We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MercadoLibre (MELI - Free Report) reported first-quarter 2025 earnings of $9.74 per share, which beat the Zacks Consensus Estimate by 26.99% and surged 43.7% year over year. Revenues rose 37% on a year-over-year basis (64% on an FX-neutral basis) to $5.9 billion. The top line surpassed the Zacks Consensus Estimate by 7.39%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 32.3% and 43.3% year over year to $3.3 billion and $2.6 billion, respectively. In the commerce segment, strong momentum across Brazil (up 30% year over year) and Mexico (up 23% year over year) contributed well to the reported results. Trends in Argentina are encouraging. Items sold grew 52% year over year in the first quarter.
Fintech Monthly Active Users rose 31% year over year to 64.3 million (with even faster growth among high-frequency users). Assets Under Management grew 103% year over year to $11.2 billion.
Revenues from MELI’s advertising services grew 50% year over year on an FX-neutral basis.
Increasing total payment volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising gross merchandise volume (GMV) was another positive.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
Brazil: Net revenues in the first quarter came in at $3.08 billion (51.9% of the total revenues), up 19.9% year over year.
Argentina: The market generated revenues of $1.38 billion (23.3% of the top line), which soared 124.7% year over year.
Mexico: Net revenues in the reported quarter were $1.22 billion (20.6% of the total revenues), which grew 25.8% year over year.
Other countries: The markets generated revenues of $249 million (4.2% of the total revenues), reflecting an increase of 41.5% on a year-over-year basis.
Key Metrics for MELI
GMV of $13.3 billion jumped 17% year over year and 40% on FX-neutral basis year over year. The figure beat the consensus mark by 2.95%.
The number of successful items sold was 492 million, up 27.8% year over year.
TPV surged 43.2% year over year and 72% on an FX-neutral basis to $58.3 billion. The figure beat the Zacks Consensus Estimate by 11.26%.
Total payment transactions increased 38.3% year over year to $3.34 billion.
MercadoLibre’s Operating Details
For the first quarter, the gross margin remained flat year over year at 46.7%.
Operating expenses were approximately $2 billion, which increased 34.2% year over year. As a percentage of revenues, the figure contracted 70 basis points (bps) year over year to 33.8% in the reported quarter.
The operating margin expanded 70 bps from the year-ago period to 12.9%.
Balance Sheet of MELI
As of March 31, 2025, cash and cash equivalents were $2.98 billion, up from $2.63 billion as of Dec. 31, 2024.
Short-term investments were $741 million as of March 31, 2025. Net debt was $2.77 billion at the end of the quarter.
MELI Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Image: Bigstock
MercadoLibre's Q1 Earnings Beat Estimates, Revenues Rise Y/Y
MercadoLibre (MELI - Free Report) reported first-quarter 2025 earnings of $9.74 per share, which beat the Zacks Consensus Estimate by 26.99% and surged 43.7% year over year. Revenues rose 37% on a year-over-year basis (64% on an FX-neutral basis) to $5.9 billion. The top line surpassed the Zacks Consensus Estimate by 7.39%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 32.3% and 43.3% year over year to $3.3 billion and $2.6 billion, respectively. In the commerce segment, strong momentum across Brazil (up 30% year over year) and Mexico (up 23% year over year) contributed well to the reported results. Trends in Argentina are encouraging. Items sold grew 52% year over year in the first quarter.
Fintech Monthly Active Users rose 31% year over year to 64.3 million (with even faster growth among high-frequency users). Assets Under Management grew 103% year over year to $11.2 billion.
Revenues from MELI’s advertising services grew 50% year over year on an FX-neutral basis.
Increasing total payment volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising gross merchandise volume (GMV) was another positive.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
MELI’s Quarter in Detail
Brazil: Net revenues in the first quarter came in at $3.08 billion (51.9% of the total revenues), up 19.9% year over year.
Argentina: The market generated revenues of $1.38 billion (23.3% of the top line), which soared 124.7% year over year.
Mexico: Net revenues in the reported quarter were $1.22 billion (20.6% of the total revenues), which grew 25.8% year over year.
Other countries: The markets generated revenues of $249 million (4.2% of the total revenues), reflecting an increase of 41.5% on a year-over-year basis.
Key Metrics for MELI
GMV of $13.3 billion jumped 17% year over year and 40% on FX-neutral basis year over year. The figure beat the consensus mark by 2.95%.
The number of successful items sold was 492 million, up 27.8% year over year.
TPV surged 43.2% year over year and 72% on an FX-neutral basis to $58.3 billion. The figure beat the Zacks Consensus Estimate by 11.26%.
Total payment transactions increased 38.3% year over year to $3.34 billion.
MercadoLibre’s Operating Details
For the first quarter, the gross margin remained flat year over year at 46.7%.
Operating expenses were approximately $2 billion, which increased 34.2% year over year. As a percentage of revenues, the figure contracted 70 basis points (bps) year over year to 33.8% in the reported quarter.
The operating margin expanded 70 bps from the year-ago period to 12.9%.
Balance Sheet of MELI
As of March 31, 2025, cash and cash equivalents were $2.98 billion, up from $2.63 billion as of Dec. 31, 2024.
Short-term investments were $741 million as of March 31, 2025. Net debt was $2.77 billion at the end of the quarter.
MELI Zacks Rank & Stocks to Consider
Currently, MercadoLibre carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Alibaba (BABA - Free Report) , Costco Wholesale (COST - Free Report) and Canada Goose (GOOS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Alibaba have gained 45.3% year to date. It is set to report fourth-quarter fiscal 2025 results on May 15.
Shares of COST have gained 9.9% year to date. It is slated to report third-quarter fiscal 2025 results on May 29.
Shares of GOOS have lost 17.3% year to date. It is set to report fourth-quarter fiscal 2025 results on May 21.