Jun 30, 2022

MercadoLibre Q2 2022 Earnings Report

MercadoLibre achieved record results, with strong growth in TPV, GMV, credit portfolio and revenues.

Key Takeaways

MercadoLibre reported a strong second quarter of 2022, with net revenues of $2.6 billion, up 56.5% year-over-year on an FX neutral basis. Income from operations was $250 million, representing a 9.6% margin. The company saw significant growth in Total Payment Volume (TPV) and Gross Merchandise Volume (GMV).

Total Payment Volume reached $30.2 billion, up 83.9% year-over-year on an FX neutral basis.

Gross Merchandise Volume reached $8.6 billion, up 26.2% year-over-year on an FX neutral basis.

Unique active buyers reached 40.8 million, breaking the record achieved during the peak shopping season of 2021's fourth quarter.

Fintech revenues surpassed the billion dollar mark for the first time ever, growing 113% year-over-year.

Total Revenue
$2.6B
Previous year: $1.7B
+52.5%
EPS
$2.43
Previous year: $1.37
+77.4%
Total Payment Volume
$30.2B
Previous year: $17.5B
+72.5%
Successful Items Sold
275M
Previous year: 244.6M
+12.4%
Gross Merchandise Volume
$8.55B
Previous year: $7B
+22.2%
Gross Profit
$1.28B
Previous year: $754M
+70.3%
Cash and Equivalents
$1.33B
Previous year: $1.07B
+24.2%
Free Cash Flow
$808M
Previous year: $114M
+607.2%
Total Assets
$11.4B
Previous year: $6.14B
+86.4%

MercadoLibre

MercadoLibre

MercadoLibre Revenue by Geographic Location

Forward Guidance

MercadoLibre delivered record results by focusing on execution, managing cash closely and continuing to invest in strategic initiatives that build our competitive advantage over time.

Positive Outlook

  • Improve service levels for merchants and consumers with investments.
  • Users continue to engage with our ecosystem more frequently, both on the fintech and e-commerce sides.
  • Loyalty program grew strongly during the second quarter, with millions of subscribers, contributing to higher engagement in our ecosystem.
  • Connecting Mercado Libre and Mercado Pago, bringing more benefits for Level 6 users, the program generates more engagement, retention, frequency and GMV.
  • Ecosystem is powerful, even during challenging times, delivering improvements across different geographies and business units.

Revenue & Expenses

Visualization of income flow from segment revenue to net income