Vinicius Pretto

Vinicius Pretto questioned the trade-off between GMV growth and profitability in Brazil, asking if current margin investments are sufficient for growth and market share aspirations, and if MercadoLibre would consider further margin compression given competitive developments.

Answer

MercadoLibre CFO Martin de los Santos stated that capturing immense growth opportunities in commerce and fintech is the main priority, and the company will continue to invest, even if it causes short-term margin pressure. He cited strong results from free shipping investments, including GMV acceleration, items sold accelerating from 26% to 42% in Brazil, new users, engagement, conversion, and record NPS. He reiterated that MercadoLibre manages for long-term value creation and is optimistic about the long-term margin profile as investments mature and the business scales.

Vinicius Pretto questioned the trade-off between GMV growth and profitability in Brazil, asking if current margin investments are sufficient for growth and market share aspirations, and if Mercado Libre would consider going below current margin levels given competitive developments.

Answer

CFO Martin de los Santos emphasized that capturing growth opportunities in commerce and fintech is the main priority, not short-term margins. He highlighted strong results from free shipping investments, including GMV acceleration and items sold in Brazil accelerating from 26% to 42% YoY, new users, engagement, and record NPS. He affirmed managing for long-term value creation and willingness to invest, even if it pressures short-term margins, remaining optimistic about the long-term margin profile due to scale and maturing investments.