updated 2/24/2011 4:45:19 AM ET 2011-02-24T09:45:19

* Q4'10 net income increased by 41.2% year-over-year to $15.9 million

* Items sold during Q4'10 increased by 31.2% year-over-year to 11.3 million

* Total payments transactions in Q4'10 increased by 134.5% to 2.4 million

* Net Income during FY'10 increased by 68.7% year-over-year to $56.0 million

BUENOS AIRES, Argentina, Feb. 23, 2011 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) ( http://www.mercadolibre.com ), Latin America's leading e-commerce technology company, today reported financial results for the fourth quarter and full year ended December 31, 2010.

Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, "We are pleased to have ended a strong year with accelerating growth as all of our businesses performed well throughout the holiday season. We believe this is a testament to the power of the e-commerce ecosystem we have built. Additionally, our value proposition continues to prove very attractive to the fast-growing base of Internet users in Latin America. In our view, the combination of low prices, attractive product selection, clear and intuitive listing formats, increasingly seamless payments integration, and advertising services we offer continue to create great value for both buyers and sellers alike."

Financial Results Summary

MercadoLibre reported consolidated net revenues for the three months ended December 31, 2010 of $62.3 million, representing 27.1% year-over-year growth.Revenue growth was negatively impacted by the pre-sale of credit card receivables beginning in the third quarter of 2010. Had the company carried out similar pre-sales of credit card receivables during 2009, revenue growth would have been 38.4% during the fourth quarter of 2010 as compared to the same quarter one year earlier.

For the three months ended December 31, 2010, items sold on MercadoLibre grew 31.2% to 11.3 million while total Payments transactions through MercadoPago grew 134.5% to 2.4 million as compared to the fourth quarter of 2009. Gross merchandise volume for the fourth quarter 2010 grew 25.6% year-over-year to $988.1 million, while total payment volume grew 73.8% year-over-year to $236.1 million.

Income from operations grew 17.3% to $21.0 million in the fourth quarter of 2010 compared to $17.9 million in the fourth quarter of 2009. Operating income margin for the fourth quarter of 2010 was 33.6%. Growth in income from operations was also negatively impacted by the pre-sale of credit card receivables.

Net income for the three months ended December 31, 2010 was $15.9 million, representing 41.2% growth over the same quarter one year earlier. Net income margin was 25.6% for the fourth quarter of 2010, compared to 23.0% for the same period last year. Earnings per share for the fourth quarter of 2010 were $0.36 compared to $0.26 for the prior year quarter.

Free cash flow, defined as cash from operating activities less property, equipment and intangible asset purchases, was $22.8 million for the three months ended December 31 2010.

For the full year, MercadoLibre generated $3.4 billion in gross merchandise volume, consolidated net revenues of $216.7 million, and net income of $56.0 million, or $1.27 per share. Gross merchandise volume was up 23.8% in 2010 when compared to the full year 2009, while net revenues rose 25.4% and net income increased 68.7%.

The following table summarizes certain key performance metrics for the year and quarters ended December 31, 2009 and 2010.

(in millions)      
  Year ended

December 31,
Three Months ended

December 31,
  2009 2010 2009 2010
         
Total confirmed registered users at the end of period 42.6 52.9 42.6 52.9
New confirmed registered users during the period 8.8 10.3 2.4 2.7
Gross merchandise volume $ 2,750.7 $ 3,405.9 $ 786.9 $ 988.1
Items sold 29.5 39.2 8.6 11.3
Total payments volume $ 382.5 $ 697.5 $ 135.8 $ 236.1
Total payments transactions 3.1 6.7 1.0 2.4
         

Change in MercadoPago Financing Operations

Starting in the third quarter of 2010, the company began to pre-sell credit card receivables from its MercadoPago financing operations. For this reason, starting in the third quarter of 2010, MercadoPago financing revenues now represent the net amount received from financing institutions as a result of pre-selling these installments-related financing receivables. Credit card receivables are being pre-sold in order to better manage credit risk; generate increased predictability of the associated cost; and not assume any financing risk.

