MercadoLibre Inc (NASDAQ:MELI) stock rose 7.65% (As on May 8, 11:22:37 AM UTC-4, Source: Google Finance) after the company reporting first-quarter earnings and revenue that significantly exceeded analyst expectations. MercadoLibre’s performance was driven by robust growth across its business segments. Total Payment Volume rose 43% YoY to $58.3 billion, while Gross Merchandise Volume increased 17% YoY to $13.3 billion. The company also reported strong user growth, with unique active buyers up 25% YoY. At a regional level, supermarket items sold grew 65% YoY in Q1’25, faster than all other categories and accelerating sequentially. Advertising revenue grew 50% YoY on an FX-neutral basis in Q1’25. The company is pleased that the share of Display within the Ads revenue rose by almost 10ppts YoY. . In Q1’25, the company reached 64mn MAUs, growing 31% YoY, with Brazil, Mexico and Chile all advancing faster than the total. Further, there has been 25% increase in unique active buyers, primary driven by FX-neutral GMV growth of 30% YoY in Brazil and 23% YoY in Mexico in Q1’25. The growth in Mexico slowed due to weaker sales trends in one high ASP category early in the quarter, which is being addressed with several targeted initiatives. Argentina delivered FX-neutral GMV growth of 126% YoY and sold items growth of 52% YoY in Q1’25.

MELI in the first quarter of FY25 has reported the adjusted earnings per share of $9.74, beating the analysts’ estimates for the adjusted earnings per share of $8.33. The company had reported the adjusted revenue growth of 37 percent to $5.9 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $5.47 billion. On an FX-neutral basis, growth was 64% YoY in Q1’25 with strong performance across the region. Brazil grew +41% YoY with Mexico +51% YoY and Argentina +184% YoY (all FX-neutral). Income from operations of $763mn in Q1’25 grew 45% YoY, with the quarter’s strong top line trends driving our solid profit growth. Argentina’s impressive revenue growth was a major contributor to this. The recovery of its direct contribution margin against a low base in Q1’25 helped counterbalance investments and some cost pressures in Brazil and Mexico. Net income reached $494mn in Q1’25, growing 44% YoY. Adjusted free cash flow of -$10mn in Q1’25 was seasonally low and included investments of $256mn in capex and $770mn in Fintech funding, most of which supported the expansion of our credit book.