Online retailer MercadoLibre surpassed analysts’ forecasts

Latin American e-commerce specialist MercadoLibre Inc. (MELI) rose by more than 12% to $1033.59 at the auction in February. One of the growth drivers was the quarter results above the expectations of Wall Street analysts. In the fourth quarter, MercadoLibre’s revenue was $2.1 billion, representing an increase of 74% year-on-year (in local currency). 

The company’s key segments showed double-digit growth: revenues from the sale of goods increased by 67% year-on-year, and gains from financial technologies brought 81% more than a year earlier. Thus, the gross volume of goods sold last quarter on the MercadoLibre platform amounted to $8 billion, which is 32% more year on year, and the total volume of payments increased by 73% year on year to $24.2 billion. In addition, off-platform prices helped stimulate growth in the financial technology sector, which increased by 97% to $16.1 billion thanks to 849 million payment transactions. 

MercadoLibre reported that it sold 4.7 million point-of-sale devices in the last quarter, which significantly strengthened the business of off-platform payments in Brazil and Argentina, which are already the company’s largest markets. Another positive news is MercadoLibre’s operating profit, which amounted to $23.3 million in the fourth quarter. For comparison, a year earlier in the same quarter, the company made a loss of $25.1 million. Nevertheless, earnings per share were negative ($0.92), as MercadoLibre lost $56.9 million due to exchange rate differences. MercadoLibre is committed to providing comprehensive services. 

Already, the company offers the purchase of goods and the service of payment transactions. In addition, the online retailer invests in the logistics business in its largest markets — Brazil, Mexico, Argentina, and Chile. The comprehensive services provide MercadoLibre with a leading position in the e-commerce market.