MercadoLibre(MELI) - 2024 Q4 - Annual Results

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].