The following is a summary of the MercadoLibre, Inc. (MELI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• MercadoLibre reported a strong performance with year-on-year revenue growth of 35%, driven by robust operational metrics despite foreign exchange headwinds in Mexico and Brazil.

• EBIT for the quarter was $557 million with a margin of 10.5%, where margin compression was influenced by strategic investments. Net income increased by 11% year-over-year to $397 million.

Business Progress:

• The expansion of fulfillment centers, with six new facilities opened in Q3 (five in Brazil and one in Mexico), aims to support higher volumes and faster delivery, enhancing overall user experience.

• Continued focus on fintech with a significant rise in credit card issuance (1.5 million new cards in Q3), leading to a credit card TPV growth of 166% year-over-year. Investments in technology are tailored to increase online business traction, such as category-specific UX improvements and innovative features in auto parts and beauty categories.

Opportunities:

• The significant room to grow e-commerce penetration in Latin America, currently at 15%, presents an opportunity for MercadoLibre to further increase its market share.

• The introduction of new fintech products and enhancements in the Meli Mas loyalty program are designed to bolster user engagement and promote retention.

Risks:

• The aggressive ramp-up of credit issuance and changes in credit card underwriting could introduce variability in financial spreads and affect short-term profitability.

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