MercadoLibre's Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - MercadoLibre (MELI) reported Q1 2025 earnings of $9.74 per share, exceeding the Zacks Consensus Estimate by 26.99% and increasing 43.7% year over year [1] - Revenues rose 37% year over year to $5.9 billion, surpassing the Zacks Consensus Estimate by 7.39% [1] Revenue Breakdown - Total revenues were driven by commerce and fintech, growing 32.3% to $3.3 billion and 43.3% to $2.6 billion respectively [2] - Brazil's net revenues were $3.08 billion (51.9% of total), up 19.9% year over year [4] - Argentina generated $1.38 billion (23.3% of total), soaring 124.7% year over year [4] - Mexico's net revenues were $1.22 billion (20.6% of total), growing 25.8% year over year [4] - Other countries contributed $249 million (4.2% of total), reflecting a 41.5% increase year over year [5] Key Metrics - Gross Merchandise Volume (GMV) reached $13.3 billion, up 17% year over year [6] - Total Payment Volume (TPV) surged 43.2% year over year to $58.3 billion [6] - Monthly Active Users in fintech rose 31% year over year to 64.3 million [3] - Assets Under Management grew 103% year over year to $11.2 billion [3] Operating Performance - Gross margin remained flat at 46.7% year over year [7] - Operating expenses increased 34.2% year over year to approximately $2 billion, with operating margin expanding 70 bps to 12.9% [7] Balance Sheet - As of March 31, 2025, cash and cash equivalents were $2.98 billion, up from $2.63 billion at the end of 2024 [9] - Short-term investments totaled $741 million, with net debt at $2.77 billion [9]