Core Insights - Wall Street analysts have issued over 12,000 ratings on S&P 500 stocks, leading to a one-year target of 6,920 for the index, suggesting a potential gain of nearly 13% from the current level of 6,145 [1][2] Company Analysis: Microsoft - Microsoft has two primary growth engines: enterprise software and cloud computing, enhanced by AI features, although the stock has declined 9% in the last three months, presenting a potential investment opportunity [4][2] - Approximately 70% of Fortune 500 companies utilize Microsoft 365, with a 60% sequential increase in usage recently, indicating strong market penetration [5] - Azure, Microsoft's cloud platform, is well-positioned in the AI sector, with analysts noting its competitive edge over Amazon Web Services due to its partnership with OpenAI [6] - Earnings for Microsoft are expected to grow at 13% annually through fiscal 2026, with a current valuation of 33 times earnings, which is a discount to the 12-month average of 36 times earnings, suggesting a reasonable entry point for investors [7] - The average target price for Microsoft among 59 analysts is $510 per share, indicating a 23% upside from the current price of $415 [11] Company Analysis: MercadoLibre - MercadoLibre operates the largest online marketplace in Latin America, with a projected market share in retail e-commerce of 30% by 2026, up from 28% in 2024 [8] - The company boasts the fastest logistics network in Latin America and holds over 50% market share in retail media advertising, enhancing its attractiveness to merchants [9] - The ongoing digitization of the Latin American economy is expected to drive online retail sales growth at 10% annually through 2028, which will also benefit MercadoLibre's digital payments and advertising segments [10] - Wall Street anticipates earnings growth of 43% annually through 2025, with a current valuation of 73 times earnings appearing reasonable [11] - The average target price for MercadoLibre among 25 analysts is $2,300 per share, suggesting an 11% upside from the current price of $2,075 [11]

INVESTOR PRESENTATION Q4'24 Results February 20th, 2025 DISCLAIMERS Fourth Quarter 2024 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 geopoliti ...

Financial Data and Key Metrics Changes - In 2024, MercadoLibre achieved $21 billion in revenue and generated over $1 billion in free cash flow, demonstrating the ability to drive profitable growth while investing in long-term strategic objectives [13] - The company reported a 74% year-on-year increase in its credit portfolio, indicating strong growth in this segment [34] Business Line Data and Key Metrics Changes - The marketplace surpassed 100 million unique buyers and the fintech platform reached over 60 million monthly active users for the first time, reflecting significant user growth [9] - In Argentina, items sold grew by 18% in Q4, a recovery from a tough first half of the year, and the fintech credit book quadrupled year-on-year [39] Market Data and Key Metrics Changes - MercadoLibre's key top-line metrics, including GMV and acquiring TPV, outpaced the market in Brazil, Mexico, and Argentina, driving significant market share gains [8] - The company noted a 29% year-on-year increase in items shipped, contributing to improved logistics efficiency [18] Company Strategy and Development Direction - The long-term growth strategy is based on low e-commerce penetration in the region, the opportunity to offer better financial products, and the digitalization of cash [13] - Investments in logistics infrastructure and credit card offerings are central to the company's ambition of becoming the largest digital bank in Latin America [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, particularly in Argentina, where economic recovery signals are strong [40] - The company remains cautious about credit issuance in Brazil due to rising interest rates but is comfortable with the current risk levels [30][32] Other Important Information - The company invested approximately $900 million in CapEx and $3 billion in its fintech business during 2024 [119] - The introduction of the MELI dollar, a stablecoin, and new investment options in Brazil, Mexico, Argentina, and Chile are part of the fintech expansion strategy [24] Q&A Session Summary Question: Credit portfolio risk appetite amid rising interest rates in Brazil - Management noted no signs of deterioration in the credit portfolio, with the lowest first payment default recorded in December [30] - Measures have been taken to reduce risk, including tightening payback periods and reducing micro card issuance [31][32] Question: Tailwinds and headwinds for margins in Argentina - Management is optimistic about Argentina's economic growth, with a strong recovery in item sales and a quadrupled credit book [39][40] - Long-term margin improvement is expected as the company continues to grow and capture market share [42] Question: Progress on opening new warehouses - The company opened two new warehouses in Q4 to support peak season demand and plans to continue expanding capacity [50] Question: Competition in low ASP items - Sales of low ticket items are growing at par or faster than the average, supported by improved user experience and features [51] Question: Measures to reduce credit risk in Brazil - Management is tightening payback periods and limiting card issuance to riskier segments to manage credit risk [57] Question: Trends in NIMAL and profitability of credit card book - NIMAL decreased year-on-year due to a higher share of credit cards, but profitability is improving as older cohorts mature [59][60] Question: Expectations for credit card investments and wallet funding - The company is being more restrictive in issuing cards to riskier segments while expanding limits for existing customers [66][69] Question: Impact of reducing micro cards on GMV growth - Management does not expect significant impact on GMV growth from reducing micro card issuance [72] Question: Advertising growth and future targets - The company is focused on building relationships with brands and expanding advertising inventory, with expectations for long-term growth [81][84] Question: Utilization levels of new fulfillment centers - The logistics network performed well in Q4, with productivity improvements aligning with demand [89] Question: Modeling provisions for future growth - Historical portfolios are performing better, but sequential growth in new portfolios may pressure provisions [92][94] Question: Drivers of e-commerce acceleration and user behavior - User behavior is changing positively, with growth in essentials and improved value propositions driving increased frequency of purchases [100]

