Stagnant e-commerce? Fintech struggling? This platform alone increased revenue by 61%.

Over the past year, much ink has been spilled about how tough corporate and macroeconomic conditions are cratering the growth of e-commerce, as well as weighing on the performance of many fintech companies. While these reports is Exactly, not all providers of such services are created equal. Take for example MercadoLibre (MELI 7.77%). The company delivered a near-picture-perfect financial report this week that flew under the radar of many investors — which could be a costly mistake.

For the third quarter, MercadoLibre generated record net income of $2.7 billion, up 61% year over year in constant currency (more on that later). Operating margin increased 500 basis points to 11%, helping to generate record quarterly operating income of 296 million dollars. This resulted in earnings per share (EPS) of $2.57, up 34%.

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For context, analysts’ consensus estimates called for revenue of $2.7 billion and EPS of $2.41, so while revenue growth was in line with expectations, profits were much better than expected.

The results were driven by e-commerce revenue of $1.47 billion, up 33%, and fintech revenue, which rose 115%. This marks the third consecutive quarter of triple-digit growth for MercadoLibre’s fintech business.

Its e-commerce platform generated gross merchandise volume (GMV) or product sales of $8.6 billion, up 32% year over year, driven by higher conversion rates. At the same time, the total payment volume (TPV) of USD 32.2 billion rose by 76%. Perhaps most impressively, off-platform TPV – generated by other websites and brick-and-mortar stores – grew 122%, achieving triple-digit gains for the fourth quarter in a row, outpacing on-platform business.

MercadoLibre’s active users grew to 88.3 million, up 12% year over year, while unique buyers on its platform rose 10%. The company’s fintech segment continues to thrive, with users growing 32% year-over-year, while digital wallet and investment account users grew 34% and 29% respectively.

A word about “constant currency”

Investors have heard quite a bit about “constant currency” and similar phrases like “currency neutral,” so it’s worth pausing for a moment to provide some insight. The US dollar has been on a roll lately, strengthening against most other currencies.

Why is this important to investors? When companies deliver financial results, they must convert foreign currency into dollars for the report. When the dollar is stronger, foreign currency translates into fewer dollars, skewing results downward. However, since MercadoLibre does all of its business in the Latin American countries where it operates, this currency conversion is only on paper – it has no impact on operations.

What that means for MercadoLibre investors is that the results you see in constant currency remove the impact of the strong dollar, revealing the true underlying growth.

Many growth drivers ahead

As impressive as MercadoLibre’s growth has been, there is a much bigger opportunity ahead. Internet penetration in the region still lags much of the world, as about 70% of the population has Internet access, compared to about 92% in the United States. As more people come online, MercadoLibre’s market grows.

It is also estimated that e-commerce represented less than 5% of total retail sales in Latin America last year, compared to about 14% in the US. Online sales will continue to take part, expanding the transaction pool – and MercadoLibre’s opportunity.

In terms of potential customers, the market is larger, with a much larger population base in Latin America of approximately 625 million, compared to approximately 332 million in the US More people means more potential customers for MercadoLibre’s services.

Finally is Latin America still a largely cash-based society, with approximately 58% of all point-of-sale transactions paid for in cash. MercadoLibre is a leading provider of fintech solutions in the region, so as more people adopt digital solutions, the company’s opportunity increases.

MercadoLibre’s consistently high growth and stellar execution make it a strong buy — but it’s not for everyone. The stock has historically been volatile and is currently down 45% from its highs reached late last year. Still, it’s not cheap by traditional valuation metrics, even after that bump, trading for 3.6 times next year’s sales, when a reasonable price-to-sales ratio is between 1 and 2. But given the company’s above-average growth rate, I would argue that it deserves the award.