MercadoLibre Inc MELI
Q2 2011 Earnings Call Transcript

Transcript Call Date 08/03/2011

Operator: Good day, ladies and gentlemen, and welcome to the MercadoLibre Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded.

I would now like to turn the conference over to the Company.

Unidentified Company Speaker: Welcome everyone to MercadoLibre's earnings conference call for the quarter ended June 30, 2011. Company management presenting today are Marcos Galperin, Chief Executive Officer and Pedro Arnt, Chief Financial Officer. Additionally, Hernan Kazah, our former CFO and Osvaldo Gimenez, Senior Vice President of Mercadolibre will be available during today's Q&A session.

This conference call is also being broadcast over the Internet and is available through the Investor Relations section of our website. I'll remind you that management may make forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives. These statements are based on currently available information and our current assumptions, expectations and projections about future events.

While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those discussed in this call for a variety of reasons including those described in the forward-looking statements and risk factors sections of our 10-K and other filings with the Securities and Exchange Commission, which are available on our Investor Relations website.

Now, let me turn the call over to Marcos.

Marcos Galperin - Chairman, President and CEO: Thank you. I would like to welcome all of you to today's conference call. MercadoLibre's second quarter of 2011 proved a continuation of the strong momentum, we've been experiencing for our entire business.

As the quarter advanced, this was increasingly the case. So our unit volume grew progressively stronger and gross merchandise volume saw an additional boost resulting from strong currencies and strong macroeconomic context leading to increased consumption.

I would like to start by sharing a few key growth rates that'll give an accurate sense of our strong performance this quarter and how this flowed into our financial results. I would follow this with the description of our latest developments and the thinking behind them as our second quarter came with many optimizations to the services we provide, all of them in line with the strategy we have laid out and have been stated for you on previous occasions. This would provide the proper context to update you on some of the exciting changes we are bringing to our platform, our technology resulting efforts, or new world project as we call it.

Please bear in mind that the growth rates I will call out today are year-on-year unless I specify otherwise.

In the quarter, confirmed registered users were up 23%. Item sold grew 26%. Gross merchandise volume grew 34%, reaching $1.068 billion in the quarter. The number of payments performed from MercadoPago grew 140%, adding out to our total payment volume of $295.8 million.

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