MercadoLibre, an Argentine e-commerce marketplace operator traded publicly in the United States and operating in throughout Latin America, has published an earnings report reflecting the company’s continued exponential growth. Its stock, according to Yahoo! Finance, has increased more than 100% since the beginning of the year; it rose a further 12% on the heels of the earnings report.
“MercadoLibre reported net revenue of $545 million, up 63% year over year. That’s an acceleration from the 48% growth in Q1, which marked its fastest growth rate in more than two years. Even more incredibly, growth soared more than 102% in local currencies, which was also a sequential increase from 93%. Revenue easily topped analysts’ consensus estimate of $504.8 million.
“Net income grew to $16.2 million, far better than the $11.2 million loss MercadoLibre generated in the prior-year quarter. This resulted in earnings per share of $0.31, up from a loss of $0.25 in the year-ago quarter, and topping expectations of $0.25.”
MercadoLibre uses Mercado Pago, among the most popular online payment systems in Latin America, to process its transactions. According to the earnings report, total payment volume (TPV) for Mercado Pago was more than $6.5 billion while the number of transactions processed stood at 181.6 million, a 113% increase from the same quarter in 2018.
Moreover, Mercado Pago’s mobile point-of-sale (mPOS) is expanding: there are more than twice as many active mPOS devices now than there were a year ago. mPOS is currently being used in Brazil, Argentina and Mexico.
MercadoLibre is also witnessing growth in its merchant and consumer credit sector. Mercado Credito, as it is called, employs AI algorithms to help facilitate successful personal and business loans. Yahoo! reports that “During the quarter, the company’s loan portfolio climbed 75% year over year, and 44% quarter over quarter in dollars.”
MercadoLibre was established in 1999 and has its headquarters in Buenos Aires, Argentina.