MercadoLibre’s latest financial results highlight strong growth in both eCommerce and financial services. The company saw an increase in unique active buyers and the number of items sold, alongside a rise in payment volumes. The expansion of its credit card business contributed significantly to overall performance. With digital transactions gaining traction in Latin America, MercadoLibre continues to strengthen its position within the market. These trends indicate growing consumer adoption of online shopping and digital financial services.
Earlier financial reports from MercadoLibre also reflected steady growth, but the latest results show a notable acceleration in several key areas. The company has been steadily increasing its presence in Latin America, with improvements in logistics and digital payments. Compared to previous quarters, the growth in unique buyers and credit services demonstrates a higher level of consumer engagement. Recent figures also indicate that the company is gaining more traction in the financial sector, a trend that was less pronounced in past earnings reports.
How Did MercadoLibre Perform Across Key Markets?
Gross merchandise volume (GMV) increased to $14.5 billion, an 8% rise compared to the previous year. The number of items sold surged by 27%, reaching 525.5 million. The company’s operations in Mexico, Brazil, and Argentina saw year-over-year GMV growth rates of 28%, 32%, and 141%, respectively. This growth aligns with increasing demand for eCommerce services in the region.
Delivery efficiency also improved, with 49% of shipments arriving within the same or next day. The number of unique active buyers increased by 24% to 67.3 million. Meanwhile, the average number of items purchased per buyer grew by 3% year over year, reaching 7.8. These numbers suggest a stronger customer engagement in the marketplace.
What Role Did Financial Services Play in This Growth?
MercadoLibre’s financial services segment, particularly its credit card business, experienced significant expansion. The company’s total payment volume grew by 33% to $58.9 billion. The credit portfolio reached $6.6 billion, reflecting an annual increase of 74%. The proportion of credit cards in the total credit portfolio rose from 32% to 40% compared to the previous year.
Credit quality metrics showed improvement, with non-performing loans past due between 15 and 90 days decreasing to 7.4%. Monthly active users of MercadoLibre’s financial services grew by 34% to 61.2 million. Monthly active sellers using credit services also expanded, increasing from 14.2% to 24.6%. Addressing the company’s strategy, CFO Martin de los Santos stated:
“Having a solid credit card offering is critical to our ambition of being the largest digital bank in Latin America, and leveraging our unique competitive advantages in underwriting and distribution.”
The company’s leadership remains optimistic about the long-term growth potential of its eCommerce and financial services. De los Santos further explained:
“There is a huge opportunity to offer better financial products to large segments of a population that have been underserved by traditional banks.”
MercadoLibre’s emphasis on credit services and digital transactions aligns with increasing demand for accessible financial solutions in Latin America. While risks remain in expanding credit operations, management has expressed confidence in the company’s ability to manage them. The company’s focus on logistics and payment solutions indicates a broader strategy aimed at integrating commerce with financial services. Investors responded positively to the earnings report, with shares rising by 13% in after-hours trading.
