MercadoLibre Reports Mixed Q4 Results: Earnings Miss, Revenues Beat

MercadoLibre, Inc. MELI shares are trading lower after the company reported its fourth-quarter financial results after the bell Thursday. Here's a look at the details.

The Details: MercadoLibre reported quarterly earnings of $3.25 per share, unchanged from the same period last year.

The company reported quarterly sales of $4.26 billion, beating the analyst consensus estimate of $4.12 billion by 3.36% and representing a 41.94% increase over sales of $3 billion from the same period last year.

MercadoLibre highlighted the addition of almost 50,000 new advertisers to its Ads platform in 2023 and the growth of its fulfillment network, which shipped 650 million items in 2023, 45% more than the prior year.

“We look back on 2023 as a remarkable year for MercadoLibre. Remarkable not just because of our growth
rates, major market share gains and significant margin expansion, but also as evidence that our long-term
strategy is bearing fruit and that we are making the right investments to position our ecosystem as a long-term winner in Latin America's commerce and financial services markets,” the company stated in a letter to shareholders.

“We are seeing the powerful impact of the compounding of several years of investments in technology, which we believe is taking our user experience and value proposition to new levels, and enabling us to pursue our growth opportunities with efficiency and low-cost structures. As such, we delivered record revenue, income from operations and net income in 2023.”

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MELI Price Action: According to Benzinga Pro, MercadoLibre shares are trading down 8.69% after-hours at $1,817.98 at the time of publication Thursday.

Photo: Mohamed Hassan from Pixabay