MercadoLibre, Inc., a leading e-commerce technology company in Latin America, has reported financial results for the quarter ended March 31, 2019.
Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, “I am very pleased with the results we delivered this quarter. It is encouraging to enter the new year with continued momentum in our business and to see our strategy delivering on multiple fronts in a sustainable manner. Our Marketplace business showed great resiliency, our Payments business is gaining traction in its online to offline efforts, and our Shipping efforts continue growing the size of our managed network. From a financial perspective, the 1Q’19 was a very strong quarter, as net revenues accelerated to 92.9% YoY growth on an FX neutral basis.”
1 Percentages have been calculated using whole amounts rather than rounded amounts.
The tables below present our gross billing 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 March 31, 2019 the Company incurred $74.0 million of shipping subsidies that have been netted from revenues.
In Millions (*) | ||||||
Q1 2019 | Q1 2018 | |||||
Brazil | $ | 358.6 | $ | 276.3 | ||
Gross | Argentina | $ | 103.0 | $ | 106.1 | |
Billings | Mexico | $ | 61.2 | $ | 29.4 | |
Others | $ | 25.0 | $ | 21.8 | ||
Total | $ | 547.8 | $ | 433.5 |
In Millions (*) | ||||||||
Q1 2019 | Q1 2018 | |||||||
Brazil | $ | (56.2 | ) | $ | (92.1 | ) | ||
Free Shipping | Argentina | $ | (9.2 | ) | $ | (4.1 | ) | |
service cost | Mexico | $ | (6.6 | ) | $ | (12.3 | ) | |
Others | $ | (2.0 | ) | $ | (3.9 | ) | ||
Total | $ | (74.0 | ) | $ | (112.5 | ) |
In Millions (*) | ||||||
Q1 2019 | Q4 2018 | |||||
Brazil | $ | 302.4 | $ | 184.2 | ||
Net | Argentina | $ | 93.8 | $ | 101.9 | |
Revenues | Mexico | $ | 54.6 | $ | 17.1 | |
Others | $ | 23.0 | $ | 17.8 | ||
Total | $ | 473.8 | $ | 321.0 |
*The table above may not total due to rounding.
The following table summarizes certain key performance metrics for the three months ended March 31, 2019 and 2018.
Three-month Periods Ended March 31, (*) |
||||||
(in millions) | 2019 | 2018 | ||||
Number of confirmed registered users at end of period | 280.1 | 223.1 | ||||
Number of confirmed new registered users during period | 12.3 | 11.2 | ||||
Gross merchandise volume | $ | 3,087.8 | $ | 3,126.4 | ||
Number of successful items sold | 82.8 | 80.1 | ||||
Number of successful items shipped | 62.4 | 52.5 | ||||
Total payment volume | $ | 5,639.1 | $ | 4,175.3 | ||
Total volume of payments on Marketplace | $ | 2,896.1 | $ | 2,809.5 | ||
Total payment transactions | 143.9 | 74.3 | ||||
Unique buyers | 18.8 | 17.0 | ||||
Unique sellers | 4.2 | 5.0 | ||||
Capital expenditures | $ | 33.0 | $ | 23.0 | ||
Depreciation and amortization | $ | 15.7 | $ | 11.1 |
(*) Figures have been expressed using rounding amounts. Growth calculations using this table may not total due to rounding.
Consolidated Net Revenues | Q1’18 | Q2’18 | Q3’18 | Q4’18 | Q1’19 | ||||||
Brazil | 15% | 25% | 25% | 34% | 64 % | ||||||
Argentina | 43% | 14% | (8)% | (16)% | (8)% | ||||||
Mexico | 51% | 62% | 152% | 157 % | 220% | ||||||
Consolidated Net Revenues | Q1’18 | Q2’18 | Q3’18 | Q4’18 | Q1’19 | ||||||
Brazil | 19% | 40% | 56% | 58% | 91% | ||||||
Argentina | 80% | 68% | 68% | 77% | 83% | ||||||
Mexico | 39% | 71% | 168% | 170% | 227% | ||||||
The Company will host a conference call and audio webcast on May 2nd, 2019 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 2466479) 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. An archive of the webcast will be available for one week following the conclusion of the conference call.
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 MercadoPago.
Total volume of payments on marketplace – Measure of the total U.S. dollar sum of all marketplace transactions paid for using MercadoPago, excluding shipping and financing fees.
Total payment volume – Measure of total U.S. dollar sum of all transactions paid for using MercadoPago, 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.
SOURCE MercadoLibre
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