Overview

* Mercado Libre Q2 revenue rises 34% YoY to $6.8 bln, beating analyst expectations

* Income from operations reached $825 mln, a record high, growing 14% YoY

* Commerce and fintech segments drive growth; credit portfolio expands 91% YoY

Result Drivers

* COMMERCE GROWTH - Items sold rose 31% YoY, driven by growth in Mexico and lower free shipping threshold in Brazil

* FINTECH EXPANSION - User base grew 30% YoY, with a 91% YoY increase in the credit portfolio, highlighting credit card growth

* ADVERTISING REVENUE - Grew 38% YoY, bolstered by integration with Google Ad Manager

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $6.8 $6.68

Revenue billion bln (13

Analysts

)

Q2 Net $523 mln

Income

Q2 GMV $15.30

bln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for MercadoLibre Inc ( MELI ) is $2,887.50, about 17.7% above its August 1 closing price of $2,375.92

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)