Specialist
Former executive at Mercado Libre Inc
Agenda
- LATAM e-commerce industry, focusing on MercadoLibre’s (NASDAQ: MELI) proposition in online marketplaces
- Geographic dynamics and MercadoLibre’s efforts across Brazil, Argentina and Mexico
- Last-mile and logistics – challenges and opportunities
- Long-term e-commerce penetration outlook across categories
Questions
1.
What is your H2 2022 outlook for MercadoLibre?
2.
How might 2023 differ in the sense of more stable KPIs or metrics? Is there anything else to call out aside from the four points you highlighted?
3.
What other KPIs do you have an outlook for, including any that might be commonly misunderstood or underappreciated by the investment community?
4.
Which of the macroeconomic headwinds poses the most vs least risk to MercadoLibre, looking at inflation, rising interest rates, consumer sentiment and so on?
5.
What is your five-year outlook for MercadoLibre’s user growth? The company reported 81 million active users in Q1 2022 and you said you expect the company’s stickiness to continue. How does it stack up vs other marketplace platforms? What is its competitive advantage or industry edge, in your view?
6.
What is your assessment of MercadoLibre’s profit trajectory, specifically thinking about EBIT margins, which contracted YoY to about 6.2% in Q1 2022 from 6.6%.
7.
What is your perspective on the state of MercadoLibre’s business and positioning in Brazil? What are the positives and negatives for the company?
8.
What do you approximate MercadoLibre’s market share in Brazil to be and how might it develop over the next three years?
9.
Which players would you forecast to be number one, two and three in Brazil in five years?
10.
What or who are lingering or ongoing credible threats to MercadoLibre in Brazil?
11.
How has Shopee managed its rapid market share gains in such a short time?
12.
Is there anything differentiated in Shopee’s strategy vs the incumbents’? How are you assessing the company’s prospects for success given it is a regional outsider?
13.
What is the state of logistics in Brazil given the challenges faced? Could you elaborate on MercadoLibre’s investments in the region?
14.
What is your outlook for MercadoLibre’s performance in Argentina?
15.
Do you make anything of the potential of an antitrust lawsuit in Brazil?
16.
Do you ever see MercadoLibre filling any gaps inorganically to assert its dominance beyond where it sits in Argentina?
17.
What potential challenges should we track in Argentina? What is MercadoLibre likely tracking?
18.
Is the regulatory risk higher in Argentina vs Brazil and Mexico when it comes to e-commerce or any other of MercadoLibre’s businesses?
19.
What is your outlook for MercadoLibre in Mexico? Its contribution margin sits around 10% on roughly 15-16% of net revenue contribution.
20.
How is the competitive landscape in Mexico developing, given it is dominated by MercadoLibre, Amazon and Walmart?
21.
What specifically about MercadoLibre’s moves in Mexico do you think surprises Amazon?
22.
How might MercadoLibre approach further investment in Mexico to accelerate customer acquisition, whether marketing or other strategies?
23.
Do you have any thoughts on logistics or last-mile challenges in Mexico for MercadoLibre?
24.
What is your longer-term outlook for e-commerce penetration in LATAM? What are your estimates for Brazil, Argentina and Mexico?
25.
When we think of LATAM e-commerce, which categories could take centre stage in the medium term?
26.
What would you be most excited for and what might keep you up at night if you owned 100% of MercadoLibre today?
