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MercadoLibre, Inc. (MELI - Free Report) reported second-quarter 2023 earnings of $5.16 per share, which surpassed the Zacks Consensus Estimate by 24.9%. Further, the figure reflects a significant jump of 112.3% from the year-ago quarter.
The company’s revenues surged 31.5% on a year-over-year basis (57.2% on a FX-neutral basis) to $3.41 billion. The top line surpassed the Zacks Consensus Estimate by 4.3%.
The total revenues were driven by accelerating commerce and fintech revenues, which grew 38% and 24% year over year, respectively.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.
MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
Brazil: Net revenues in the second quarter were $1.78 billion (52.1% of the total revenues), rising 23% year over year.
Argentina: The market generated revenues of $771 million (22.6% of the top line), which surged 30% year over year.
Mexico: Net revenues in the reported quarter were $703 million (20.6% of the total revenues), soaring 64% year over year.
Other countries: The markets generated revenues of $161 million (4.7% of the total revenues), increasing 29.8% on a year-over-year basis.
Key Metrics
GMV of $10.51 billion jumped 22.9% and 47.2% on a reported and an FX-neutral basis, respectively, from the year-ago quarter. The figure surpassed the consensus mark of $10.04 billion.
The number of successful items sold was 325 million, which increased 18.2% year over year and topped the consensus mark of 310 million. The number of successful items shipped rose 20.8% year over year to 319 million, which beat the consensus mark of 303 million.
TPV increased 39.3% and 96.6% year over year on a reported and an FX-neutral basis, respectively, to $42.06 billion. This was driven by the strong performance of Mercado Pago. The figure came ahead of the Zacks Consensus Estimate of $40.8 billion.
Off-Marketplace TPV was above $31 billion, up 129% year over year on a FX-neutral basis.
Acquiring TPV, which includes on-platform, online payments, MPoS and QR payments, was $27.3 billion, up 31.2% year over year.
Also, $14.8 billion of digital accounts’ TPV, including wallet payments, P2P transfers between Mercado Pago accounts and card transactions, surged 57.4% year over year.
TPV on the marketplace was $11.07 billion, up 23% year over year. Total payment transactions increased by 68.9% year over year to 2.1 billion.
Unique active users totaled 109 million, up 29.8% year over year. The figure came ahead of the Zacks Consensus Estimate of 101 million.
Operating Details
For the second quarter, the gross margin was 50.4%, expanding 100 basis points (bps) year over year.
Operating expenses were $1.16 billion, which increased 12.4% year over year. As a percentage of revenues, the figure contracted 580 bps from the year-ago quarter to 34% in the reported quarter.
The operating margin was 16.3%, expanding 670 bps from the prior-year quarter.
Balance Sheet
As of Jun 30, 2023, cash and cash equivalents were $1.86 billion, down from $2.14 billion on Mar 31, 2023.
Short-term investments were $2.8 billion for the second quarter, up from $2.5 billion in the previous quarter.
Accounts receivable amounted to $160 million, up from $132 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , AvidXchange (AVDX - Free Report) and Akamai Technologies (AKAM - Free Report) , each carrying a Zacks Rank #2 (Buy).
Image: Bigstock
MercadoLibre's (MELI) Q2 Earnings Beat, Revenues Rise Y/Y
MercadoLibre, Inc. (MELI - Free Report) reported second-quarter 2023 earnings of $5.16 per share, which surpassed the Zacks Consensus Estimate by 24.9%. Further, the figure reflects a significant jump of 112.3% from the year-ago quarter.
The company’s revenues surged 31.5% on a year-over-year basis (57.2% on a FX-neutral basis) to $3.41 billion. The top line surpassed the Zacks Consensus Estimate by 4.3%.
The total revenues were driven by accelerating commerce and fintech revenues, which grew 38% and 24% year over year, respectively.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.
MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
Quarter in Detail
Brazil: Net revenues in the second quarter were $1.78 billion (52.1% of the total revenues), rising 23% year over year.
Argentina: The market generated revenues of $771 million (22.6% of the top line), which surged 30% year over year.
Mexico: Net revenues in the reported quarter were $703 million (20.6% of the total revenues), soaring 64% year over year.
Other countries: The markets generated revenues of $161 million (4.7% of the total revenues), increasing 29.8% on a year-over-year basis.
Key Metrics
GMV of $10.51 billion jumped 22.9% and 47.2% on a reported and an FX-neutral basis, respectively, from the year-ago quarter. The figure surpassed the consensus mark of $10.04 billion.
The number of successful items sold was 325 million, which increased 18.2% year over year and topped the consensus mark of 310 million. The number of successful items shipped rose 20.8% year over year to 319 million, which beat the consensus mark of 303 million.
TPV increased 39.3% and 96.6% year over year on a reported and an FX-neutral basis, respectively, to $42.06 billion. This was driven by the strong performance of Mercado Pago. The figure came ahead of the Zacks Consensus Estimate of $40.8 billion.
Off-Marketplace TPV was above $31 billion, up 129% year over year on a FX-neutral basis.
Acquiring TPV, which includes on-platform, online payments, MPoS and QR payments, was $27.3 billion, up 31.2% year over year.
Also, $14.8 billion of digital accounts’ TPV, including wallet payments, P2P transfers between Mercado Pago accounts and card transactions, surged 57.4% year over year.
TPV on the marketplace was $11.07 billion, up 23% year over year. Total payment transactions increased by 68.9% year over year to 2.1 billion.
Unique active users totaled 109 million, up 29.8% year over year. The figure came ahead of the Zacks Consensus Estimate of 101 million.
Operating Details
For the second quarter, the gross margin was 50.4%, expanding 100 basis points (bps) year over year.
Operating expenses were $1.16 billion, which increased 12.4% year over year. As a percentage of revenues, the figure contracted 580 bps from the year-ago quarter to 34% in the reported quarter.
The operating margin was 16.3%, expanding 670 bps from the prior-year quarter.
Balance Sheet
As of Jun 30, 2023, cash and cash equivalents were $1.86 billion, down from $2.14 billion on Mar 31, 2023.
Short-term investments were $2.8 billion for the second quarter, up from $2.5 billion in the previous quarter.
Accounts receivable amounted to $160 million, up from $132 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , AvidXchange (AVDX - Free Report) and Akamai Technologies (AKAM - Free Report) , each carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Salesforce shares have gained 70.7% in the year-to-date period. The long-term earnings growth rate for CRM is currently projected at 19.25%.
AvidXchange shares have increased 21.1% in the year-to-date period. The long-term earnings growth rate for AVDX is currently projected at 22.90%.
Akamai shares have gained 9.5% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.