MercadoLibre (MELI) Q3 2024 earnings summary

Executive summary

• Achieved record net revenues of $5.3B in Q3'24, up 35% year-over-year, with strong operational KPIs and user growth across all segments, and 37.6% year-over-year growth to $14.72B for the nine months ended September 2024, driven by Commerce and Fintech, especially in Brazil and Mexico.

• Unique buyers grew 21% YoY to 61M, the fastest rate since the pandemic, and fintech MAUs rose 35% YoY to 56M; record new buyer additions surpassed pandemic peaks.

• Strategic investments in customer experience, logistics, and technology drove market share gains in Brazil and Mexico, and record new buyer additions in Argentina.

• Investments in logistics and credit expansion drove growth but led to margin compression and negative adjusted free cash flow.

• Continued innovation in loyalty programs, fulfillment, and category-specific user experiences to boost engagement and conversion.

Financial highlights

• Revenue grew 35% year-over-year in Q3'24 and 37.6% to $14.72B for the nine months ended September 2024, despite FX headwinds in Mexico and Brazil.

• EBIT reached $557 million with a 10.5% margin; net income rose 11% YoY to $397 million in Q3'24, and net income for the nine months was $1.27 billion, up from $822 million.

• GMV reached $12.9B in Q3'24, up 14% YoY (+71% FX-neutral), and $50.7B for the nine months, up 28.3%; TPV was $50.7B in Q3'24, up 34% YoY (+73% FX-neutral), and $137.7B for the nine months, up 35.1%.

• Credit card TPV grew 166% YoY; credit portfolio expanded 77% YoY to $6B, with assets under management up 93% YoY.

• Adjusted free cash flow was negative $203M in Q3'24, mainly due to accelerated credit portfolio growth.

Outlook and guidance

• Management expects continued growth in Commerce and Fintech, with ongoing investments in logistics, technology, and credit origination.

• Ongoing investments in fulfillment and technology expected to support future demand and market share gains; no change in multi-year investment cycle.

• No formal earnings guidance provided due to market uncertainties; focus remains on long-term value creation and market leadership.