Mar 31, 2023

MercadoLibre Q1 2023 Earnings Report

MercadoLibre experienced a strong start to the year, demonstrating profit growth alongside rapid revenue expansion.

Key Takeaways

MercadoLibre reported net revenues of $3.0 billion, a 58.4% increase year-over-year on an FX neutral basis. Income from operations reached $340 million, resulting in an 11.2% margin. Total Payment Volume was $37.0 billion, up 96.1% year-over-year on an FX neutral basis, and Gross Merchandise Volume reached $9.4 billion, a 43.3% increase year-over-year on an FX neutral basis.

Revenue grew 58.4% year-over-year on an FX neutral basis, reaching $3.0 billion.

Income from operations hit a new Q1 record of $340 million, with margin expanding to 11.2%.

GMV grew 43% year-over-year on an FX-neutral basis, driven by acceleration in items sold growth.

TPV grew 96% on an FX-neutral basis, reaching $37.0 billion, with off-platform TPV growing above 100%.

Total Revenue
$3.04B
Previous year: $2.25B
+35.1%
EPS
$3.97
Previous year: $1.3
+205.4%
Total Payment Volume
$37B
Previous year: $25.3B
+46.1%
Successful Items Sold
309M
Previous year: 267M
+15.7%
Gross Merchandise Volume
$9.43B
Previous year: $7.67B
+23.1%
Gross Profit
$1.54B
Previous year: $1.07B
+43.2%
Cash and Equivalents
$2.14B
Previous year: $1.57B
+36.2%
Free Cash Flow
$770M
Previous year: -$370M
-308.1%
Total Assets
$14.2B
Previous year: $11B
+28.8%

MercadoLibre

MercadoLibre

MercadoLibre Revenue by Geographic Location

Forward Guidance

MercadoLibre remains focused on executing well through the rest of the year, with many businesses contributing to sustained margin expansion. They believe there are attractive growth opportunities ahead, with plans to hire an additional 1,700 engineers in 2023.

Positive Outlook

  • Sustained margin expansion.
  • Attractive growth opportunities.
  • Commitment to profitable growth in the long-term.
  • Good momentum as we look to the remainder of 2023, and further ahead.
  • Many new products still to develop.

Revenue & Expenses

Visualization of income flow from segment revenue to net income