Mercado Libre recently released its first quarter 2023 results, with data showing that its market has grown exponentially in recent months. The company reported a 208.5% increase in net income, while driving growth in other businesses such as Mercado Pago.
In the 18 countries where it operates, total revenue increased by 35.1% year-on-year to $3 billion, and revenue growth at constant exchange rates was even higher, reaching 58.4%. Among them, Mexico, a country that is crucial to its strategy, made a huge contribution.
According to data, Mercado Libre’s net profit in the first quarter tripled to $201.4 million, with earnings per share of $4.01, exceeding the forecast of $3.08.
In addition, the company also saw significant growth in the number of users, with 3.9 million new users and a total of 100.5 million active accounts in the market. At the same time, the number of accounts in its vertical Mercado Pago reached 44.5 million, an increase of 24.3% from the first quarter of 2022.
Regarding the total volume of products sold, Mercado Libre said it grew by 43.3% in constant currency to a total of $9.4 billion.
The company’s fintech development also performed strongly, with Mercado Pago expanding payment solutions to democratize access to its services, and the fintech division’s net revenues reaching nearly $1.4 billion, an increase of 40.1%. Overall, Mercado Pago’s turnover reached $37 billion, an increase of 96%.
The digital purchase participation in the Mexican market has grown significantly in recent years, and Mercado Libre has become one of the leading marketplaces in the country. Every minute, about 25,000 searches and 545 purchases are generated on the site.
Because of the potential of the Mexican market, Mercado Libre announced an investment of $1.6 billion in Mexico and the opening of 5,300 job vacancies in the logistics and production fields. 52% of Mercado Libre’s bills in the Mexican Republic come from SMEs and entrepreneurs, and more than 900,000 SMEs obtain economic income through the portal.
With such strong performance and investment plans, it is curious how much Mercado Libre’s first-year turnover will be? How will its leading position in the Latin American market continue to develop? These will become the focus of investors and the industry.