Core Insights - MercadoLibre reported $5.94 billion in revenue for Q1 2025, a 37% year-over-year increase, with an EPS of $9.74 compared to $6.78 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $5.53 billion by 7.39%, and the EPS surpassed the consensus estimate of $7.67 by 26.99% [1] Financial Performance Metrics - Gross merchandise volume reached $13.33 billion, exceeding the average estimate of $12.95 billion [4] - Total payment volume was $58.30 billion, surpassing the three-analyst average estimate of $52.40 billion [4] - Geographic revenue from Argentina was $1.38 billion, exceeding the $1.15 billion average estimate, representing a year-over-year change of 124.7% [4] Stock Performance - Shares of MercadoLibre have returned +22.1% over the past month, compared to the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - MercadoLibre reported quarterly earnings of $9.74 per share, exceeding the Zacks Consensus Estimate of $7.67 per share, and up from $6.78 per share a year ago, indicating strong performance [1] - The company achieved a revenue of $5.94 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.39%, compared to $4.33 billion in the same quarter last year [3] - Over the last four quarters, MercadoLibre has surpassed consensus EPS estimates three times and revenue estimates four times, showcasing consistent growth [2][3] Group 2 - The stock has increased approximately 31.1% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500, indicating strong market performance [4] - The current consensus EPS estimate for the upcoming quarter is $10.42 on revenues of $6.08 billion, and for the current fiscal year, it is $46.12 on revenues of $25.79 billion [8] - The Internet - Commerce industry, to which MercadoLibre belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for the sector [9]

Core Insights - Mercado Libre reported strong financial performance in Q1 2025, with net revenues and financial income reaching $5.9 billion, a 37% year-over-year increase [9] - The company is expanding its investment in Brazil by 48% to 34 billion reais ($5.8 billion) in 2025, focusing on logistics, technology, marketing, and staff expansion [2][10] - The growth in unique active buyers rose 25% year-over-year in Q1 2025, indicating improved brand preference in key markets [3] Financial Performance - Net revenues and financial income for Q1 2025 were $5.9 billion, up 37% year-over-year (64% FX-neutral) [9] - Income from operations reached $763 million with a 12.9% margin, while net income was $494 million, reflecting an 8.3% margin [9] - Total payment volume (TPV) grew 43% year-over-year (72% FX-neutral) to $58.3 billion [9] User Growth and Engagement - Mercado Pago's digital account reached 64 million monthly active users (MAUs), a 31% increase year-over-year, driven by a competitive product suite [5] - The strategy has fostered user stickiness and increased engagement with other digital account products, with TPV maintaining consistent FX-neutral growth of around 30% in Brazil and 50% in Mexico [6] Market Expansion and Logistics - The company is enhancing its logistics network to improve purchase frequency and bring offline retail online, reporting a decline in local currency cost per fulfillment order year-over-year in Brazil, Mexico, and Chile [7] - Advertising revenue saw robust 50% year-over-year FX-neutral growth, partly due to the expansion of inventory beyond the marketplace [7] Credit Portfolio - Mercado Pago's credit portfolio increased 75% year-over-year to $7.8 billion, while maintaining delinquency at comfortable levels [8]

