Bulletin
Investor Alert

New York Markets Open in:

Aug. 8, 2019, 2:18 p.m. EDT

MercadoLibre, Inc. Reports Second Quarter 2019 Financial Results

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    MercadoLibre Inc. (MELI)

or Cancel Already have a watchlist? Log In

Unique Sellers - New or existing users with at least one new listing in the period, including Classifieds users.

About MercadoLibre

Founded in 1999, MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of the necessary online and technology- based tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform (including online classifieds for motor vehicles, vessels, aircraft, services and real estate), which allows users to buy and sell in most of Latin America.

The Company is listed on NASDAQ /zigman2/quotes/200678442/composite MELI -3.11% following its initial public offering in 2007.

For more information about the Company visit: http://investor.mercadolibre.com .

The MercadoLibre, Inc. logo is available at https://resource.globenewswire.com/Resource/Download/6ab227b7-693f-4b17-b80c-552ae45c76bf?size=0

Forward-Looking Statements

Any statements herein regarding MercadoLibre, Inc. that are not historical or current facts are forward-looking statements. These forward-looking statements convey MercadoLibre, Inc.'s current expectations or forecasts of future events. Forward-looking statements regarding MercadoLibre, Inc. involve known and unknown risks, uncertainties and other factors that may cause MercadoLibre, Inc.'s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors," "Forward-Looking Statements" and "Cautionary Note Regarding Forward-Looking Statements" sections of MercadoLibre, Inc.'s annual report on Form 10-K for the year ended December 31, 2018, and any of MercadoLibre, Inc.'s other applicable filings with the Securities and Exchange Commission. Unless required by law, MercadoLibre, Inc. undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

MercadoLibre, Inc.

Consolidated Balance Sheets

(In thousands of U.S. dollars, except par value)







        
                                                                                                                                                                      June 30,         December 31,
                                                                                                                                                                         2019               2018
        Assets
        Current assets:
        Cash and cash equivalents                                                                                                                                     $  1,118,662     $    440,332
        Restricted cash and cash equivalents                                                                                                                             9,660              24,363
        Short-term investments (339,299 and 284,317 held in guarantee)                                                                                                   1,789,354          461,541
        Accounts receivable, net                                                                                                                                         40,175             35,153
        Credit cards receivable, net                                                                                                                                     433,046            360,298
        Loans receivable, net                                                                                                                                            192,881            95,778
        Prepaid expenses                                                                                                                                                 18,618             27,477
        Inventory                                                                                                                                                        5,950              4,612
        Other assets                                                                                                                                                     68,086             61,569
        Total current assets                                                                                                                                             3,676,432          1,511,123
        Non-current assets:
        Long-term investments                                                                                                                                            207,047            276,136
        Property and equipment, net                                                                                                                                      216,005            165,614
        Operating lease right-of-use assets                                                                                                                              157,843            --
        Goodwill                                                                                                                                                         90,375             88,883
        Intangible assets, net                                                                                                                                           16,808             18,581
        Deferred tax assets                                                                                                                                              184,926            141,438
        Other assets                                                                                                                                                     46,056             37,744
        Total non-current assets                                                                                                                                         919,060            728,396
        Total assets                                                                                                                                                  $  4,595,492     $    2,239,519
        Liabilities
        Current liabilities:
        Accounts payable and accrued expenses                                                                                                                         $  314,703       $    266,759
        Funds payable to customers                                                                                                                                       778,128            640,954
        Salaries and social security payable                                                                                                                             78,007             60,406
        Taxes payable                                                                                                                                                    45,672             31,058
        Loans payable and other financial liabilities                                                                                                                    162,983            132,949
        Operating lease liabilities                                                                                                                                      13,957             --
        Other liabilities                                                                                                                                                56,059             34,098
        Total current liabilities                                                                                                                                        1,449,509          1,166,224
        Non-current liabilities:
        Salaries and social security payable                                                                                                                             23,648             23,161
        Loans payable and other financial liabilities                                                                                                                    619,670            602,228
        Operating lease liabilities                                                                                                                                      147,555            --
        Deferred tax liabilities                                                                                                                                         98,997             91,698
        Other liabilities                                                                                                                                                11,501             19,508
        Total non-current liabilities                                                                                                                                    901,371            736,595
        Total liabilities                                                                                                                                             $  2,350,880     $    1,902,819
        Commitments and Contingencies (Note 7)
        Redeemable convertible preferred stock, $0.001 par value, 40,000,000 shares authorized, 100,000 shares issued and outstanding at June 30, 2019 (Note
		 10)      $  98,843        $    --
        Equity
        Common stock, $0.001 par value, 110,000,000 shares authorized, 49,318,543 and 45,202,859 shares issued and outstanding at June 30, 2019 and December
		 31, 2018 $  49            $    45
        Additional paid-in capital                                                                                                                                       2,009,497          224,800
        Retained earnings                                                                                                                                                524,672            503,432
        Accumulated other comprehensive loss                                                                                                                             (388,449  )        (391,577  )
        Total Equity                                                                                                                                                     2,145,769          336,700
        Total Liabilities, Redeemable convertible preferred stock and Equity                                                                                          $  4,595,492     $    2,239,519
        


MercadoLibre, Inc.

