01—Abstract
Summary
Summary of the 10-Q filed November 4, 2011. Cited figures are marked; the original filing is the authoritative source.
MercadoLibre Inc. (MELI) reported strong financial performance for the nine-month period ending September 30, 2011, demonstrating robust revenue growth and improved profitability.
Net revenues increased by 37.6% year-over-year to $212.5 milliona, driven by a significant expansion in gross merchandise volume (GMV) and an increase in items sold across its key Latin American markets. The company also saw a substantial rise in income from operations, which grew by 32% to $70.8 million, reflecting effective cost management relative to revenue growth. The balance sheet shows a healthy increase in total assets to $325.3 million, bolstered by a significant rise in short-term investments and property and equipment.
Equity also saw substantial growth, increasing by over $36 million to $207.9 millionb, driven by retained earnings and a reduction in accumulated other comprehensive loss. The company continues to generate strong positive cash flow from operations, totaling $62.3 million for the nine-month period, indicating a solid ability to fund its ongoing business activities and investments.
02—Key points
Key Highlights
- Net revenues surged 37.6% year-over-year to $212.5 million for the nine-month period, indicating strong market traction.
- Gross merchandise volume (GMV) increased by 39.4% year-over-year for the nine-month period, reflecting growth in platform activity.
- Income from operations rose 32% to $70.8 million for the nine-month period, showcasing improved operational efficiency.
- Total assets grew to $325.3 million as of September 30, 2011, driven by increases in cash, short-term investments, and property and equipment.
- Total equity increased to $207.9 million, primarily due to strong retained earnings growth.
- Cash flow from operations remained robust at $62.3 million for the nine-month period, supporting business expansion and investment.
- The company successfully acquired 60% of Autopark LLC in September 2011, expanding its classifieds business in Mexico.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2011, Mercadolibre Inc kept $0.32.
- Revenue$81.6M100.0%
- Cost of revenue−$20.1M24.6%
- Gross profit$61.6M75.4%
- Operating costs−$31.6M38.7%
- Operating income$30.0M36.7%
- Interest, other & tax−$3.7M4.5%
- Net income$26.3M32.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2011filed November 4, 2011Financial Statements
Q3 FY2011 against Q3 FY2010
| Line item | Q3 FY2011Q3 FY2010 | Change |
|---|---|---|
| Revenue | $81.63M$55.95M | +45.9% |
| Cost of Revenue | $20.06M$11.45M | +75.2% |
| Gross Profit | $61.57M$44.50M | +38.4% |
| Operating Expenses | $31.60M$25.19M | +25.5% |
| Operating Income | $29.96M$19.31M | +55.2% |
| Interest Expense | $1.05M$568K | +85.4% |
| Net Income | $26.30M$18.79M | +39.9% |
| EPS (Basic) | $0.60$0.43 | +39.5% |
| EPS (Diluted) | $0.60$0.43 | +39.5% |
| Shares Outstanding (Basic) | 44.14M44.13M | 0.0% |
| Shares Outstanding (Diluted) | 44.15M44.15M | 0.0% |
05—Questions
Frequently Asked Questions
What was MercadoLibre's revenue growth in the nine-month period ending September 30, 2011?
MercadoLibre's net revenues grew by 37.6% to $212.5 million for the nine-month period ended September 30, 2011, compared to the same period in 2010. This growth was primarily driven by a 39.4% increase in Gross Merchandise Volume (GMV).
How did MercadoLibre's profitability change in this period?
Profitability improved significantly, with income from operations increasing by 32% to $70.8 million for the nine-month period. Net income also saw a substantial rise of 37.6% to $55.2 million.
What is the company's financial position regarding assets and equity?
Total assets increased to $325.3 million as of September 30, 2011, up from $269.7 million at the end of 2010. Total equity grew to $207.9 million from $171.7 million, primarily due to an increase in retained earnings.
Did MercadoLibre make any significant acquisitions during this quarter?
Yes, on September 14, 2011, MercadoLibre completed the acquisition of 60% of Autopark LLC, which operates online classified advertisement platforms in Mexico (autoplaza.com.mx and homeshop.com.mx), for a total purchase price of $5.5 million.
06—Continue