The 'Amazon of Latin America'

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MercadoLibre Inc. posted better than expected third-quarter earnings Wednesday as its business in Mexico helped fuel revenue growth while its fintech arm continues to become a bigger share of the business.

The revenue of the e-commerce giant revenue topped USD 3.8 billion in the quarter, up 39.8% from a year ago and more than the USD 3.6 billion forecast by analysts surveyed by Bloomberg. Net income reached USD 359 million, surpassing expectations, too. Revenue in Mexico surged 66% from a year ago, posting faster growth than Brazil or Argentina, the two other main markets of the company. The company sees its fintech platform, Mercado Pago, gaining a larger foothold in second-largest economy of Latin America while it expects to open more fulfilment centres there in the fourth quarter to meet rising commerce demand. 

Third Quarter Results

  • Net revenue USD 3.76 billion, +40% y/y, estimate USD 3.56 billion
    - Brazil Net revenues USD 2.01 billion, +40% y/y, estimate USD 1.93 billion
    - Argentina Net revenues USD 825.0 million, +22% y/y, estimate USD 816.6 million
    - Mexico Net Revenues USD 772.0 million, +66% y/y, estimate USD 810.7 million
    - Other Countries Net revenues USD 157.0 million, +32% y/y, estimate USD 150.8 million
  • EPS USD 7.16 vs. USD 2.56 y/y, estimate USD 5.99
  • Gross merchandise volume USD 11.36 billion, +32% y/y, estimate USD 10.63 billion
  • Commerce revenues USD 2.13 billion, +42% y/y, estimate USD 1.99 billion
  • Fintech revenues USD 1.63 billion, +36% y/y, estimate USD 1.58 billion
  • Gross margin 53.1% vs. 50.1% y/y, estimate 50%
  • Unique active users 119.8 million, +36% y/y
  • Payment volume USD 47.26 billion, +47% y/y, estimate USD 43.79 billion
  • Live listings 457 million
  • Payment transactions 2.51 billion, +74% y/y, estimate 2.19 billion
  • Brazil direct contribution USD 571 million vs. USD 222 million y/y
  • Argentina direct contribution USD 384 million, +28% y/y
  • Mexico direct contribution USD 167 million vs. USD 81 million y/y

Source: Bloomberg


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