In This Article:
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Revenue: Achieved $21 billion for the fiscal year 2024.
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Free Cash Flow: Generated over $1 billion.
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Unique Buyers: Surpassed 100 million in the marketplace.
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Monthly Active Users: Reached 60 million on the fintech platform.
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Credit Cards Issued: 5.9 million new cards in 2024.
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Items Shipped: Increased by 29% year on year.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MercadoLibre Inc (NASDAQ:MELI) achieved significant market share gains in Brazil, Mexico, and Argentina, highlighting its leadership in e-commerce and fintech in Latin America.
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The company surpassed 100 million unique buyers on its marketplace and 60 million monthly active users on its fintech platform, reflecting strong user trust and loyalty.
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Investments in logistics infrastructure, including new fulfillment centers and expanded free shipping, have attracted a record number of new buyers.
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MercadoLibre Inc (NASDAQ:MELI) issued 5.9 million new credit cards in 2024, doubling its portfolio and enhancing its position as a potential leading digital bank in Latin America.
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The company achieved $21 billion in revenue and generated over $1 billion in free cash flow, demonstrating its ability to drive profitable growth while investing in long-term strategic objectives.
Negative Points
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Short-term pressure on margins is expected due to ongoing investments in logistics and credit card offerings.
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The rising interest rate environment poses a challenge, leading to a more cautious approach in credit issuance, particularly in Brazil.
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There is a potential risk of cannibalization in Mexico, where taxes paid on the marketplace with credit cards are replacing consumer loans.
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The contribution margin in Brazil was down year-over-year, partly due to higher provisions for credit card build-out.
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The company faces competition from peers focusing on lower ticket size items, which could impact growth in that segment.
Q & A Highlights
Q: How does MercadoLibre view its credit risk amid rising interest rates, and what impact could a cautious approach have on the ecosystem? A: MercadoLibre has not seen deterioration in its credit portfolio, with Brazil's credit card showing the lowest first payment default on record in December. The company has reduced the issuance of micro cards and tightened payback periods to manage risk. Despite these measures, MercadoLibre is comfortable with its risk levels and sees room for growth in credit penetration, particularly in Mexico, where credit products are increasingly used in the marketplace. (Unidentified_6, Unidentified_7)