E-commerce technology company MercadoLibre, Inc. (NASDAQ: MELI) has posted mixed results for the first quarter ended March 31, 2022.
Surprisingly, shares of the company rose 8.1% to close at $987 in Thursday’s extended training session after declining 10.8% in the normal trading hours.
Revenue & Earnings
MercadoLibre’s net revenues for the quarter came in at $2.2 billion, up 63.1% year-over-year. Further, the figure surpassed the consensus estimate of $2.02 billion. Revenues from net service and net product, the key revenue segments, rose 62.4% and 69.6% year-over-year, respectively, and gave strength to the overall growth in revenues for the company.
The company’s earnings for the quarter stood at $1.30 per share, lagging the consensus estimate of $1.36 per share. The company had posted a loss of $0.68 per share in the same quarter last year.
Other Operating Metrics
MercadoLibre’s unique active users grew almost 16% from the previous year to 81 million. Further, gross merchandise volume witnessed a year-over-year increase of 26.5% to $7.7 billion.
Notably, the total payment volume also grew 72% year-over-year to $25.3 billion.
Stock Rating
Consensus among analysts is a Strong Buy based on nine Buys and one Hold. MELI’s average price target of $1,489 implies upside potential of 63.1% from current levels. Shares of the company have declined 36.9% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insights into MercadoLibre’s performance this quarter.
According to the tool, the MercadoLibre website recorded a 21.33% monthly rise in global visits in March, compared to February. Moreover, the footfall on the company’s website has grown 10.69% year-to-date, compared to the previous year.
Prior to the results, MercadoLibre’s rising website traffic hinted that the company was well-positioned to report a decent quarter. This shows that TipRanks’ website traffic tool helps in making reliable predictions about a company’s performance.
Conclusion
With the growth in key operating metrics and the topline, MercadoLibre remains on a solid footing to grow its operations and enhance profitability for its shareholders.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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