What drove MELI's earnings growth in 2024?

MercadoLibre's (MELI) earnings growth in 2024 was driven by several key factors: 1. **Revenue Growth**: The company experienced significant revenue increases, with a 42% growth in Q4 2023 and a 40% growth in Q2 2024. This was fueled by strong performance across its Commerce and Fintech segments. 2. **Payment and Logistics Services Expansion**: MercadoLibre's payment service, Mercado Pago, reached 50 million active users, and credit card origination grew, reflecting successful fintech expansion. Credit card TPV grew by 166% year-on-year. 3. **New Business Opportunities**: The company opened new fulfillment centers, enhancing logistics capabilities and improving user experience. This expansion into new markets and services contributed to its growth. 4. **Market Share Gains**: MercadoLibre reported strong GMV growth of 34% in Brazil and 27% in Mexico, indicating robust market share gains. It also added a record 7 million new buyers in Argentina. 5. **Strategic Investments**: Despite margin compression, the company continued to invest in strategic areas such as credit cards and fulfillment centers. These investments are expected to drive long-term business expansion. In summary, MercadoLibre's earnings growth in 2024 was driven by strong revenue increases, strategic expansions into payment and logistics services, new business opportunities, market share gains, and strategic investments.