Executive Summary

MercadoLibre delivered a record Q4: net revenues & financial income reached $6.059B (+37% YoY, +96% FX-neutral), income from operations hit an all-time high of $820M (13.5% margin), and net income was $639M (10.5% margin) .
Commerce and Fintech KPIs were strong: GMV $14.548B (+8% YoY in USD; +56% FX-neutral), TPV $58.914B (+33% YoY; +49% FX-neutral), MAUs 61.2M, unique buyers 67M; ads reached 2.1% of GMV in Q4 (+50 bps YoY) .
Credit scaled to a $6.6B portfolio (+74% YoY); NIMAL was 27.6% (down YoY on credit-card mix), with credit card cohorts >2 years profitable and asset quality stable (15–90 day NPL 7.4%); management emphasized provisions are higher due to upfront recognition and greater card mix .
Q&A underscored disciplined growth vs. margin: Brazil margins were pressured by credit-card investments; Argentina improved with items sold +18% YoY in Q4 and 4x credit book growth; management reiterated no quarterly margin targets and no formal guidance .
S&P Global consensus estimates were unavailable via our feed at the time of analysis; therefore, we cannot quantify beat/miss vs. Street for Q4 2024 (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well
- Record profitability and scale: Q4 net revenues & financial income $6.059B (+37% YoY) and income from operations $820M (13.5% margin) set quarterly records .
- Ecosystem flywheel: unique buyers accelerated to 24% YoY growth in Q4, surpassing 100M annual buyers in 2024, while Fintech MAUs rose to 61.2M; leadership highlighted record NPS in Brazil and Mexico .
- Ads traction: advertising revenue reached 2.1% of GMV in Q4 (up 50 bps YoY), supported by self-service expansion and brand adoption; management said MELI remains early in ads and sees runway to global comps .
What Went Wrong
- Margin headwinds from credit scaling: provisions rose as a percentage of revenue given rapid credit growth and higher card mix; management stressed provisions are recognized upfront while interest revenue accrues over time .
- Brazil margin compression: driven largely by the credit card ramp (cohorts still maturing); management framed this as a conscious investment with long-term ecosystem benefits .
- Mix pressure on spreads: consolidated NIMAL fell YoY to 27.6% as credit card share rose from 32% to 40% of portfolio and as the company “moved upmarket” to lower-risk segments with lower spreads .

Financial Results

Overall P&L (USD millions unless noted)

Metric	Q4 2023	Q3 2024	Q4 2024
Net revenues & financial income ($)	4,409	5,312	6,059
YoY growth (reported)	—	35%	37%
Income from operations ($)	335	557	820
Operating margin (%)	—	10.5%	13.5%
Net income ($)	165	397	639
Net income margin (%)	—	7.5%	10.5%
Diluted EPS ($)	3.25	7.83	12.61
Adjusted EBITDA ($)	470	714	972

Segment/Geographic Breakdown – Net revenues & financial income ($)

Geography	Q4 2023	Q4 2024
Brazil	2,277	3,136
Mexico	942	1,347
Argentina	998	1,307
Other Countries	192	269
Total	4,409	6,059

Key KPIs

KPI (units)	Q4 2023	Q4 2024
GMV ($)	13,450	14,548
Items sold (units, M)	413	525
TPV ($)	44,460	58,914
Acquiring TPV ($)	34,732	41,833
Fintech MAUs (M)	46	61
Unique active buyers (M)	54	67
NIMAL (%)	39.8%	27.6%
Capital expenditures ($)	180	305
Ads revenue as % GMV	—	2.1%

Additional operating highlights (Q4 2024): TPV +33% YoY (+49% FX-neutral), GMV +8% YoY in USD (+56% FX-neutral), with FX-neutral GMV +32% in Brazil and +28% in Mexico; advertising +41% YoY in USD (+88% FX-neutral) to 2.1% of GMV .

Estimate Comparison (S&P Global)

S&P Global consensus data were unavailable at the time of this analysis due to a data access limit. As a result, we cannot present revenue/EPS vs. consensus for Q4 2024 (S&P Global data unavailable).

Guidance Changes

MercadoLibre does not provide formal quantitative guidance. Management reiterated they “don’t give any guidance.”

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	2025	None	None	Maintained (no formal guidance)

