MercadoLibre: Revenue Jumps 38%

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]