Mercadolibre Logo

Print Print page   Email Email page   PDF Download PDF    Add to Briefcase
« Previous Release | Next Release »



MercadoLibre, Inc. Reports Financial Results for Second Quarter 2012

* Items sold during Q2'12 increased by 35.6% year-over-year to 15.8 million

* Net Revenues in Q2'12 grew to 88.8 million, a 47.1% growth in local currencies

* Q2'12 net income increased to $25.4 million, a 90.8% growth in local currencies

BUENOS AIRES, Argentina, Aug. 2, 2012 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com), Latin America's leading e-commerce technology company, today reported financial results for the second quarter ended June 30, 2012.

Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, "Wrapping up the first half of 2012 I am very pleased with our solid performance, achieved despite currency and macro headwinds, confirming the strong secular tailwinds behind e-commerce growth, as well as our solid execution on top of a flexible business model that captures this growth through multiple channels. We are more focused than ever on building for the long term, growing our user base by providing them with a great experience, and with the new solutions they require, convinced that this is the right way to generate value going forward."

Financial Results Summary

MercadoLibre reported consolidated net revenues for the three months ended June 30, 2012 of $88.8 million, representing a year-over-year growth of 28.1% in USD, and 47.1% in local currencies.

For the three months ended June 30, 2012, gross merchandise volume grew 21.7% year-over-year to $1,299.2 million, while total payment volume grew 39.1% year-over-year to $411.6 million. In local currencies, gross merchandise volume grew 37.3% year-over-year, while payment volume grew 64.4% year-over-year.

Items sold on MercadoLibre during the second quarter 2012 increased 35.6% to 15.8 million, while total payments transactions through MercadoPago increased 78.5% to 5.5 million.

Gross profit for the second quarter of 2012 was $65.0 million, a 23.9% increase over the previous year quarter. Gross profit margin for the period was 73.1%, down from 75.6% during the second quarter of 2011, driven primarily by the growth in the lower margin payment business.

Total operating expenses during the second quarter 2012 were $33.1 million, a 7.1% increase over the previous year quarter. Total operating expenses as percentage of net revenues for the second quarter of 2012 were 37.2%, down from 44.5% for the same quarter one year earlier.

Strong operating expense leverage led to Income from operations for the second quarter 2012 of $31.9 million, representing a year-over-year growth of 47.9% in USD, and 66.4% in local currencies. Operating income margin for the period was 35.9%, up from 31.1% during the second quarter of 2011.

Net income before taxes was $35.1 million, an increase of 56.4% over the second quarter of 2011. The blended tax rate for the quarter was of 27.7%, as compared to 34.0% during the same quarter one year earlier.

Net income for the three months ended June 30, 2012, increased 71.3% year-over-year to $25.4 million, a local currency growth of 90.8%. Net income margin was 28.6% for the second quarter of 2012, compared to 21.4% for the same period last year. Earnings per share for the second quarter of 2012 were $0.57 compared to $0.34 for the prior year quarter.

Free cash flow, defined as cash from operating activities less payment for the acquisition of property, equipment and intangible assets, was $33.5 million for the three months ended June 30, 2012.

The following table summarizes certain key performance metrics for the three months ended June 30, 2012 and 2011.

     
 Three month ended June 30, (in MM) 20122011 %YoY  %YoY Constant USD 
 Total confirmed registered users at the end of period  73.2 58.4 25.3% --
 New confirmed registered users during the period  3.7 2.8 30.5% --
 Gross merchandise volume   $ 1,299.2  $ 1,067.8 21.7% 37.3%
 Items sold  15.8 11.6 35.6% --
 Total payments volume   $ 411.6  $ 295.8 39.1% 64.4%
 Total payments transactions  5.5 3.1 78.5% --

Table of Year-on-Year Local Currency Revenue Growth Rates by Quarter

  YoY Growth rates at previous years exchange rates 
 Consolidated Net Revenues           
   Q2'11   Q3'11   Q4'11   Q1'12   Q2'12 
 Brazil  15% 38% 39% 29% 36%
 Argentina  37% 55% 70% 85% 81%
 Mexico  7% 14% 31% 35% 30%
 Venezuela  39% 57% 64% 66% 72%
 Others  32% 37% 35% 34% 30%
 Total 22%41%46%44%47%

Conference Call and Webcast

The Company will host a conference call and audio webcast on August 2, 2012 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing +(970) 315-0420 or +(877) 303-7209 (Conference ID 13764311) 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

Total confirmed registered users — Measure of the cumulative number of users who have registered on the MercadoLibre Marketplace and confirmed their registration.

