Early Access

10-QPeriod: Q1 FY2010

MERCADOLIBRE INC Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 7, 2010For Securities:MELI

Summary

MercadoLibre, Inc. (MELI) reported its first-quarter financial results for the period ending March 31, 2010. The company demonstrated strong top-line growth, with net revenues increasing by 42.1% year-over-year to $45.9 million. This growth was driven by a robust performance in both its Marketplace and Payments segments, with the Payments business showing particularly rapid expansion at over 103% year-over-year. The company also showed significant improvement in profitability, with income from operations increasing substantially and net income growing by 78.5% to $9.6 million. Despite some currency headwinds, particularly in Venezuela, MELI continues to expand its user base and transaction volumes across its key Latin American markets. Investors should note the accelerating contribution of the Payments segment to overall revenue, indicating a successful diversification strategy.

Financial Statements
Beta
Revenue$45.94M
Cost of Revenue$9.89M
Gross Profit$36.04M
Operating Expenses$20.54M
Operating Income$15.50M
Net Income$9.62M
EPS (Basic)$0.22
EPS (Diluted)$0.22
Shares Outstanding (Basic)44.11M
Shares Outstanding (Diluted)44.15M

Key Highlights

  • 1Net revenues increased by 42.1% year-over-year to $45.9 million.
  • 2The Payments segment experienced significant growth, with revenues up 103.2% year-over-year.
  • 3Net income grew by 78.5% year-over-year to $9.6 million.
  • 4Income from operations rose substantially, reflecting improved operating leverage.
  • 5Confirmed registered users increased to 44.9 million, up from 35.7 million in the prior year.
  • 6Gross merchandise volume (GMV) grew by 40.4% year-over-year.
  • 7The company's Venezuelan operations experienced a significant revenue decrease in USD terms due to currency re-measurement, though local currency growth was strong.

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