Net Revenues of
First Quarter 2021 Business Highlights
- Unique active users grew by 61.6% year-over-year, reaching 69.8 million.
- Gross merchandise volume (“GMV”) grew to
$6.1 billion , representing an increase of 77.4% in USD and 114.3% on an FX neutral basis. - Successful items sold reached 222.0 million, increasing by 110.2% year-over-year.
- Live listings offered on MercadoLibre’s marketplace reached 299.5 million.
- Mobile gross merchandise volume grew by 215.7% year-over-year on an FX neutral basis, reaching 72.9% of GMV.
Mercado Envios shipped 208.1 million items during the quarter, representing a 130.7% year-over-year increase.- Total payment volume (“TPV”) through
Mercado Pago reached$14.7 billion , a year-over-year increase of 81.8% in USD and 129.2% on an FX neutral basis. Total payment transactions increased 116.7% year-over-year, totaling 630.1 million transactions for the quarter. - Off-platform TPV grew 82.5% year-over-year in USD and 136.4% year-over-year on a FX neutral basis, reaching
$8.5 billion , while payment transactions reached 478.9 million, a year-over-year increase of 120.4%. - Online Payments TPV grew 138.8% year-over-year on an FX neutral basis.
- MPOS continued its recovery towards pre-COVID levels, reaching 90.2% year-over-year growth on an FX neutral basis.
- Mobile Wallet delivered
$2.9 billion in Total Payment Volume on a consolidated basis, leading to a 192.0% year-over-year growth on an FX neutral basis. - Our asset management product,
Mercado Fondo , has over$650 million under management and almost 16.0 million users acrossLatin America . - Mercado Credito’s portfolio grew to
$576 million , more than doubling its size compared to the first quarter of 2020.
First Quarter 2021 Financial Highlights
- Net revenues for the first quarter were
$1.4 billion , a year-over-year increase of 111.4% in USD and 158.4% on an FX neutral basis. - Commerce revenues increased 139.2% year-over-year in USD reaching
$910.6 million , while Fintech revenues increased 72.4% year-over-year in USD reaching$467.8 million . - Gross profit was
$591.4 million with a margin of 42.9%, compared to 48.0% in the first quarter of 2020. - Total operating expenses were
$500.5 million , an increase of 46% year-over-year in USD. As a percentage of revenues, operating expenses were 36.3%, compared to 52.5% during the first quarter of 2020. - Income from operations was
$90.8 million , compared to a loss of$29.7 million during the prior year. As a percentage of revenues, income from operations was 6.6%. - Interest income was
$25.1 million , a 31.8% decrease year-over-year, as a result of lower interest rates as a consequence of the pandemic and lower float in ourU.S. investments, mainly offset by higher interest income inArgentina due to higher float. - We incurred
$91.3 million in interest and financial expenses this quarter, mostly attributable to the convertible debt repurchase transaction. - We had foreign currency losses of
$15.1 million , mainly attributable to the additional cost of accessing US dollars through an indirect mechanism inArgentina due to restrictions imposed by Argentine government for buying US dollars at the official exchange rate. - Net income before taxes was
$9.5 million , up from a loss of$16.7 million during the first quarter of 2020. - Income tax expense was
$43.5 million , driven by higher income tax expense inArgentina andBrazil as a consequence of higher pre-tax gain in our Argentine and Brazilian segment in 2021 and an increase in our withholding tax on dividends. - Net loss was
$34.0 million , resulting in net loss per share of$0.68 . - As part of our treasury strategy this quarter we purchased
$7.8 million in bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets.