Core Insights - MercadoLibre reported $6.06 billion in revenue for Q4 2024, a year-over-year increase of 42.2% [1] - The company's EPS for the same period was $12.61, up from $3.25 a year ago, indicating a significant growth [1] - Revenue exceeded the Zacks Consensus Estimate of $5.84 billion by 3.71%, while EPS surpassed the consensus estimate of $7.26 by 73.69% [1] Financial Performance Metrics - Gross merchandise volume was reported at $14.55 billion, slightly below the average estimate of $14.71 billion [4] - Total payment volume reached $58.91 billion, which was lower than the estimated $59.80 billion [4] - Geographic revenue from Argentina was $1.31 billion, exceeding the average estimate of $941.23 million [4] Stock Performance - Shares of MercadoLibre have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - MercadoLibre reported quarterly earnings of $12.61 per share, significantly exceeding the Zacks Consensus Estimate of $7.26 per share, and up from $3.25 per share a year ago [1] - The earnings surprise for this quarter was 73.69%, following a previous quarter where the company reported earnings of $7.83 against an expectation of $11.27, resulting in a surprise of -30.52% [2] - The company achieved revenues of $6.06 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.71%, and up from $4.26 billion year-over-year [3] Earnings Performance - Over the last four quarters, MercadoLibre has exceeded consensus EPS estimates three times [2] - The company has also topped consensus revenue estimates in all four of the last quarters [3] Stock Performance - MercadoLibre shares have increased approximately 22.1% since the beginning of the year, outperforming the S&P 500's gain of 4.5% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $6.86 on revenues of $5.39 billion, and for the current fiscal year, it is $43.96 on revenues of $25.24 billion [8] - The Internet - Commerce industry, to which MercadoLibre belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook [9]

Core Insights - MercadoLibre reported strong financial results for Q4 2024, with total revenue reaching $6.06 billion, a 37% increase year-over-year, and adjusted earnings per share soaring by 288% to $12.61, significantly exceeding expectations [2][3]. Financial Performance - Total revenue for Q4 2024 was $6.06 billion, up from $4.41 billion in Q4 2023, marking a 37% increase [2]. - Adjusted earnings per share rose to $12.61 from $3.25, reflecting a remarkable 288% growth [2]. - Gross merchandise volume increased by 8%, reaching $14.55 billion [2]. - Assets under management surged by 129%, exceeding $10 billion for the first time, totaling $10.58 billion [2]. Business Growth - Commerce-related revenue grew by 44% year-over-year, while fintech revenue increased by 29% [3]. - The number of unique active buyers rose to 67.3 million, a 24% increase from the previous year [4]. - Items sold on the MercadoLibre marketplace increased by 27%, and same-day and next-day shipments via Mercado Envios were up by 21% [4]. Market Reaction - Following the release of the financial results, MercadoLibre's stock price surged by over 13% in after-hours trading, indicating strong investor confidence [6]. Future Outlook - The company expressed optimism in its shareholder letter, anticipating continued growth and momentum into 2025 and beyond [5]. - Engagement on the marketplace and payment activity on the Mercado Pago network are at record levels, suggesting a robust operational environment [7]. - As geopolitical conditions evolve, MercadoLibre's dominance in the Latin American market is expected to strengthen, posing challenges for competitors [8].