The following table may prove helpful to analyze the annual evolution of the company's revenue growth, as it shows consolidated net revenues since Q4 of 2008 net of MercadoPago financing cost:

Figures in US dollars Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
                   
Consolidated Net Revenues  33,449,739  32,322,501  40,901,799  50,599,276  49,020,045  45,937,774  52,510,331  55,951,378  62,316,231
MercadoPago Financing Costs (*)  4,978,442  2,330,530  3,246,008  3,927,577  3,990,072  3,383,142  3,949,545  --   
Consolidated Net Revenues Net of MercadoPago Financing Costs  28,471,297  29,991,971  37,655,791  46,671,699  45,029,973  42,554,632  48,560,786  55,951,378  62,316,231
                   
Growth % Over Prior Year n/a n/a n/a 19.6% 58.2% 41.9% 29.0% 19.9% 38.4%
                   
(*) Included in Cost of Net Revenues and Interest Expense and Other Financial Charges.
 
 

MercadoLibre provides consolidated net revenues net of MercadoPago financing costs because it believes that such presentation is a beneficial supplemental disclosure to investors in analyzing and assessing the historical revenue growth of the company.

Conference Call and Webcast

The Company will host a conference call and audio webcast on February 23, 2011 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (970) 315-0420 and requesting inclusion in the call for MercadoLibre. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at http://investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.

Definition of Selected Operational Metrics

           

Total confirmed registered users – Measure of the cumulative number of users who have registered on the MercadoLibre Marketplace and confirmed their registration.

New confirmed registered users – Measure of the number of new users who have registered on the MercadoLibre Marketplace and confirmed their registration.

Gross merchandise volume – Measure of the total U.S. dollar sum of all transactions completed through the MercadoLibre Marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services.

Items sold – Measure of the number of items sold/purchased through the MercadoLibre Marketplace.

Total payment volume – Measure of total U.S. dollar sum of all transactions paid for using MercadoPago.

Total payment transactions – Measure of the number of all transactions paid for using MercadoPago.

Operating margin – Defined as income from operations as a percentage of net revenues.

Net Income margin – Defined as net income as a percentage of net revenues.

Free Cash Flow – Defined as cash flow from operating activities less property, equipment and intangible asset purchases.

About MercadoLibre

Founded in 1999, MercadoLibre is Latin America's leading e-commerce technology company. Through its primary platforms, MercadoLibre.com and MercadoPago.com, it provides solutions to individuals and companies buying, selling, advertising, and paying for goods online.

MercadoLibre.com serves millions of users and creates a market for a wide variety of goods and services in an easy, safe and efficient way. The site is among the top 50 in the world in terms of page views and is the leading retail platform in unique visitors in each country in which it operates according to metrics provided by comScore Networks. MercadoLibre maintains a leadership position in 12 Latin American countries. The Company is listed on NASDAQ (Nasdaq:MELI) following its initial public offering in 2007.

For more information about the company visit: http://investor.mercadolibre.com .

The MercadoLibre, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4193

     
Consolidated balance sheets    
  December 31,

2010
December 31,

2009
Assets    
Current assets:    
Cash and cash equivalents $ 56,830,466 $ 49,803,402
Short-term investments 5,342,766 14,580,185
Accounts receivable, net 12,618,173 4,868,377
Funds receivable from customers 6,151,518 3,785,802
Prepaid expenses 913,262 547,138
Deferred tax assets 12,911,256 5,481,182
Other assets 6,867,767 3,068,930
Total current assets 101,635,208 82,135,016
Non-current assets:    
Long-term investments 78,846,281 26,627,357
Property and equipment, net 20,817,712 5,948,276
Goodwill, net 60,496,314 59,822,746
Intangible assets, net 4,141,167 4,515,818
Deferred tax assets 2,975,118 2,897,492
Other assets 771,223 667,944
Total non-current assets 168,047,815 100,479,633
     
