What guidance did Mercadolibre's management provide for the next earnings period?

What factors drove the changes in Mercadolibre's revenue and profit?

Did Mercadolibre beat or miss consensus estimates last quarter?

What were the key takeaways from Mercadolibre's earnings call?

What is Mercadolibre's gross profit margin?

What is the revenue and EPS growth rate for Mercadolibre year over year?

What is the market's earnings forecast for Mercadolibre next quarter?

What is Mercadolibre's latest dividend and current dividend yield?

- **Revenue Surge**: 39% YoY growth driven by Brazil's 42% YoY GMV acceleration and Argentina's resilient 97% YoY revenue rise.
- **Cost Efficiency**: 8% QoQ decline in Brazil shipping costs, 30% YoY operating income growth.
- **Credit Expansion**: Brazil credit card cohorts >2 years profitable; Argentina credit card launch underway.
- **User Growth**: 7.8M new buyers globally, 4M in Brazil, with NPS at record highs.
- **Strategic Moves**: Casas Bahia partnership for 1P expansion, AI-driven tools for seller and customer engagement.


**【CEO Summary】**
- **Revenue Growth**: Q3 revenue grew 39% YoY, driven by 39% YoY growth in Brazil and 97% YoY in Argentina. GMV in Brazil accelerated due to a 39% YoY increase in items sold and a 42% YoY rise in items sold under the BRL 19-79 price range.
- **Strategic Investments**: Lowered free shipping threshold in Brazil, resulting in 8% QoQ decline in unit shipping costs. Expanded 1P business with a partnership with Casas Bahia for heavy goods, and launched a credit card in Argentina.
- **User Engagement**: Added 7.8 million new buyers globally, with Brazil contributing 4 million. NPS in Brazil reached record highs due to improved value proposition.

**【CFO Financial Commentary】**
- **Financial Performance**: Operating income of $724 million (30% YoY growth). GAAP net income of $420 million, with Non-GAAP EPS exceeding expectations. Brazil's contribution margin declined due to strategic investments, but Argentina remained highly profitable despite macroeconomic challenges.
- **Credit Card Growth**: Credit card portfolio grew rapidly, with 50% of Brazil's credit card volume from cohorts older than 2 years being profitable. Argentina's credit card launch is early-stage but shows promise.
- **Cost Efficiency**: Unit shipping costs in Brazil declined 8% QoQ due to scale and slow shipping optimization. G&A and product development expenses were diluted by top-line growth.

**【Q&A Highlights】**
- **Argentina Strategy**: Despite macroeconomic volatility, MercadoLibre maintained 39% YoY revenue growth. Plans to expand credit card issuance and invest in fulfillment centers despite higher funding costs.
- **User Acquisition**: Marketing spend as a % of revenue remained stable at ~11%. Focus on affiliate channels to attract younger users, with 4x YoY growth in this segment.
- **Credit Card Profitability**: Cohorts older than 2 years in Brazil are profitable, but near-term margin pressure from new card issuance in Mexico and Argentina persists.
- **AI Integration**: Launched AI-driven seller assistant and conversational banking tools, positioning for long-term efficiency gains.


MercadoLibre, Inc. (MELI) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 30% YoY driven by Brazil's free shipping initiative and Mexico's GMV acceleration.
- **FinTech Expansion**: Credit portfolio up 91% YoY, with Brazil credit cards NIMAL breakeven and 1.5M new issuances.
- **AI Impact**: Testing AI for ad optimization and seller tools, with early positive results.
- **Sustainability**: Brazil's low ASP strategy expected to improve long-term profitability despite short-term margin pressure.

**【CFO Opening Remarks】**
- **Q2 Financial Highlights**: Revenues grew 30% YoY, with record income from operations of $825 million. Brazil's free shipping threshold reduction drove GMV acceleration, while Mexico saw GMV growth and item sales at a 2-year high. Advertising revenue rose 38% YoY, and FinTech MAUs reached 68 million.
- **FinTech Performance**: Credit portfolio expanded 91% YoY to $9.3 billion, with NIMAL stable and 50-90 day NPLs below 7%. Mexico and Brazil credit card issuance increased by 1.5 million, with over half of Brazil's portfolio NIMAL-positive.

**【Q&A Key Highlights】**
- **Shipping Strategy**: Brazil's free shipping threshold reduction to BRL 19 boosted GMV growth and user engagement, with 34% YoY item sales growth in June. Sellers lowered prices, and the initiative is expected to drive long-term value.
- **Marketing Spend**: Q2 sales and marketing expenses rose due to campaigns in Brazil (e.g., Mercado Pago ads) and Mexico (free shipping promotion). AI is being tested to optimize ad spend and creatives.
- **Credit Quality**: Despite elevated NPLs, credit card profitability improved, with Brazil's portfolio NIMAL breakeven. Argentina's portfolio growth offset inflationary pressures, and external funding for credit cards is being explored.
- **Regional Growth**: Argentina's ad revenue gap with Brazil and Mexico narrowed due to lower inflation and improved seller tools. Slow delivery methods in Brazil aim to reduce shipping costs and improve unit economics.
- **AI Integration**: AI is enhancing ad targeting, seller tools, and credit models, with early tests showing promise in content creation and bidding optimization.

