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MercadoLibre MELI reported fourth-quarter 2024 earnings of $12.61 per share, which beat the Zacks Consensus Estimate by 73.69% and surged 288% year over year. Revenues rose 24% on a year-over-year basis (75% on an FX-neutral basis) to $6.05 billion. The top line surpassed the Zacks Consensus Estimate by 3.7%.
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Total revenues were driven by accelerating commerce and fintech revenues, which grew 44.4% and 28.6% year over year to $3.5 billion and $2.5 billion, respectively. In the commerce segment, strong momentum across Brazil (up 32% year over year) and Mexico (up 28% year over year) contributed well to the reported results. Trends in Argentina are encouraging. Items sold grew 18% year over year in the fourth quarter.
In the Fintech segment, Net Promoter Score hit record levels in Brazil and Mexico in the fourth quarter of 2024 and was the highest since 2021 in Argentina. This drove greater adoption, with strong trends across all three countries. Monthly Active Users rose 34% year over year to 61.2 million (with even faster growth among heavy users). Assets Under Management grew 129% year over year to $10.6 billion (due to the success of our yielding account) and Insurtech active users surpassed 10 million for the first time.
Revenues from MELI’s advertising services grew 41% on a year-over-year basis and were equivalent to almost 2.1% of gross merchandise volume (GMV) at the end of the fourth quarter.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising GMV was another positive.
MercadoLibre, Inc. Stock Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
MELI Quarter in Detail
Brazil: Net revenues in the fourth quarter came in at $3.31 billion (51.8% of the total revenues), rising 37.7% year over year.
Argentina: The market generated revenues of $1.3 billion (21.6% of the top line), which grew 31% year over year.
Mexico: Net revenues in the reported quarter were $1.34 billion (22.2% of the total revenues), which soared 43% year over year.
Other countries: The markets generated revenues of $269 million (4.4% of the total revenues), reflecting an increase of 40.1% on a year-over-year basis.
Key Metrics for MELI
GMV of $14.5 billion jumped 8% year over year and 56% on FX-neutral basis year over year. The figure, however, missed the consensus mark by 1.08%.
The number of successful items sold was 525 million, up 27.1% year over year.
TPV surged 33% year over year and 49% on an FX-neutral basis to $58.9 billion. This was driven by the strong performance of Mercado Pago. The figure missed the Zacks Consensus Estimate by 1.47%.
Total payment transactions increased 43.3% year over year to $3.32 billion.