New confirmed registered users — Measure of the number of new users who have registered on the MercadoLibre Marketplace and confirmed their registration.

Gross merchandise volume — Measure of the total U.S. dollar sum of all transactions completed through the MercadoLibre Marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services.

Items sold — Measure of the number of items sold/purchased through the MercadoLibre Marketplace.

Total payment volume — Measure of total U.S. dollar sum of all transactions paid for using MercadoPago.

Total payment transactions — Measure of the number of all payment completed transactions using MercadoPago.

Operating margin — Defined as income from operations as a percentage of net revenues.

Blended tax rate — Defined as income and asset tax expense as a percentage of income before income and asset tax.

Net income margin — Defined as net income as a percentage of net revenues.

Free Cash Flow — Defined as cash flows from operating activities less property, equipment and intangible asset.

Local Currency Growth Rates — Calculated by using the average monthly exchange rate for each month during the previous year and applying it to the corresponding month in the current year, so as to calculate what the growth would have been had exchange rates been the same throughout both periods.

About MercadoLibre

Founded in 1999, MercadoLibre is Latin America's leading e-commerce technology company. Through its primary platforms, MercadoLibre.com and MercadoPago.com, it provides solutions to individuals and companies buying, selling, advertising, and paying for goods and services online.

MercadoLibre.com serves millions of users and creates a market for a wide variety of goods and services in an easy, safe and efficient way. The site is among the top 50 in the world in terms of page views and is the leading retail platform in unique visitors in each country in which it operates according to metrics provided by comScore Networks. MercadoLibre maintains a leadership position in 12 Latin American countries. 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 http://www.globenewswire.com/newsroom/prs/?pkgid=4193

     
Consolidated balance sheets    
  June 30, December 31,
 20122011
 (Unaudited) (Audited) 
Assets  
 Current assets:     
 Cash and cash equivalents  $ 87,595,730 $ 67,381,677
 Short-term investments  83,016,176 74,928,620
 Accounts receivable, net  16,559,972 16,815,087
 Credits Cards Receivables  28,021,663 23,855,689
 Prepaid expenses  1,940,811 1,269,594
 Deferred tax assets  9,366,084 9,131,638
 Other assets  7,043,968 6,863,250
 Total current assets  233,544,404 200,245,555
 Non-current assets:     
 Long-term investments  49,571,882 43,933,316
 Property and equipment, net  35,103,153 30,877,719
 Goodwill, net  61,112,402 62,093,948
 Intangible assets, net  7,622,698 6,494,857
 Deferred tax assets  5,965,641 6,491,646
 Other assets  5,631,553 5,794,395
 Total non-current assets  165,007,329 155,685,881
 Total assets  $ 398,551,733 $ 355,931,436
     
Liabilities and Equity    
 Current liabilities:     
 Accounts payable and accrued expenses  $ 24,303,699 $ 20,251,313
 Funds payable to customers  77,697,708 69,216,185
 Salaries and social security payable  14,723,722 13,525,293
 Taxes payable  10,346,811 11,633,178
 Loans payable and other financial liabilities  146,604 146,194
 Dividends payable  4,812,036 3,531,362
Total current liabilities 132,030,580 118,303,525
 Non-current liabilities:     
 Salaries and social security payable  3,818,275 3,844,172
 Loans payable and other financial liabilities  94,093 136,227
 Deferred tax liabilities  8,554,494 8,670,606
 Other liabilities  2,213,237 1,797,890
Total non-current liabilities 14,680,099 14,448,895
 Total liabilities  $ 146,710,679 $ 132,752,420
 Commitments and contingencies     
 Redeemable noncontrolling interest  $ 4,000,000 $ 4,000,000
 Equity:     
Common stock, $0.001 par value, 110,000,000 shares authorized, 44,148,720 and 44,142,020 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively  $ 44,149 $ 44,142
Additional paid-in capital  120,465,461 120,452,032
Retained earnings   171,253,118  135,726,188
Accumulated other comprehensive loss  (43,921,674) (37,043,346)
Total Equity  247,841,054 219,179,016
 Total liabilities, redeemable noncontrolling interest and equity  $ 398,551,733 $ 355,931,436
     
