MercadoLibre (MELI) Q4 2024 earnings summary

Executive summary

• Achieved $21 billion in revenue and over $1 billion in free cash flow in 2024, with record Q4 net revenues of $6.1B, up 33% YoY and 49% FX-neutral, and net income of $639M (10.5% margin).

• Surpassed 100 million unique buyers and 61.2 million monthly active fintech users, with items sold reaching 525.5M (+27% YoY).

• Credit portfolio grew 74% YoY to $6.6B, with credit card assets under management up 129% YoY to $10.6B.

• Celebrated 25th anniversary with record-breaking new buyer acquisition and innovation across commerce and fintech platforms.

• Continued strategic investments in logistics, fulfillment centers, and credit card offerings to drive long-term growth and market share.

Financial highlights

• Adjusted free cash flow was $1.3B for FY24 after $900M CapEx and $3B fintech investment, with $680M in Q4.

• GMV reached $14.5B (+8% YoY, +56% FXN); TPV hit $58.9B (+27% YoY, +49% FXN).

• Gross profit margin was 45.4% for Q4, with operating margin at 13.5% and net income margin at 10.5%.

• Available cash and investments increased to $4.8B from $3.8B YoY; leverage ratio improved to 0.33x.

• Items shipped increased 29% YoY, driving logistics scale and cost efficiencies.

Outlook and guidance

• Optimistic about 2025 opportunities, focusing on long-term growth over short-term margin targets.

• Management highlights strong underlying growth trends in commerce and fintech, with continued focus on expanding user base and credit portfolio.

• Cautions on macroeconomic and FX headwinds, especially in Brazil and Mexico, but expects digitization and product innovation to drive further growth.

• Continued disciplined investment in logistics, technology, and credit to capture market potential.

• Margin trajectory expected to improve over time as scale increases and fixed costs are diluted.