With 6,7 million new users, MercadoLibre's active user base reached 80,8 million at the end of the quarter, up 15,7%.

São Paulo, May 05, 2022 – O Mercado Livre  (Nasdaq: MELI) — Latin America's leading e-commerce and financial services technology company — reached a new record for total revenue in the first quarter of 2022, outperforming the fourth quarter of last year. Net revenue reached US$ 2,2 billion in the first quarter of 2022, growth of 63,1%, in dollar terms, and 67,4% in constant currency, compared to the same period of 2021. Brazil represents 55% of Mercado Livre's total net revenue, having reached US$ 1,2 billion and growth of 54,8% in reais.

The net income of the business trade increased 40,2% in dollar terms year-on-year to $1,3 billion, driven by nearly 40 million unique shoppers in the quarter. Consumers remain active, generating growth in the number of items per buyer compared to last year, even with the effects of the pandemic. The net income of fintech grew 107,9% in dollars, reaching US$971,1 million, year over year. In the first quarter, Mercado Pago registered almost 36 million active users, an increase of 31,1%, with growth in all markets in the region, especially in payment services via digital wallet and credit users.

“We reached a new record in terms of total revenue, reflecting improved profitability in both the commerce and fintech businesses. Our gross margins improved with better operating leverage over our cost base. In line with our objective of growing profitably, we maintained consolidated operating profit margins at similar levels to last year. The bottom line performance was equally strong, delivering record net income for a first quarter”, says André Chaves, Senior Vice President of Strategy and Corporate Development at Mercado Livre. “The growth of the marketplace remained consistent, mainly due to the behavior and growth of the buyer base. The variety of our assortment and the quality of our seller base put us in a unique position to drive continued profitable growth. Mercado Pago also had a very encouraging performance, with the credit portfolio showing consistent profitable growth, as well as growth in the volume of digital account payments and acquiring. We had a very strong start to the year, establishing a solid foundation for the coming months, which will be challenging”, he adds.

E-Trade

The marketplace's sales volume (GMV) reached US$7,7 billion in the first quarter, up 26,5% in dollar terms and 31,6% in constant currency. In all, 266,7 million items were sold, which represents a growth of 20,1%. The total volume of ads registered on the platform reached 329 million. O Brazil stands out in the region with growth of 23,2% in GMV, in constant currency, reaching US$ 3,4 billion, and 137 million items sold in the period – 6,6 items per buyer, the highest level of the historical average for the first quarter.

With Mercado Envios, 254,3 million items were shipped in the region, an increase of 22,2% over the same period of the previous year. There were significant advances in the execution and speed of Mercado Envios, whose penetration reached 98,4% of the entire operation, above the 96,6% recorded in the same quarter of 2021. Of this total, more than 90,5% corresponds to the managed network of Free Market — 40% of shipments via the fulfillment model. Of the general volume of goods, around 80% were delivered within 48 hours and around 54% on the same day or the day after purchase.

The commerce ecosystem services continue to expand, especially Mercado Ads, which has been a consistent highlight in terms of growth and margin. Digital advertising business revenue nearly doubled in the first quarter, year-over-year, having consistently invested in technology to broaden the presence of ads in the ecosystem.

Fintech

The loan portfolio reached more than US$ 2,4 billion — it was US$ 1,7 billion at the end of 2021 — showing consistent profitable growth, in line with our expectations. In the period, Mercado Crédito granted more than US$ 1,7 billion in loans, almost triple the amount registered in the first quarter of 2021.

The total volume of payments (TPV) via Mercado Pago reached US$ 25,3 billion for the first time, growth of 72,0% in dollar terms and 81,2% in constant currency. The total volume of transactions (TPN) in the period grew 73,2%, year on year, surpassing around 1,1 billion in the first quarter, the second consecutive.

The total volume of payments via Mercado Pago, outside the Mercado Livre platform, also continues to grow, reaching US$ 17,2 billion, growth of 103,2% in dollar terms and 138,6% in constant currency. Payments outside the MercadoLibre platform are growing a lot in the Brazil, where the number of new sellers also increases, mainly due to operations with PIX.

The total processed payments can be divided between the total volume of processed charges and the total volume of digital account transactions. The first includes charges on the Mercado Livre platform, online charges and charges processed through Point card machines and QR devices, which totaled US$ 17,4 billion, growing 46,4% in dollars, year on year, and 52,4. 1,1% in constant currency. In the first quarter, over 18,2 million machines were sold, an increase of XNUMX% year on year, with emphasis on Brazil, Argentina and Mexico.

No Brazil, the growth in the base of sellers who started to adopt QR devices is still notable, especially micro and small entrepreneurs who already used machines and also adopted this modality. As a result, the total volume of payments via QR code quadrupled in the quarter, year over year.

The volume of transactions through the virtual wallet, which also includes transfers between Mercado Pago users, credit, debit and prepaid card transactions, grew 178,5% in constant currency, in the annual comparison, totaling almost US$ 8 billion.

At the end of March, more than 22,7 million users had funds invested in the fund, which brings together income-earning digital account users. The portfolio of savings and investment products continues its rapid growth, driven by the launch of the cryptocurrency wallet at the end of last year. In Brazil, the only country where the service currently operates, the cryptocurrency wallet user base continues to grow.

In the period, more than 522 thousand insurance policies were distributed, a volume 6,0% greater than that registered in the first quarter of last year, driven by the greater penetration of products in Argentina, Brazil and Mexico. At the Brazil, the distribution of insurance for cards and for payments via PIX reinforce Mercado Pago's insurance offer.

financial performance

MercadoLibre's gross profit was around US$ 1,1 billion, an increase of 81,5% in dollars compared to the same period of the previous year. Gross margins improved year over year, with better operating leverage over the cost base. Operating income was US$ 139 million, growth of 53,5% in US dollars, and net income reached US$ 65 million.

The overall base of unique active users of the ecosystem reached 80,7 million at the end of the quarter, up 15,7% compared to the same period of 2021 – with 6,7 million new users incorporated in the first quarter of this year alone.

In line with the strategy and investments planned for Latin America, Mercado Livre announced that more than 14 new direct employees will be incorporated into the operation, across the entire commerce and fintech ecosystem. With this, the total number of employees will jump from the current 29 employees — at the end of December 2021 — to more than 44 by the end of 2022.

About Free Market

Founded in 1999, Mercado Livre (NASDAQ: Meli) is the leading e-commerce technology and digital financial services company in Latin America, with a presence in 18 countries. It offers a complete ecosystem of solutions so that individuals and companies can buy, sell, advertise, obtain credit and insurance, collect, send money, save and pay for goods and services online and in physical stores. Mercado Livre seeks to democratize trade and financial services in Latin America, a market that offers great opportunities and high growth potential. It applies world-class technology to design intuitive solutions tailored to the local culture to transform the lives of millions of people in the region.

More information on http://investor.mercadolibre.com/ - Via Eldeman