
$ |
807.7 |
|
|
$ |
473.8 |
|
|
70.5 |
% |
Cost of net revenues |
|
|
(339.3 |
) |
|
|
(236.8 |
) |
|
43.3 |
% |
|
|
(422.4 |
) |
|
|
(236.8 |
) |
|
78.4 |
% |
Gross profit |
|
|
312.8 |
|
|
|
237.0 |
|
|
32.0 |
% |
|
|
385.3 |
|
|
|
237.0 |
|
|
62.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
(342.5 |
) |
|
|
(226.9 |
) |
|
51.0 |
% |
|
|
(463.5 |
) |
|
|
(226.9 |
) |
|
104.3 |
% |
(Loss) Income from
operations |
|
|
(29.7 |
) |
|
|
10.1 |
|
|
-392.9 |
% |
|
|
(78.3 |
) |
|
|
10.1 |
|
|
-871.5 |
% |
(*) The table above may not total due to rounding.
CONTACT: MercadoLibre, Inc.
Investor Relations
investor@mercadolibre.com
http://investor.mercadolibre.com
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