Core Insights - MercadoLibre reported stronger-than-expected earnings for Q4 2024, with diluted earnings per share of $12.61, significantly surpassing the analyst estimate of $7.90 [1][3] - Revenue for the quarter reached $6.1 billion, exceeding expectations of $5.88 billion, reflecting robust growth in both e-commerce and fintech sectors [1][3] Financial Performance - EPS (Diluted) increased by 288% year-over-year from $3.25 to $12.61 [3] - Revenue grew by 37.4% year-over-year from $4.41 billion to $6.06 billion [3] - Net income reached $639 million, a 287% increase from $165 million in Q4 2023 [3] - Total payment volume rose to $58.9 billion, up 32.5% year-over-year from $44.5 billion [3] - Gross merchandise volume (GMV) increased by 8.2% year-over-year to $14.5 billion [3] E-commerce and Fintech Growth - The overall performance highlighted solid results across e-commerce and fintech divisions, despite regional challenges [2] - MercadoLibre's total payment volume surged due to strong growth in digital payment services, particularly in Brazil and Mexico [6] - The fintech arm, Mercado Pago, saw a 29% year-over-year increase in monthly active users, reaching 61.2 million, and the total credit portfolio expanded to $6.6 billion, a 74% increase year-over-year [8] Logistics and Operational Efficiency - Mercado Envios processed 1.79 billion items throughout 2024, with over half a billion items delivered in Q4 alone, marking a 27% year-over-year increase [7] - The proportion of same-day or next-day deliveries slightly decreased from 51% to 49%, indicating a need for further enhancements in logistics [7] Market Position and Future Outlook - MercadoLibre is a dominant force in Latin America's e-commerce market, operating across 18 countries and focusing on expanding digital payment solutions and logistics operations [4][5] - Management expressed optimism for 2025, emphasizing strategic investments to enhance e-commerce and fintech capabilities, while monitoring asset quality within credit operations [10][11]

Core Insights - Mercado Libre reported strong Q4 2024 results with net revenue of $6.1 billion, a 37% year-over-year increase, and net income of $639 million, reflecting robust operational performance [3][4][16] Financial Performance - Q4 2024 net revenue reached $6.1 billion, with income from operations at $820 million and net income at $639 million, representing margins of 13.5% and 10.5% respectively [3][16] - For the full year 2024, consolidated net revenue was $21 billion, growing 38% year-over-year, with net income of $1.9 billion and an operating income margin of 12.7% [17] E-commerce Operations - Unique buyers exceeded 67 million in Q4 2024, marking a 24% increase year-over-year, with gross merchandise value (GMV) rising 8% to $14.5 billion [4][8] - Items sold on the platform increased by 27% year-over-year in Q4, with Brazil and Mexico showing significant GMV growth of 32% and 28% respectively [4][8] Strategic Initiatives - The company opened 10 new fulfillment centers in 2024 and expanded its free shipping offerings, resulting in record-breaking new buyer acquisition [5][20] - Logistics improvements led to 49% of shipments being delivered within the same or next day, enhancing operational efficiency [5][20] Advertising and Fintech Growth - Advertising revenue grew by 41% year-over-year in Q4, reaching 2.1% of GMV, driven by successful campaigns during peak seasons [6][20] - Mercado Pago's monthly active users increased by 34% to 61 million, with assets under management climbing 129% year-over-year to $10.6 billion [7][20] Credit Portfolio Expansion - The credit portfolio for Mercado Pago reached $6.6 billion in Q4, up 74% year-over-year, with significant contributions from credit card growth [7][8][20] - The fintech segment's total payment volume (TPV) rose by 34% year-over-year to $197 billion, indicating strong demand for digital financial services [19][20]

Core Insights - MercadoLibre, Inc. reported its financial results for Q4 and the full year ended December 31, 2024, in a letter to shareholders [1] - The company will host an earnings video conference and a conference call for investor questions on February 20, 2025, at 5:00 p.m. Eastern Time [1] Company Overview - MercadoLibre is the largest online commerce ecosystem in Latin America, based on unique visitors and processed orders, and is a leading fintech platform in the region [5] - The company operates in 18 countries, including Argentina, Brazil, Mexico, Colombia, Chile, and Peru [5] E-commerce Platform - MercadoLibre provides a robust and safe environment for buyers and sellers, fostering a large e-commerce community in Latin America, which has a population of over 650 million [6] - The region is experiencing one of the fastest-growing Internet penetration and e-commerce growth rates globally [6] Fintech Services - Through its fintech platform, MercadoPago, the company offers a comprehensive set of financial technology services, including digital accounts, debit cards, online payments, insurance, savings, investments, and credit lines for individuals [7] - For merchants, MercadoPago provides online and physical point-of-sale payment processing services along with digital accounts [7]

