MercadoLibre (MELI) Q3 2024 earnings summary

Executive summary

• Achieved record net revenues of $5.3B in Q3, up 35% year-over-year, with strong operational KPIs and user growth across all segments and geographies, especially in Brazil and Mexico.

• Unique buyers grew 21% YoY to 61M, with nearly 7 million new buyers added, and fintech MAUs rose 35% YoY to 56M, surpassing pandemic peaks.

• Strategic investments in customer experience, logistics, and technology drove market share gains and record items sold, but also led to margin compression and negative adjusted free cash flow.

• Continued innovation in loyalty programs, fintech products, and user experience enhancements across verticals.

• Net revenues and financial income for the nine months ended September 2024 grew 37.6% year-over-year to $14.72 billion, driven by strong Commerce and Fintech performance.

Financial highlights

• GMV reached $12.9B in Q3, up 14% YoY (+71% FX-neutral), with Brazil up 34% and Mexico up 27% FX-neutral; Argentina items sold up 16% to a record high.

• Revenue increased 35% year-over-year in Q3, and 37.6% to $14.72B for the nine months ended September 2024.

• EBIT reached $557M with a 10.5% margin; net income rose 11% YoY to $397M in Q3; net income for nine months was $1.27B.

• Credit card TPV grew 166% YoY in Q3; credit portfolio expanded 77% YoY to $6B; assets under management up 93% YoY.

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

Outlook and guidance

• Management remains confident in long-term growth, profitability, and cash flow generation, with a strong pipeline of innovations and ongoing investments in logistics, technology, and credit origination.

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

• No change in multi-year investment cycle; fulfillment and logistics investments to continue as business as usual.