Report
R.J. Hottovy

MercadoLibre Market Share/Margin Debate Lingers, but Engagement Trends Reinforce Long-Term Optimism

The balance between market share gains and profitability was once again the key question coming out of MercadoLibre's first-quarter update. The quarter had several moving parts due to the adoption of ASC 606 (MercadoLibre will now account for cost of shipping subsidies by netting them from revenue instead of a separate income statement line item), resulting in reported revenue growth of 19% (30% constant currency) but an impressive 58% (70% constant currency) on a comparable basis. We still see ...
Underlying
MercadoLibre Inc.

MercadoLibre is engages in an online commerce ecosystem. Co.'s platform is designed to provide users with a portfolio of services to facilitate commercial transactions. Co. integrated e-commerce services includes: the MercadoLibre Marketplace, which is an automated, topically-arranged and user-friendly online commerce service; MercadoLibre Classifieds Service, which users can also list and purchase motor vehicles, vessels, aircraft, real estate and services; MercadoPago payments solution, providing a mechanism that allows its users to send and receive payments online; and MercadoLibre advertising program, which enable businesses to promote their products and services on the Internet.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
R.J. Hottovy

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