Mercado Libre’s net profit soared to $344 million in the first quarter of 2024, marking a 71% jump.
This financial feat significantly outpaced analyst projections, which had pegged net profits at $314 million.
Brazil and Mexico played crucial roles in this success, helping counterbalance less favorable outcomes in Argentina.
The company operates a sprawling e-commerce platform and the fintech service Mercado Pago across 18 countries.
This quarter’s robust revenue, totaling $3 billion, surpassed expectations by a wide margin, reflecting a 35.1% year-over-year increase.
Notably, e-commerce sales alone contributed $1.68 billion to the revenue, growing by 31.2%.
Mercado Pago wasn’t left behind, with its revenue climbing 40.1% to nearly $1.36 billion. Total payment volumes processed surged to $37 billion, a 46% increase.
The fintech arm also saw its credit portfolio expand to $3 billion, evidencing enhanced credit risk management through a drop in delinquency rates.
Despite these financial successes, the firm grappled with rising operational costs, notably in development and technology, which spiked by 62.8% to $381 million.
In response, Mercado Libre is doubling down on strategic investments. Plans are in place to inject $19 billion into Brazil throughout 2024, aimed at bolstering its market presence and tech infrastructure.
This includes hiring approximately 5,700 new employees, with around 400 focusing on technology and product development.
Mercado Libre’s narrative is one of strategic adaptation and aggressive growth.