MercadoLibre(US:MELI)2025-10-29 22:02Financial Data and Key Metrics Changes - Revenues grew by 39% year on year, marking the 27th consecutive quarter of growth above 30% [4][99] - Operating income reached $724 million, growing by 30% year on year, demonstrating the ability to balance growth, investments, and profitability [7][99] Business Line Data and Key Metrics Changes - Mercado Pago experienced strong growth with monthly active users accelerating and record high NPS in Brazil [6][12] - The credit card portfolio grew significantly, with older cohorts becoming profitable, while maintaining a healthy credit quality [35][76] Market Data and Key Metrics Changes - In Argentina, revenues grew by 39% year on year in US dollars and 97% in local currency, despite macroeconomic challenges [12] - GMV growth in Mexico accelerated, with unit shipping costs in fulfillment continuing to decline [6][12] Company Strategy and Development Direction - The company continues to invest in free shipping, logistics, and credit card offerings to drive long-term growth [8][66] - Strategic investments are aimed at enhancing financial inclusion and capturing growth opportunities in commerce and fintech [4][8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about Argentina's long-term growth potential despite current macro challenges [12][13] - The company is focused on long-term value creation rather than short-term margin pressures, indicating confidence in future profitability [39][40] Other Important Information - The company is exploring the potential of Agentic AI to enhance user experience and operational efficiency [90] - The competitive landscape in Brazil remains intense, but the company believes its strategies are rational and effective [94][95] Q&A Session Summary Question: Insights on Argentina's macro challenges and growth plans - Management acknowledged macro challenges but emphasized ongoing investments and optimism for long-term growth in Argentina [11][12] Question: Breakdown of new active users and marketing spend - The company reported 7.8 million new buyers in the quarter, with marketing spend remaining consistent at around 11% of revenues [15][19] Question: Merchant adherence to pricing strategies and competition - Management discussed the introduction of a price monitoring system to enhance buyer and seller experiences, indicating a rational approach to competition [22][25] Question: Shipping cost reductions and automation investments - Shipping costs in Brazil decreased by 8% due to better utilization and efficiency, with ongoing investments in robotics and automation [28][31] Question: Profitability of the credit card business - Older credit card cohorts are profitable, and the company maintains strict underwriting discipline while expanding card issuance [34][35][76] Question: Growth of acquiring TPV in Brazil - The company is gaining market share in Brazil, with a focus on direct-to-consumer strategies and improved payment solutions [78][81] Question: Performance in other Latin American markets - Strong GMV growth in Chile and Colombia driven by improved logistics and promotional activities, with a focus on consolidating market leadership [84][86] Question: Response to OpenAI's entry into e-commerce - The company is excited about the potential of AI to enhance its platform and is focused on building the best user experience [90][91] Question: Competitive environment in Brazil - Management believes the competitive dynamics are rational and emphasizes a user-focused strategy to maintain market leadership [94][95]