Meikeduo releases second quarter financial report, revenue jumps 93.9%

Latin American e-commerce giant MercadoLibre released its second-quarter financial report on August 4, with revenue exceeding expectations.

MercadoLibre's net revenue for the second quarter ended June 30 jumped 93.9% to $1.70 billion, well above the expected $1.48 billion, according to its earnings report . The company also reported second-quarter net income of $68.2 million, up 22% from $58 million in the same period last year.

In dollar terms, MercadoLibre's revenue in Brazil and Mexico both grew more than 100% in the second quarter, and in Argentina, MercadoLibre's home base, revenue grew 53%.

Its GMV was US$7 billion, a year-on-year increase of 39.2%; Mercado Envios (MercadoLivre's logistics and transportation platform) shipped 230.5 million pieces in the second quarter, a year-on-year increase of 46.4%; the order volume reached US$244.6 million, a year-on-year increase of 37%, and the real-time listings reached 319.1 million.

MercadoLivre had 75.9 million total unique active users at the end of June, up 47.4% over the 12-month period.

“Our e-commerce and fintech businesses delivered another quarter of strong growth, reaching record levels in both volume and revenue,” Chief Financial Officer Pedro Arnt said in a statement. “Our businesses continued to show tremendous momentum despite significant volatility in our key markets due to the frequent closures of physical retail stores across Latin America.”

Reuters believes that this is because Latin American consumers have become accustomed to online shopping during the epidemic. During the epidemic, young people in Latin America shopped and conducted financial transactions online, which led to rapid growth in the region's e-commerce market.

Although MercadoLibre's own revenue and platform sales are expanding, MercadoLibre is still investing heavily in building warehouses and expanding its fintech services in the face of competition from Amazon and other local e-commerce companies.

MercadoLibre said its second-quarter commerce revenue grew 96.4% year-over-year to $1.1423 billion , while fintech revenue grew 88.9% to $560.4 million .

The transaction volume using Mercado Pago (a payment and loan tool launched by MercadoLibre) on the MercadoLibre platform exceeded US$17.5 billion, a year-on-year increase of 56.3%. The transaction volume paid using Mercado Pago outside the platform reached US$10.3 billion, a year-on-year increase of 93.5%.

Meikeduo

Latin American e-commerce

Financial Report