Total assets $ 269,683,023 $ 182,614,649
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Accounts payable and accrued expenses $ 17,232,103 $ 11,599,634
Funds payable to customers 48,788,225 31,453,410
Payroll and social security payable 10,786,534 7,428,340
Taxes payable 11,487,574 6,797,516
Loans payable and other financial liabilities 100,031 3,213,992
Total current liabilities 88,394,467 60,492,892
Non-current liabilities:    
Payroll and social security payable 2,562,343 1,355,006
Loans payable and other financial liabilities 188,846 --
Deferred tax liabilities 5,167,699 5,170,799
Other liabilities  1,651,398 1,402,715
Total non-current liabilities 9,570,286 7,928,520
Total liabilities $ 97,964,753 $ 68,421,412
     
Commitments and contingencies    
     
Shareholders' equity:    
     
Common stock, $0.001 par value, 110,000,000 shares authorized,

44,131,376 and 44,120,269 shares issued and outstanding at December 31,

2010 and December 31, 2009, respectively
$ 44,131 $ 44,120
Additional paid-in capital 120,391,622 120,257,998
Retained earnings  73,681,556  17,656,537
Accumulated other comprehensive loss (22,399,039) (23,765,418)
Total shareholders' equity 171,718,270 114,193,237
     
Total liabilities and shareholders' equity $ 269,683,023 $ 182,614,649
   
   
   
 Consolidated statements of income  
   
  Year Ended December 31,
  2010 2009 2008
       
Net revenues $ 216,715,713 $ 172,843,621 $ 137,022,620
Cost of net revenues (46,549,845) (35,958,050) (27,536,573)
Gross profit 170,165,868 136,885,571 109,486,047
       
Operating expenses:      
Product and technology development (15,855,992) (12,140,521) (7,307,008)
Sales and marketing  (48,883,167) (42,861,735) (39,975,307)
General and administrative (30,828,146) (25,849,596) (22,759,931)
Compensation cost related to acquisitions -- -- (1,919,870)
Total operating expenses  (95,567,305) (80,851,852) (71,962,116)
Income from operations 74,598,563 56,033,719 37,523,931
       
Other income (expenses):      
Interest income and other financial gains 4,931,215 2,695,109 1,822,385
Interest expense and other financial charges (7,601,671) (13,357,554) (8,442,427)
Foreign currency loss (62,447) (2,658,476) (1,531,144)
Other income (expenses), net  -- -- 73,159
Net income before income / asset tax expense  71,865,660 42,712,798 29,445,904
       
Income / asset tax expense (15,840,641) (9,504,005) (10,634,243)
Net income  $ 56,025,019 $ 33,208,793 $ 18,811,661
       
       
  Year Ended December 31,
  2010 2009 2008
Basic EPS      
Basic net income per common share $ 1.27 $ 0.75 $ 0.43
Weighted average shares 44,124,018 44,086,892 44,239,443
       
       
Diluted EPS      
Diluted net income per common share $ 1.27 $ 0.75 $ 0.42
Weighted average shares 44,146,858 44,144,368 44,348,950
   
   
   
Consolidated statements of income   
   
  Three Months Ended December 31,
  2010 2009
  (Unaudited)
Net revenues $ 62,316,231 $ 49,020,045
Cost of net revenues (13,794,315) (10,337,916)
Gross profit 48,521,916 38,682,129
     
Operating expenses:    
Product and technology development (4,430,275) (3,124,396)
Sales and marketing  (14,019,551) (11,519,333)
General and administrative (9,103,067) (6,164,169)
Compensation cost related to acquisitions -- --
Total operating expenses  (27,552,893) (20,807,898)
Income from operations 20,969,023 17,874,231
     
Other income (expenses):    
Interest income and other financial gains 1,857,787 580,300
Interest expense and other financial charges (682,363) (3,639,552)
Foreign currency loss (69,722) 112,249
Other income (expenses), net  -- --
Net income before income / asset tax expense  22,074,725 14,927,228
     
