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

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

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

Did Mercadolibre beat or miss consensus estimates last quarter?

What does Mercadolibre do and what are its main business segments?

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

What is Mercadolibre's gross profit margin?

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MELI

MELI fundamentals

You can ask Aime