MercadoLibre (MELI) Q3 2025 Earnings Transcript

Core Insights - The company reported a 39% year-on-year revenue growth, marking the 27th consecutive quarter of growth above 30% [4][76] - Strategic investments in logistics, free shipping, and credit card offerings are driving growth while putting some pressure on EBIT margins [1][4] - Argentina remains a key market with strong long-term growth potential despite macroeconomic challenges [7][10] Financial Performance - Operating income reached USD 724 million, growing by 30% year-on-year [1] - Revenue growth in Argentina was 39% year-on-year in USD and 97% in local currency, with items sold increasing by 34% [8] - The credit portfolio grew by 100% year-on-year while maintaining low first pay defaults [9] Market Dynamics - The reduction in the free shipping threshold in Brazil has led to accelerated GMV and items sold, with items sold growth increasing from 26% to 42% quarter-on-quarter [29] - Monthly active users in Mercado Pago grew significantly, with record high NPS levels in Brazil [3][52] - The company is experiencing strong demand from sellers, particularly in the lower price range, leading to increased listings [3] Strategic Initiatives - The company opened a second fulfillment center in Argentina and launched a new credit card, indicating ongoing investment in growth [7][38] - Marketing spend represented about 11% of revenues, with a focus on user acquisition through performance and affiliate channels [15][16] - The company is deploying robotics and technology in warehouses to improve efficiency and reduce shipping costs, which decreased by 8% quarter-on-quarter in Brazil [22][25] User Engagement - The total unique buyers on the platform reached 75 million, with 7.8 million being new buyers in the latest quarter [12][39] - The company is focused on improving the value proposition for users, which has resulted in higher retention and conversion rates [52][66] - The credit card business is seeing positive engagement metrics, with older cohorts becoming profitable [26][60] Competitive Landscape - The company maintains a strong market position in Brazil, with a tripling of market share since 2014 and a doubling since the pandemic [72] - The competitive environment remains intense, but the company believes its strategies are rational and focused on user satisfaction [71][73] - The company is optimistic about future growth opportunities in both e-commerce and fintech sectors [4][51]