Financial Performance - In Q4'24, Mercado Libre achieved net revenues and financial income of $6.1 billion, representing a 37% year-over-year increase and a 96% increase on a foreign exchange-neutral basis[1]. - The company ended 2024 with a net income of $639 million, a 67% year-over-year increase, and generated $1.3 billion of adjusted free cash flow for the year[20]. - Total net revenues and financial income for Q4 2024 reached $20,777 million, a 37.5% increase from $15,107 million in Q4 2023[43]. - Gross profit for Q4 2024 was $9,577 million, up 26.2% from $7,590 million in Q4 2023[43]. - Net income for the year ended December 31, 2024, was $1,911 million, compared to $987 million in 2023, representing a 93.1% increase[46]. - Operating cash flow for the year ended December 31, 2024, was $7,918 million, an increase from $5,140 million in 2023[46]. - Adjusted EBITDA for Q4 2024 was $972 million, significantly up from $470 million in Q4 2023, reflecting a 106.4% increase[58]. - Operating income for Q4 2024 was $820 million, a 144.8% increase from $335 million in Q4 2023[67]. - The company reported a basic net income per share of $37.69 for the year ended December 31, 2024, compared to $19.64 in 2023, a 91.9% increase[44]. Growth Metrics - The total payment volume (TPV) reached $58.9 billion, up 33% year-over-year and 49% FX-neutral, while gross merchandise volume (GMV) was $14.5 billion, up 8% year-over-year and 56% FX-neutral[1]. - Unique buyers grew to 100 million in 2024, with a 24% year-over-year increase in Q4'24, and the share of unique buyers purchasing three or more categories per month rose by nearly 20 percentage points over the last five years[2][3]. - The fintech segment saw monthly active users (MAUs) increase by 34% year-over-year to 61.2 million, and assets under management (AUM) grew 129% year-over-year to $10.6 billion[7]. - Unique active buyers reached 100 million in Q4 2024, compared to 85 million in Q4 2023, marking a 17.6% increase[24]. - Gross merchandise volume (GMV) for the year was $51.467 billion, up from $44.749 billion in 2023, reflecting a 15.3% growth[24]. - Total payment volume (TPV) rose to $196.660 billion in 2024, compared to $146.738 billion in 2023, indicating a 33.9% increase[24]. - Total payment transactions increased to 11.355 billion in 2024, up from 7.595 billion in 2023, a growth of 49.5%[24]. Operational Highlights - Mercado Envios handled almost 1.8 billion items in 2024, with a 44% year-over-year increase in fulfilled items, and record fulfillment penetration in key markets[5]. - Advertising revenue grew by 41% year-over-year in Q4'24, reaching 2.1% of GMV, driven by improvements in product and brand ads[6]. - The company plans to focus on expanding its fintech services and enhancing its marketplace offerings in the upcoming quarters[24]. - The company will no longer disclose the "Number of items shipped" as a key performance indicator, believing it no longer provides useful information[24]. Balance Sheet and Cash Flow - The company maintained a strong balance sheet with a leverage ratio of less than 1x and received an investment grade upgrade from Fitch in 2024[20]. - Total assets as of December 31, 2024, amounted to $25,196 million, compared to $17,612 million in 2023, reflecting a 43.1% growth[41]. - Total liabilities increased to $20,845 million in 2024 from $14,541 million in 2023, marking a 43.3% rise[41]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $4,699 million, up from $3,848 million at the end of 2023[46]. - The company’s total current assets increased to $20,142 million in 2024 from $14,260 million in 2023, a growth of 41.3%[41]. - Net cash provided by operating activities (CFO) increased to $7.918 billion in 2024 from $5.140 billion in 2023, representing a 54% increase[74]. - Adjusted free cash flow for 2024 was $1.315 billion, slightly down from $1.389 billion in 2023, indicating a decrease of 5%[74]. - Available cash and investments at the end of 2024 reached $4.810 billion, up from $3.828 billion at the end of 2023, marking a growth of 25.6%[74]. Debt and Financing - The credit card portfolio reached $6.6 billion, reflecting a 74% year-over-year increase, with a net interest margin (NIMAL) spread of 27.6% in Q4'24[11]. - Total debt increased to $6,850 million in Q4 2024 from $5,333 million in Q4 2023, resulting in a net debt of $2,040 million, up from $1,505 million[61]. - Proceeds from loans payable and other financial liabilities related to Fintech solutions increased to $1.706 billion in 2024 from $248 million in 2023, representing a significant increase of 586%[74]. - The company experienced a decrease in cash and cash equivalents related to customer funds due to regulatory requirements, amounting to $(2.947) billion in 2024, compared to $(1.499) billion in 2023[74]. Future Outlook - Looking ahead, Mercado Libre is optimistic about growth opportunities from the shift of offline retail online and the increasing importance of first-party data in advertising[21]. - The earnings conference call is scheduled for February 20, 2025, at 5:00 p.m. Eastern Time for further investor insights[30].