MELI Earnings Prediction
The chart below shows how MELI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MELI sees a -3.50% change in stock price 10 days leading up to the earnings, and a +6.63% change 10 days following the report. On the earnings day itself, the stock moves by +1.91%. This data can give you a slight idea of what to expect for the next quarter's release.
MELI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.06B
37.42%
14.06%
Gross Margin
45.37%
-2.43%
-1.18%
Operating Margin
13.53%
78.03%
28.98%
Net Margin
10.55%
182.09%
41.23%
EPS
12.60
292.52%
60.92%
No Data Available
MELI Earnings Analysis
MercadoLibre Inc Corporation (MELI.O) Earnings Conference Call
Positive
Strong Market Performance: 2024 was a remarkable year for MercadoLibre, with key top-line metrics such as GMV, acquiring TPV, credit portfolio, and assets under management outpacing the market in Brazil, Mexico, and Argentina.
User Growth Milestone: Surpassed 100 million unique buyers in the marketplace and 60 million monthly active users in the fintech platform for the first time, reflecting user trust and loyalty.
Logistics Expansion Success: Invested in logistic infrastructure, opening new fulfillment centers and expanding free shipping, resulting in a record-breaking number of new buyers in the marketplace.
Credit Card Portfolio Expansion: Issued 5.9 million new credit cards in 2024, more than doubling the credit portfolio, which is critical for becoming the largest digital bank in Latin America.
Profitable Growth and Cash Flow: Achieved $21 billion in revenue and generated over $1 billion in free cash flow, demonstrating the ability to drive profitable growth while investing in long-term objectives.
Enhanced Purchasing Experience: Developed a world-class purchasing experience across various verticals, improving user experience and engagement.
Logistics Productivity Surge: Reached record levels of productivity in logistics operations with a 29% year-on-year increase in items shipped, helping to reduce costs per package.
Seller Engagement Enhancement: Implemented key tools for sellers, enhancing their ability to engage with buyers and improve market positioning through dynamic pricing and customized spaces.
Credit Card Offer Enhancements: Ramped up credit card offerings and improved user selection for credit lines, increasing credit limits and enhancing the value proposition for users.
Financial Product Expansion: Launched the Meli Dollar stablecoin and tax-free investment products in Brazil, expanding financial options for users.
Enhanced Payment Processing Efficiency: Improved payment processing times on POS devices, leading to higher NPS and increased merchant retention, supported by a tech-centric culture with over 18,000 engineers.
Negative
Revenue Growth vs. Margin Pressure: - Despite achieving significant revenue growth, the company faced short-term pressure on margins due to ongoing investments in logistics and credit card offerings.
Credit Card Profitability Challenges: - The company acknowledged that while older cohorts of credit cards are becoming profitable, the initial investments are impacting current profitability.
Competitive Landscape Challenges: - The competitive landscape remains challenging, with the need for continuous innovation to maintain market leadership and respond to competitors.
E-commerce and Fintech Reliance: - The company is heavily reliant on the growth of e-commerce and fintech in Latin America, which may be subject to economic fluctuations and regulatory changes.
Credit Card Default Risk: - There is a risk associated with the large number of new credit cards issued, as it may lead to increased defaults if risk models do not perform as expected.
MELI FAQs
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MELI Earning Call Sentiment
MercadoLibre (MELI) Q4 2024 Earnings Call Transcript
MELI.O
-1.84%Positive
The earnings call highlights strong financial performance, including revenue and net income growth, and strategic investments in logistics and credit offerings. Despite potential margin pressures, management's optimistic guidance, particularly in Argentina, and effective risk management in Brazil's credit market suggest positive market sentiment. The Q&A session reinforces this outlook, with management addressing concerns and maintaining a confident stance on growth prospects. However, the lack of a share buyback program and some unclear responses slightly temper the overall positivity.
