Financial Data and Key Metrics Changes - The company reported a strong Q3 2023 with income from operations more than doubling year-on-year for the fourth consecutive quarter, achieving an 18% EBITDA margin compared to 16% in the previous quarter [2][20] - Revenue growth accelerated, with Mexico's revenues growing above 60% year-on-year and Brazil posting around 40% growth [2][3] - The company achieved a record of 50 million buyers and market share gains, particularly in Brazil and Mexico [3] Business Line Data and Key Metrics Changes - In the commerce business, there was an acceleration in GMV and items sold growth across the main geographies, with Brazil being the largest contributor to profit growth [3][20] - The fintech segment saw off-platform TPV acceleration in all main countries, with over 1 million credit cards issued and surpassing $1 billion for the first time [4][20] - The 1P business grew 58% year-over-year, with Brazil showing considerable growth, indicating a strategic priority for the company [67] Market Data and Key Metrics Changes - Brazil and Mexico contributed significantly to the overall revenue growth, with Brazil improving 12 percentage points year-on-year in margins and Mexico improving 6 percentage points [20] - The company is seeing a continuous increase in the number of products used by users, particularly in Brazil, where asset under management is growing near triple digits [28] Company Strategy and Development Direction - The company launched a loyalty program, MELI Mas, aimed at enhancing user engagement and providing a comprehensive content bundle [6][9] - The management emphasized the importance of AI in improving user experience and operational efficiencies, particularly in customer service and fraud prevention [12][36] - The company is focused on long-term growth, investing in logistics and technology to enhance user experience and operational efficiency [21][5] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the business's growth trajectory, highlighting the positive impact of recent investments and the potential of AI [12][36] - The company is optimistic about the upcoming Black Friday and holiday season, preparing to meet consumer demand [73] - The management noted that decreasing interest rates in Brazil could positively impact profitability, particularly in the marketplace [79] Other Important Information - The company is actively monitoring competition from new entrants like Temu in Mexico but remains confident in its competitive advantages, particularly in logistics and payment solutions [51] - The company is cautious about credit quality, particularly in Mexico, where early delinquencies have increased slightly by design to accommodate higher origination [68] Q&A Session All Questions and Answers Question: Opportunities for MELI in the next 3-5 years - The CEO highlighted the importance of AI and the company's focus on long-term growth, emphasizing the potential for innovative ideas and efficiencies [12] Question: Evolution of KPIs for leadership compensation - The CEO mentioned that compensation is based on long-term results, with a focus on dynamic business changes and new opportunities [15][16] Question: Profitability and margin improvements - The CFO noted a significant improvement in EBITDA margins, driven by strong performance across various business segments, particularly in Brazil and Mexico [20] Question: Credit business strategy in Brazil - The President of Fintech confirmed an increase in origination and credit card issuance, with positive results from the new cohorts [25] Question: Growth of fintech active users - The President of Fintech attributed growth to the success of remunerated accounts and increased credit offerings [54] Question: Initial subscriber counts for MELI Mas - The CFO stated it is too early to share specific numbers but noted good engagement with the program [57] Question: Logistics monetization update - The company is focused on improving net shipping costs and is not in a rush to monetize fulfillment solutions [58] Question: Synergy of POS business with the rest of MELI - The President of Fintech emphasized the importance of the POS business in providing a comprehensive fintech offering and cross-selling opportunities [61]