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Credit card scaling & NIMAL	Card TPV +208% FXN; NIMAL down YoY on mix; asset quality robust; 15–90 day NPL down QoQ; focus on principality	Card share 39% of portfolio; NIMAL 24% on mix, stable asset quality; provisions elevated due to accelerated originations	Portfolio $6.6B (+74% YoY), NIMAL 27.6% (down YoY on card mix); >2yr cohorts profitable; 15–90 day NPL 7.4%; cautious issuance in riskier segments in Brazil	Scaling with disciplined risk; mix dilutes spreads
Logistics & fulfillment	Record delivery speed promises; robotics in Cajamar; Texas FC to plug US sellers into Mexico	6 FCs opened (5 BR, 1 MX); <1ppt margin impact; fulfillment key to growth; metro FC strategy	Record fulfillment penetration; record on-time deliveries; productivity gains and cost per package down in local currency; continued capacity additions	Continued investment with improving efficiency
Advertising	Ads = 2.0% of GMV (+40 bps YoY); launching off-platform partnerships (e.g., Disney+)	Ads 2.0% of GMV; strong USD growth; focus on product/brand/ display	Ads 2.1% of GMV (+50 bps YoY); wider self-serve availability; long runway to peers	Consistent penetration gains
Argentina macro & trajectory	Items sold returned to YoY growth; improving fintech spreads/NPLs; tax changes supportive for e-payments longer term	Items sold +16% YoY; improving consumption; FX-neutral revenue growth strong	Items sold +18% YoY; 4x credit book; margin accretive country; optimism on recovery	Improving demand; profitable growth
Loyalty (MELI+) & low-ASP proposition	MELI+ scaling; free shipping benefits; MDD adoption rising	Two-tier MELI+ (Essential/Total); benefits include cashback and content bundles	MELI+ and MDD driving frequency; low-ASP items growing at/above marketplace average	Enhancing frequency and basket size
AI/product innovation	AI answers on product pages; search/reviews automation; dev productivity and CX use-cases	Continued product verticalization and personalization	Ongoing UX enhancements across categories; seller tools (dynamic pricing, My Page)	Steady deployment for UX and efficiency

Management Commentary

“2024 was a remarkable year… achieving $21 billion of revenue and generating over $1 billion of free cash flow… we are more optimistic than ever about the opportunities that lie ahead.” – CFO Martín de Los Santos .
“In Q4’24, this translated into record‑breaking quarterly results for revenue, income from operations and net income.” – Shareholder Letter .
“Credit quality remains sound… the increase in provisions as a percentage of revenue is a natural consequence of the growth of our credit business and the shift in mix towards the credit card.” – Shareholder Letter .
“We will continue to make strategic investments… we don’t manage the business for a particular margin target on a quarter‑by‑quarter basis.” – CFO Martín de Los Santos .

Q&A Highlights

Credit risk in Brazil: Management saw “no signs of deterioration… lowest first payment default on record in December,” but tightened issuance (reduction in micro cards, shorter payback periods, limiting riskier segments) given the macro backdrop .
Argentina recovery and margin: Items sold +18% YoY; 4x credit book with NPLs under control; Argentina noted as a relatively higher‑margin geography benefiting consolidated margins .
Growth vs. margin philosophy: Management will keep investing in logistics and credit to capture long-term opportunities; margins won’t be managed to quarterly targets .
Low-ASP competitiveness: Low-ticket items are growing at/above marketplace average; initiatives include MELI Delivery Day, free shipping expansion, and category UX enhancements .
Provisions modeling: Provisions reflect cohort upfront losses and sequential growth dynamics; slower sequential portfolio growth in Q4 eased pressure relative to Q3 .

Estimates Context

We attempted to pull S&P Global consensus for Q4 2024 revenue/EPS/EBITDA and related estimate counts; however, the data feed was unavailable due to a request-limit error at the time of retrieval. As a result, we cannot quantify beat/miss vs. S&P Global consensus for Q4 2024 (S&P Global data unavailable).
Implications: Absent formal guidance and without published consensus comparisons here, investor focus is likely to center on MELI’s reported record revenue/EBIT, margin expansion to 13.5%, sustained GMV/TPV growth, and the quality of credit as key drivers for near-term estimate revisions .

Key Takeaways for Investors

Record quarter with broad-based strength: $6.059B in Q4 revenue & financial income (+37% YoY) and $820M EBIT (13.5% margin) underscore operating leverage from logistics efficiencies and disciplined opex even as credit scaling elevated provisions .
Ecosystem momentum: Unique buyers reached 67M in Q4 and MAUs 61.2M; FX-neutral GMV growth remained strong in Brazil (+32%) and Mexico (+28%), validating continued share gains and UX investments .
Credit strategy is working with prudent risk: Portfolio $6.6B (+74% YoY) with >2‑year card cohorts profitable; management is tightening issuance at the margin in Brazil while highlighting stable asset quality and healthy NIMAL by product despite mix pressure .
Ads is emerging as a meaningful profit lever: Ads hit 2.1% of GMV in Q4 (+50 bps YoY), with expanding formats and self-serve availability; management sees a long runway toward international peer penetration levels .
Argentina pivoting from headwind to tailwind: Items sold accelerated to +18% YoY in Q4 and the credit book scaled 4x with NPLs under control, contributing positively to margins .
Investment cadence to persist: Expect continued capex in logistics (metro FCs, regionalization) and credit deployment to support growth; management prioritizes long-term scale over quarterly margin targets .
Watch list: trajectory of provisions and card mix on NIMAL, Brazil macro/interest rates and any incremental tightening, ads penetration progression, and Argentina demand normalization; these will shape margin and cash flow in 2025 .

Citations: All figures and statements cited from the Q4 2024 earnings materials and prior quarters as referenced above.

MERCADOLIBRE INC (MELI)·Q4 2024 Earnings Summary