Please ensure Javascript is enabled for purposes of website accessibility

MercadoLibre Posts Fourth Consecutive Quarter of Accelerating Revenue Growth Over 100%

By Danny Vena - May 5, 2021 at 7:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Latin American e-commerce leader also jumped on the Bitcoin bandwagon.

MercadoLibre (MELI -5.30%) delivered triple-digit growth to kick off 2021, marking its fourth consecutive quarter of year-over-year revenue growth over 100%. The Latin American e-commerce and digital-payments leader grew revenue to $1.4 billion, up 158% year over year in local currencies. 

The results were driven by online retail that soared 139%, while fintech revenue from its digital-payments offering -- Mercado Pago -- jumped 72%. It's worth noting that both segments accelerated sequentially, fueled by explosive growth in its three top markets, Argentina, Brazil, and Mexico, which grew revenue by 223%, 139%, and 148%, respectively.

Smiling woman entering credit card into ecommerce site on laptop.

Image source: Getty Images.

Many of MercadoLibre's underlying metrics were equally impressive. Gross merchandise volume (GMV), or the total value of products sold on its platform, grew to $6.16 billion, up 114%, accelerating from 108% growth in the fourth quarter. The digital-payments business grew even faster, with total payment volume (TPV) of $14.7 billion, up 129%, while the number of payment transactions topped 630 million, up 117%. Off-platform payments continued to fuel growth, up 136%. 

The company's gross profit margin slipped to 42.9% from 48% in the prior-year quarter, driven by growth of its first-party sales and the expansion of its shipping business. 

MercadoLibre's loss widened to $44 million, which requires context. If not for a one-time $49 million charge to extinguish existing debt, the company would have generated a profit. 

New users continue to flock to the company's e-commerce and fintech offerings. Unique active users grew 62% year over year to 70 million, while the number of items sold jumped to 220 million, up 110%. Mercado Envios, its shipping solution, continued its rapid expansion, as items shipped surged to 208 million, up 131%. 

MercadoLibre said it purchased $7.8 million in Bitcoin as part of its "treasury strategy."

Danny Vena owns shares of Bitcoin and MercadoLibre. The Motley Fool owns shares of and recommends Bitcoin and MercadoLibre. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
MELI
$997.90 (-5.30%) $-55.85
Bitcoin Stock Quote
Bitcoin
BTC
$23,375.81 (-2.08%) $-495.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.