MERCADOLIBRE Reports Record Q2 Earnings for Fiscal Year 2023
August 8, 2023
🌥️Earnings Overview
MERCADOLIBRE ($NASDAQ:MELI) reported total revenue of USD 3415.0 million for Q2 of the fiscal year 2023 on June 30 2023, marking a 31.5% increase compared to the same quarter of the previous year. Furthermore, net income also experienced a substantial growth of 113.0%, reaching USD 262.0 million.
Share Price
Despite the slight dip in share price, MERCADOLIBRE’s strong Q2 earnings have raised expectations for the company’s future growth. This impressive earnings report marks a major milestone for the company, as it is their highest reported revenue ever for Q2. Overall, MERCADOLIBRE’s record Q2 earnings are a testament to the company’s strong performance and clear potential for future growth. As the company continues to expand its reach and offering, it is likely that their impressive earnings will continue to rise. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mercadolibre. MERCADOLIBRE_Reports_Record_Q2_Earnings_for_Fiscal_Year_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 12.14k | 757 | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mercadolibre. MERCADOLIBRE_Reports_Record_Q2_Earnings_for_Fiscal_Year_2023″>More…
| Operations | Investing | Financing |
| 4.54k | -2.52k | -142 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mercadolibre. MERCADOLIBRE_Reports_Record_Q2_Earnings_for_Fiscal_Year_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.24k | 12.99k | 44.96 |
Key Ratios Snapshot
Some of the financial key ratios for Mercadolibre are shown below. MERCADOLIBRE_Reports_Record_Q2_Earnings_for_Fiscal_Year_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 62.9% | -4.1% | 13.8% |
| FCF Margin | ROE | ROA |
| 33.9% | 48.8% | 6.9% |
Analysis
At GoodWhale, we have conducted an analysis of MERCADOLIBRE‘s well-being. According to our Risk Rating, MERCADOLIBRE is classified as a medium risk investment in terms of their financial and business aspects. Upon closer inspection of their income sheet and balance sheet, our team has detected two risk warnings. If you would like to know more about these risk warnings, please feel free to register on our website at goodwhale.com. We would be more than happy to discuss the potential risks associated with this investment and provide further insights. More…
Peers
MercadoLibre Inc is an online marketplace headquartered in Argentina. The company was founded in 1999 by Marcos Galperin and has since expanded to 18 countries in Latin America. MercadoLibre operates under the “eBay of Latin America” moniker and offers online and mobile trading platforms that allow users to buy and sell a wide variety of goods and services. The company has over 100 million registered users and processed over $13 billion in transactions in 2015. MercadoLibre faces stiff competition from a number of well-established e-commerce companies, including eBay Inc, Etsy Inc, and Emerge Commerce Ltd. All three companies offer similar online marketplace platforms that allow users to buy and sell a wide variety of goods and services. MercadoLibre has been successful in differentiating itself from its competitors by focusing on the Latin American market and offering a localized user experience.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc is an American multinational technology company that facilitates online consumer-to-consumer and business-to-consumer sales through its website. The company has a market cap of 24.67B as of 2022 and a Return on Equity of -46.35%. eBay was founded in 1995 and is headquartered in San Jose, California. The company operates in three segments: Marketplace, Payments, and Advertising & Enterprise. The Marketplace segment includes eBay’s online marketplace, which enables buyers and sellers to offer, search for, and purchase items in a wide range of categories. The Payments segment includes PayPal, which enables consumers and merchants to send and receive payments online. The Advertising & Enterprise segment includes Promoted Listings, which enables sellers to promote their listings on eBay, and eBay Advertising, which enables third-party advertisers to reach eBay’s global customer base.
– Etsy Inc ($NASDAQ:ETSY)
Etsy is an e-commerce website focused on handmade or vintage items and supplies, as well as unique factory-manufactured items. Etsy’s mission is to “reconnect people with the things they love.” The company had a market cap of $14.37B as of 2022. Etsy’s ROE was -2030.17% as of 2022.
Etsy was founded in 2005 in Brooklyn, New York. The company’s platform connects people around the world with unique goods. Etsy sellers offer a wide range of items, including art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys. Etsy also provides buyers with an easy way to find items they are looking for.
Etsy has been growing steadily since its inception. The company went public in 2015 and has since been expanding its reach and offerings. In 2017, Etsy acquired Reverb, a marketplace for musical instruments and gear. This acquisition allowed Etsy to expand its product offerings and attract new buyers and sellers.
Etsy is a unique e-commerce platform that offers buyers and sellers a way to connect with each other and find unique goods. The company’s market cap and ROE show that it is a financially healthy company. Etsy is a good choice for investors looking for exposure to the e-commerce sector.
– Emerge Commerce Ltd ($TSXV:ECOM)
Emerge Commerce Ltd is a Canadian e-commerce company that provides online marketing and advertising solutions. The company has a market capitalization of 11.1 million as of 2022 and a return on equity of -9.43%. The company’s primary business is providing online marketing and advertising solutions to small and medium-sized businesses. Emerge Commerce Ltd also offers a range of other services, including web design, web development, and online reputation management.
Summary
MERCADOLIBRE reported strong financial results for Q2 of 2023, with total revenue of USD 3415.0 million, a 31.5% increase from the same period in the previous year. Net income reached an impressive USD 262.0 million, a 113.0% growth from the previous year. Despite this positive news, the stock price decreased on the same day.
Investors should consider MERCADOLIBRE’s long-term fundamentals and growth potential when making decision on whether to invest. Analysts should also consider current market conditions as well as potential risks.
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