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Mercado Libre Q3 revenue slightly beats on Commerce segment strength

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$10.75 bln

$10.66 bln (12 Analysts)

Q3 Net Income

$448 mln

Q3 GMV

$23 bln

Q3 Income from Operations

$676 mln

*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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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