Mercadolibre, Inc. (NASDAQ:MELI) Q3 2019 Earnings Conference Call Transcript
Oct 31, 2019 • 04:30 pm ET
Ladies and gentlemen thank you for standing by and welcome to the MercadoLibre Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today Federico Sandler. Please go ahead sir.
Hello everyone and welcome to the MercadoLibre earnings conference call for the quarter ended September 30 2019. I am Federico Sandler Investor Relations Officer for MercadoLibre. Our senior manager presenting today is Pedro Arnt Chief Financial Officer. Additionally Osvaldo Gimenez CEO of Mercado Pago will be available during today's Q&A session. This conference call is also being broadcasted over the Internet and is available through the Investor Relations section of our website. I 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 on our current assumptions expectations and projections about future events. While we do 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 section of our 10-K and our filings with the Securities and Exchange Commission which are available on our Investor Relations website. Finally I would like to remind you that during the course of this conference call we may discuss some non-GAAP measures. A reconciliation of those measures to the nearest comparable GAAP measures can be found in our third quarter 2019 earnings press release available in our Investor Relations website.
Now let me turn the call over to Pedro.
Thank you. Federico, hi everyone and thanks for joining our third quarter 2019 earnings call. I want to kick off by saying that we delivered another quarter of robust results. We've made significant progress in executing against our strategic roadmap to not only deliver innovative technology solutions to our customers but also to continue democratizing e-commerce and digital financial services. With that said let me start with our FinTech progress report. During the quarter we reached an important historical milestone as for the first time ever total payment volume away from MercadoLibre's marketplaces surpassed TPV on-marketplaces during the full quarter and did so not only on a consolidated basis but also in our largest market Brazil. As of this third quarter 2 of our main countries are processing more payment volume away from our e-commerce platforms than on them as Argentina and Brazil TPV off-marketplaces reached 63% and 52% of total TPV respectively. Consequently and driven by the successful execution of all of our off-platform initiatives TPV off-platform U.S. dollar growth accelerated to 140% year-on-year for the quarter. On a service-by-service level starting with our merchant services business the business continues to maintain momentum. During the quarter merchant services once again surpassed $1 billion at TPV