     
         
 Consolidated statements of income         
 Six Months Ended June 30,Three Months Ended June 30,
 2012201120122011
 (Unaudited)(Unaudited)
Net revenues  $ 172,580,065 $130,837,828 $ 88,844,059 $69,378,160
Cost of net revenues  (44,989,178) (31,270,822) (23,892,881) (16,939,118)
Gross profit 127,590,887 99,567,006 64,951,178 52,439,042
         
Operating expenses:         
 Product and technology development  (13,719,892) (10,675,783) (6,133,819) (5,518,892)
 Sales and marketing  (34,233,040) (28,865,357) (16,805,362) (15,636,413)
 General and administrative  (22,822,289) (19,183,316) (10,127,077) (9,732,340)
Total operating expenses  (70,775,221) (58,724,456) (33,066,258) (30,887,645)
Income from operations  56,815,666 40,842,550 31,884,920 21,551,397
         
Other income (expenses):         
 Interest income and other financial gains  6,070,862 4,123,668 2,982,303 2,249,898
 Interest expense and other financial losses  (551,617) (1,509,769) (474,300) (880,819)
 Foreign currency (loss) gains  (283,969) (1,203,369) 749,008 (702,714)
 Other income / (loss), net  (11,263) 260,441 (7,009) 240,097
Net income before income / asset tax expense  62,039,679 42,513,521 35,134,922 22,457,859
         
Income / asset tax expense  (17,007,817) (13,635,062) (9,740,098) (7,637,033)
Net income  $ 45,031,862 $ 28,878,459 $ 25,394,824 $14,820,826
         
Less: Net Income attributable to Noncontrolling Interest 18,060 -- 15,632 --
Net income attributable to MercadoLibre, Inc.  $ 45,013,802 $ 28,878,459 $ 25,379,192 $14,820,826
         
         
 Six Months Ended June 30,Three Months Ended June 30,
 2012201120122011
 (Unaudited)(Unaudited)
Basic EPS     
Basic net income attributable to MercadoLibre, Inc. per common share $ 1.02 $ 0.65 $ 0.57 $ 0.34
Weighted average shares 44,145,038 44,134,763 44,147,999 44,138,105
         
Diluted EPS    
Diluted net income attributable to MercadoLibre, Inc. per common share $ 1.02 $ 0.65 $ 0.57 $ 0.34
Weighted average shares 44,149,178 44,149,911 44,152,133 44,152,296
     
     
Consolidated statements of cash flows    
 Six Months Ended June 30,
   2012  2011
 (Unaudited)
Cash flows from operations:    
Net income attributable to MercadoLibre, Inc.  $ 45,013,802  $ 28,878,459
Adjustments to reconcile net income to net cash provided by operating activities:    
Net Income attributable to Noncontrolling Interest  18,060  -- 
Depreciation and amortization  4,057,471  3,305,795
Accrued interest  (2,611,913)  (2,353,234)
LTRP accrued compensation   2,202,842  2,303,542
Deferred income taxes  145,970  1,484,213
Changes in assets and liabilities:    
Accounts receivable   (3,034,916)  (164,556)
Credit Card Receivables  (5,810,748)  (1,779,329)
Prepaid expenses  (730,975)  (393,477)
Other assets  (453,355)  1,067,637
Accounts payable and accrued expenses  5,682,625  (5,766,185)
Funds payable to customers  13,461,760  6,718,843
Other liabilities  548,167  430,606
Net cash provided by operating activities  58,488,790 33,732,314
Cash flows from investing activities:    
Purchase of investments  (205,377,324)  (200,995,988)
Proceeds from sale and maturity of investments  186,841,187  171,094,260
Purchases of intangible assets  (1,390,738)  (108,823)
Purchases of property and equipment  (8,323,905)  (13,247,416)
Net cash used in investing activities   (28,250,780) (43,257,967)
Cash flows from financing activities:    
Dividends paid  (8,343,398) (3,530,510)
Stock options exercised  2,400 10,706
Net cash provided in financing activities   (8,340,998) (3,519,804)
Effect of exchange rate changes on cash and cash equivalents  (1,682,959)  465,123
Net increase in cash and cash equivalents  20,214,053  (12,580,334)
Cash and cash equivalents, beginning of the period  67,381,677  56,830,466
Cash and cash equivalents, end of the period  $ 87,595,730  $ 44,250,132
     
