Business

Mercado Libre's active users jumped 45% in the second quarter

The Argentina-based e-commerce firm beat investors expectations and its revenues rose 61% to $878.4 million

Latin America's largest e-commerce platform, Mercado Libre, reported its first quarter results, which made its shares spike at Nasdaq. Photo: Shutterstock
  • The firm delivered growth rates of 230% for Argentina, 58% for Brazil, and 122% for Mexico, in gross merchandise volumes.
  • Total payment volume (“TPV”) through Mercado Pago reached $11.2 billion, a year-over-year increase of 72.1% in US dollars.

Mercado Libre, the biggest Latin American e-commerce platform, beat expectations for quarterly revenue, as it benefited from a surge in online shopping with people staying indoors due to the coronavirus crisis.

The company, which is based in Argentina, said its unique active users jumped more than 45% to 51.5 million, until June 30. Mercado Libre has recently become the most valuable company in Latin America, according to a study by Economatica, with a valuation above regional giants such as Vale, Petrobras and América Móvil.

Demand for online marketplaces has surged during the pandemic due to prolonged lockdowns and social distancing measures in place in most countries. The number of items sold reached 178.5 million, growing 101.4% year-over-year.

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“The pandemic generated significant changes in consumer behavior, which translated into a new milestone in the penetration of e-commerce and online payments in the region,” chief financial officer Pedro Arnt said in a statement.

On a country level, all markets accelerated from the first quarter, as the firm delivered growth rates of 230% for Argentina, 58% for Brazil, and 122% for Mexico, in gross merchandise volumes. Colombia and Chile’s combined growth was almost 200% YoY. “We’ve become more focused on these two Andean markets given their increasingly attractive growth profiles as the business accelerates in scale”, said Arnt.

Total payment volume (“TPV”) through Mercado Pago reached $11.2 billion, a year-over-year increase of 72.1% in US dollars. Total payment transactions increased 122.9% year-over-year, totaling 404.8 million transactions for the quarter.

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Mobile wallet delivered $2.1 billion in transactions on a consolidated basis, leading to also 373.2% year-over-year growth. Mercado Pago’s mobile wallet consumer base grew by 109.3% compared to the second quarter of 2019, reaching 9.5 million unique payers.

TPV from mobile wallet in Argentina, Brazil and Mexico continues to grow by triple digits year-over-year.Revenue rose 61% to $878.4 million, above analysts’ estimates of $748.7 million, according to Total payment volume (“TPV”) through Mercado Pago reached $11.2 billion, a year-over-year increase of 72.1% in US dollars.