Total Revenue

+42% (from $4,261m in Q4 2023 to $6,059m in Q4 2024)

Strong overall revenue growth was driven by robust expansion in both commerce and fintech segments. The surge is backed by significant increases in revenue across key geographic markets—most notably in Argentina (+152%), Mexico (+87%), and Brazil (+54%)—which built on the prior period’s momentum. " " " "

Operating Income (EBIT)

+242% (from $24m in Q4 2023 to $82m in Q4 2024)

The operating margin improvement came from increased scale and enhanced cost discipline. Improved efficiencies and a higher share of service-based revenues enabled significant EBIT growth over the prior period, reflecting better operating leverage relative to slower-expanding expenses. " "

Net Income

+287% (from $165m in Q4 2023 to $639m in Q4 2024)

Net income surged as a result of the dramatic increases in total revenue and operating income, combined with improved profitability measures and possible mitigating effects from reduced FX losses and favorable interest income dynamics compared to prior periods. " "

Brazil's Revenue

+54% (from ~$2,230m in Q4 2023 to ~$3,441m in Q4 2024)

Revenue expansion in Brazil was driven by strong gains in commerce services and product sales, reflecting improved gross merchandise volume and operational enhancements that built on previous period gains. " "

Argentina's Revenue

+152% (from ~$923m in Q4 2023 to ~$2,334m in Q4 2024)

Explosive growth in Argentina indicates a turnaround despite challenging macroeconomic dynamics. Enhanced fintech and commerce performance—including tactical pricing adjustments amid inflation—helped revenue more than double compared to the prior period. " "

Mexico's Revenue

+87% (from ~$919m in Q4 2023 to ~$1,720m in Q4 2024)

Robust revenue growth in Mexico was fueled by a strong increase in commerce and fintech services. Improved user engagement, better logistics, and increased market share built on previous period successes contributed significantly to an 87% jump. " "

Other Countries' Revenue

+500% (from ~$189m in Q4 2023 to ~$1,164m in Q4 2024)

Other Countries experienced explosive growth likely from deepening market penetration and expanding commerce/fintech offerings across emerging Latin American markets. While previous period figures were much smaller, the dramatic increase indicates both a broader roll-out of services and higher adoption rates in these regions. " "

FinTech and Credit Card Business Expansion

Across Q1–Q3, management consistently highlighted aggressive credit card issuance (e.g. 1.5–1.6 million new cards per quarter), portfolio growth, improved underwriting models, and the strategic role of credit cards in driving broader fintech adoption. " " " " " " "

In Q4, the focus continues with record issuance of 5.9 million new credit cards, reaffirming the strategic importance of credit cards and long‐term growth ambitions, while underlining profitability improvements in older cohorts. " " " " "

Consistent emphasis on growth, with Q4 reinforcing previous initiatives with significantly larger scale and an even stronger long-term outlook.

Credit Risk Management and Quality

Q1–Q3 discussions emphasized robust risk models, managing NPLs, credit portfolio expansion with necessary upfront provisioning, and cautious moves into riskier segments balanced by improved pricing. " " " " "

Q4 discussions detail tighter measures in Brazil (reducing micro card issuance and shortening payback periods), achievement of the lowest first payment default record, and ongoing confidence in underwriting models. " " " "

Enhanced focus on credit quality with more granular regional measures in Q4, maintaining confidence while introducing tighter controls in riskier environments.

Investments in Logistics, Fulfillment, and Infrastructure

From Q1 through Q3, investments were centered on expanding the logistics network—from shifting away from postal services to opening new fulfillment centers (including metro centers), deploying robotics, and driving efficiency improvements. " " " " " " "

In Q4, investments continue with new fulfillment centers, record shipping volumes, expanded free shipping offerings, and strong productivity gains that highlight long-term capacity expansion. " " " "

Steady and strategic investment; the current period builds on previous infrastructure expansion with record performance and technology enhancements that reinforce long-term growth.

Margin Pressure and Profitability Concerns

In Q1–Q3, margin pressure was attributed to factors such as accelerated credit origination (leading to higher upfront provisions), shipping adjustments, and fulfillment investments, though offset by strong performance in Brazil and Mexico and robust EBIT margins. " " " " " "

Q4 maintains the narrative of short-term margin pressures—particularly from strategic credit card investments (notably in Brazil) and provisioning—but with a clear long-term focus on efficiency gains and profitability improvements. " " " "

Persistent short-term pressures remain across all periods; however, management consistently frames them as investments that will yield long-term profitability, with Q4 underscoring targeted measures in specific regions.

Macroeconomic and Regional Challenges

Q1 detailed Argentina’s tough macro environment (peso devaluation, reduced demand) balanced by strong Brazil/Mexico performance, while Q2–Q3 also noted rising interest rates and inflation pressures, alongside improved conditions in Argentina later on. " " " " "

Q4 shows an optimistic view of Argentina’s recovery (with strong growth in items sold and credit book expansion) and a cautious approach in Brazil (with tighter risk controls amid a weaker macro backdrop). " "

Consistent challenges with regional nuances; Q4 reflects an improved sentiment in Argentina and sharper risk mitigation in Brazil, indicating a more calibrated response to ongoing macroeconomic trends.

Advertising and E-commerce Growth

Q1–Q3 consistently reported robust growth in GMV, strong advertising revenue increases, improved ad penetration (ranging from 1.6% upward), and substantial buyer growth across core markets. " " " " "

Q4 continues this trend with record buyer growth, modest expansion in advertising revenue as a percentage of GMV, and reinforcing the e-commerce value proposition with new categories and free shipping drives. " "

Strong, bullish growth remains a key narrative; the current period further builds on previous successes, emphasizing incremental gains and enhanced ecosystem synergies.

Digital Banking Strategy

In Q1 and Q2, digital banking initiatives were highlighted through the launch of digital wallets, credit cards, and remunerated accounts, with ambitions to become a leading fintech player in Mexico and across Latin America. " " Q3 provided only indirect references via general fintech growth. "

In Q4, the strategy is reinforced by record credit card issuance, a clear aim to become the largest digital bank in Latin America, and affirmations that no immediate extra banking license is required, maintaining a disciplined approach. " "

Strategic expansion continues, with Q4 providing clarity on scalability and integration of digital banking products, reaffirming earlier ambitions and demonstrating a consistent positive sentiment.

Accounting Adjustments in Shipping Operations

Q1 provided detailed discussion on adjustments to shipping operations—including a switch from agent to principal, resulting in a 3.9% gross margin compression and formalizing practices that had been operational for years. " " "

This topic was not mentioned in Q3 or Q4, and only minimal discussion was noted in Q2 regarding operational efficiencies rather than accounting changes. "

Topic phased out; its absence in later periods indicates stabilization and no longer a forefront issue, suggesting that previous accounting challenges in shipping have been resolved or normalized.