MercadoLibre (MELI 5.12%) reported its second-quarter results before the market opened on Monday, and a surge in e-commerce growth helped the platform shatter already high expectations. The company reported revenue that grew 123% year over year in local currencies to $878.4 million, as businesses in Latin America pivoted online in the face of the pandemic. MercadoLibre also reported net income of $55.9 million, resulting in earnings per share (EPS) of $1.11, up more than 258%.
To put those numbers into context, analysts' consensus estimates called for revenue of $757.4 million and EPS of $0.10.
Surging growth across the board
Growth was robust across a variety of metrics, but e-commerce was the headliner this quarter, with revenue up 80% year over year in U.S. dollars (USD) but growing 149% in local currencies. Unique active users climbed 45% to 52 million, while items sold more than doubled, up 101% to 179 million. At the same time, gross merchandise volume (GMV) topped $5 billion, up 49% in USD but up more than 101% in local currencies.
It wasn't just the solid e-commerce business that propelled the results, as MercadoPago -- the company's payment system -- continued to see rapid adoption. Fintech revenue grew 34% year over year in USD but up 86% in local currencies. Total payment volume (TPV) grew to more than $11 billion, up 72% in USD but soaring 142% in local currencies. The number of payment transactions jumped to nearly 405 million, up 123%.
MercadoPago has moved off MercadoLibre's platform in recent years, giving it another avenue for its stellar growth. Off-platform TPV grew 92% year over year in USD but up 174% on local currencies to $6.1 billion, while the number of payments reached 281 million, up 134%.
Like it has in many places, the pandemic has accelerated adoption of e-commerce and digital payments in Latin America, driving MercadoLibre's growth higher.