Mercado Pago Surges With Digital Accounts, Credit Growth in Q1

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]