MercadoLibre (MELI 2.59%) reported its third-quarter 2020 results after the market close on Wednesday, and pulled another stunning upset as sales on its e-commerce platform more than doubled. The company reported revenue that grew 149% year over year in local currencies to nearly $1.12 billion, marking the first time the company has surpassed the billion-dollar quarterly watermark. MercadoLibre also reported net income of $15 million, resulting in earnings per share (EPS) of $0.28, flipping from a loss in the prior-year quarter.
To put those numbers into context, analysts' consensus estimates called for revenue of $972 million and EPS of $0.17.
Surging growth everywhere you look
Consolidated net revenue grew by triple digits in each of the company's largest markets, namely Brazil, Argentina, and Mexico, which grew 112%, 260%, and 140%, respectively.
Growth was robust across a variety of metrics, but e-commerce was the breakout winner this quarter, with revenue up 85% year over year in U.S. dollars (USD) but growing 149% in local currencies. Unique active users climbed 92% to 76 million, while items sold more than doubled, up 110% to 206 million. At the same time, gross merchandise volume (GMV) topped $5.9 billion, up 62% in USD but up more than 117% in local currencies.
MercadoLibre's digital payment system, MercadoPago, also did some heavy lifting during the quarter. Fintech revenue grew 52% year over year in USD but was up 105% in local currencies. Total payment volume (TPV) jumped $14.5 billion, up 92% in USD but soaring 161% in local currencies. The number of payment transactions jumped to nearly 560 million, up 147%.
MercadoPago has been adopted as a payment system by a growing number of websites and brick-and-mortar stores, supercharging its growth. Off-platform TPV grew 114% year over year in USD but up 197% on local currencies to $8.4 billion, while the number of payments reached 417 million, up 163%.
The pandemic accelerated the uptake of e-commerce and digital payments, pushing MercadoLibre's growth into overdrive.