| From: Savant | 8/9/2018 10:30:16 AM | | | | | | MELI nice pop today>>> MercadoLibre, Inc. Reports Second Quarter 2018 Financial Results
85.4 million Items Sold, up 38.8%,
85.5 million Total Payment Transactions, up 64.0%
Net Revenues of $335.4 million, up 43.7% on an FX neutral basis
BUENOS AIRES, Argentina, Aug. 08, 2018 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com), Latin America's leading e-commerce technology company, today reported financial results for the quarter ended June 30, 2018.
Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, "The outlook for our industry is as positive as ever, and our investment thesis remains intact. The internet is rapidly becoming a driving force that is increasing the pace of modernization in Latin America. This modernization presents us with the opportunity to turn a history of underdeveloped infrastructure in the areas of retail and banking from a disadvantage into an advantage, as it allows for innovation to flourish unencumbered by existing legacy players."
Second Quarter 2018 Business Highlights
-- Gross merchandise volume again surpassed $3 billion, reaching $3.1 billion, a 15.2% year-over-year increase in USD, and a 35.9% year-over-year increase on an FX neutral basis, representing the fifth consecutive quarter of growth. -- Items sold increased for the second consecutive quarter to 85.4 million, a 38.8% year-over-year increase, delivering solid growth. -- Unique buyers grew 16.0% year-over-year versus 28.0% in the first quarter. This declining growth rate is attributable primarily to the price increases from our major postal partner, and the May truckers strike that lasted ten days and had a negative impact on e-commerce in Brazil. This deceleration in unique buyers growth in Brazil was partially offset by unique buyer growth rates in Mexico, Colombia, Chile and Argentina, where growth rates in unique buyers exceeded 20%. -- Live listings offered on Mercado Libre's marketplace grew to 154.8 million in the second quarter of 2018, a 56.4% year-over-year increase, surpassing for the first time ever the 150 million mark. -- We continue to transition to being a mobile first company, as mobile gross merchandize volume "GMV" penetration grew 28.1% year-over-year reaching 55.5% mobile penetration. -- Items shipped through MercadoEnv?os reached 52.8 million, a 58.1% year-over-year increase, driven primarily by increasing our free shipping options, strong marketing of our loyalty program and customer acquisition initiatives. Items shipped in Argentina, Mexico, Chile and Colombia were highlights of the quarter, growing 73%, 135%, 440%, and 166% respectively year-over-year. -- Total payment volume through MercadoPago reached $4.4 billion, a year-over-year increase of 40.4% in USD and 66.3% on an FX neutral basis. Total payment transactions increased 64.1% year-over-year, totaling 85.5 million for the quarter. -- We continue to successfully execute off-platform payments efforts (both online and offline) though merchant services, mPos, and mobile wallet businesses. On a consolidated basis, off-platform total payment volume grew 96.7% year-over-year in USD and 142.4% on an FX neutral basis. -- Our mobile-point-of-sale business quickly becoming one of our fastest growing non-marketplace business units, representing 43.3% of total off-platform payment volume for the quarter.
Adoption of ASC 606
-- Effective January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers related to revenue recognition ("ASC 606") issued by the Financial Accounting Standards Board ("FASB"). The Company has adopted ASC 606 using the full retrospective transition method and has accordingly revised its consolidated financial statements for the year ended December 31, 2017, and applicable interim periods within the year ended December 31, 2017, as if ASC 606 had been effective for those periods. Because the Company did not offer free shipping in 2016, net revenue for that year does not need to be recast. -- As a result of adopting ASC 606, the Company must present net revenue net of amounts paid in connection with the Company's free shipping initiative rather than including these amounts in the cost of net sales, as previously recorded. For the three-month period ended June 30, 2018 the Company incurred $97 million of shipping subsidies that have been netted from revenues. -- As a result of adopting ASC 606, our net revenues for the periods indicated below have been recast as presented below. Our adoption of 606 does not affect our operating or net income/loss. In millions Gross billings H1 2017* H1 2018** Q2 2017* Q2 2018** $ 590.5 $ 865.5 $ 316.5 $ 432.0 In millions Adjustments (Decrease) H1 2017* H1 2018** Q2 2017* Q2 2018** $ 36.9 $ 209.2 $ 32.6 $ 96.6 In millions Net Revenues H1 2017* H1 2018** Q2 2017* Q2 2018** $ 553.6 $ 656.4 $ 283.9 $ 335.4 *As Recast **As Reported (*) The table above may not total due to rounding.
The tables below present our gross billing and amounts paid by us in connection with our free shipping service.
