10-QPeriod: Q1 FY2017

MERCADOLIBRE INC Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 5, 2017For Securities:MELI

Summary

MercadoLibre, Inc. (MELI) reported strong first-quarter 2017 results, demonstrating significant year-over-year growth in net revenues, up 73.8% to $273.9 million. This growth was fueled by robust performance across its marketplace and non-marketplace segments, with key operational metrics such as gross merchandise volume (GMV) and total payment volume showing substantial increases. The company also saw a notable improvement in operating income, which rose to 23.1% of net revenues, up from 19.3% in the prior year's quarter, reflecting improved operational efficiencies and controlled operating expenses. Financially, MELI maintained a strong balance sheet with total assets of $1.48 billion and total equity of $482.2 million as of March 31, 2017. Cash and cash equivalents saw a healthy increase, ending the quarter at $301.4 million. While the company continues to invest in growth, including product development and expanding its service offerings like MercadoPago and MercadoEnvios, these investments are yielding positive financial outcomes, positioning MELI for continued expansion in the Latin American e-commerce market.

Financial Highlights

52 data points
Beta

Revenue

$269.68M

62.6% Gross Margin

Net Income

$48.52M

18.0% Net Margin

EPS (Diluted)

$1.10

Total Assets

$1.48B

Cash & Equivalents

$301.39M

Free Cash Flow

$94.49M

Financial Statements
Beta
Revenue$269.68M
Cost of Revenue$100.82M
Gross Profit$168.86M
Operating Expenses$105.54M
Operating Income$63.31M
Interest Expense$4.59M
Net Income$48.52M
EPS (Basic)$1.10
EPS (Diluted)$1.10
Shares Outstanding (Basic)44.16M
Shares Outstanding (Diluted)44.16M

Key Highlights

  • 1Net revenues surged by 73.8% year-over-year to $273.9 million for the first quarter of 2017.
  • 2Gross merchandise volume (GMV) increased by 31.0% to $2.33 billion.
  • 3Total payment volume (TPV) experienced a significant increase of 89.0% to $2.60 billion.
  • 4Operating income margin improved to 23.1% from 19.3% in the prior year's quarter.
  • 5Cash and cash equivalents increased by 28.7% to $301.4 million.
  • 6Brazil was the strongest performing segment, with net revenues growing 106.1% year-over-year.
  • 7The company declared a quarterly cash dividend of $0.15 per share.

Frequently Asked Questions

MercadoLibre's net revenues increased by 73.8% year-over-year, reaching $273.9 million in the first quarter of 2017.

Gross merchandise volume (GMV) grew by 31.0% to $2.33 billion, and total payment volume (TPV) increased by 89.0% to $2.60 billion. The number of successful items shipped also saw a substantial increase of 58.7%.

As of March 31, 2017, MercadoLibre reported cash and cash equivalents of $301.4 million and short-term investments of $265.2 million, indicating a strong liquidity position.

The report highlights potential risks including economic conditions in Latin America, currency devaluations (especially in Venezuela), government regulations, litigation, and competition. The company also notes the complexities of operating in Venezuela due to its highly inflationary economy and currency controls.