This is a hugely positive sign given the global e-commerce market is going through a cyclical decline. Overall MercadoLibre's total unique buyers continued to grow from 39.6 million in Q1,22 to 46.1 million by Q4,22. In my mind, this was expected as Mexico offer much more fierce competition with the 'real' Amazon ( AMZN) competing heavily in the market. Mexico GMV growth was 28% YoY, which was flat relative to Q4,22. Strong growth was also reported in the largest economy in Latin America, Brazil, which reported a 28% YoY growth rate, which was fast than 22% reported in Q4,22. Given Argentina is the second-largest country in Latin America and the third-largest economy (after Brazil and Mexico) this is a positive sign. The main growth was driven by Argentina which reported a staggering 107% YoY growth rate in GMV. This is on an FX-neutral basis, so its clear currency exchange rates are still impacting growth, which again I believe is more of a cyclical occurrence. The business also reported solid operating income of $340 million in Q1,23 which increased by a rapid 144.6% year over year, and stabilized at ~11% operating margin.Īnother positive for MercadoLibre is its Gross Merchandise Volume, has continued to grow at a rapid 43% rate, which is fast than the 35% reported in Q4,22 and the 32% reported in Q1,22. In addition, its revenue still beat analyst forecasts by $150.79 million. Therefore I believe this is mainly driven by macroeconomic factors and not a long-term intrinsic business issue. However, this pattern of slowing revenue growth has been a common occurrence across many technology stocks I have covered (see my other posts). It should be noted that this growth rate has slowed down from the 41% level reported in Q4,22 and the rapid 63% YoY growth reported in Q1,22. Its revenue was $3.04 billion which increased by 35.1% year over year. MercadoLibre reported strong financial results for the first quarter of 2023. Is MercadoLibre now too spicy a price for investors? or is it still worth loading up on? We will find out in this post, let's dive in. In this post, I'm going to break down the company's first-quarter financial results for 2023, before revising and revealing my valuation model and forecasts for the business. Since that point, the company has continued to realize the last two pursuits, growing revenue by 35% year over year, and management has continued to execute exceptionally well.

In my July 2022 post on the stock, I discussed its 'Value, Growth and Outstanding execution', and the stock has delivered a return of ~94% for investors.

MercadoLibre ( NASDAQ: MELI) is referred to as the 'Amazon of Latin America', due to its strong e-commerce business in the region.

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