Naughty and Nice Chapter Two

This post is a continuation of the Naughty and Nice Part One series that seeks to review and rank companies I am interested in based on their most recent ER release and performance. Before putting any worthwhile credence into anything you might read here please take some deep breaths, grab a nice glass of wine, put on some soothing music and take your blood pressure medication.

Note 1) In consideration of commentary by one of The Fool’s ATGs I am instituting a third ranking category titled: Eye of the Beholder. Companies placed in this category are exactly that and perhaps even more so.

Note 2) This process shall continue until I get bored with it or find some other diversion to attend to. (Pickle Ball is looming large)

MercadoLibre (MELI) Reported Q1 on May 5th.…

  • Revenue of $2.25B (+63.0% Y/Y) beats by $210M: ATTA BOY

  • $25.3 billion Total Payment Volume, up 81.2% year-over-year on an FX neutral basis: ATTA BOY

  • Gross Profit Increased 81% Y/Y: ATTA BOY

  • Gross Margin: Increased 11% Y/Y: ATTA BOY

  • Our Marketplace growth has remained consistent for yet another quarter. We reached almost $7.7 billion in gross merchandise volume, growing nearly 32% on an FX-neutral basis and sustaining a two-year CAGR above 70% with almost 40 million unique buyers in the quarter, buyer behavior remains sticky, total items per buyer continues to grow versus last year’s pandemic-impacted year: ATTA BOY

  • We are also very encouraged by the performance of the FinTech business during this quarter. Total payment volume surpassed $25 billion for the first time ever and has accelerated in both Acquiring and in digital account TPV with important growth in overall FinTech take rates: ATTA BOY

  • Our gross margins have improved year-over-year with better operating leverage over our cost base. And in line with our objective to grow profitably, we have sustained consolidated EBIT margins at similar levels to Q1 of last year despite the tough comp: ATTA BOY

  • Our fulfillment continues to grow, driving more same-day and next-day deliveries. We started the year of 2022 with 40% of the volume of delivery by fulfillment. And we already have 20 sites in operation: ATTA BOY

  • MELI Places is also growing. There are already more than 5,800 spaces like this in Latin America, offering sellers the ability to drop off and allowing customers to pick up and return packages in a very convenient manner: ATTA BOY

  • Mercado Credito is an important catalyst of the MercadoLibre ecosystem. Almost 10 million users already have an active credit line: ATTA BOY

  • We are also creating an easy way to manage crypto currencies on our digital accounts. In the first quarter of the launch, the crypto wallet reached the mark of one million users that have purchased or sold crypto currencies: ATTA BOY.

Valuation is Better than it has been in Years: ATTA BOY

Market Reaction to Report: ATTA BOY

Scouting Report from TMFLifeIsGood:


List Assigned and Ranking: NICE #1

Note: NET moved to Eye of the Beholder list.

All the Best,