Financial Data and Key Metrics Changes - The company reported strong growth in net revenue, maintaining the rapid pace achieved in 2024, with income from operations growing faster than revenue, particularly in Argentina [4][5][23] - Monthly active users reached 64 million, growing over 30% year on year [7] - EBIT margin improved by 70 basis points year on year, from 12.2% to 12.9% [96] Business Line Data and Key Metrics Changes - In Argentina, GMV growth was 126% year on year, with items sold increasing by 52% [20][23] - The supermarket category grew 65% year on year, outpacing other categories [31] - The fintech segment continues to expand, with a focus on democratizing financial services and increasing user engagement [7][11] Market Data and Key Metrics Changes - Brand preference metrics for the marketplace reached all-time highs in Brazil, Mexico, Argentina, and Chile [5] - The credit book in Argentina grew significantly, with assets under management increasing by 69% year on year [23][56] Company Strategy and Development Direction - The company aims to enhance its value proposition through strategic investments in both commerce and fintech, focusing on long-term growth opportunities in Latin America [5][4] - The rebranding of MercadoPago to align with the company's ecosystem is intended to strengthen user relationships and improve brand recognition [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the macroeconomic environment in Argentina, which has positively impacted credit performance and profitability [22][24] - The company is cautious about competition but sees opportunities arising from new entrants in the e-commerce space, which could bring new users online [116][118] Other Important Information - The company is focused on logistics as a key enabler for growth, with ongoing investments in fulfillment centers [44][45] - The fintech sector is expected to continue growing, with a strong emphasis on user retention and engagement through innovative financial products [59][90] Q&A Session Summary Question: Sustainability of trends in Argentina - Management noted strong growth in Argentina driven by recovery in demand and market share gains, with a focus on enhancing the value proposition [20][24] Question: Growth drivers in 1P GMV - The company highlighted strong performance across various categories, with supermarket growth being particularly notable [30][31] Question: Contribution margin evolution in Argentina - Management attributed the high contribution margin to growth in commerce and fintech, along with improved efficiencies [50][51] Question: Asset quality trends - The company reported strong asset quality in Argentina, with low delinquencies and a growing credit portfolio [56][57] Question: Strategy regarding deposits in Brazil - The focus is on marketing and positioning as a leading digital bank, with a recent campaign to enhance brand awareness [59][62] Question: Credit business appetite and funding strategy - Management confirmed a healthy credit portfolio with no deterioration, while also being cautious about risk [65][69] Question: Impact of competition from TikTok and other platforms - The company is monitoring new entrants closely but believes they may bring new users to the online marketplace [116][118]

Financial Data and Key Metrics Changes - The company reported strong growth in net revenue, maintaining the rapid pace achieved in 2024, with income from operations growing faster than revenue, particularly in Argentina [3][4] - Monthly active users reached 64 million, growing over 30% year on year [6] - EBIT margin improved by 70 basis points year on year, from 12.2% to 12.9% [95][96] Business Line Data and Key Metrics Changes - In Argentina, GMV growth was 126% year on year, with items sold increasing by 52% [18][22] - The supermarket category grew 65% year on year, outpacing other categories [30] - The fintech segment, particularly Mercado Pago, is focused on democratizing financial services, with a strong emphasis on user experience and product offerings [6][10] Market Data and Key Metrics Changes - Brand preference metrics for the marketplace reached all-time highs in Brazil, Mexico, Argentina, and Chile [4] - The credit book in Argentina grew significantly, with assets under management increasing by 69% year on year [22][58] - The company is seeing stabilization in Argentina's macroeconomic environment, contributing to improved performance [20][22] Company Strategy and Development Direction - The company aims to become the largest and best digital account in Latin America, with a focus on integrating Mercado Pago into its ecosystem [12][10] - Strategic investments are being made in logistics and credit card offerings in Brazil and Mexico, while maintaining a strong focus on growth opportunities in commerce and fintech [99][44] - The company is adapting its credit models to local markets, with plans to launch credit cards in Argentina in the second half of the year [76][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in Argentina, citing lower inflation and decreasing interest rates as positive factors [20][22] - The company is focused on balancing growth and profitability, emphasizing the importance of long-term growth opportunities in Latin America [99][95] - Management noted that while there may be short-term margin pressures due to investments, the overall growth trajectory remains strong [98][95] Other Important Information - The company launched a new branding for Mercado Pago, aligning it with the overall ecosystem to enhance user confidence [10][11] - The logistics plan remains consistent, with ongoing investments to expand fulfillment centers as needed [44][45] Q&A Session Summary Question: Sustainability of trends in Argentina - Management highlighted strong growth in Argentina, driven by recovery in demand and market share gains, with a focus on enhancing the value proposition [17][19] Question: Drivers behind 1P GMV growth - The growth was attributed to improved selection and price competitiveness across various categories, with supermarket growth being particularly strong [28][30] Question: Contribution margin evolution in Argentina - Management noted that growth allowed for efficient dilution of fixed costs, with improvements in logistics and credit business profitability contributing to margin enhancements [49][50] Question: Asset quality trends - The company reported strong asset quality in Argentina, with low delinquencies and a growing credit card portfolio [55][58] Question: Strategy regarding deposits in Brazil - The focus is on marketing and positioning as a leading digital bank, with competitive rates to enhance customer loyalty [60][61] Question: Update on logistics plan - The logistics plan remains unchanged, with ongoing investments to meet demand projections [43][44] Question: Impact of credit portfolio on marketplace - Management does not expect any negative repercussions on marketplace growth from tightening credit issuance [75] Question: Competition from TikTok Shop and others - Management is monitoring new entrants closely, viewing them as potential opportunities to attract new users to the online marketplace [116][120]

