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1) $MELI Q1 2019
Can't recall reading a more bullish conference call.
MercadoPago results were extremely encouraging
$PYPL EV $120 billion
$EBAY EV $35 billion
Can't recall reading a more bullish conference call.
MercadoPago results were extremely encouraging
$PYPL EV $120 billion
$EBAY EV $35 billion
2) "We have accelerated revenue and earnings growth with positive cash flow...we are very pleased with our progress and look forward to keeping you updated next quarter as we continue to democratize commerce and money throughout Latin America"
3) "Operating income was positive once again at $10.1 million and positive net income after five quarters of loss, giving us confidence in our ability to dial up or down the profit levels of our P&L as we see fit"
4) Lots of companies compare themselves to $AMZN ... $MELI justifiably can. Accelerating revenue growth while demonstrating control of the P&L investing in two of the best secular growth opportunities in the world today digital Payments & eCommerce
4) Pago
- Total TPV of $5.6 billion +83% YoY CC
- Off-Platform TPV now up to 45% of total versus 1/3 in 1Q18; +194% YoY cc (+accelerating)
- Quantity of off-platform transactions (60% of total) grew 250% YoY
-eWallet and mPOS penetration continue to grow as a % of off-platform
- Total TPV of $5.6 billion +83% YoY CC
- Off-Platform TPV now up to 45% of total versus 1/3 in 1Q18; +194% YoY cc (+accelerating)
- Quantity of off-platform transactions (60% of total) grew 250% YoY
-eWallet and mPOS penetration continue to grow as a % of off-platform
5) Hopefully they can recreate the success of their full suite of off-platform Argentina payments products (QR Code, eWallet, mPOS) in Brazil. Sometimes when you launch a product that hasn't been battle tested you can alienate customers for an irrationally long time periods.
6) That should not be the case here, they have a track record of successful deployment of payment products (one of the advantages of operating in multiple countries within LatAm). If payments EV is going to be multiples of the marketplace the Brazilian market is key.
7) CFO with the super-bull case
"We believe the non-carded QR code network that we are trying to build can offer much greater disruption in terms of lower cost, more efficient distribution and more massive distribution than the proprietary networks that are owned by $V + $MA "
"We believe the non-carded QR code network that we are trying to build can offer much greater disruption in terms of lower cost, more efficient distribution and more massive distribution than the proprietary networks that are owned by $V + $MA "
8)☝️why $PYPL invested
9) Marketplace
CC Consolidated GMV growth of +27%
Brazil GMV (50% of total) +18% YoY CC.
Argentina GMV (20% of total) +70% YoY LC
Mexico GMV (10% of total) +48% YoY LC
CC Consolidated GMV growth of +27%
Brazil GMV (50% of total) +18% YoY CC.
Argentina GMV (20% of total) +70% YoY LC
Mexico GMV (10% of total) +48% YoY LC
10) Brazil GMV was the worst part of the quarter. Management noted they were focusing on more economic transactions, with minimum order sizes, plus extremely hard comps that already started to fall off... "We have already exited the quarter at a better growth rate"
11) This feeds into the highest revenue growth company I own
Constant Currency Consolidated Revenue Growth of +93%
Brazil 91%
Argentina 83%
Mexico 227%
Constant Currency Consolidated Revenue Growth of +93%
Brazil 91%
Argentina 83%
Mexico 227%
12) Literally running out of "plastics"
