Mercado Libre Reports Stellar Q4 2024 Results: $6.1B Revenue, $639M Net Income, and Record Growth Across Commerce and Fintech
In a landmark quarter marking its 25th anniversary, Mercado Libre (NASDAQ: MELI) delivered exceptional Q4 2024 results, showcasing robust growth across its e-commerce and fintech operations. The company reported a 37% year-over-year (YoY) increase in net revenue, reaching $6.1 billion, alongside a record-breaking $639 million in net income. These figures underscore the company’s ability to maintain sustainable growth while expanding its ecosystem in Latin America.
Commerce Operations Thrive Amid Strategic Investments
Mercado Libre’s commerce division continued to excel in Q4, achieving significant milestones. The platform surpassed 100 million annual unique buyers for the first time, driven by a 24% YoY increase in quarterly unique buyers, which reached 67 million. Gross Merchandise Value (GMV) grew by 8% YoY, hitting $14.5 billion, while items sold on the platform surged by an impressive 27% YoY, totaling 525 million units.
Key markets like Brazil and Mexico contributed significantly to this growth, with FX-neutral GMV rising by 32% and 28%, respectively. These achievements highlight Mercado Libre’s focus on enhancing user experience through strategic investments in logistics, assortment, and technology.
For instance, the company opened 10 new fulfillment centers in 2024 and expanded its free shipping program, enabling 49% of shipments to be delivered within the same or next day—a 21% YoY increase. These initiatives not only improved customer satisfaction but also attracted premium brands like Lancôme, Ralph Lauren, and Lacoste to the platform.
Advertising revenue also saw substantial growth, increasing by 41% YoY (88% FX-neutral) during peak shopping events such as Black Friday. Product and Brand Ads performed exceptionally well, contributing to advertising revenue reaching 2.1% of GMV.
Fintech Division Achieves Breakthrough Growth
Mercado Pago, the company’s fintech arm, continued to expand its footprint, reaching 61 million monthly active users—a 34% YoY increase. Assets under management soared by 129% YoY, hitting $10.6 billion, while the credit portfolio grew by 74% YoY to reach $6.6 billion. Credit cards played a pivotal role in this expansion, with the portfolio growing by 118% YoY to $2.6 billion.
The success of Mercado Pago’s credit offerings can be attributed to improved credit scoring models, enabling competitive offers that cater to underserved populations. This aligns with the company’s broader ambition to become the leading digital bank in Latin America. Additionally, user satisfaction metrics hit record levels, with Net Promoter Scores (NPS) reaching all-time highs in Brazil, Mexico, and Argentina.
Financial Highlights and Strategic Outlook
Mercado Libre’s financial performance in Q4 2024 was nothing short of remarkable:
- Net Revenue: $6.1 billion, up 37% YoY (96% FX-neutral).
- Income from Operations: $820 million, reflecting a 13.5% margin.
- Net Income: $639 million, with a 10.5% margin.
For the full year 2024, the company achieved even greater milestones:
- Net Revenue: $21 billion, growing 38% YoY (101% FX-neutral).
- Income from Operations: $2.6 billion, with a 12.7% margin.
- Net Income: $1.9 billion, achieving a 9.2% margin.
Commerce GMV for the year totaled $51.5 billion, up 15% YoY, while fintech Total Payment Volume (TPV) reached $197 billion, growing 34% YoY. Acquiring TPV, representing payments processed via Mercado Pago, climbed to $142 billion, up 23% YoY.
A Bright Future for Mercado Libre
As Mercado Libre celebrates its 25th anniversary, the company remains optimistic about the future. According to Martin de los Santos, Chief Financial Officer, “Our strategic investments over the years have strengthened our value proposition, driving strong financial results and solidifying our competitive edge. Even after 25 years, we see vast opportunities ahead—from the shift to online commerce to expanding access to better financial services.”
With a relentless focus on innovation, user experience, and ecosystem integration, Mercado Libre is poised to continue its leadership in Latin America’s rapidly evolving digital landscape. As the company looks toward 2025 and beyond, one thing is clear: the best is yet to come.