In millions H1 H1 Q2 2017 2018 2017 Q2 2018 Gross billings Brazil $339.8 $ 546.8 $180.1 $ 270.5 Argentina $159.4 $ 211.9 $ 88.0 $ 105.9 Mexico $ 35.7 $ 60.7 $ 20.2 $ 31.3 Venezuela $ 28.6 $ -- $ 14.2 $ -- Others $ 26.9 $ 46.1 $ 14.1 $ 24.3 In millions Adjustments H1 H1 Q2 (Decrease) 2017 2018 2017 Q2 2018 Brazil $ 22.9 $ 166.8 $ 22.9 $ 74.7 Argentina $ -- $ 9.9 $ -- $ 5.7 Mexico $ 13.6 $ 26.1 $ 9.4 $ 13.8 Venezuela $ -- $ -- $ -- $ -- Others $ 0.4 $ 6.4 $ 0.4 $ 2.4 In millions H1 H1 Q2 Net Revenues 2017* 2018** 2017* Q2 2018** Brazil $317.0 $ 380.0 $157.2 $ 195.8 Argentina $159.4 $ 202.0 $ 88.0 $ 100.1 Mexico $ 22.1 $ 34.6 $ 10.8 $ 17.5 Venezuela $ 28.6 $ -- $ 14.2 $ -- Others $ 26.5 $ 39.7 $ 13.8 $ 21.9 *As Recast **As Reported (*) The table above may not total due to rounding.
Second Quarter 2018 Financial Highlights
-- Net revenues for the second quarter grew to $335.4 million, a year-over-year increase of 18.1% in USD and 43.7% on an FX neutral basis. -- Enhanced marketplace revenues decreased 13.2% year-over-year in USD, and 0.4% on an FX neutral basis, while non-marketplace revenues increased 72.5% year-over-year in USD and 107.5% on an FX neutral basis. -- Gross profit was $159.7 million with a margin of 47.6%, compared to 60.4% in the second quarter of 2017. Most of the gross margin compression is attributed to an increase in free shipping subsidies. -- Total operating expenses were $188.0 million, up 32.8% year-over-year. As a percentage of revenues, operating expenses were 56.1%, as compared to 49.9% during the second quarter of 2017. -- Loss from operations was $28.2 million, down 194.1% year-over-year. As a percentage of revenues, loss from operations was 8.4%, as compared to a gain of 10.6% during the second quarter of 2017. -- Interest income was $9.9 million, a 7.0% decrease year-over-year as a result of lower interest rates in Brazil as well as a lower float in Brazil and Argentina. -- The company incurred $13.2 million in financial expenses in the second quarter of 2018 mostly related to working capital funding for the payments businesses and to interest accrual on our convertible bond issued in 2014. -- Net loss before taxes was $19.0 million, down 252.6% year-over-year. -- Income tax gain was $7.7 million during the second quarter, yielding a blended tax rate for the period of 40.6%. -- Net loss as reported for the second quarter was $11.3 million, resulting in basic net loss per share of $0.25. -- Operating cash flow was $144.2 million. Net decrease in cash, restricted cash and cash equivalents was $173.6 million in during the second quarter of 2018. |
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| From: Savant | 8/21/2018 9:28:02 AM | | | | | | MercadoLibre Announces $800 Million Convertible Senior Note Offering
BUENOS AIRES, Argentina, Aug. 20, 2018 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) today announced that it intends to offer, subject to market and other conditions, US$800 million aggregate principal amount of Convertible Senior Notes due 2028 (the "notes"). MercadoLibre expects to grant the initial purchasers a 13-day option to purchase up to an additional US$120 million principal amount of notes.
The notes will pay interest semiannually and will mature on August 15, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to February 15, 2028, the notes will be convertible at the option of holders of the notes only upon satisfaction of certain conditions and during certain periods, while after February 15, 2028 the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, holders of the notes will receive shares of MercadoLibre's common stock, cash or a combination thereof, at MercadoLibre's election. The interest rate, initial conversion rate and other terms of the notes will be determined by negotiations between MercadoLibre and the initial purchasers of the notes at the time of the pricing of the offering.
MercadoLibre will not have the right to redeem the notes prior to August 21, 2023. On or after August 21, 2023, if the last reported sale price of MercadoLibre's common stock has been at or above 130% of the conversion price during specified periods, MercadoLibre may (at its option) redeem all or any portion of the notes for cash equal to the notes' principal amount plus accrued and unpaid interest to, but excluding, the redemption date.