   
 Six Months Ended June 30,
  2012  2011
 (Unaudited)
Supplemental cash flow information:    
Cash paid for interest $ 34,218 $ 26,426
Cash paid for income and asset taxes $ 19,037,776 $ 14,806,871
             
 Financial results of reporting segments             
 Three Months Ended June 30, 2012
  Brazil  Argentina  Mexico  Venezuela  Other Countries  Total 
             
Net revenues  $ 44,205,857 $ 20,561,213 $6,046,812 $ 12,417,318 $ 5,612,859 $88,844,059
Direct costs  (25,066,435) (9,543,476) (3,269,574) (3,728,913) (2,896,426) (44,504,824)
Direct contribution 19,139,422 11,017,737 2,777,238 8,688,405 2,716,433 44,339,235
             
Operating expenses and indirect costs of net revenues            (12,454,315)
Income from operations            31,884,920
             
Other income (expenses):             
Interest income and other financial gains            2,982,303
Interest expense and other financial results            (474,300)
Foreign currency gains            749,008
Other losses, net            (7,009)
Net income before income / asset tax expense            $35,134,922
             
             
 Three Months Ended June 30, 2011
  Brazil  Argentina  Mexico  Venezuela  Other Countries  Total 
             
Net revenues  $ 39,932,132 $ 12,391,873 $5,370,095 $ 7,234,940 $ 4,449,120 $69,378,160
Direct costs  (23,926,947) (5,153,807) (2,982,020) (2,847,197) (2,493,570) (37,403,541)
Direct contribution 16,005,185 7,238,066 2,388,075 4,387,743 1,955,550 31,974,619
             
Operating expenses and indirect costs of net revenues            (10,423,222)
Income from operations            21,551,397
             
Other income (expenses):             
Interest income and other financial gains            2,249,898
Interest expense and other financial results            (880,819)
Foreign currency loss            (702,714)
Other income, net            240,097
Net income before income / asset tax expense            $22,457,859
             
             
 Six Months Ended June 30, 2012
  Brazil  Argentina  Mexico  Venezuela  Other Countries  Total 
             
Net revenues  $86,370,511 $ 38,677,682 $12,630,678 $ 23,658,890 $ 11,242,304 $ 172,580,065
Direct costs  (50,809,649) (17,666,411) (6,916,211) (8,576,248) (5,712,094) (89,680,613)
Direct contribution 35,560,862 21,011,271 5,714,467 15,082,642 5,530,210 82,899,452
             
Operating expenses and indirect costs of net revenues            (26,083,786)
Income from operations            56,815,666
             
Other income (expenses):             
Interest income and other financial gains            6,070,862
Interest expense and other financial results            (551,617)
Foreign currency loss            (283,969)
Other loss, net            (11,263)
Net income before income / asset tax expense            $ 62,039,679
             
             
 Six Months Ended June 30, 2011
  Brazil  Argentina  Mexico  Venezuela  Other Countries  Total 
             
Net revenues  $74,655,327 $ 22,971,805 $10,604,428 $ 14,005,393 $ 8,600,875 $ 130,837,828
Direct costs  (44,002,555) (9,580,905) (5,698,379) (5,916,936) (4,593,885) $ (69,792,660)
Direct contribution 30,652,772 13,390,900 4,906,049 8,088,457 4,006,990 61,045,168
             
Operating expenses and indirect costs of net revenues            (20,202,618)
Income from operations            40,842,550
             
Other income (expenses):             
Interest income and other financial gains            4,123,668
Interest expense and other financial results            (1,509,769)
Foreign currency loss            (1,203,369)
Other income, net            260,441
Net income before income / asset tax expense             42,513,521.35
             
CONTACT: MercadoLibre, Inc.

         Investor Relations

         investor@mercadolibre.com

         http://investor.mercadolibre.com

Close window | Back to top