Mercadolibre Inc (NASDAQ: MELI) stock rose over 3.9% on November 2nd, 2018 (as of 11:14 AM GMT-4; Source: Google finance) despite posting mixed results for the third quarter of 2018. The company has posted the Net loss before taxes of $14.3 million, down 139.0% year-over-year. Income tax gain was $4.2 million during the third quarter, yielding a blended tax rate for the period of 29.6%. Net loss as reported for the third quarter was $10.1 million. Operating cash flow was $96.6 million. Net increase in cash, restricted cash and cash equivalents was $553.7 million in during the third quarter of 2018.
MELI in the third quarter of FY 18 has reported the adjusted loss per share of 23 cents, missing the analysts’ estimates for the adjusted earnings per share of 10 cents. The company had reported the adjusted revenue growth of 16.5 percent to $355.28 million in the third quarter of FY 18, beating the analysts’ estimates for revenue by 1.92%. Enhanced marketplace revenues decreased 0.5% year-over-year in USD, and increased 35.6% on an FX neutral basis, while non-marketplace revenues increased 41.3% year-over-year in USD and 91.4% on an FX neutral basis. Gross profit was $169.7 million with a margin of 47.8%, compared to 57.7% in the third quarter of 2017. Most of the gross margin compression is attributed to an increase in free shipping subsidies. Total operating expenses were $180.7 million, up 21.9% year-over-year. As a percentage of revenues, operating expenses were 50.9%, as compared to 48.6% during the third quarter of 2017.
Loss from operations was down 61% versus last quarter to $11.0 million, or 139.9% year-over-year. As a percentage of revenues, loss from operations was 3.1%, as compared to a gain of 9.0% during the third quarter of 2017.
Moreover, during the third quarter, total payment volume through MercadoPago reached $4.6 billion, a year-over-year increase of 24.1% in USD and 69.5% on an FX neutral basis. Total payment transactions increased 66.7% year-over-year, totaling 103.9 million for the quarter. Mobile wallet reached 1 million active payers during the month of September, while total payment volume from mobile wallet in Argentina, Brazil and Mexico is growing triple digits year-over-year.
The company launched asset management in Argentina, the first country where we have begun to offer the entire suite of fintech solutions: mobile point-of-sales devices, QR codes in store payments, mobile wallet, and asset management. Gross merchandise volume reached almost $3 billion, a 2.6% year-over-year decrease in USD, and a 27.9% year-over-year increase on an FX neutral basis