Joao Soares

João Soares asked about MercadoLibre's investment cycle versus operating leverage, specifically if the company is satisfied with current investment levels, if there are additional areas requiring resources, and expectations for continuous operating leverage across OpEx lines.

Answer

MercadoLibre CFO Martin de los Santos expressed satisfaction with investment results, particularly the impact of free shipping on marketplace growth, seller engagement, and shipping cost reduction. He highlighted ongoing investments in 1P, credit cards (including Argentina launch), and fulfillment capacity (up 41% YoY). He noted that 39% YoY revenue growth (27 consecutive quarters above 30%) helps dilute fixed costs, leading to strong dilution in G&A and product development, and reiterated a focus on long-term value creation and disciplined investment. Incoming CEO Ariel Szarfsztejn added that record conversion, retention, and NPS demonstrate the strong foundations being built to shift physical retail to e-commerce, funded by continuous efficiency gains.

João Soares inquired about Mercado Libre's satisfaction with current investment levels, potential additional areas for resource allocation, and expectations for continuous operating leverage across OpEx lines, given the ongoing investment cycle and observed leverage in product development.

Answer

CFO Martin de los Santos expressed extreme satisfaction with investment results, particularly the full quarter impact of free shipping in Brazil, which boosted volume, sellers, and items listed while lowering shipping costs. He highlighted ongoing investments in 1P, credit cards (launching in Argentina), and fulfillment capacity (up 41% YoY). He noted strong dilution of G&A and product development costs due to 39% YoY revenue growth, affirming focus on long-term value and disciplined investment for growth. Incoming CEO Ariel Szarfsztejn reinforced the positive impact on buyer frequency, conversion, retention, NPS, listings, and sellers.

Joao Soares asked about the potential repercussions on commerce growth from the strategy to de-risk credit originations and also inquired about the opportunity and potential timing for launching a credit card in Argentina.

Answer

Osvaldo Giménez, EVP of Fintech, stated he does not expect any negative impact on marketplace growth, as 'Blue money'—payments from Mercado Pago's own funding sources—continues to grow as a share of GMV. He announced plans to begin issuing credit cards in Argentina in the second half of the year, expecting it to be a highly relevant product by leveraging learnings from Brazil and Mexico.