<li>MercadoLibre reported 1Q net revenue of $4.3 billion</li>
<li>The Gross merchandise volume stood at $11.4 billion</li>
<li>Commerce revenues were marked at $2.5 billion and Fintech revenues at $1.8 billion</li>
<li>The total payment volume amounted to $40.7 billion across 2.4 billion transactions</li>
<li>Mercado Pago to Mercado Pago peer-to-peer transfers, worth approximately $7bn in Q1’24, are now excluded from TPV</li>
<li>Mercado Pago’s interest income and expense lines have been moved from below income from operations to above, improving disclosure</li>
<li>The reclassification led to an increase of $99mn in net revenue and $44mn in cost of revenue</li>
<li>Mercado Envios adjusted to terms & conditions impacting shipping revenues and associated expenses</li>
<li>This change resulted in a $293mn positive impact on net revenue but a negative impact of $308mn on cost of revenue</li>
<li>Gross merchandise Value (GMV) witnessed solid growth in Brazil (36%) and Mexico (42%) compared to first quarter of 2023</li>
</ul>
MercadoLibre on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been closely following MercadoLibre Inc., a prominent Latin America-based eCommerce platform. Their recent research reports, such as “MercadoLibre Inc: Expanded Logistics Network” and “MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! – Major Drivers,” highlight the company’s impressive financial performance.
In Q4 of 2023, MercadoLibre saw a substantial 42% increase in revenues, a significant improvement in its EBIT margin, and a strong growth in active users, surpassing 50 million in a single quarter for the first time. The company’s success was attributed to its Commerce and FinTech initiatives, with Mexico and Brazil particularly standing out for their remarkable revenue growth rates. Analyst sentiment leans bullish, emphasizing the company’s growth, profitability, and strategic drivers fueling its success in the eCommerce sector.
A look at MercadoLibre Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores analysis, MercadoLibre appears to have a promising long-term outlook. With a strong score of 5 in Growth, the company is evidently positioned for significant expansion and development in the future. Additionally, MercadoLibre achieved a score of 4 in Resilience, indicating its ability to withstand market fluctuations and challenges, further solidifying its potential for sustained success.
Although the company scored lower in Dividend at 1, suggesting minimal returns to shareholders in the form of dividends, its overall performance is boosted by respectable scores in Value and Momentum. MercadoLibre’s strategic focus on online trading for Latin American markets, combined with its provision of online payment services, showcases its innovative approach in catering to the needs of businesses and individuals within the region.
### MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company’s website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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