2024 Q2 Form 10-Q Financial Statement

#000109959024000017 Filed on May 03, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q4
Revenue $5.073B $4.333B $4.261B
YoY Change 48.55% 42.67% 41.94%
Cost Of Revenue $2.708B $2.309B $2.306B
YoY Change 59.76% 53.83% 49.35%
Gross Profit $2.365B $2.024B $1.955B
YoY Change 37.5% 31.77% 34.09%
Gross Profit Margin 46.62% 46.71% 45.88%
Selling, General & Admin $729.0M $664.0M $1.029B
YoY Change -8.19% 17.94% 31.25%
% of Gross Profit 30.82% 32.81% 52.63%
Research & Development $460.0M $458.0M $686.0M
YoY Change 25.0% 20.21% 111.08%
% of Gross Profit 19.45% 22.63% 35.09%
Depreciation & Amortization $154.0M $154.0M $135.0M
YoY Change 20.31% 22.22% 10.66%
% of Gross Profit 6.51% 7.61% 6.91%
Operating Expenses $1.639B $1.496B $1.715B
YoY Change 41.05% 25.08% 54.64%
Operating Profit $726.0M $528.0M $240.0M
YoY Change 30.11% 55.29% -31.23%
Interest Expense -$58.00M -$47.00M -$10.00M
YoY Change -32.56% 135.0% -75.61%
% of Operating Profit -7.99% -8.9% -4.17%
Other Income/Expense, Net
YoY Change
Pretax Income $668.0M $481.0M $230.0M
YoY Change 41.53% 50.31% -25.32%
Income Tax $137.0M $137.0M $65.00M
% Of Pretax Income 20.51% 28.48% 28.26%
Net Earnings $531.0M $344.0M $165.0M
YoY Change 102.67% 71.14% 0.0%
Net Earnings / Revenue 10.47% 7.94% 3.87%
Basic Earnings Per Share $10.48 $6.78 $3.26
Diluted Earnings Per Share $10.48 $6.78 $3.25
COMMON SHARES
Basic Shares Outstanding 50.70M shares 50.70M shares 50.56M shares
Diluted Shares Outstanding 50.70M shares 50.70M shares 50.70M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.891B $6.250B $6.036B
YoY Change 46.65% 35.22% 42.06%
Cash & Equivalents $2.818B $2.579B $2.556B
Short-Term Investments $4.073B $3.671B $3.480B
Other Short-Term Assets $461.0M $471.0M $277.0M
YoY Change -80.03% 79.77% 4.14%
Inventory $257.0M $223.0M $238.0M
Prepaid Expenses $27.00M
Receivables $190.0M $170.0M $156.0M
Other Receivables $3.440B $3.119B $2.629B
Total Short-Term Assets $16.48B $15.51B $14.29B
YoY Change 34.08% 36.78% 30.5%
LONG-TERM ASSETS
Property, Plant & Equipment $1.993B $2.132B $1.250B
YoY Change 6.63% 105.79% 25.88%
Goodwill $149.0M $158.0M $163.0M
YoY Change -10.24% -1.25% 6.54%
Intangibles $13.00M $12.00M $11.00M
YoY Change -40.91% -50.0% -56.0%
Long-Term Investments $416.0M $249.0M $162.0M
YoY Change 179.19% -10.43% -49.69%
Other Assets $66.00M $70.00M $68.00M
YoY Change -90.16% -75.18% -73.44%
Total Long-Term Assets $3.551B $3.557B $3.352B
YoY Change 20.25% 24.15% 20.45%
TOTAL ASSETS
Total Short-Term Assets $16.48B $15.51B $14.29B
Total Long-Term Assets $3.551B $3.557B $3.352B
Total Assets $20.03B $19.06B $17.65B
YoY Change 31.4% 34.23% 28.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.036B $3.532B $3.189B
YoY Change 67.05% 64.74% 69.99%
Accrued Expenses $620.0M $694.0M $711.0M
YoY Change 10.71% 18.84% 30.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.203B $2.246B $2.292B
YoY Change -3.63% -3.69% 7.56%
Total Short-Term Liabilities $12.91B $12.26B $11.30B
YoY Change 34.3% 38.85% 31.94%
LONG-TERM LIABILITIES
Long-Term Debt $2.439B $2.224B $2.203B
YoY Change -1.69% -11.04% -16.14%
Other Long-Term Liabilities $213.0M $290.0M $200.0M
YoY Change -72.76% 60.22% 110.53%
Total Long-Term Liabilities $3.460B $3.416B $3.278B
YoY Change 6.04% 2.46% -2.06%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.91B $12.26B $11.30B
Total Long-Term Liabilities $3.460B $3.416B $3.278B
Total Liabilities $16.37B $15.67B $14.58B
YoY Change 26.04% 28.87% 22.39%
SHAREHOLDERS EQUITY
Retained Earnings $2.776B $2.245B $1.901B
YoY Change 101.74% 101.53% 108.21%
Common Stock $0.00 $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.656B $3.390B $3.071B
YoY Change
Total Liabilities & Shareholders Equity $20.03B $19.06B $17.65B
YoY Change 31.4% 34.23% 28.47%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q4
OPERATING ACTIVITIES
Net Income $531.0M $344.0M $165.0M
YoY Change 102.67% 71.14% 0.0%
Depreciation, Depletion And Amortization $154.0M $154.0M $135.0M
YoY Change 20.31% 22.22% 10.66%
Cash From Operating Activities $1.882B $1.512B $1.928B
