On November 1, 2023, MercadoLibre Inc (MELI, Financial) released its third-quarter earnings report, showcasing a strong performance with significant growth in key areas. The company's relentless investments in products and services have resulted in accelerated growth, customer preference, and business profitability.
Performance Highlights
MercadoLibre Inc (MELI, Financial) reported a net revenue of $3.76 billion, a 40% increase YoY. The income from operations more than doubled YoY for the fourth successive quarter, reaching $685 million, with a margin of 18.2%. The company's TPV reached $47.3 billion, up 121.2% YoY, and the GMV was $11.4 billion, up 59.3% YoY.
The company's operational KPIs remained strong in Q3 2023, with growth in items sold accelerating to 26% YoY, and off-platform TPV growing at a faster pace than the previous quarter in all three of its largest markets. The company also relaunched its loyalty program, MELI+, and opened its first regional fulfillment center in Rio de Janeiro.
Financial Achievements
MercadoLibre Inc (MELI, Financial) has been investing in its credit capabilities, specifically in the credit card product in Brazil and Mexico. This has resulted in a material improvement in asset quality over the last 12 months, enabling the company to increase the pace of new card issuance. As a result, credit card TPV surpassed $1 billion for the first time, with growth accelerating to almost 70% YoY in Q3 2023.
Regional Performance
The company's performance in Brazil and Mexico was particularly strong. In Brazil, GMV growth accelerated to 28% YoY, with all categories showing double-digit growth in items sold. In Mexico, GMV growth remained strong at 34% YoY, with growth of items sold accelerating to 38% YoY.
Looking Ahead
MercadoLibre Inc (MELI, Financial) is optimistic about its ability to continue delivering strong results in a profitable and sustainable manner. The company plans to continue investing across the business to take advantage of the many growth opportunities available.
Explore the complete 8-K earnings release (here) from MercadoLibre Inc for further details.
