MercadoLibre Revenues Increase Over 62 Percent

MercadoLibre (NASDAQ:MELI), a major ecommerce and fintech company based in Argentina announced revenues of US$545.2 million for the quarter, rising at a 62 percent clip. By the end of the quarter, 4.5 million users were using its mobile wallet service, as users grew considerably in Mexico, Argentina and Brazil.

As quoted in the press release:

Second Quarter 2019 Financial Highlights

• Net revenues for the second quarter were $545.2 million, a year-over-year increase of 62.6% in USD and 102.1% on an FX neutral basis.

• Enhanced marketplace revenues increased 84.6% year-over-year in USD and 122.7% on an FX neutral basis, while non-marketplace revenues increased 43.4% year-over-year in USD and 73.0% on an FX neutral basis.

• Gross profit was $272.4 million with a margin of 50.0%, compared to 47.6% in the second quarter of 2018.

• Total operating expenses were $284.9 million, an increase of 51.6% year-over-year in USD. As a percentage of revenues, operating expenses were 52.3%, as compared to 56.1% during the second quarter of 2018.

• Loss from operations was $12.5 million, compared to a loss of $28.2 million during the second quarter of 2018. As a percentage of revenues, the loss from operations reached 2.3%.

• Interest income was $33.7 million, a 239.7% increase year-over-year, as a result of the proceeds of the 2028 Convertible Notes and equity offering in 2019, which generated more invested volume and interest gain, a higher float in Brazil and a higher interest rates in Argentina.

Click here to read the full press release.