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10-QPeriod: Q3 FY2011

MERCADOLIBRE INC Quarterly Report for Q3 Ended Sep 30, 2011

Filed November 4, 2011For Securities:MELI

Summary

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 million, 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 million, 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.

Financial Statements
Beta
Revenue$81.63M
Cost of Revenue$20.06M
Gross Profit$61.57M
Operating Expenses$31.60M
Operating Income$29.96M
Interest Expense$1.05M
Net Income$26.30M
EPS (Basic)$0.60
EPS (Diluted)$0.60
Shares Outstanding (Basic)44.14M
Shares Outstanding (Diluted)44.15M

Key Highlights

  • 1Net revenues surged 37.6% year-over-year to $212.5 million for the nine-month period, indicating strong market traction.
  • 2Gross merchandise volume (GMV) increased by 39.4% year-over-year for the nine-month period, reflecting growth in platform activity.
  • 3Income from operations rose 32% to $70.8 million for the nine-month period, showcasing improved operational efficiency.
  • 4Total assets grew to $325.3 million as of September 30, 2011, driven by increases in cash, short-term investments, and property and equipment.
  • 5Total equity increased to $207.9 million, primarily due to strong retained earnings growth.
  • 6Cash flow from operations remained robust at $62.3 million for the nine-month period, supporting business expansion and investment.
  • 7The company successfully acquired 60% of Autopark LLC in September 2011, expanding its classifieds business in Mexico.

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