Leading Latin American e-commerce technology company MercadoLibre Inc reports net revenues of $199.6 million with a growth of 29 per cent in USD for the period ended 30 June.
The company also achieved a net income of $15.9 million, resulting in earnings per share of $0.36.
In the first half, MercadoLibre clocked up 43.7 million sold items, up 45 per cent year on year primarily driven by Brazil and Argentina, which grew 56.6 per cent and 46.4 per cent respectively, reflecting the highest overall growth since 2009.
Overall the company made 31.9 million total payment transactions, up 76 per cent compared to the same time last year. Payment volume was $1,816.9 million, a year-over-year growth of 50.6 per cent in USD and 101.6 per cent in local currencies.
MercadoLibre Chief Financial Officer Pedro Arnt says the second quarter of 2016 was one of the company's strongest quarters ever.
"Not only have we maintained high growth rates on key operational and financial metrics by executing well, but we are also pleased to report that our enhanced marketplace vision continues to consolidate in our larger markets, and, perhaps more importantly, is starting to materialize outside of those main geographies.”
Mexico and Columbia
While Arnt says Brazil and Argentine led the charge, he points to the Mexican operation as a highlights of the quarter in which units sold grew to a multiyear high of 32 per cent, accelerating from 17 per cent last quarter and revenues in local currency grew 35 per cent year-on-year, almost 15 percentage points above its three-year compounded annual growth rate.
Colombia is also delivering solid results. Units sold grew 26 per cent versus 21% per cent during the first quarter of 2016. And on an FX neutral basis, revenues grew 55 per cent, one of the highest growth rates on record.
Product selection and listings
"Product selection also continues to deepen as our efforts in simplifying our pricing structure combined with the rollout of our freemium strategy into other countries continues to increase supply," Arnt says.
The number of live listings being offered in MercadoLibre accelerated for the second consecutive quarter to 73 per cent, reaching 63 million listings.
"We continue to make strides on the user engagement front as well. We've successfully continued to stimulate demand and provide vibrancy across our marketplaces."
Arnt says unique buyers accelerated for the third consecutive quarter to 26 per cent year on year, while new buyers also accelerated their growth rate for the second consecutive quarter.
"Also encouraging is the fact that these cohorts of new buyers who have typically had a first purchase on MercadoLibre that already includes our integrated payments and shipping solutions are showing higher repeat usage rates, net promoter scores and, consequently, lifetime value metrics," he says.
In terms of MercadoLibre's strategic focus on its mobile platform, Arnt says penetration as a percentage of the company's gross merchandise volume increased 10 percentage points in the last year alone.
"Mobile remains accretive to the platform as well as new registrations from either mobile or web apps continue to grow its mix of our total new users registering on the site," he says.
Highlights of the half: