MercadoLibre(MELI) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenues and financial income for Q1 2025 reached $5,935 million, a 37.0% increase compared to $4,333 million in Q1 2024[11]. - Gross profit for Q1 2025 was $2,771 million, reflecting a 37.0% increase from $2,024 million in Q1 2024[11]. - Net income for Q1 2025 was $494 million, up 43.7% from $344 million in Q1 2024[11]. - Basic and diluted earnings per share increased to $9.74 in Q1 2025, compared to $6.78 in Q1 2024, marking a 43.5% rise[11]. - Total comprehensive income for Q1 2025 was $653 million, compared to $319 million in Q1 2024, marking a 104.0% increase[13]. - Operating income for Q1 2025 was $763 million, a significant increase from $528 million in Q1 2024[77]. - The company reported a net income before income tax expense of $706 million for Q1 2025, compared to $481 million in Q1 2024[77]. - Direct contribution for Q1 2025 was $1,452 million, representing a 40.9% increase compared to $1,030 million in Q1 2024[77]. Assets and Liabilities - Total assets increased to $27,682 million as of March 31, 2025, up from $25,196 million at December 31, 2024, representing a growth of 9.8%[10]. - Total current liabilities rose to $18,065 million as of March 31, 2025, compared to $16,603 million at December 31, 2024, an increase of 8.8%[10]. - Total equity increased to $5,004 million as of March 31, 2025, from $4,351 million at December 31, 2024, a growth of 15.0%[10]. - Total liabilities as of March 31, 2025, were $20,238 million, up from $18,627 million as of December 31, 2024, representing an increase of about 8.6%[89]. - Total cash and cash equivalents increased to $2,977 million as of March 31, 2025, up from $2,635 million as of December 31, 2024[55]. - Loans receivable, net totaled $5,726 million as of March 31, 2025, compared to $4,895 million as of December 31, 2024[61]. - Total past due loans receivable amounted to $2,190 million as of March 31, 2025, compared to $1,763 million as of December 31, 2024[67]. Operating Expenses - Operating expenses for Q1 2025 totaled $2,008 million, up from $1,496 million in Q1 2024, indicating a 34.2% increase[11]. - Local operating expenses for the three months ended March 31, 2025, totaled $4,324 million, an increase from $3,159 million in the same period of 2024[76]. - The total accrued compensation expense for the long-term retention program was $92 million for the three months ended March 31, 2025, compared to $68 million for the same period in 2024[102]. Tax and Inflation - The Company's consolidated estimated effective tax rate increased from 28.5% to 30.0% for the three-month period ended March 31, 2025, primarily due to lower deductions related to tax inflation adjustments in Argentina[41]. - Argentina's inflation rate for the three-month period ended March 31, 2025, was 8.6%, significantly lower than 51.6% in the same period of 2024[36]. Financial Services - The aggregate gain from financial services and income revenues was $506 million for the three months ended March 31, 2025, up from $365 million in 2024, reflecting a 38.6% increase[30]. - Financial services and income revenues rose to $1,473 million in Q1 2025, up 39.3% from $1,057 million in Q1 2024[77]. Investments and Assets - The total amount of short-term investments increased to $5,082 million as of March 31, 2025, compared to $4,485 million as of December 31, 2024[55]. - The Company held digital assets valued at $22 million for Bitcoin and $3 million for Ether as of March 31, 2025, with significant increases in fair value from December 31, 2024[72]. - The total intangible assets increased to $39 million as of March 31, 2025, from $12 million as of December 31, 2024, driven by an increase in amortizable intangible assets[68]. Currency and Exchange Rates - The average exchange rate for the three-month periods ended March 31, 2025, was 1,057.00 Argentine Pesos per U.S. dollar, an increase of 26.7% from the previous year[37]. - The Blue Chip Swap Rate in Argentina diverged from the official exchange rate, with an exchange spread of 22.9% as of March 31, 2025, compared to 14.7% in December 2024[38]. Miscellaneous - The Company operates online e-commerce platforms in 18 countries across Latin America as of March 31, 2025[22]. - The Company has submitted an authorization request to operate as an investment funds management company in Mexico, which is currently pending approval[52]. - The Company recorded a gain of $13 million in Provision for doubtful accounts for the three-month period ended March 31, 2025, compared to a loss of less than $1 million for the same period in 2024[62].