MercadoLibre(MELI) - 2024 Q3 - Quarterly Results

Revenue and Financial Performance - Net revenues & financial income reached $5.3 billion, up 35% YoY and 103% FX-neutral[3] - Net income rose 11% YoY to$ 397 million, with a Net Income margin of 7.5%[26] - Consolidated net revenues in Brazil grew by 60% year-over-year in Q3'24[34] - Net revenues and financial income rose to $14,718 million for the nine months ended September 30, 2024, compared to$ 10,698 million in the same period of 2023[53] - Net income for the nine months ended September 30, 2024 was $1,272 million, compared to$ 822 million in the same period of 2023[53] - Net revenues and financial income for Q3 2024 totaled $5,312 million, with Brazil contributing$ 2,913 million, Mexico $1,145 million, Argentina$ 1,033 million, and other countries $221 million[57] - Net revenues and financial income increased by 35.3% to$ 5,312 million in Q3 2024 compared to $3,927 million in Q3 2023[68] - Net income for the nine months ended September 30, 2024, increased to$ 1,272 million from $822 million in 2023[56] Payment Volume and Transactions - Total Payment Volume (TPV) grew to$ 50.7 billion, up 34% YoY and 73% FX-neutral[3] - Total payment volume surged to $137.746 billion in the nine months ended September 30, 2024, from$ 102.278 billion in 2023[31] - Acquiring total payment volume rose to $100.367 billion in the nine months ended September 30, 2024, up from$ 81.221 billion in 2023[31] - Total payment transactions increased to 8.030 billion in the nine months ended September 30, 2024, from 5.275 billion in 2023[31] - Total payment volume in Mexico rose by 44% year-over-year in Q3'24[32] Gross Merchandise Volume (GMV) - Gross Merchandise Volume (GMV) increased to $12.9 billion, up 14% YoY and 71% FX-neutral[3] - Gross merchandise volume reached$ 36.919 billion for the nine months ended September 30, 2024, compared to $31.299 billion in 2023[31] - Gross merchandise volume in Argentina increased by 218% year-over-year in Q3'24[34] User Growth and Engagement - Unique buyers across the region reached 61 million, rising 21% YoY[4] - Fintech monthly active users (MAU) rose 35% YoY to 56 million[10] - Fintech monthly active users increased to 56 million in Q3'24 from 42 million in Q3'23[31] - Unique active buyers grew to 87 million in the nine months ended September 30, 2024, up from 74 million in the same period in 2023[31] Credit Portfolio and Assets - The credit card portfolio grew to$ 2.3 billion, up 172% YoY and 28% QoQ[11] - Total credit portfolio grew 77% YoY to $6.0 billion, with consumer book up 37% YoY[12] - Assets under management (AUM) grew 93% YoY to$ 8.0 billion[15] - Loans receivable, net of allowances, increased to $4,248 million in Q3 2024 from$ 2,629 million in December 2023[52] - Total assets increased to $22,623 million in Q3 2024 from$ 17,646 million in December 2023[52] Advertising Revenue - Advertising revenue grew 37% YoY, reaching a penetration of 2.0% of GMV, up 30 bps YoY[9] Expenses and Investments - Product and technology development expenses increased to $504 million in Q3 2024 from$ 396 million in Q3 2023[53] - Sales and marketing expenses grew to $566 million in Q3 2024 from$ 441 million in Q3 2023[53] - Investments in property and equipment and intangible assets totaled $555 million in Q3 2024, compared to$ 329 million in Q3 2023[71] - Changes in loans receivable, net, amounted to $3,316 million in Q3 2024, up from$ 1,465 million in Q3 2023[71] - Proceeds from loans payable and other financial liabilities related to Fintech solutions were $989 million in Q3 2024, compared to$ 94 million in Q3 2023[71] Cash Flow and Liquidity - Cash and cash equivalents decreased to $2,162 million in Q3 2024 from$ 2,556 million in December 2023[52] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $4,994 million, up from$ 3,212 million in 2023[56] - Adjusted free cash flow for Q3 2024 was $635 million, down from$ 1,067 million in the same period last year[71] - Net increase in available cash and investments for Q3 2024 was $589 million, compared to$ 499 million in Q3 2023[71] - Net cash provided by operating activities in Q3 2024 was $4,994 million, up from$ 3,212 million in Q3 2023[71] - Available cash and investments at the end of Q3 2024 stood at $4,417 million, up from$ 3,774 million at the end of Q3 2023[71] Debt and Financial Liabilities - Net debt as of September 30, 2024, was $1,907 million, up from$ 1,505 million as of December 31, 2023[65] - Total debt as of September 30, 2024, increased to $6,324 million from$ 5,333 million as of December 31, 2023[65] - Total current liabilities rose to $14,313 million in Q3 2024 from$ 11,297 million in December 2023[52] Profitability and Margins - Gross profit for Q3 2024 reached $2,439 million, up from$ 2,095 million in Q3 2023[53] - Basic net income per share for Q3 2024 was $7.83, up from$ 7.18 in Q3 2023[54] - Gross profit rose by 16.4% to $2,439 million in Q3 2024 from$ 2,095 million in Q3 2023[68] - Income from operations decreased by 29.0% to $557 million in Q3 2024 from$ 785 million in Q3 2023[68] - Net interest margin after losses (NIMAL) decreased to 28.3% in the nine months ended September 30, 2024, from 35.1% in 2023[31] Investments and Financial Assets - Short-term investments as of September 30, 2024, were $1,109 million, down from$ 1,191 million as of December 31, 2023[65] - Long-term investments as of September 30, 2024, increased to $1,146 million from$ 81 million as of December 31, 2023[65] Direct Contribution and EBITDA - Direct contribution for Q3 2024 was $1,184 million, with Brazil contributing$ 505 million, Mexico $192 million, Argentina$ 457 million, and other countries $30 million[57] - Adjusted EBITDA for Q3 2024 was$ 714 million, compared to $920 million in Q3 2023[63]