Mercado Libre

Mercado Libre disclosed worse than expected 2019Q3 results. While revenue growth was very strong (91% year-over-year, especially in Argentina and Mexico), the company had net losses of USD 146.1 million, resulting in a USD 2.96 loss per share. The increase in marketing expenses was the main reason of the loss, despite  helping in a a 94.5% year-on-year increase in Mercado Pago’s processed payments volume and 37% YoY growth in e-commerce. According to the management, the company would continue to experience growth in payments volume and in revenues, while moderating marketing spending, which would help to achieve positive margins for next year.