What happened

Shares of MercadoLibre (MELI 2.48%) were moving higher today after the Latin American e-commerce star posted strong results in its second-quarter earnings report.

As of 12:10 p.m. ET, the stock was up 11.9% on the news.

So what

MercadoLibre continued to deliver rapid growth, bucking the broader trend in the e-commerce sector.

Overall revenue was up 57.2% on a currency-neutral basis, topping estimates at $3.4 billion. Gross merchandise volume (GMV) rose 47.2% to $10.5 billion, accelerating from the first quarter, while total payment volume nearly doubled, jumping 96.6% to $42.1 billion, showing that its digital payments business remains strong.

The company also saw strong margin expansion as higher-margin businesses like its third-party marketplace, digital payments, advertising, and credit continue to expand.

Currency-neutral revenue from advertising, for example, rose at least 70% for the fifth consecutive quarter as revenue from advertising reached 1.6% of GMV.  

Operating margin in the quarter reached 16.3%, and operating income more than doubled to $558 million. Similarly, adjusted earnings per share surged from $2.43 to $5.16, beating estimates at $4.54.

In its shareholder letter, management said: "The strong financial performance has been broad-based across geographies, with Brazil and Mexico making major contributions to the quarter's profit growth, and further diversifying our profit base. This gives us confidence as we continue to execute our growth plans across Latin America."

Now what

The company doesn't give specific guidance but said its financial model is delivering "tremendous leverage" that it plans to use to invest further in the business.

MercadoLibre has a unique business model, combining e-commerce, digital payments, logistics, and financing, giving it a strong set of competitive advantages.

It's penetrating a large addressable market in Latin America, which should enable it to maintain strong growth on the top and bottom lines for years to come. The stock continues to look like a winner.