MercadoLibre, Inc. Reports Record $10.2 Billion Quarterly Revenue

MercadoLibre, Inc. reported second-quarter net income of $466 million, surpassing analyst expectations of $433 million. While this represents an 11% year-on-year decline and the third consecutive quarterly profit drop, the company achieved record quarterly net revenue of $10.2 billion, a 50% increase.

The company attributed the profit dip to strategic investments in Brazil's free shipping services and the expansion of its credit card portfolio. These investments contributed to a 37% increase in active users across its ecommerce platform and Mercado Pago fintech services.

Financial growth extended to the company's credit portfolio, which grew 75% to $16 billion. Additionally, the 15-to-90-day delinquency rate improved to 7% from the first quarter. Senior Vice President of Investor Relations Leandro Cuccioli stated that reinvesting gains into the business is driving operational leverage.