Mercado Libre Q2 Earnings Highlights: Revenue Beat, EPS Beat, Brazil & Mexico Up Over 50% YoY

Online Latin America commerce and payments company Mercado Libre MELI reported second-quarter financial results after market close Thursday.

Here are the highlights.

What Happened: Mercado Libre reported net revenue of $5.07 billion in the second quarter, up 42% year-over-year. The revenue beat a Street consensus estimate of $4.68 billion, according to data from Benzinga Pro.

The company reported a 36% year-over-year increase in total payment volume for the second quarter and a 20% year-over-year rise in gross merchandise volume.

Earnings per share were $10.48 in the second quarter, beating a Street consensus estimate of $8.43.

By region, here is revenue growth year-over-year in the second quarter:

• Brazil: +51% year-over-year
• Argentina: +1%
• Mexico: +66%

The company saw commerce revenue up 53% and fintech revenue up 28% on a year-over-year basis.

Fintech monthly active users were 52 million at the end of the second quarter, passing the 50 million milestone for the first time.

"Our ecosystem is gaining more traction, and our investments in product, technology and service levels are extending our position as the region's leading ecommerce and fintech platform," the company said.

The company reported "encouraging early signs" from video ads for its free Mercado Play streaming platform.

Read Also: Analyst Ratings For Mercado Libre

What's Next: The company will celebrate its 25^th anniversary on Aug. 2.

Mercado Libre said it has provided tools for small businesses, shifted offline retail online and included millions in the financial system in Latin America for the first time.

"These are notable achievements, but they are also just a baseline from which we think about our even bigger ambitions to deliver on our mission at an even greater scale," the company said.

The company said it has more opportunities ahead than ever before in company history.

"We see huge opportunities for Mercado Pago in Mexico," the company said.

Mercado announced its intention to apply for a banking license back in June, which could enable the company to scale the business and become the number one digital bank in the country.

MELI Price Action: Mercado Libre shares are up 12% to $1,799.00 in after-hours trading versus a 52-week trading range of $1,141.04 to $1,825.00.

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