MercadoLibre produced another beat across the board with 40% headline and 56.5% FX neutral revenue growth producing a GAAP and non-GAAP profitable bottom line.
- Q4 GAAP EPS of $3.25 beats by $0.93.
- Revenue of $3B (+40.8% Y/Y) beats by $40M.
- $36.0 billion Total Payment Volume, up 80.0% year-over-year on an FX neutral basis $9.6 billion
- Gross Merchandise Volume, up 34.7% year-over-year on an FX neutral basis
Net Revenues of $3.0 billion up 56.5% year-over-year on an FX neutral basis
Income from operations of $349 million , with a 11.6% margin
$9.6 billion Gross Merchandise Volume, up 34.7% year-over-year on an FX neutral basis
- Gross Margin expanded from 40% to 48.6% and operating margins expanded from 8.9% to 11.6%
- Take rate for commerce expanded to 17.3% which is best in class in eCommerce, (higher than Amazon, eBay, Shopify etc) and take rate for fintech expanded to 3.81% from 3.19% which again is top quartile
“Over the last 12 months, we have processed more than $100bn in payments, booked over $10bn of net revenues, shipped more than 1bn items through Mercado Envios, and surpassed $1bn of Income from operations, all for the first time in our history.”
“During the same three year period we have also grown our TPV more than 4x, and our Fintech revenues nearly 5x, making our Fintech business a major contributor to our top and bottom line growth. At the same time, we have launched a full suite of products and services that extends our original payments offering to cards, credit, insurance and savings, amongst others. Although we still have more products to build, the launches of the last 18 months give us - for the first time - the critical mass of services that would enable our users to have their principal financial services relationship with Mercado Pago. Of our almost 44mn unique active Fintech users in Q4’22, more than half already utilize the wallet to make payments.”
A strong performance in the fourth quarter rounded-off a great year for our Commerce business. Our FX-neutral GMV growth accelerated to 35% in Q4’22, with Brazil (22% FX-neutral GMV growth) and Mexico (28% FX-neutral GMV growth) driving the acceleration."…
"Mercado Envios sustained its delivery speed leadership across the region, helping us to achieve the strong peak season GMV growth mentioned above. Mercado Envios also reached its highest ever level of fulfillment penetration of 43% in Q4’22, surpassing the previous record reached in Q4’21. "…
"Merccado Ads continued to grow at a rapid pace in 2022 in all key geographies, with revenue as a percentage of GMV reaching 1.4% in Q4’22. This marks another consistent step in the business’ expansion, making the Ads business more than 5x larger than it was three years ago. "
Momentum in our Fintech business remains strong. Our unique active fintech users reached almost 44mn in Q4’22, rising 27% year-on-year, whilst TPV grew at 45% in US dollars and 80% on an FX-neutral basis. A strong off-platform performance in Q4’22, with growth of 58% in US dollars and 121% on an FX-neutral basis, took our quarterly off-platform TPV over $25bn for the first time. This is a big accomplishment, placing us on an annualized run rate of over $100bn, but this is just the latest milestone on a path that has much further to run."
“Mercado Credito as a whole continued to deliver strong results in Q4’22 with a period-end portfolio of $2.8bn and IMAL spread of 48%.”…
“Our POS business has played an important role in our achievement of surpassing $25bn in quarterly off-platform TPV, with growth of 61% in US dollars and 78% on an FX-neutral basis in Q4’22.”
Results announcement and presentation and transcript are found here: