MercadoLibre, Inc. Q4 FY2024 earnings call

• 2024 was a remarkable year with top-line metrics outpacing the market in key regions, and surpassing 100 million unique buyers in the marketplace and 60 million monthly active users in the fintech platform.
• Invested in logistics infrastructure, opening new fulfillment centers and expanding free shipping, resulting in a record number of new marketplace buyers.
• Innovated in the purchasing experience across verticals, e.g., virtual try on for makeup, improved returns in fashion, and Full Super in supermarkets.
• Achieved record logistics productivity with gains in scale, leading to cost per package improvements in major geographies through incremental efficiency gains.
• Invested in seller tools like MyPage, dynamic pricing, and enhanced Mercado Pago value proposition to better serve sellers and users.

In 2024, MercadoLibre achieved $21 billion in revenue. Key metrics included GMV, TPV, credit portfolio, and assets under management outpacing the market in Brazil, Mexico, and Argentina. The marketplace surpassed 100 million unique buyers, and the fintech platform reached 60 million monthly active users. Logistics operations saw record productivity with a 29% year-on-year increase in items shipped, leading to cost per package improvements in major geographies. The credit card segment issued 5.9 million new cards and doubled its portfolio.

• Optimistic about 2025 opportunities, continuing to invest in growth despite short-term margin pressure.
• Long-term growth strategy centered on e-commerce penetration in the region, offering better financial products to underserved populations, and digitalizing cash for merchants and individuals.
• Focus on scaling logistics efficiency through incremental gains, expanding seller tools, and further improving fintech offerings.

• Macro-economic volatility in regions like Brazil and Argentina could impact credit portfolio performance.
• Competition in lower ASP items may affect market share.
• Regulatory changes in fintech and e-commerce could pose challenges to operations.

Q: Fintech business expectations in Argentina and banking license plans?

A: We've grown our portfolio in Argentina nearly 4x year-on-year. Argentina has low credit penetration and falling rates, driving demand. We don't need a banking license to expand our book, as we've securitized receivables. We're cautious due to past volatility but see growth potential without a banking license in the short term.