Financial Performance - Mercado Libre reported net revenue of $5.9 billion for Q1 2025, a 37% year-over-year increase [12] - Income from operations reached $763 million, representing a 12.9% margin [12] - Net income for the quarter was $494 million, with an 8.3% margin [12] Commerce Business - The commerce segment's net revenue grew 32% year-over-year to $3.3 billion, with 59% FX-neutral growth [12] - Gross Merchandise Value (GMV) increased 17% year-over-year to $13.3 billion, with 40% FX-neutral growth [12] - Unique buyers rose 25% year-over-year to almost 67 million, and items sold increased by 28% to 492 million units [12][8] Regional Performance - Argentina's FX-neutral GMV surged 126% year-over-year, with items sold growing 52% [3] - Brazil and Mexico also saw strong FX-neutral GMV growth of 30% and 23%, respectively [3] - Supermarket items sold grew 65% year-over-year, outpacing other categories [3] Logistics and Advertising - Cost per fulfillment order declined year-over-year in local currency across Brazil, Mexico, and Chile, enhancing efficiency [4] - Advertising revenue increased 26% year-over-year (50% FX-neutral), leveraging first-party data [4] Fintech Performance - Mercado Pago's monthly active users reached 64 million, a 31% year-over-year increase [5][8] - The credit portfolio expanded 75% year-over-year to $7.8 billion, with non-performing loans remaining stable [5] - Total payment volume (TPV) rose 43% year-over-year to $58.3 billion, with acquiring TPV growing 32% year-over-year to $40.3 billion [12]

INVESTOR PRESENTATION Q1'25 Results May 7, 2025 DISCLAIMERS First Quarter 2025 This presentation may contain forward-looking statements including, but not limited to, statements regarding MercadoLibre, Inc.'s expectations, objectives and progress against strategic priorities; initiatives and strategies related to our products and services; business and market outlook, opportunities, strategies and trends; impacts of foreign exchange; the potential impact of the uncertain macroeconomic and geopolitical envir ...

Montevideo, May 07, 2025 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com) today reported financial results for the first quarter ended March 31, 2025, in a Letter to Shareholders, which is now posted to the company's Investor Relations website https://investor.mercadolibre.com. In order to access our video webcast and the live audio, investors, analysts and the market in general may access the following link at https://event.choruscall.com/mediaframe/webcast.html?webcastid ...

Core Insights - MercadoLibre (MELI) is expected to report quarterly earnings of $7.67 per share, a 13.1% increase year-over-year, with revenues projected at $5.53 billion, reflecting a 27.5% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised 2.8% lower over the last 30 days, indicating a reevaluation by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between these revisions and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenues- Fintech' to be $2.36 billion, a year-over-year increase of 28.6% [5] - The consensus for 'Revenues- Commerce' is $3.13 billion, indicating a 25.3% increase from the prior-year quarter [5] - 'Geographic Revenue- Argentina' is projected to reach $1.15 billion, reflecting an 87.2% year-over-year change [5] Geographic Revenue Insights - 'Geographic Revenue- Fintech- Argentina' is expected to be $717.87 million, a 73% increase from the year-ago quarter [6] - 'Geographic Revenue- Commerce- Argentina' is forecasted to reach $433.21 million, suggesting a significant year-over-year change of 116.6% [6] Key Metrics - The estimated 'Gross merchandise volume' is $12.95 billion, up from $11.37 billion in the same quarter last year [7] - 'Total payment volume' is projected to be $52.40 billion, compared to $40.73 billion a year ago [7] - MercadoLibre shares have increased by 25.2% in the past month, outperforming the Zacks S&P 500 composite's 11.5% increase [7]

Core Insights - The article discusses the author's long-term experience with MercadoLibre (NASDAQ: MELI) since its IPO in 2007, highlighting its evolution from a perceived platform for stolen goods to a significant player in the fintech and e-commerce sectors [1]. Group 1 - The author has been a shareholder and customer of MercadoLibre, providing a unique perspective on its growth and challenges over the years [1]. - The author has extensive experience analyzing various industries, including airlines, oil, retail, mining, fintech, and e-commerce, which contributes to a comprehensive understanding of MercadoLibre's business model [1]. - The author has navigated multiple economic crises, including the dot-com bubble, 9/11, the great recession, and the COVID-19 pandemic, which informs their analysis of MercadoLibre's resilience and adaptability [1].