Income / asset tax expense (6,135,233) (3,641,659)
Net income  $ 15,939,492 $ 11,285,569
     
     
  Three Months Ended December 31,
  2010 2009
  (Unaudited)
Basic EPS    
Basic net income per common share $ 0.36 $ 0.26
Weighted average shares 44,131,376 44,108,207
     
     
Diluted EPS    
Diluted net income per common share $ 0.36 $ 0.26
Weighted average shares 44,151,762 44,143,281
   
   
   
Consolidated statements of cash flows  
  Year Ended December 31,
  2010 2009 2008
   
Cash flows from operations:      
Net income   $ 56,025,019 $ 33,208,793 $ 18,811,661
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  4,921,650 3,893,752 3,335,673
Foreign currency gains  --  -- (7,827,112)
Interest expense  --  213,878 300,368
Accrued interest  (504,874) 90,339 57,293
Stock-based compensation expense - stock options  244 1,752 4,719
Stock-based compensation expense - restricted shares  37,696 74,382 105,560
LTRP accrued compensation   3,479,066  1,924,149  839,303
Deferred income taxes  (7,053,030) (3,607,292) (2,151,858)
Changes in assets and liabilities, excluding the effect of acquisitions:      
Accounts receivable   (7,063,942) (2,974,890) 4,026,218
Funds receivable from customers  (2,324,575) (942,407) 26,573,209
Prepaid expenses  (333,755) (287,836) (153,582)
Other assets  (3,643,650) (2,591,353) (1,415,575)
Accounts payable and accrued expenses  9,051,139 8,686,334 10,610,141
Funds payable to customers  15,458,416 12,421,412 2,294,847
Provisions  (63,549) 302,987 (1,277,664)
Other liabilities  (89,402) (713,014) 1,645,976
Net cash provided by operating activities  67,896,453 49,700,986 55,779,177
Cash flows from investing activities:      
Purchase of investments  (121,266,157) (80,060,909) (110,056,368)
Proceeds from sale and maturity of investments  76,062,629 81,728,485 115,342,531
Payment for businesses acquired, net of cash acquired  --  -- (39,181,473)
Purchases of intangible assets  (416,450) (955,679) (58,238)
Purchases of property and equipment  (13,214,043) (3,798,170) (4,904,991)
Net cash used in investing activities   (58,834,021) (3,086,273) (38,858,539)
Cash flows from financing activities:      
Decrease in short term debt  --  (310,634) (9,137,223)
Loans paid  (3,000,000) (15,000,000) --
Repurchase of Treasury Stock  --  -- (2,598,223)
Stock options exercised  18,199 28,354 83,089
Net cash used in financing activities   (2,981,801) (15,282,280) (11,652,357)
Effect of exchange rate changes on cash and cash equivalents  946,433 996,857 (3,471,576)
Net increase in cash and cash equivalents  7,027,064 32,329,290 1,796,705
Cash and cash equivalents, beginning of the year  49,803,402 17,474,112 15,677,407
       
Cash and cash equivalents, end of the year  $ 56,830,466 $ 49,803,402 $ 17,474,112
       
       
  Year Ended December 31,
  2010 2009 2008
Supplemental cash flow information:  
Cash paid for interest $ 5,781,058 $ 12,332,592 $ 7,138,402
Cash paid for income taxes $ 22,253,947  11,650,007  7,921,206
       
       
Financial results of reporting segments  
  Year Ended December 31, 2010
  Brazil Argentina Mexico Venezuela Other Countries Total
             
Net revenues $ 122,825,076 $ 39,892,763 $ 18,950,450 $ 20,885,541 $ 14,161,883 $ 216,715,713
Direct costs (73,393,467) (19,649,506) (11,723,168) (9,875,510) (7,785,914) (122,427,565)
Direct contribution 49,431,609 20,243,257 7,227,282 11,010,031 6,375,969 94,288,148
             
Operating expenses and indirect costs of net revenues           (19,689,585)
Income from operations           74,598,563
             