The following table summarizes certain key performance metrics for the three months periods ended
Three-month Periods Ended |
||||||
(in millions) | 2021 | 2020 | ||||
Unique active users | 69.8 | 43.2 | ||||
Gross merchandise volume | $ | 6,057.2 | $ | 3,414.1 | ||
Number of successful items sold | 222.0 | 105.7 | ||||
Number of successful items shipped | 208.1 | 90.2 | ||||
Total payment volume | $ | 14,717.7 | $ | 8,094.5 | ||
Total volume of payments on marketplace | $ | 5,840.0 | $ | 3,203.3 | ||
Total payment transactions | 630.1 | 290.7 | ||||
Capital expenditures | $ | 112.7 | $ | 53.5 | ||
Depreciation and amortization | $ | 38.4 | $ | 21.6 |
(*) 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
Consolidated Net Revenues | Q1’20 | Q2’20 | Q3’20 | Q4’20 | Q1’21 | |||||||
31 | % | 37 | % | 57 | % | 68 | % | 93 | % | |||
42 | % | 110 | % | 145 | % | 144 | % | 124 | % | |||
74 | % | 96 | % | 111 | % | 141 | % | 143 | % | |||
Year-over-year Local Currency Revenue Growth Rates by Quarter
Consolidated Net Revenues | Q1’20 | Q2’20 | Q3’20 | Q4’20 | Q1’21 | |||||||
55 | % | 87 | % | 112 | % | 120 | % | 139 | % | |||
123 | % | 224 | % | 260 | % | 229 | % | 223 | % | |||
81 | % | 138 | % | 140 | % | 155 | % | 148 | % | |||
Conference Call and Webcast
The Company will host a conference call and audio webcast on
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 on
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
Total payment transactions – Measure of the number of all transactions paid for using
Total volume of payments on marketplace – Measure of the total
Total payment volume – Measure of total
MPOS – Mobile point-of-sale is a dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal wirelessly.
Commerce – Revenues from core marketplace fees, shipping fees, sale of goods, ad sales, classified fees and other ancillary services.
Fintech – Revenues includes fees from off-platform transactions, financing fees, interest earned from merchant and consumer credits and sale of MPOS.
Successful items sold – Measure of the number of items that were sold/purchased through the
Successful 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
Operating margin – Defined as income from operations as a percentage of net revenues.
About
Founded in 1999,
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
Forward-Looking Statements
Any statements herein regarding
Consolidated Balance Sheets
(In thousands of
2021 | 2020 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 862,720 | $ | 1,856,394 | |||
Restricted cash and cash equivalents | 325,636 | 651,830 | |||||
Short-term investments (634,067 and 636,949 held in guarantee) | 980,076 | 1,241,306 | |||||
Accounts receivable, net | 64,815 | 49,691 | |||||
Credit cards receivable and other means of payments, net | 883,670 | 863,073 | |||||
Loans receivable, net | 416,600 | 385,036 | |||||
Prepaid expenses | 43,291 | 28,378 | |||||
Inventory | 131,460 | 118,140 | |||||
Other assets | 191,923 | 152,959 | |||||
Total current assets | 3,900,191 | 5,346,807 | |||||
Non-current assets: | |||||||
Long-term investments | 175,601 | 166,111 | |||||
Loans receivable, net | 18,849 | 16,619 | |||||
Property and equipment, net | 458,640 | 391,684 | |||||
Operating lease right-of-use assets | 345,313 | 303,214 | |||||
82,830 | 85,211 | ||||||
Intangible assets, net | 20,271 | 14,155 | |||||
Deferred tax assets | 124,272 | 134,916 | |||||
Other assets | 71,888 | 67,615 | |||||
Total non-current assets | 1,297,664 | 1,179,525 | |||||
Total assets | $ | 5,197,855 | $ | 6,526,332 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 612,206 | $ | 767,336 | |||
Funds payable to customers and amounts due to merchants | 1,527,971 | 1,733,095 | |||||
Salaries and social security payable | 193,166 | 207,358 | |||||
Taxes payable | 240,167 | 215,918 | |||||
Loans payable and other financial liabilities | 514,540 | 548,393 | |||||
Operating lease liabilities | 67,264 | 55,246 | |||||
Other liabilities | 49,635 | 108,534 | |||||
Total current liabilities | 3,204,949 | 3,635,880 | |||||
Non-current liabilities: | |||||||
