Argentinian e-commerce technology company MercadoLibre Inc. (MELI), Monday reported a decline in first-quarter profit, as foreign currency losses stemming from a devalued Venezuelan Bolivar offset strong growth in revenues.
Adjusted earnings, which excludes one-time items, increased from last year but missed Wall Street estimates, while revenues exceeded expectations, on higher merchandise volumes and payment transactions.
The company also recorded an over 23 percent jump in user base during the quarter and said prospects for the future appear bright.
Investors cheered the results and the company's stock touched a 52-week high, rallying 10 percent in after-hours trade on the Nasdaq.
"We saw volume accelerate across both our core marketplace and payments businesses, as we are meeting the growing demands of a quickly expanding base of users," said CEO Marcos Galperin.
MercadoLibre hosts online commerce platforms in Latin America. Through its primary platforms, MercadoLibre.com and MercadoPago.com, provides solutions to individuals and companies buying, selling, advertising, and paying for goods and services online.
The Buenos Aires-based company posted quarterly net income of $17.5 million or $0.40 per share, compared with $19.6 million or $0.45 per share last year.
Foreign exchange losses for the recent quarter were $6 million, excluding which, adjusted earnings would have been $23.4 million or $0.53 per share.
On average, 9 analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter jumped to $102.7 million from $83.7 million in the prior year. Analysts on consensus expected revenues of $97.44 million for the quarter.
The company's stock closed Monday at $103.95, down 0.07%, on a volume of 1.52 million shares. In after hours, the stock gained $10.55 or 10.15%.
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