Mercado Libre has a few scrolls to brag about. Founded 22 years ago, The company is the most successful Argentine unicorn, but also one of the most important companies in Latin America, to the point that even Amazon sees it as a huge competition. But Marcos Galperín said this week that that was not the name he wanted for his project: “LibreMercado” had been “taken away.”
In a too clear nod to the liberal current of thought, Galperín wanted his site to be the classic construction of the “free market”, but the domain I was already registered.
As a solution, he reversed the terms. “If I asked you why they decided to put Mercado Libre on your company 22 years ago, what would you answer me?” Asked a Twitter user.
“Someone had anticipated me when I tried to book LibreMercado.com,” explained the businessman.
Other users took the opportunity to bring back old memories, such as mugs with the logo of the beginning:
Mercadolibre started out as something very different from what we know today. In its origins, it was rather an auction site inspired by the eBay system, where the main attraction was not buying online but, precisely, offering a price like in an auction. In fact, DeRemate.com it was one of his main competencies.
Over time, the market evolved and copied the amazon model, the company founded by Jeff Bezos that revolutionized the ecommerce business by controlling not only the sale but also the logistics of product distribution.
One of Mercado Libre’s distribution centers. Photo Bloomberg
Mercado Libre turned 22 years old on Monday, August 2. This day, Galperín published a video. “It is an integral part of the economic recovery of all of Latin America“He said.” The best of all is that this is just beginning, what we are going to build is much more interesting than what we did up to here, “he added.
The great moment of the company
Mercado Libre reported this Thursday a growth of over 102% in net income by registering USD 1.7 billion during the second quarter of 2021. The figure comes from the last balance sheet this Wednesday, at the close of operations on Wall Street.
At 2:50 p.m., the shares of the company founded by Argentine Marcos Galperín climbed 15% in the Nasdaq technology average in New York, to $ 1,799.
Likewise, the market capitalization of the leading electronic commerce company in Latin America amounts to 90,000 million dollars.
The numbers released by the e-commerce multinational show a 93.9% year-on-year increase in net income measured in dollars, reaching US $ 1.7 billion, while the increase in constant currency was 102 , 6 percent. The results beat market expectations – (about $ 1.5 billion) and boosted shares up to 7%, then fell to 5.8 percent.
Marcos Galperín, founder and CEO of Mercado Libre. Photo Clarín
“Mercado Libre is one of the typical so-called“ growth ”companies. It is precisely this type of company in which investors focus on their ability to grow into what they can become in the future. Until now, the company has always stood out for its revenue growth but failed to present positive results. Until today, where it not only met income but the novelty was that it presented positive results and 15 times above what the market expected “Maximiliano Donzelli, Head of Research at IOL invertironline.
Its CFO, Pedro Arnt, commented on the main figures on the balance sheet: Net income before income tax expense was US $ 138.9 million, an increase of 55.5% from US $ 89.3 million. during the second quarter of 2020.