MercadoLibre(MELI) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - MercadoLibre's net revenues and financial income grew by 38% over the last twelve months, despite facing currency headwinds across the region [7] - The company generated more than $1,000,000,000 in adjusted free cash flow over the past twelve months [11] - Fitch upgraded MercadoLibre's credit rating to investment grade in Q3 2024 [11] Business Line Data and Key Metrics Changes - The commerce business sold nearly 1,900,000,000 items in the last twelve months, with almost 95% handled by the company's own managed networks [10] - Unique buyers grew above 20% year on year, marking the fastest rate since Q1 2021 [11] - The rollout of the Mercado Pago credit card in 2024 temporarily pressured income from operations margins but is seen as critical for becoming the leading financial service provider in Latin America [8][9] Market Data and Key Metrics Changes - MercadoLibre reported 105,000,000 unique active buyers over the last twelve months and 64,000,000 fintech monthly active users in Q1 2025 [5] - The acceleration in monthly active fintech users was attributed to improvements in technology and product offerings [10] Company Strategy and Development Direction - The company is committed to sustainable growth through strategic investments that may impact short-term margins but are essential for long-term competitive advantage [8] - MercadoLibre aims to continue focusing on innovation and executing with excellence, with users at the center of its strategy [12] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about growth opportunities in Latin America, emphasizing a long-term focus on innovation and entrepreneurship [6] - The CEO transition is seen as a positive step, with the incoming CEO, Ariel Sharfstein, expected to lead the company effectively [4] Other Important Information - The CEO, Marcos Galperin, announced his transition to the role of executive chairman starting January 1, 2026, after leading the company for 26 years [3][4] - The company has maintained strong operational, financial, and strategic positions, indicating readiness for future growth [5] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the focus was primarily on the formal proceedings and announcements of the meeting.