Mercadolibre Inc (NASDAQ: MELI) was set for great things on the market Friday, after the company posted upbeat quarterly results.
The Buenos Aires-based e-commerce technology company reported Gross Merchandise Volume surpassed the $3-billion U.S. mark for the first time, reaching $3,075.3 million, and accelerating by almost 40 percentage points year on year to 50.7% in U.S. dollars, while on an FX neutral basis GMV accelerated for the fourth consecutive quarter to 93.8% year on year.
Net revenues for the third quarter ascended to $370.7 million U.S., a year-over-year increase of 60.6% and 79.4% on an FX neutral basis.
Gross profit for the third quarter of 2017 was $175.8 million U.S. with a margin of 47.4%, compared to 63.1% in the third quarter of 2016. Most of the gross margin compression is attributed to increase in costs of providing free shipping.
Net income as reported for the third quarter was $27.7 million U.S., resulting in basic net income per share of 63 cents
Moreover, the company declared a quarterly dividend of $0.150 per share; this quarterly dividend is payable on January 16, 2018 to stockholders of record as of the close of business on December 31, 2017.
Founded in 1999, Mercado Libre is Latin America's leading e-commerce technology company. Through its primary platforms, Mercado Libre.com and Mercado Pago.com, it provides solutions to individuals and companies buying, selling, advertising, and paying for goods and services online.
Mercado Libre.com serves millions of users and creates a market for a wide variety of goods and services.
Shares in the company in the U.S. shot higher $26.30, or 11.1%, to $262.30.