MercadoLibre, Inc. (MELI) Q2 2025 Earnings Call Transcript

- **Argentina Dominance**: US dollar revenues doubled YoY, driven by macro stabilization and 75% credit portfolio growth.
- **1P Supermarket Surge**: 65% YoY growth with better unit economics, fueled by 1P automatic onboarding tech.
- **Credit Card Expansion**: Brazil credit card NPLs improved; Argentina to launch credit cards in H2 2025.
- **Fintech Integration**: Yellow rebranding and UX updates drive 30%+ MAU growth, aligning fintech with commerce ecosystem.

**【CFO Opening Remarks】**
- Q1 2025 net revenue growth maintained 2024's rapid pace, driven by strategic investments in user value proposition.
- Commerce: Brand preference metrics hit all-time highs in Brazil, Mexico, Argentina, and Chile; 1P GMV grew 102% YoY, with supermarket category up 65% YoY.
- Fintech: Monthly active users (MAU) reached 64 million (+30% YoY); credit portfolio grew 75% YoY; Brazil credit card first payment defaults hit all-time low.
- Argentina: US dollar revenues doubled YoY; income from operations growth outpaced revenue due to macro stabilization and strategic investments.

**【Fintech Branding Update】**
- Mercado Pago rebranded to yellow, aligning with commerce ecosystem; updated visual identity and UX for a modern banking experience.
- Brazil, Mexico, and Chile rolled out new branding, with Brazil following in mid-April.
- Fintech MAU growth of 30%+ YoY reflects successful integration with commerce ecosystem.

**【Q&A Highlights】**
- **Argentina Sustainability**: 126% GMV growth YoY driven by market share gains, macro stabilization, and credit portfolio profitability improvements. Credit book in Argentina grew 4x YoY in USD terms.
- **1P Growth Drivers**: Automatic onboarding and pricing tech enabled 102% GMV growth; supermarket 1P GMV has better unit economics than 3P due to scale and ad revenue.
- **Credit Card Strategy**: Brazil credit card NPLs improved due to upmarket targeting; Argentina credit card issuance expected to begin in H2 2025.
- **Logistics Investments**: Brazil logistics CapEx as % of revenue stable; no changes to previously announced distribution center plans.
- **Competition & Tariffs**: TikTok Shop launch in Brazil early-stage; cross-border trade dynamics minimal impact on Latin America operations.


MercadoLibre (MELI)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 2024 revenue reached $21B, driven by 15% YoY growth in Brazil/Mexico and Q4 Argentina recovery (18% item growth). 
- **Credit Expansion**: Portfolio +74% YoY, Brazil credit cards +118%, Argentina book quadrupled. 2-year-old cohorts profitable, NPLs 27.6%.
- **Logistics Efficiency**: 29% YoY shipment growth, cost per package below inflation. New warehouses performed well in Q4 peak season.
- **User Milestones**: 100M unique buyers, 61M FinTech users. Argentina credit card penetration doubles, 5.9M new cards issued.
- **Risk Management**: Tightened Brazil credit issuance (micro cards down 70%), but maintained 23% QoQ portfolio growth. NPLs stable at 27.6%.
- **Argentina Outlook**: Credit book +4x YoY, no banking license needed. Optimistic on macro stability with 29% central bank rates.


**【CFO Financial Overview】**
- **Revenue Performance**: Achieved $21 billion in revenue for 2024, driven by 15% YoY growth in key markets like Brazil and Mexico. Argentina saw a strong recovery in Q4 with 18% YoY item growth.
- **Credit Portfolio Expansion**: Credit portfolio grew 74% YoY, with Brazil's credit card issuance up 118%. Argentina's credit book quadrupled, supported by low NPLs and improved risk models.
- **Profitability**: Non-GAAP EPS exceeded expectations, with free cash flow of $1.3 billion despite $900 million in CapEx investments. Gross margin improvements expected in 2025 as older credit cohorts mature.

**【Logistics & User Growth】**
- **Infrastructure Expansion**: Opened new fulfillment centers, achieving record shipments (29% YoY growth) and cost efficiency (local currency cost per package below inflation). Logistics productivity gains from route optimization and automation.
- **User Engagement**: Reached 100 million unique buyers and 61 million monthly active FinTech users. Argentina's credit card penetration doubled, with 5.9 million new cards issued in 2024.

**【Market Insights & Risks】**
- **Brazil Credit Card Strategy**: Tightened issuance for high-risk segments (e.g., micro cards down 70%), but maintained 23% QoQ portfolio growth. NPLs stable at 27.6%, with 2-year-old cohorts profitable.
- **Argentina Outlook**: Optimistic on macro stability, with credit book growth of 4x YoY. No banking license required; using securitization to fund expansion.
- **Ad Business**: Ads revenue as % of GMV expanded 50bps YoY, targeting long-term growth through brand partnerships and display ads. Brazil's ad penetration lags peers, but improving with tech stack enhancements.

**【Q&A Highlights】**
- **Credit Risk Management**: Shortened payback periods for new cards, reduced micro card issuance, and tighter underwriting. Brazil's credit card NPLs at 27.6%, down from 39.8% YoY.
- **Logistics Utilization**: New warehouses performed well in Q4, with productivity gains from routing algorithms and shelving innovations. Full utilization expected in 2-3 years.
- **E-commerce Growth Drivers**: Free shipping, verticalized category experiences (e.g., virtual try-ons), and bulk discounts. Essentials and home categories leading growth, with 3+ category buyers up 20%.


MELI

MELI fundamentals

Earnings Call

You can ask Aime