Salaries and social security payable | 20,695 | 49,852 | |||||
Loans payable and other financial liabilities | 1,659,898 | 860,876 | |||||
Operating lease liabilities | 277,264 | 243,601 | |||||
Deferred tax liabilities | 41,233 | 64,354 | |||||
Other liabilities | 24,220 | 20,191 | |||||
Total non-current liabilities | 2,023,310 | 1,238,874 | |||||
Total liabilities | $ | 5,228,259 | $ | 4,874,754 | |||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, |
|||||||
49,852,319 and 49,869,727 shares issued and outstanding at |
|||||||
2021 and |
$ | 50 | $ | 50 | |||
Additional paid-in capital | 275,632 | 1,860,502 | |||||
(80,126 | ) | (54,805 | ) | ||||
Retained earnings | 280,103 | 314,115 | |||||
Accumulated other comprehensive loss | (506,063 | ) | (468,284 | ) | |||
Total Equity | (30,404 | ) | 1,651,578 | ||||
Total Liabilities and Equity | $ | 5,197,855 | $ | 6,526,332 |
Consolidated Statements of Income
For the three-month periods ended
(In thousands of
Three Months Ended |
|||||||
2021 | 2020 | ||||||
Net service revenues | $ | 1,230,904 | $ | 639,892 | |||
Net product revenues | 147,537 | 12,199 | |||||
Net revenues | 1,378,441 | 652,091 | |||||
Cost of net revenues | (787,064 | ) | (339,277 | ) | |||
Gross profit | 591,377 | 312,814 | |||||
Operating expenses: | |||||||
Product and technology development | (126,035 | ) | (73,435 | ) | |||
Sales and marketing | (288,159 | ) | (206,507 | ) | |||
General and administrative | (86,339 | ) | (62,566 | ) | |||
Total operating expenses | (500,533 | ) | (342,508 | ) | |||
Income (loss) from operations | 90,844 | (29,694 | ) | ||||
Other income (expenses): | |||||||
Interest income and other financial gains | 25,071 | 36,784 | |||||
Interest expense and other financial losses (*) | (91,289 | ) | (23,584 | ) | |||
Foreign currency losses | (15,089 | ) | (186 | ) | |||
Net income (loss) before income tax expense | 9,537 | (16,680 | ) | ||||
Income tax expense | (43,549 | ) | (4,429 | ) | |||
Net loss | $ | (34,012 | ) | $ | (21,109 | ) |
(*) | Includes |
Three Months Ended |
|||||||
2021 | 2020 | ||||||
Basic EPS | |||||||
Basic net loss | |||||||
Available to shareholders per common share | $ | (0.68 | ) | $ | (0.44 | ) | |
Weighted average of outstanding common shares | 49,867,625 | 49,709,955 | |||||
Diluted EPS | |||||||
Diluted net loss | |||||||
Available to shareholders per common share | $ | (0.68 | ) | $ | (0.44 | ) | |
Weighted average of outstanding common shares | 49,867,625 | 49,709,955 | |||||
Consolidated Statements of Cash Flows
For the three months ended
Three Months Ended |
|||||||
2021 | 2020 | ||||||
Cash flows from operations: | |||||||
Net loss | $ | (34,012 | ) | $ | (21,109 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Unrealized devaluation loss, net | 24,772 | 18,505 | |||||
Depreciation and amortization | 38,416 | 21,550 | |||||
Accrued interest | (4,045 | ) | (22,352 | ) | |||
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 34,137 | (3,632 | ) | ||||
Bad debt charges | 83,829 | 24,419 | |||||
Financial results on derivative instruments | (18,989 | ) | (16,767 | ) | |||
Stock-based compensation expense — restricted shares | 178 | 179 | |||||
LTRP accrued compensation | 22,916 | 15,664 | |||||
Deferred income taxes | 3,988 | (4,199 | ) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 21,064 | 19,748 | |||||
Credit cards receivables and other means of payments | (62,274 | ) | (33,303 | ) | |||
Prepaid expenses | (15,218 | ) | 8,560 | ||||
Inventory | (18,958 | ) | (5,272 | ) | |||
Other assets | (34,882 | ) | (5,796 | ) | |||
Payables and accrued expenses | (143,763 | ) | (43,101 | ) | |||
Funds payable to customers and amounts due to merchants | (106,866 | ) | (21,344 | ) | |||
Other liabilities | (62,768 | ) | (32,206 | ) | |||
Interest received from investments | 9,478 | 14,805 | |||||
Net cash used in operating activities | (262,997 | ) | (85,651 | ) | |||
Cash flows from investing activities: | |||||||
Purchase of investments | (2,415,091 | ) | (1,323,631 | ) | |||
Proceeds from sale and maturity of investments | 2,588,681 | 1,249,960 | |||||
