MercadoLibre Posts Huge Q3 Growth
MercadoLibre, the Latin American version of eBay, posted huge gains in Q3 of 2008, with revenues surging 76.6% year over year, the company reported Tuesday afternoon.
Third quarter marketplace revenue grew 75.0% to $31.7 million from $18.1 million for the prior year third quarter. Payments revenues grew to $8.5 million for the third quarter, up 82.9% from $4.7 million for the same period during 2007.
Strong results in the classifieds and ad sales businesses as well as take-rate improvements during the quarter also contributed to revenue growth for the quarter.
The strong showing was not a foregone conclusio, however. In fact, on Monday, the company took a double-digit hit as stock prices plummeted ahead of its quarterly earnings report. The fall was due in part to a gloomy assessment put forth by JP Morgan’s Imran Khan.
In a statement Marcos Galperin, MercadoLibre
CEO commented, "We believe that the Latin American online market continues to offer solid opportunities for growth, and that MercadoLibre is in a unique position to capture those opportunities over the next several years. Our solid business model, strong balance sheet, disciplined approach to investments and expenses, and sustained focus on our users should enable us to create long term value for our stockholders."
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