Other income (expenses):            
Interest income and other financial gains           4,931,215
Interest expense and other financial results           (7,601,671)
Foreign currency gains           (62,447)
Other income, net            
Net income before income / asset tax expense           $ 71,865,660
             
  Year Ended December 31, 2009
  Brazil Argentina Mexico Venezuela Other Countries Consolidated
             
Net revenues $ 93,087,758 $ 26,737,937 $ 15,314,982 $ 27,331,095 $ 10,371,849 $ 172,843,621
Direct costs (50,230,893) (12,506,604) (9,655,783) (13,717,899) (5,978,443) $ (92,089,622)
Direct contribution 42,856,865 14,231,333 5,659,199 13,613,196 4,393,406 80,753,999
             
Operating expenses and indirect costs of net revenues           (24,720,280)
Income from operations           56,033,719
             
Other income (expenses):            
Interest income and other financial gains           2,695,109
Interest expense and other financial results           (13,357,554)
Foreign currency loss           (2,658,476)
Other income, net           --
Net income before income / asset tax expense           $ 42,712,798
             
  Year Ended December 31, 2008
  Brazil Argentina Mexico Venezuela Other Countries Consolidated
             
Net revenues $ 73,692,604 $ 19,862,790 $ 13,894,730 $ 23,123,837 $ 6,448,659 $ 137,022,620
Direct costs (44,369,978) (10,710,931) (9,207,740) (12,166,313) (4,296,080) $ (80,751,042)
Direct contribution 29,322,626 9,151,859 4,686,990 10,957,524 2,152,579 56,271,578
             
Operating expenses and indirect costs of net revenues           (18,747,647)
Income from operations           37,523,931
             
Other income (expenses):            
Interest income and other financial gains           1,822,385
Interest expense and other financial results           (8,442,427)
Foreign currency loss           (1,531,144)
Other expenses, net           73,159
Net income before income / asset tax expense           $ 29,445,904
   
   
  Three Months Ended December 31, 2010
  Brazil Argentina Mexico Venezuela Other Countries Total
             
Net revenues $ 34,614,541 $ 11,283,573 $ 5,088,529 $ 7,179,615 $ 4,149,973 $ 62,316,231
Direct costs (23,303,343) (5,663,817) (3,178,256) (3,115,680) (2,091,412) (37,352,508)
Direct contribution 11,311,198 5,619,756 1,910,273 4,063,935 2,058,561 24,963,723
             
Operating expenses and indirect costs of net revenues           (3,994,700)
Income from operations           20,969,023
             
Other income (expenses):            
Interest income and other financial gains           1,857,787
Interest expense and other financial results           (682,363)
Foreign currency losses           (69,722)
Net income before income / asset tax expense           $ 22,074,725
             
             
  Three Months Ended December 31, 2009
  Brazil Argentina Mexico Venezuela Other Countries Total
             
Net revenues $ 29,442,088 $ 7,714,506 $ 4,313,777 $ 4,281,289 $ 3,268,385 $ 49,020,045
Direct costs (15,250,601) (3,818,195) (2,779,699) (2,071,348) (1,806,381) (25,726,223)
Direct contribution 14,191,488 3,896,311 1,534,078 2,209,941 1,462,004 23,293,822
             
Operating expenses and indirect costs of net revenues           (5,419,590)
Income from operations           17,874,232
             
Other income (expenses):            
Interest income and other financial gains           580,300
Interest expense and other financial results           (3,639,552)
Foreign currency losses           112,249
Net income before income / asset tax expense           $ 14,927,229
CONTACT:  MercadoLibre, Inc.
          Investor Relations
          Pedro Arnt
          investor@mercadolibre.com
          http://investor.mercadolibre.com

          Media Relations
          Valeria Bazzi
          Valeria.bazzi@mercadolibre.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.71%
$30K home equity loan FICO 5.26%
$75K home equity loan FICO 4.70%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.14%
17.14%
Source: Bankrate.com