Early Access

10-QPeriod: Q1 FY2024

MERCADOLIBRE INC Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 3, 2024For Securities:MELI

Summary

MercadoLibre Inc. (MELI) reported strong top-line growth in its first quarter of 2024, with total net revenues increasing by 36.0% year-over-year to $4.33 billion. This growth was primarily driven by a robust performance in Brazil, which saw a 56.9% increase in net revenues, and a significant rebound in Mexico, up 59.2%. The company's integrated ecosystem, encompassing e-commerce (Mercado Libre Marketplace) and fintech (Mercado Pago), continues to be a key growth driver. Commerce revenues grew by 48.9% and Fintech revenues by 21.7%, demonstrating the combined strength of both segments. Despite the overall positive financial results, the report highlights challenges, particularly in Argentina, where net revenues declined by 21.9% due to significant currency depreciation and high inflation, although local currency growth remained strong. The company also saw a decrease in gross profit margin from 50.7% to 46.7%, largely due to increased shipping operating and carrier costs as a percentage of revenue, as MELI continues to invest in its logistics network. Nevertheless, operating cash flow saw a substantial increase of 76.0%, indicating efficient cash generation from its operations.

Financial Highlights

49 data points
Beta

Revenue

$4.33B

0.5% Gross Margin

Net Income

$344.00M

0.1% Net Margin

EPS (Diluted)

$6.78

Total Assets

$19.06B

Cash & Equivalents

$2.58B

Free Cash Flow

$1.37B

Financial Statements
Beta
Revenue$4.33B
Cost of Revenue$2.31B
Gross Profit$2.02B
R&D Expenses$458.00M
Operating Expenses$1.50B
Operating Income$528.00M
Net Income$344.00M
EPS (Basic)$6.78
EPS (Diluted)$6.78
Shares Outstanding (Basic)50.70M
Shares Outstanding (Diluted)50.70M

Key Highlights

  • 1Total net revenues grew 36.0% year-over-year to $4.33 billion, driven by strong performance in key markets.
  • 2Brazil remains the largest segment, with net revenues surging 56.9%, followed by Mexico with a 59.2% increase.
  • 3Commerce segment revenues increased by 48.9%, fueled by a 20.5% rise in gross merchandise volume and increased shipped items.
  • 4Fintech segment revenues grew 21.7%, supported by a 34.5% increase in total payment volume and higher credit originations.
  • 5Argentina experienced a 21.9% decline in net revenues due to currency depreciation, despite strong local currency growth.
  • 6Gross profit margin decreased to 46.7% from 50.7% year-over-year, primarily due to higher shipping-related costs.
  • 7Net cash provided by operating activities significantly increased by 76.0% to $1.51 billion.

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