Receipts from settlements of derivative instruments | 1,585 | 3,668 | |||||
Payment for acquired businesses, net of cash acquired | — | (7,561 | ) | ||||
Payment from settlements of derivative instruments | (3,897 | ) | — | ||||
Purchases of intangible assets | (7,805 | ) | (93 | ) | |||
Changes in principal of loans receivable, net | (148,734 | ) | (27,250 | ) | |||
Purchases of property and equipment | (112,672 | ) | (45,175 | ) | |||
Net cash used in investing activities | (97,933 | ) | (150,082 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from loans payable and other financial liabilities | 1,839,617 | 749,617 | |||||
Payments on loans payable and other financial liabilities | (704,307 | ) | (593,497 | ) | |||
Payments on repurchase of the 2028 Notes | (1,865,076 | ) | — | ||||
Payment of finance lease obligations | (3,863 | ) | (564 | ) | |||
Purchase of convertible note capped call | (100,769 | ) | — | ||||
Dividends paid of preferred stock | — | (1,000 | ) | ||||
Common Stock repurchased | (25,321 | ) | — | ||||
Net cash (used in) provided by financing activities | (859,719 | ) | 154,556 | ||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (99,219 | ) | (104,864 | ) | |||
Net decrease in cash, cash equivalents, restricted cash and cash equivalents | (1,319,868 | ) | (186,041 | ) | |||
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | $ | 2,508,224 | $ | 1,451,424 | |||
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | $ | 1,188,356 | $ | 1,265,383 |
Financial results of reporting segments
Three Months Ended |
||||||||||||||||||||
Other Countries | Total | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | 768,723 | $ | 297,236 | $ | 230,497 | $ | 81,985 | $ | 1,378,441 | ||||||||||
Direct costs | (618,037 | ) | (188,969 | ) | (220,906 | ) | (64,310 | ) | (1,092,222 | ) | ||||||||||
Direct contribution | 150,686 | 108,267 | 9,591 | 17,675 | 286,219 | |||||||||||||||
Operating expenses and indirect costs of net revenues | (195,375 | ) | ||||||||||||||||||
Income from operations | 90,844 | |||||||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest income and other financial gains | 25,071 | |||||||||||||||||||
Interest expense and other financial losses | (91,289 | ) | ||||||||||||||||||
Foreign currency losses | (15,089 | ) | ||||||||||||||||||
Net income before income tax expense | $ | 9,537 |
Three Months Ended |
||||||||||||||||||||
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 | ) |
Non-GAAP Financial Measures
To supplement our audited consolidated financial statements presented in accordance with
This non-GAAP measure should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
We provide this non-GAAP financial measure to enhance overall understanding of our current financial performance and its prospects for the future, and we understand that this measure provides useful information to both Management and investors. In particular, we believe that FX neutral measures 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 2020 and applying them to the corresponding months in 2021, 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, these measures do 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-months period ended
Three-month Periods Ended |
||||||||||||||||||||||
As reported | FX Neutral Measures | As reported | ||||||||||||||||||||
(In millions, except percentages) | 2021 | 2020 | Percentage Change | 2021 | 2020 | Percentage Change | ||||||||||||||||
Net revenues | $ | 1,378.4 | $ | 652.1 | 111.4 | % | $ | 1,684.9 | $ | 652.1 | 158.4 | % | ||||||||||
Cost of net revenues | (787.1 | ) | (339.3 | ) | 132.0 | % | (951.4 | ) | (339.3 | ) | 180.4 | % | ||||||||||
Gross profit | 591.4 | 312.8 | 89.1 | % | 733.5 | 312.8 | 134.5 | % | ||||||||||||||
Operating expenses | (500.5 | ) | (342.5 | ) | 46.1 | % | (623.7 | ) | (342.5 | ) | 82.1 | % | ||||||||||
Income (Loss) from operations | 90.8 | (29.7 | ) | 405.9 | % | 109.8 | (29.7 | ) | 469.5 | % |
(*) The table above may not total due to rounding.
CONTACT:
Investor Relations
http://investor.mercadolibre.com
Source: MercadoLibre, Inc.