Press release
MercadoLibre, Inc. Second Quarter 2023 Letter to Shareholders
Net Revenues of $3.4 billion, up 57.2% year-over-year on an FX neutral basis Income from operations of $558 million, with a 16.3% margin $42.1 billion Total
About this update from Mercadolibre, Inc.
[{"type":"text","content":"Net Revenues of $3.4 billion, up 57.2% year-over-year on an FX neutral basis Income from operations of $558 million, with a 16.3% margin $42.1 billion Total Payment Volume, up 96.6% year-over-year on an FX neutral basis $10.5 billion Gross Merchandise Volume, up 47.2% year-over-year on an FX neutral basis MONTEVIDEO, Uruguay, Aug. 02, 2023 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com), Latin America’s leading e-commerce technology company, today reported financial results for the quarter ended June 30, 2023. To our Shareholders MercadoLibre had another record quarter in Q2’23, demonstrating our increasing ability to drive leverage in our financial model. Income from operations of $558mn more than doubled year-on-year, with a margin of 16.3% over net revenue of $3,415mn. We continue to extend our leadership position in Commerce, with FX-neutral GMV growth of 47% year-on-year (YoY) that includes an acceleration of sold items to +18% YoY (from +16% in Q1’23). Our Fintech operation’s momentum remains strong, with year-on-year FX-neutral growth of 129% in Off-platform TPV and a NIMAL spread of almost 37% in our credit business. The strong financial performance has been broad-based across geographies, with Brazil and Mexico making major contributions to the quarter’s profit growth, and further diversifying our profit base. This gives us confidence as we continue to execute our growth plans across Latin America. Brazil In Q2’23, MercadoLibre’s independently measured top-of-mind and brand consideration scores reached 2-year and all-time highs (respectively) in Brazil, which is a reflection of the strength of our value proposition and market position. This ever increasing consumer preference is what drives the growth in our GMV, which was 25% higher year-on-year on an FX-neutral basis in Q2’23. As a result, our market share has risen both quarter-on-quarter and year-on-year, which we believe demonstrates that we are a highly trusted and natural destination for buyers and sellers of millions of products. Our Commerce business is better-placed than ever in Brazil, yet we continue to work on improving our value proposition even further. A strong case in point is the rekindled increase in Fulfillment penetration, which rose more than 4ppts vs. Q1’23 and almost 10ppts year-on-year, unlocking same- and nex...