|From: Savant||10/24/2017 10:15:18 AM|
|Competition in Latin American online retailing is heating up with Amazon.com ( AMZN) expanding in Brazil making for more downside risk for MercadoLibre ( MELI) shares.|
The stock has slumped 4% today to $226.18 in U.S. trading following a KeyBank Capital Markets downgrade, even though investors are otherwise cheering the weekend election outcome in Argentina that is squarely in favor of the market-friendly government of President Mauricio Macri. The Global X MSCI Argentina exchange-traded fund ( ARGT) is up 1.2%. Analysts Brad Erickson and Elliot Arnson lowered their rating to sector weight, without a price target, saying a "margin hit is coming." They write:
"While we think concerns about competition from Amazon are now better appreciated, MELI's profit profile is becoming less attractive as a result of measures taken to grow faster and fend off competition. We still expect strong growth (we're raising our revenue estimates); however, we recommend investors move to a Sector Weight position as the company enters a multiyear profitability transition that could be a step function down.
What changed for us? Free shipping in Brazil is turning out to have a bigger impact than we'd anticipated, and recent signals from the company that free shipping in Argentina is next may fuel the bear thesis over competition that rattled investors so much last week. ... we'd thought that the Company was being entirely proactive around implementing free shipping; given the recent chatter around Amazon, this narrative has become significantly weaker for the foreseeable future. Amazon impact tough to quantify but likely now appropriately built in. ... our EPS estimates are now meaningfully below the Street's as we think: 1) gross-margin effect from Brazil and Argentina is not appropriately captured in Street estimates; and 2) we think marketing spending, in particular, has kicked up to a "new normal" to promote consumer awareness of free shipping..."
In addition, Piper Jaffray lowered its MercadoLibre price target to $268 from $287, citing slowness in listings growth in the third quarter.
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|From: Savant||10/27/2017 10:04:13 AM|
|MercadoLibre, Inc. to Report Third Quarter 2017 Financial Results|
BUENOS AIRES, Argentina, Oct. 26, 2017 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com) intends to release financial results for its third fiscal quarter ended September 30(th) , 2017 on November 2(nd) , 2017 after the close of the day's trading.
The Company will host a conference call and audio webcast on November 2(nd) , at 4:30 p.m. Eastern Time.
The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 5696719) and requesting inclusion in the call for Mercado Libre. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.
About Mercado Libre
Mercado Libre hosts the largest online commerce and payments ecosystem in Latin America. Our 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 we are market leaders in each of the major countries were we are present.
Through its online commerce platform and related services, MercadoLibre provides its users with robust online commerce and payments tools that not only contribute to the development of a large and growing ecommerce community in Latin America (a region with a population of over 605 million people and one of the fastest-growing Internet penetration rates in the world), but also foster entrepreneurship and social mobility. Its main focus is to deliver compelling technological and commercial solutions that address the distinctive cultural and geographic challenges of operating an online commerce and payments platform in Latin America.
For more information about MercadoLibre.com, visit: investor.mercadolibre.com
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|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.
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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