Overview
- Mercado Libre’s stock fell about 6% to 7% in after-hours trading Thursday following its first-quarter report, even though revenue topped forecasts.
- Net revenue and financial income rose 49% year over year to $8.8 billion, the fastest pace since Q2 2022, with income from operations at $611 million and net income at $417 million.
- Adjusted earnings per share came in at $8.23, missing analyst expectations and tempering the market’s reaction to the strong top-line gains.
- Commerce momentum was led by Brazil, where a lower free-shipping threshold lifted unique buyers 32% and items sold 56% year over year while unit shipping costs fell 17% as a 50+ site fulfillment network delivered 76% of fast orders within 48 hours.
- Fintech and ads accelerated, with Mercado Pago reaching 83 million monthly users, nearly $20 billion in assets, and a credit portfolio up 87% to $14.6 billion alongside 2.7 million new cards, and advertising revenue up 73% aided by a new AI-powered search that improved product matching and ad performance.