MercadoLibre, Inc.
CEO : Mr. Marcos Eduardo Galperín
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -10.5% YoY | 1396.8% | -462.0% | 2023-02-23 |
Pedro Arnt says,
Strong Financial Performance
- Record results in GMV, TPV, item ship, net revenue, and EBIT
- Revenues surpassed $10 billion mark for the first time ever
- EBIT surpassed $1 billion while delivering margin expansion
- Growing revenues at roughly 50% YoY
E-commerce Market Leadership
- Market share gains across the entire region, with Brazil and Mexico standing out
- Ability to offer a very broad product assortment from sellers of all sizes at competitive prices and with fast deliveries
- Improved profitability of the commerce business during Q4
Mercado Pago Performance
- TPV growth exceeding expectations
- Delivering take rate expansion on a YoY basis
- Strong growth and margin performance driven by QR payments and POS business in Brazil, Mexico, and Chile
- Digital accounts business payments and cards TPV continued to grow at triple digits in 2022
Mercado Credito Performance
- Positively contributing to profit growth despite tougher economic conditions
- Record profits
- Effective risk controls resulting in positive ecosystemic effects going forward
Credit Products Improvement
- Improvements to underwriting models resulting in much-improved performance from the most recent cohorts on credit cards
- Credit products complement wider Mercado Pago offering
Pedro Arnt says,
Incremental Investments on Logistics Front
- The company anticipates some incremental investments in CapEx in 2023 compared to 2022 primarily on the logistics front
- The investment will be used to build incremental capacity in some markets, primarily in Mexico
Lower Cadence of Capitalized R&D
- The pace of net new adds of developers is expected to slow down
- The company will continue to hire developers but at a more measured pace than in the past few years
- This will generate a lower cadence of capitalized R&D in the future years
Cash Generation in 2022
- 2022 was a stellar year for cash generation
- Operational cash flow and available cash significantly increased
- The company disclosed a change in free cash generation
Peak Utilization in Some Geographies
- The company is operating close to peak utilization in some of its geographies
- Logistics fulfillment centers and sortation centers are operating at full capacity
Higher CapEx in 2023
- Net-net, the CapEx in 2023 should come in higher than in 2022
Q & A sessions,
Technology as a Necessity for Advertising Business
- The company believes that technology is a core necessity for scaling out the advertising business and reaching long-term growth goals.
- Improvements have been made in incremental positions and inventory for advertising, ad server technology, self-service DSP platform for ad displays, self-service reporting, and better audience targeting.
- All of this technology puts the company on equal footing with some of the largest and most successful technology platforms.
- The launch of this technology is a necessity and the company hopes to see adoption of these different pieces of the stack to deliver results.
No bad stock 