MELI is an e-commerce, logistics and fintech leader in Latin America. It has a thriving marketplace and fulfillment business, with support for 3rd party merchants. It also features a rapidly growing financial services suite and payments platform, entertainment offerings through partnerships, a budding ads business and a loyalty program called MELI+. The business model resembles Amazon without cloud computing. Here are the names of its various products:
- The e-commerce marketplace is called Mercado Marketplace.
- Logistics/Shipping is called Mercado Envios. Mercado Envios Full is its full-service logistics business for merchants. It handles all inbound and outbound activity, packaging and returns. It’s similar to Supply Chain by Amazon.
- The financial services business is called Mercado Pago, with its credit business called Mercado Crédito.
- Mercado Shops is its white-label store builder for other merchants to create a site that's fully integrated into the Mercado Libre platform.
- Mercado Play is its entertainment business. Key partnerships with Disney help fill out the library.
- Acquiring TPV (Total Payment Volume) refers to the piece of Mercado Pago that lets merchants seamlessly tap into these easier payment options, augmenting conversion rates (through software and point-of-sale hardware). Acquiring TPV happens whenever Mercado Pago is used as the main payment facilitator/processor on the marketplace or on a merchant’s own site (“off-platform” acquiring TPV).
a. Demand
- Beat revenue estimate by 4.3%.
- Commerce revenue beat by 7%.
- Fintech revenue beat by 1.8%.
- Beat gross merchandise value (GMV) estimate by 3.3%.
- 36% foreign exchange neutral (FXN) GMV growth beat 33% estimate. The beats were driven by Brazil, as Mexico was in line and Argentina missed growth expectations. Brazil is where the bulk of the competitive concerns reside, so this is great to see.
- Beat total payment volume (TPV) estimate by 9%.
