MercadoLibre, Inc. (MELI) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 3, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good day, and thank you for standing by Welcome to The MercadoLibre Earnings Conference Call. At this time all participants are in a listen-only mode. Due to some technical issues, we will begin this call with the Q&A segment. After the Q&A we will have the video available to play on this call. Thank you for your understanding.

Questions and Answers:

Operator

So at this time, we will conduct the question-and-answer session, as I mentioned. [Operator Instructions]

Our first question comes from the line of Andrew Ruben from Morgan Stanley. Your line is now open.

Andrew Ruben

Hey, great. Thanks very much for the question. I'm interested on the commerce take rate. It was a strong quarter we see the increase of about 50 bps for the seller final value fees about 60 bps on the shipping fees. I'm curious if you could dig in a bit further on both of those items. Was there any change in in your pricing policy? Was it mix, anything maybe on the contra revenue line just trying to understand what drove the take rate expansion would be helpful, thank you

Operator

One moment, please. Yes, Pedro, we can hear you now.

Pedro Arnt

Can you hear me now?

Operator

Yes, we can, Pedro.

Pedro Arnt

Sorry. So we were just encouraging everyone to please take a look at the video after we're done with Q&A. And apologize for the technical difficulty.

Andrew, it's a little bit of the three things you mentioned. So we have began or continued to selectively change shipping prices on select routes and zones in different markets. And so the net revenue from shipping has improved as a consequence of those pricing actions.

Mix has been a driver of improving final value fees, as there's some mix shift towards higher take rate categories. And typically at the beginning of the year in the first quarter, we also carry out selective pricing on seller fees across different geos in the marketplace.

Andrew Ruben

Great, and as a quick follow up, you mentioned the pricing on select routes and zones in different markets. Is that more the core logistics fees or any change in how you've implemented some of the tests for fulfillment and warehousing specifically? Thanks again.