Shares of the Latin American e-commerce firm MercadoLibre rose sharply on Wednesday after it reported strong earnings and revenue for the March quarter.
MercadoLibre's stock (MELI) - Get Report soared 19.2% to $740.35 during Wednesdays' trading session after it blew away revenue estimates, posting quarterly net sales of $652 million, representing growth of 70.5% year over year on a currency neutral basis and 37.6% on a dollar basis. Analysts were expecting sales of about $635 million.
“Given the difficult circumstances the world is facing, we are optimistic about the results we've delivered during the first quarter of 2020. Although less affected than others, our business did register this impact, primarily during the first weeks of the imposed lockdowns, with a rebound throughout April," said Pedro Arnt, CFO of MercadoLibre, in a press release.
"We feel MercadoLibre has the opportunity to emerge from this situation stronger and with an even greater sense of purpose," he added.
MercadoLibre's quarterly adjusted loss came in at 44 cents per share.
The Argentina-based e-commerce firm is the largest online sales platform in Latin America, and saw an increase in new users last quarter amid the coronavirus pandemic. Its unique active users grew 30.9% to 43.2 million during the quarter, and its total payment volume rose reached $8.1 billion. Live listings on MercadoLibre’s marketplace reached 267.4 million, a 29.8% year-over-year growth.
The company also reported a slowdown towards the end of March in some of its lines of business, such as its fintech offering, followed by a recovery in April.
Shares of MercadoLibre are up roughly 20% year to date.