syy891013

Latin America's Biggest E-Commerce

Long
BATS:MELI   MercadoLibre, Inc.
Comments on Quantitative Analysis Sector Comparison
  • Year-end shopping season is typically the strongest period.
  • E-commerce and fintech in Latin America one of the fastest growth rates in the world.

Comments on Business
MercadoLibre offers six integrated e-commerce services:
  1. MercadoLibre Marketplace enables merchants and individuals to list merchandise and conduct sales and purchases digitally.
  2. MercadoLibre Classifieds is a listing services which allows users to list and purchase motor vehicles, real estate and services in the countries where the company operates.
  3. MercadoPago Fintech platform allows users to send and receive payments within MercadoLibre’s marketplace.
  4. Mercado Ads, the company’s advertising platform, enables businesses to promote their products and services on the internet.
  5. Mercado Shops is a digital storefront solution which allows users to set up, manage and promote their own digital stores.
  6. Mercado Envios logistics service provices integration with their-party carriers and logistics service providers to the sellers on the company’s platform.

KPI
  • GMV of $10.51 billion jumped 22.9% and 47.2% on a reported and an FX-neutral basis, respectively, from the year-ago quarter. The figure surpassed the consensus mark of $10.04 billion.
  • The number of successful items sold was 325 million, which increased 18.2% year over year and topped the consensus mark of 310 million. The
  • number of successful items shipped rose 20.8% year over year to 319 million, which beat the consensus mark of 303 million.
  • TPV increased 39.3% and 96.6% year over year on a reported and an FX-neutral basis, respectively, to $42.06 billion. This was driven by the
  • strong performance of Mercado Pago. The figure came ahead of the Zacks Consensus Estimate of $40.8 billion.
  • Off-Marketplace TPV was above $31 billion, up 129% year over year on a FX-neutral basis.
  • Acquiring TPV, which includes on-platform, online payments, MPoS and QR payments, was $27.3 billion, up 31.2% year over year.
  • Also, $14.8 billion of digital accounts’ TPV, including wallet payments, P2P transfers between Mercado Pago accounts and card transactions,
  • surged 57.4% year over year.
  • TPV on the marketplace was $11.07 billion, up 23% year over year. Total payment transactions increased by 68.9% year over year to 2.1 billion.
  • Unique active users totaled 109 million, up 29.8% year over year. The figure came ahead of the Zacks Consensus Estimate of 101 million.

Catalysts
  • Upcoming earnings performance.

Trade Structure
  • Nov 17’23 1220/1390 Bull Call
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