In connection with the pricing of the notes, MercadoLibre intends to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the notes or their respective affiliates or other financial institutions (the "option counterparties"), expiring in 2023. The capped call transactions are expected to cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of MercadoLibre's common stock underlying the notes and are expected generally to reduce potential dilution to MercadoLibre's common stock upon any conversion of notes prior to the expiration date and/or offset any cash payments MercadoLibre is required to make in excess of the principal amount of any such converted notes, as the case may be, in the event that the market price per share of MercadoLibre's common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions (which is initially expected to correspond to the initial conversion price of the notes and be subject to certain adjustments substantially similar to those contained in the notes). If, however, the market price per share of MercadoLibre's common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, upon exercise of the options that are a part of the capped call transactions to the extent that such market price exceeds the cap price of the capped call transactions. In addition, to the extent any observation period for any converted notes does not correspond to the period during which the market price of MercadoLibre's common stock is measured under the terms of the capped call transactions, there could also be dilution and/or a reduced offset of any such cash payments as a result of the different measurement periods. If the initial purchasers of the notes exercise their option to purchase additional notes, MercadoLibre expects to enter into additional capped call transactions with the option counterparties. In addition, to the extent the notes remain outstanding at the expiration of the capped call transactions, MercadoLibre may seek to extend the expiration of these capped call transactions or enter into new capped call transactions.
MercadoLibre has been advised that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of MercadoLibre's common stock and/or enter into various derivative transactions with respect to MercadoLibre's common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of MercadoLibre's common stock or the notes at that time.
In addition, MercadoLibre has been advised that the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to MercadoLibre's common stock and/or purchasing or selling MercadoLibre's common stock or other securities of MercadoLibre in secondary market transactions following the pricing of the notes and prior to final settlement of the capped call transactions. This activity could also cause or avoid an increase or a decrease in the market price of MercadoLibre's common stock or the notes, which could affect the ability of holders of the notes to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares and value of the consideration that holders of the notes will receive upon conversion of the notes.
The options MercadoLibre holds under the capped call transactions will be exercised on their expiration date, and in the event MercadoLibre repurchases, exchanges or redeems any notes or any notes are converted prior to the expiration of the capped call transactions, a corresponding portion of the capped call transactions may be terminated at MercadoLibre's option. MercadoLibre has been advised that the option counterparties or their respective affiliates, in order to unwind their hedge positions with respect to those exercised or terminated options, are likely to buy or sell shares of MercadoLibre's common stock or other securities or instruments of MercadoLibre, including the notes, in secondary market transactions or unwind various derivative transactions with respect to such common stock during the relevant valuation period under the capped call transactions, which may correspond to any observation period for any converted notes. These unwind activities could have the effect of increasing or decreasing the trading price of MercadoLibre's common stock and, to the extent the activity occurs during any observation period related to a conversion of notes, could have the effect of increasing or reducing the value of the consideration that holders of the notes will receive upon conversion of the notes.
MercadoLibre expects to use a portion of the net proceeds from the offering of the notes to pay the cost of the capped call transactions. MercadoLibre intends to use a portion of the remainder of the net proceeds from the offering to enter into separate transactions to repurchase, exchange or otherwise retire a portion of its outstanding 2.25% convertible senior notes due 2019 (the "2019 notes") from time to time (including concurrently with the offering of the notes). The related consideration may include cash and/or shares of MercadoLibre's common stock. The terms of any separate transactions to repurchase, exchange or otherwise retire MercadoLibre's 2019 notes, including the composition of the related consideration, are expected to be individually negotiated and will depend on factors including the market price of the common stock and the trading price of the 2019 notes at the time of such transactions. Any exchange or repurchase of MercadoLibre's outstanding 2019 notes could affect the market price of its common stock and, in the case of any exchanges or repurchases effected concurrently with the notes offering, the initial conversion price of the notes. MercadoLibre also expects that holders of the 2019 notes that sell or exchange their 2019 notes in negotiated transactions with it may purchase shares of its common stock in the market to hedge their exposure in connection with these transactions. This activity could affect the market price of its common stock and, in the case of sales or exchanges effected concurrently with the notes offering, this activity could also impact the initial conversion price of the notes. The remaining net proceeds will be used for general corporate purposes.
In connection with any repurchase or exchange of 2019 notes, MercadoLibre may terminate all or a portion of the capped call transactions that MercadoLibre entered into in connection with the 2019 notes (the "existing capped call transactions"), in each case, in a notional amount up to the corresponding amount of the 2019 notes so repurchased or exchanged. In connection with any termination of existing capped call transactions and the related unwinding of the existing hedge position of the counterparties to such transactions with respect to such transactions, such counterparties and/or their respective affiliates may sell shares of MercadoLibre's common stock in secondary market transactions, and/or unwind various derivative transactions with respect to MercadoLibre's common stock. This activity could decrease (or reduce the size of any increase in) the market price of MercadoLibre's common stock at that time and it could decrease (or reduce the size of any increase in) the market value of the notes. In connection with these transactions, MercadoLibre may receive payments in amounts that depend on the market price of MercadoLibre's common stock at the time of the unwind or during an unwind period.
The notes and the common stock, if any, deliverable upon conversion of the notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. They may be offered and sold only in a transaction not subject to, or exempt from, registration under the Securities Act and other applicable securities laws. Accordingly, the notes are being offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act.
