Mercado Libre Revenues Reach $3Billion in Q1 2023 Results

MercadoLibre, the operator giant behind online marketplaces dedicated to e-commerce and online auctions across the breadth of Latin America, has released its Q1 FY23 results, with continued growth after record-breaking revenues in 2022.

Highlights include:

• Gross Merchandise Volume of $9.4bn
• Marketplace Net Revenue hits $3bn (up $789m YoY)
• Marketplace Net Operating Revenue $340m
• Marketplace Net Revenue Growth hits double digits across all segments
• Commerce Net Revenues hit $1.7bn
• EBIT margin hits 11.2%

Quarterly earnings per share reached $3.97, more than double last year's $1.30 per share.

A company statement said:

“We continue to believe that there are attractive growth opportunities in front of us, with many new products still to develop. The recent announcement that we will hire an additional 1,700 engineers in 2023, on top of almost 14,000 already working at MercadoLibre at the end of 2022, is a testament to that.”

MercadoLibre operates four major businesses across 18 South American nations including Argentina, Brazil, Mexico, and Uruguay where it is headquartered.

MercadoLibre, Mercado Envios, Mercado Pago, and Mercado Crédito all performed well—but its namesake marketplace (which includes real estate marketplaces PortalInmobiliaro in Chile and Tulnmueble in Venezuela) continues to drive the majority of the firm's income.

Net Revenues of over $3bn represented more than a 58% YoY increase for MercadoLibre, with marketplaces in Argentina (151%), Brazil (26%), Mexico (48%), and Other (30%) all recorded double-digit revenue growth in the first three months of the year.

Meanwhile, Fintech brand Mercado Pago processed over 1.8bn transactions worth $37bn in Q1, a 71.8% YoY growth.

MercadoLibre partnered up with real estate crowdfunding platform SimpleState in November.