Mercado Libre posted record revenue: the stock jumped 14%

In its latest presentation of the results, Mercado Libre surprised investors: it reported revenue for $ 2.6 billion for the second quarter of this year, up 56% of what it had achieved in the same period of 2021. The share of the company founded by Marcos Galperín has soared in the after market and jumped by 14%.

The Latin American e-commerce giant beat all predictions on key metrics. Analysts had been expecting a gross margin of 45.9% and the company recorded 49% in the second quarter of 2022.

Mercado Libre’s gross profit was close to $ 1.3 billion, an increase of 70.3% in dollar terms compared to the same period of the previous year. Net income also jumped in the second half, reaching $ 123 million, an increase of 79.8%, with an improvement in the total margin, year on year.

Operating income also set a record $ 250 million, with growth of 50.6% measured in dollars, with percentage margins similar to last year. André Chaves, senior vice president of strategy, business development and investor relations, told the trade press that in the past 18 months the company has begun to inform investors that given the size of the business, the strategy would be to gain market share and profitability.

The company’s fintech leg also surpassed the estimate of $ 1.04 billion as MercadoPago’s net profit it grew 112.5% ​​in dollars, reaching $ 1.2 billion year after year. Mercado Pago also exceeded one billion dollars for the first time.

“Among some of the most important aspects that Mercado Libre reported and which partly explain the positive reading of investors, is the increase of 26% in the unique active users of the fintech segment. They reached a total of 38.2 million at end of June “, said Maximiliano Donzelli, of IOL, who stressed that these numbers were achieved in a global context of economic slowdown.

Donzelli added: “We cannot fail to mention the accelerated growth rate maintained by the Mercado Pago divisionwhich reached a volume of payments that exceeded 30,000 million dollars (a record for the company), thus recording an increase of approximately 84% compared to the same quarter of the previous year ”.

Despite the local crisis, Argentina appears as the second most important country for MELI’s regional operation. However, Brazil continues to be the most relevant market for this company, accounting for 56% of its total revenues.

If this Thursday at the opening of the stock markets the rise is consolidated, the role of Meli, which loses over 30% from the beginning of the year it could return to prices it hasn’t seen since May.