YoY Change 33.29% 76.02% 25.03%
INVESTING ACTIVITIES
Capital Expenditures $184.0M $146.0M $180.0M
YoY Change 61.4% 64.04% 60.71%
Acquisitions
YoY Change
Other Investing Activities -$1.901B -$1.318B -$734.0M
YoY Change 243.14% 193.54% 37.45%
Cash From Investing Activities -$2.085B -$1.466B -$914.0M
YoY Change 212.13% 172.49% 41.49%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 476.0M $0.00 73.00M
YoY Change -232.22% -100.0% -708.33%
NET CHANGE
Cash From Operating Activities 1.882B $1.512B 1.928B
Cash From Investing Activities -2.085B -$1.466B -914.0M
Cash From Financing Activities 476.0M $0.00 73.00M
Net Change In Cash 273.0M -$30.00M 1.087B
YoY Change -28.91% -118.63% 22.96%
FREE CASH FLOW
Cash From Operating Activities $1.882B $1.512B $1.928B
Capital Expenditures $184.0M $146.0M $180.0M
Free Cash Flow $1.698B $1.366B $1.748B
YoY Change 30.82% 77.4% 22.24%

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NATURE OF BUSINESS<div style="margin-top:10pt;text-align:justify;text-indent:18pt"><span style="color:#333333;font-family:'Proxima Nova',sans-serif;font-size:9pt;font-weight:400;line-height:115%">MercadoLibre, Inc. (“MercadoLibre” and together with its consolidated entities, the “Company”) was incorporated in the state of Delaware, in the United States of America, in October 1999. MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of necessary digital and technology tools that allow businesses and individuals to trade products and services in the region.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:18pt"><span style="color:#333333;font-family:'Proxima Nova',sans-serif;font-size:9pt;font-weight:400;line-height:115%">The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech solution, MercadoLibre enables individuals and businesses to send and receive digital payments; through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers; through the advertising products, MercadoLibre facilitates advertising services for large retailers and brands to promote their products and services on the web; through Mercado Shops, MercadoLibre allows users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model; through Mercado Credito, MercadoLibre extends loans to certain merchants and consumers; and through Mercado Fondo, MercadoLibre allows users to invest funds deposited in their Mercado Pago accounts.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:18pt"><span style="color:#333333;font-family:'Proxima Nova',sans-serif;font-size:9pt;font-weight:400;line-height:115%">As of March 31, 2024, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates its fintech solution in Argentina, Brazil, Mexico, Colombia, Chile, Peru, Uruguay and Ecuador, and extends loans through Mercado Credito in Argentina, Brazil, Mexico and Chile. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia, Chile, Uruguay, Peru and Ecuador.</span></div>
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<div style="margin-top:10pt"><span style="color:#333333;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of estimates</span></div><div style="margin-top:10pt;text-align:justify;text-indent:18pt"><span style="color:#333333;font-family:'Proxima Nova',sans-serif;font-size:9pt;font-weight:400;line-height:115%">The preparation of these unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting and disclosures for allowance for doubtful accounts and chargeback provisions, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of short-term and long-term investments, impairment of long-lived assets, separation of lease and non lease components for aircraft leases, asset retirement obligation, compensation costs relating to the Company’s long term retention program, fair value of customer crypto-assets safeguarding assets and liabilities, fair value of certain loans payable and other financial liabilities, fair value of loans receivable, fair value of derivative instruments, income taxes, contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates.</span></div>
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