Mercado Libre Q3 revenue slightly beats on Commerce segment strength

Overview

• Latin America e-commerce and fintech platform's Q3 revenue rose 45%, slightly beating analyst expectations

• Operating margin fell slightly QoQ to 6.3% as company increased shipping and marketing spend

• Commerce and fintech segments posted strong user and transaction growth across core markets

Outlook

• Company did not provide specific financial guidance for the current or upcoming quarters in its press release

Result Drivers

• COMMERCE GROWTH - GMV rose 33% YoY on an FX-neutral basis, with items sold up 36% and unique active buyers up 22%, reflecting deeper buyer engagement and market share gains

• FINTECH EXPANSION - Monthly active users for Mercado Pago grew 29% YoY, assets under management rose 67%, and the credit portfolio expanded 62%, driven by broader adoption and increased savings on the platform

• ADVERTISING MOMENTUM - Mercado Ads revenue increased 58% YoY in USD, outpacing the market, supported by expanded commerce media offerings and new partnerships

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for MercadoLibre, Inc. is $2,240.00, about 34.8% above its November 3 closing price of $1,662.16

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads

• Nov 4 - MercadoLibre profit misses on logistics spending, revenue tops estimates

• Nov 3 - South Korea's Coupang Q3 revenue beats estimates

• Nov 3 - Payments platform Block's Q3 profit beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)