Consolidated Statements of Income

For the six and three month periods ended June 30, 2019 and 2018

(In thousands of U.S. dollars, except for share data)







                                                    Six Months Ended June 30,            Three Months Ended June 30,
                                                        2019               2018              2019              2018
        Net revenues                                $   1,019,012      $   656,353       $   545,242       $   335,377
        Cost of net revenues                            (509,578  )        (333,847 )        (272,812 )        (175,629 )
        Gross profit                                    509,434            322,506           272,430           159,748
        Operating expenses:
        Product and technology development              (106,292  )        (71,833  )        (53,923  )        (33,437  )
        Sales and marketing                             (311,368  )        (231,939 )        (180,692 )        (121,216 )
        General and administrative                      (94,123   )        (76,395  )        (50,303  )        (33,337  )
        Total operating expenses                        (511,783  )        (380,167 )        (284,918 )        (187,990 )
        Loss from operations                            (2,349    )        (57,661  )        (12,488  )        (28,242  )
        Other income (expenses):
        Interest income and other financial gains       58,128             19,110            33,684            9,915
        Interest expense and other financial losses     (30,238   )        (23,936  )        (14,679  )        (13,202  )
        Foreign currency (losses) gains                 (2,886    )        18,178            783               12,577
        Net income (loss) before income tax gain        22,655             (44,309  )        7,300             (18,952  )
        Income tax gain                                 5,426              20,138            8,917             7,700
        Net income (loss)                           $   28,081         $   (24,171  )    $   16,217        $   (11,252  )
        








                                                      Six Months Ended June 30,              Three Months Ended June 30,
                                                      2019                  2018             2019                  2018
        Basic EPS
        Basic net income (loss)
        Available to shareholders per common share    $    0.45        $    (0.55      )     $    0.31        $    (0.25      )
        Weighted average of outstanding common shares      47,658,610       44,157,364            49,318,522       44,157,364
        Diluted EPS
        Diluted net income (loss)
        Available to shareholders per common share    $    0.45        $    (0.55      )     $    0.31        $    (0.25      )
        Weighted average of outstanding common shares      47,658,610       44,157,364            49,318,522       44,157,364
        


MercadoLibre, Inc.

Consolidated Statement of Cash Flows

For the six month periods ended June 30, 2019 and 2018







        
                                                                                                                      Six Months Ended June 30,
                                                                                                                          2019                2018
        Cash flows from operations:
        Net income (loss)                                                                                             $   28,081          $   (24,171    )
        Adjustments to reconcile net income (loss) to net cash provided by operating activities:
        Unrealized devaluation loss, net                                                                                  13,366              6,976
        Depreciation and amortization                                                                                     32,975              22,566
        Accrued interest                                                                                                  (24,753    )        (7,845     )
        Non cash interest and convertible notes amortization of debt discount and amortization of debt issuance costs     11,140              9,684
        LTRP accrued compensation                                                                                         32,208              16,792
        Deferred income taxes                                                                                             (34,743    )        (54,818    )
        Changes in assets and liabilities:
        Accounts receivable                                                                                               (6,900     )        (21,807    )
        Credit card receivables                                                                                           (61,562    )        97,097
        Prepaid expenses                                                                                                  8,857               (10,143    )
        Inventory                                                                                                         (1,191     )        (6,299     )
        Other assets                                                                                                      (12,651    )        (24,441    )
        Payables and accrued expenses                                                                                     41,798              42,771
        Funds payable to customers                                                                                        118,421             32,513
        Other liabilities                                                                                                 3,587               20,213
        Interest received from investments                                                                                17,292              8,066
        Net cash provided by operating activities                                                                         165,925             107,154
        Cash flows from investing activities:
        Purchase of investments                                                                                           (2,332,544 )        (1,248,452 )
        Proceeds from sale and maturity of investments                                                                    1,086,461           1,390,713
        Purchases of intangible assets                                                                                    (34        )        (242       )
        Advance for property and equipment                                                                                --                  (4,426     )
        Changes in principal of loans receivable, net                                                                     (97,468    )        (66,629    )
        Purchases of property and equipment                                                                               (71,361    )        (42,092    )
        Net cash (used in) provided by investing activities                                                               (1,414,946 )        28,872
        Cash flows from financing activities:
        Purchase of convertible note capped call                                                                          (88,362    )        (45,692    )
        Proceeds from loans payable and other financial liabilities                                                       95,603              146,666
        Payments on loans payable and other financing liabilities                                                         (55,236    )        (14,893    )
        Payment of finance lease obligations                                                                              (889       )        --
        Dividends paid                                                                                                    --                  (6,624     )
        Dividends paid of preferred stock                                                                                 (844       )        --
        Proceeds from issuance of convertible redeemable preferred stock, net                                             98,688              --
        Proceeds from issuance of common stock, net                                                                       1,867,215           --
        Net cash provided by financing activities                                                                         1,916,175           79,457
        Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents                   (3,527     )        (79,732    )
        Net increase in cash, cash equivalents, restricted cash and cash equivalents                                      663,627             135,751
        Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period                         $   464,695         $   388,260
        Cash, cash equivalents, restricted cash and cash equivalents, end of the period                               $   1,128,322       $   524,011
        


