What factors led to MELI's Q3 2024 earnings miss?

MercadoLibre's Q3 2024 earnings did not miss expectations. On the contrary, the company delivered robust results, surpassing market expectations in both revenue and earnings. The reported revenue for the quarter was $5.07 billion, reflecting a significant year-over-year increase of 48.6%. This growth was primarily driven by accelerating commerce and fintech revenues, which surged by 53.4% and 27.5%, respectively, to $2.97 billion and $2.1 billion. Revenues from advertising services also experienced strong growth, rising by 51% year-over-year to $113 million. The company's earnings per share (EPS) for the quarter were $10.48, surpassing the Zacks Consensus Estimate of $8.72, indicating a significant earnings surprise of 20.18%. This robust performance was supported by strong gross merchandise volume (GMV) and total payment volume (TPV) growth. The GMV reached $12.65 billion, jumping 83.1% on an FX-neutral basis year-over-year, surpassing the consensus mark by 4.7%. The TPV surged by 86.2% year-over-year on an FX-neutral basis to $46.33 billion, driven by the robust Mercado Pago payment system. Institutional investors and hedge funds have shown confidence in MercadoLibre, with several recent modifications to their holdings. For instance, Bensler LLC grew its holdings by 5.0% in the second quarter, owning 4,448 shares valued at $7,311,000. Similarly, Cambridge Investment Research Advisors Inc. raised its position by 2.0% during the second quarter, now owning 3,698 shares valued at $6,077,000. These institutional investments reflect confidence in the company's continued growth and success. Overall, MercadoLibre's Q3 2024 earnings report showcased the company's strong business performance and growth potential, contradicting any notion of an earnings miss.