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MercadoLibre's (MELI) Q2 Earnings & Revenues Beat, Up Y/Y
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MercadoLibre (MELI - Free Report) reported second-quarter 2024 earnings of $10.48 per share, which beat the Zacks Consensus Estimate by 20.2%. The company reported earnings of $5.16 per share in the year-ago quarter.
Revenues surged 42% on a year-over-year basis (113% on a FX-neutral basis) to $5.07 billion. The top line surpassed the Zacks Consensus Estimate by 6.5%.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 53.4% and 27.5% year over year to $2.97 billion and $2.1 billion, respectively.
Revenues from MELI’s advertising services grew 51% on a year-over-year basis and were equivalent to almost 2% of gross merchandise volume (GMV) at the end of the second quarter.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising GMV remained another positive. Strong momentum across Brazil and Mexico also contributed well to the reported results.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
Brazil: Net revenues in the second quarter came in at $2.79 billion (54.9% of the total revenues), rising 51.2% year over year.
Argentina: The market generated revenues of $863 million (17% of the top line), which grew 0.9% year over year.
Mexico: Net revenues in the reported quarter were $1.2 billion (23.7% of the total revenues), which soared 65.9% year over year.
Other countries: The markets generated revenues of $223 million (4.4% of the total revenues), reflecting an increase of 36% on a year-over-year basis.
Key Metrics
GMV of $12.65 billion jumped 83.1% on an FX-neutral basis year over year. The figure beat the consensus mark by 4.7%.
The number of successful items sold was 421 million, up 29.4% year over year. The number of successful items shipped rose 30.4% year over year to 416 million.
TPV surged 86.2% year over year on a FX-neutral basis to $46.33 billion. This was driven by the strong performance of Mercado Pago. The figure missed the Zacks Consensus Estimate by 5.2%.
Total payment transactions increased 54.8% year over year to $2.68 billion.
Fintech monthly active users totaled 52 million, up 37.3% year over year.
Operating Details
For the second quarter, the gross margin was 46.6%, contracting 450 basis points (bps) year over year.
Operating expenses were $1.64 billion, which increased 41% year over year. As a percentage of revenues, the figure contracted 10 bps year over year to 32.3% in the reported quarter.
The operating margin was 14.3%, which contracted 440 bps year over year.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents were $2.82 billion, up from $2.58 billion as of Mar 31, 2024.
Short-term investments were $4.07 billion as of Jun 30, 2024, up from $3.67 billion as of Mar 31, 2024.
Zacks Rank & Stocks to Consider
Currently, MercadoLibre has a Zacks Rank #3 (Hold) at present.
Image: Bigstock
MercadoLibre's (MELI) Q2 Earnings & Revenues Beat, Up Y/Y
MercadoLibre (MELI - Free Report) reported second-quarter 2024 earnings of $10.48 per share, which beat the Zacks Consensus Estimate by 20.2%. The company reported earnings of $5.16 per share in the year-ago quarter.
Revenues surged 42% on a year-over-year basis (113% on a FX-neutral basis) to $5.07 billion. The top line surpassed the Zacks Consensus Estimate by 6.5%.
Total revenues were driven by accelerating commerce and fintech revenues, which grew 53.4% and 27.5% year over year to $2.97 billion and $2.1 billion, respectively.
Revenues from MELI’s advertising services grew 51% on a year-over-year basis and were equivalent to almost 2% of gross merchandise volume (GMV) at the end of the second quarter.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising GMV remained another positive. Strong momentum across Brazil and Mexico also contributed well to the reported results.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
Quarter in Detail
Brazil: Net revenues in the second quarter came in at $2.79 billion (54.9% of the total revenues), rising 51.2% year over year.
Argentina: The market generated revenues of $863 million (17% of the top line), which grew 0.9% year over year.
Mexico: Net revenues in the reported quarter were $1.2 billion (23.7% of the total revenues), which soared 65.9% year over year.
Other countries: The markets generated revenues of $223 million (4.4% of the total revenues), reflecting an increase of 36% on a year-over-year basis.
Key Metrics
GMV of $12.65 billion jumped 83.1% on an FX-neutral basis year over year. The figure beat the consensus mark by 4.7%.
The number of successful items sold was 421 million, up 29.4% year over year. The number of successful items shipped rose 30.4% year over year to 416 million.
TPV surged 86.2% year over year on a FX-neutral basis to $46.33 billion. This was driven by the strong performance of Mercado Pago. The figure missed the Zacks Consensus Estimate by 5.2%.
Total payment transactions increased 54.8% year over year to $2.68 billion.
Fintech monthly active users totaled 52 million, up 37.3% year over year.
Operating Details
For the second quarter, the gross margin was 46.6%, contracting 450 basis points (bps) year over year.
Operating expenses were $1.64 billion, which increased 41% year over year. As a percentage of revenues, the figure contracted 10 bps year over year to 32.3% in the reported quarter.
The operating margin was 14.3%, which contracted 440 bps year over year.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents were $2.82 billion, up from $2.58 billion as of Mar 31, 2024.
Short-term investments were $4.07 billion as of Jun 30, 2024, up from $3.67 billion as of Mar 31, 2024.
Zacks Rank & Stocks to Consider
Currently, MercadoLibre has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader retail-wholesale sector are The Gap (GPS - Free Report) , Amazon (AMZN - Free Report) and Best Buy (BBY - Free Report) . While The Gap sports a Zacks Rank #1 (Strong Buy), Amazon and Best Buy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has gained 11.2% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 3.38%.
Shares of Amazon have gained 19.6% in the year-to-date period. The long-term earnings growth rate for AMZN is currently projected at 29.60%.
Best Buy has gained 11.5% in the year-to-date period. The long-term earnings growth rate for BBY is currently anticipated at 5.07%.