This press release shall not constitute an offer to sell or purchase, or a solicitation of an offer to purchase or sell, any securities.
About MercadoLibre
MercadoLibre hosts the largest online commerce and payments ecosystem in Latin America. Its efforts are centered on enabling e-commerce and digital and mobile payments on behalf of its customers by delivering a suite of technology solutions across the complete value chain of commerce. The company is present in 18 countries including: Argentina, Brazil, Mexico, Colombia, Chile, Venezuela and Peru. Based on unique visitors and page views MercadoLibre is the market leader in each of the major countries where it is present. |
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| From: Savant | 5/2/2019 9:53:48 PM | | | | | | MELI popped 50.37$ in afmar
nasdaq.com
Net Revenues of $473.8 million, up 92.9% on an FX neutral basis
$5.6 billion Total Payment Volume, up 82.5% on an FX neutral basis
$3.1 billion Gross Merchandise Volume, up 26.6% on an FX neutral basis
BUENOS AIRES, Argentina, May 02, 2019 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com/), Latin America's leading e-commerce technology company, today reported financial results for the quarter ended March 31, 2019.
Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, "I am very pleased with the results we delivered this quarter. It is encouraging to enter the new year with continued momentum in our business and to see our strategy delivering on multiple fronts in a sustainable manner. Our Marketplace business showed great resiliency, our Payments business is gaining traction in its online to offline efforts, and our Shipping efforts continue growing the size of our managed network. From a financial perspective, the 1Q'19 was a very strong quarter, as net revenues accelerated to 92.9% YoY growth on an FX neutral basis."
First Quarter 2019 Business Highlights1
Total payment volume through MercadoPago surpassed the $5.5 billion mark for the first time, reaching $5.6 billion, a year-over-year increase of 35.1% in USD and 82.5% on an FX neutral basis. Total payment transactions increased 93.7% year-over-year, totaling 143.9 million transactions for the quarter. MercadoPago experienced continued success in execution of off-platform payments (online and offline) through merchant services, mobile point-of-sale ("MPOS") devices, and the mobile wallet business. On a consolidated basis, off-platform total payment volume grew 118.8% year-over-year in USD and 194.2% on an FX neutral basis. For the first time ever, off-platform payments processed over $2.5 billion in transactions, surpassing 80 million payment transactions in a single quarter with 88.2 million payment transactions. MPOS business is still one of the fastest growing non-marketplace business units, representing 43.9% of total off-platform payment volume for the quarter. On a consolidated basis, MPOS total payment volume grew 260.4% year-over-year on an FX neutral basis. Our mobile wallet again reached four times the number of active payers during the quarter as compared to the same period in 2018, and total payment volume from mobile wallet in Argentina, Brazil and Mexico continued to reflect triple digits growth year-over-year. Our asset management product, Mercado Fondo, is now available in Argentina and Brazil, where we offer our entire suite of FinTech solutions: MPOS devices, QR code in-store payments, mobile wallet and asset management. Gross merchandise volume ("GMV") reaccelerated surpassing the $3 billion mark, reaching $3.1 billion, a 1.7% year-over-year decrease in USD, and a 26.6% year-over-year increase on an FX neutral basis, following a decrease of 10.6% in USD and growth of 17.6% on an FX neutral basis in the fourth quarter of 2018. Items sold reached 82.8 million, growing 3.3% year-over-year, compared to a growth of 50.8% in the first quarter of 2018. The decline in the year-over-year growth rate is attributable to Brazil, where in July of last year we launched the R$5 flat listing fee on items below R$ 120 and removed listings below R$ 6 as we shift towards incentivizing buyers to purchase higher-ticket items. Unique buyers also reaccelerated increasing 10.8% year-over-year versus 7.5% during the fourth quarter of 2018. Live listings offered on MercadoLibre's marketplace surpassed for the first time the 200 million mark reaching 200.6 million in the first quarter of 2019, a 57.9% year-over-year increase. Mobile gross merchandise volume grew 10.9% year-over-year on an FX neutral basis reaching 62.9% of GMV. Items shipped through MercadoEnvios reached 62.9 million, an 18.6% year-over-year increase, driven primarily by the expansion of our free shipping program. The number of items shipped in Argentina, Mexico, Chile and Colombia were highlights of the quarter, growing 110.8%, 74.9%, 29.8% and 44.0%, respectively, year-over-year. 1 Percentages have been calculated using whole amounts rather than rounded amounts.
The tables below present our gross billing and amounts paid by us in connection with our free shipping service.
The Company presents net revenue net of amounts paid in connection with the Company's free shipping initiative, when the Company acts as an agent, rather than including these amounts in the cost of net sales, as previously recorded. For the three-month period ended March 31, 2019 the Company incurred $74.0 million of shipping subsidies that have been netted from revenues. |
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