Mar 31, 2022

MercadoLibre Q1 2022 Earnings Report

MercadoLibre experienced a strong first quarter with growth across all businesses, demonstrating resilience and innovation amidst a challenging economic backdrop.

Key Takeaways

MercadoLibre reported a strong first quarter in 2022, with net revenues reaching $2.2 billion, a 67.4% year-over-year increase on an FX neutral basis. The company saw significant growth in Total Payment Volume and Gross Merchandise Volume, alongside improvements in gross profit margins. Despite facing macroeconomic uncertainties, MercadoLibre is investing in growth and new features to expand its ecosystem.

Net revenues reached $2.2 billion, up 67.4% year-over-year on an FX neutral basis.

Total Payment Volume reached $25.3 billion, up 81.2% year-over-year on an FX neutral basis.

Gross Merchandise Volume was almost $7.7 billion, growing approximately 32% on an FX-neutral basis.

Unique fintech active users reached 35.8 million.

Total Revenue
$2.25B
Previous year: $1.38B
+63.1%
EPS
$1.3
Previous year: -$0.68
-291.2%
Total Payment Volume
$25.3B
Previous year: $14.7B
+72.0%
Gross Merchandise Volume
$7.67B
Previous year: $6.06B
+26.5%
Items Sold
267M
Previous year: 222M
+20.3%
Gross Profit
$1.07B
Previous year: $591M
+81.4%
Cash and Equivalents
$1.57B
Previous year: $863M
+82.3%
Free Cash Flow
-$370M
Previous year: -$378M
-2.1%
Total Assets
$11B
Previous year: $5.2B
+112.1%

MercadoLibre

MercadoLibre

MercadoLibre Revenue by Geographic Location

Forward Guidance

MercadoLibre plans to continue investing in its core business, launch new features and services, and expand its team by onboarding nearly 14,000 new employees.

Positive Outlook

  • Investing for growth in core business.
  • Continuous launches of new features and services.
  • Expanding ecosystem to improve customer experience.
  • Onboarding nearly 14,000 new employees this year.
  • Focusing on priorities and improvements in operating efficiency.

Challenges Ahead

  • Macroeconomic uncertainty in Latin America.
  • Sociopolitical uncertainty in Latin America.
  • Uncertainty surrounding consumer spending.
  • Higher interest rates.
  • Higher inflation in key markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income