Jun 30, 2023

MercadoLibre Q2 2023 Earnings Report

MercadoLibre experienced a record quarter driven by strong performance in Commerce and Fintech, with significant profit growth in Brazil and Mexico.

Key Takeaways

MercadoLibre reported a strong Q2 2023 with net revenues of $3.4 billion, up 57.2% year-over-year on an FX neutral basis. Income from operations more than doubled to $558 million, representing a 16.3% margin. The company saw significant growth in both its Commerce and Fintech operations, with notable contributions from Brazil and Mexico.

Net revenues reached $3.4 billion, a 57.2% increase year-over-year on an FX neutral basis.

Income from operations more than doubled to $558 million, with a 16.3% margin.

Total Payment Volume (TPV) grew by 96.6% year-over-year on an FX neutral basis, reaching $42.1 billion.

Gross Merchandise Volume (GMV) increased by 47.2% year-over-year on an FX neutral basis, totaling $10.5 billion.

Total Revenue
$3.42B
Previous year: $2.6B
+31.5%
EPS
$5.16
Previous year: $2.43
+112.3%
Total Payment Volume
$42.1B
Previous year: $30.2B
+39.4%
Gross Merchandise Volume
$10.5B
Previous year: $8.55B
+22.9%
Payment Transactions
2.13B
Gross Profit
$1.72B
Previous year: $1.28B
+34.0%
Cash and Equivalents
$1.86B
Previous year: $1.33B
+40.0%
Free Cash Flow
$1.3B
Previous year: $808M
+60.6%
Total Assets
$15.2B
Previous year: $11.4B
+33.2%

MercadoLibre

MercadoLibre

MercadoLibre Revenue by Geographic Location

Forward Guidance

MercadoLibre intends to reinvest short term margin gains to strengthen its long-term competitive position, focusing on growth opportunities across geographies and business lines.

Positive Outlook

  • Top line growth and profit expansion are broad-based across geographies and business lines.
  • Tremendous leverage in financial model as the business scales.
  • Commitment to allocating capital with a long term view.
  • Goal is to deliver consistent margin improvements.
  • Disciplined approach to re-investing short term margin gains.

Revenue & Expenses

Visualization of income flow from segment revenue to net income