Financial results of reporting segments







                                                               Three Months Ended June 30, 2019
                                                               Brazil          Argentina        Mexico          Other Countries  Total
                                                               (In thousands)
        Net revenues                                           $  340,858      $   113,913      $  64,383       $     26,088     $ 545,242
        Direct costs                                              (275,917 )       (83,909 )       (85,216 )          (24,441 )    (469,483 )
        Direct contribution                                       64,941           30,004          (20,833 )          1,647        75,759
        Operating expenses and indirect costs of net revenues                                                                      (88,247  )
        Loss from operations                                                                                                       (12,488  )
        Other income (expenses):
        Interest income and other financial gains                                                                                  33,684
        Interest expense and other financial losses                                                                                (14,679  )
        Foreign currency gains                                                                                                     783
        Net income before income tax gain                                                                                        $ 7,300
        








        
                                                               Three Months Ended June 30, 2018
                                                               Brazil          Argentina        Mexico          Other Countries  Total
                                                               (In thousands)
        Net revenues                                           $  195,839      $   100,110      $  17,540       $     21,888     $ 335,377
        Direct costs                                              (176,987 )       (68,051 )       (39,534 )          (21,088 )    (305,660 )
        Direct contribution                                       18,852           32,059          (21,994 )          800          29,717
        Operating expenses and indirect costs of net revenues                                                                      (57,959  )
        Loss from operations                                                                                                       (28,242  )
        Other income (expenses):
        Interest income and other financial gains                                                                                  9,915
        Interest expense and other financial losses                                                                                (13,202  )
        Foreign currency gains                                                                                                     12,577
        Net loss before income tax gain                                                                                          $ (18,952  )
        


Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use foreign exchange ("FX") neutral measures.

This non-GAAP measure should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP and may be different from non-GAAP measures used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. This non-GAAP financial measure should only be used to evaluate our results of operations in conjunction with the most comparable U.S. GAAP financial measures.

Reconciliation of this non-GAAP financial measure to the most comparable U.S. GAAP financial measures can be found in the tables included in this quarterly report.

The Company believes that reconciliation of FX neutral measures to the most directly comparable GAAP measure provides investors an overall understanding of our current financial performance and its prospects for the future. Specifically, we believe this non-GAAP measure provide useful information to both management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.

The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2018 and applying them to the corresponding months in 2019, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. The table below excludes intercompany allocation FX effects. Finally, this measure does not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.

The following table sets forth the FX neutral measures related to our reported results of the operations for the three-month period ended June 30, 2019:







                                           Three-month Periods Ended
                                           June 30, (*)
                                           As reported                                FX Neutral Measures  As reported
        (In millions, except percentages)    2019        2018      Percentage Change         2019              2018        Percentage Change
                                           (Unaudited)                                (Unaudited)
        Net revenues                       $ 545.2     $ 335.4     62.6     %         $      677.9         $   335.4       102.1    %
        Cost of net revenues                 (272.8 )    (175.6 )  55.3     %                (345.0 )          (175.6 )    96.4     %
        Gross profit                         272.4       159.7     70.5     %                332.9             159.7       108.4    %
        Operating expenses                   (284.9 )    (188.0 )  51.6     %                (384.9 )          (188.0 )    104.8    %
        Loss from operations                 (12.5  )    (28.2  )  -55.8    %                (52.0  )          (28.2  )    84.3     %
        


(*) The table above may not total due to rounding.

CONTACT: MercadoLibre, Inc.

Investor Relations

investor@mercadolibre.com

http://investor.mercadolibre.com

https://ml.globenewswire.com/media/6ab227b7-693f-4b17-b80c-552ae45c76bf/small/mercadolibre-inc-logo.jpg

(C) Copyright 2019 GlobeNewswire, Inc. All rights reserved.

/zigman2/quotes/200678442/composite
US : U.S.: Nasdaq
$ 533.01
-17.09 -3.11%
Volume: 624,880
Nov. 18, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.35 billion
Rev. per Employee
$198,875
loading...

1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.