Net revenue increased 37% year-over-year to $6.1 billion, while operating income hit a record $820 million.
Latin American e-commerce giant Mercado Libre reported its net revenue for the fourth quarter of 2024 increased by 37% year-on-year to US$6.1 billion, while operating income reached a record US$820 million and net profit for the quarter was US$639 million, which the company says reflects solid momentum and a sustainable growth strategy.
Marcos Galperin’s platform reached 67 million unique buyers in the period, representing a 24% year-on-year increase. This surpassed the 100 million mark in the last twelve months for the first time. GMV (gross merchandise sales volume) grew 8% year-on-year to US$14.5 billion, while the number of items sold on the commerce platform increased 27% year-on-year in the fourth quarter. Brazil and Mexico recorded solid growth, with GMV up 32% and 28% respectively on an exchange-neutral basis, despite high comparative figures.
"The momentum seen in the fourth quarter is a result of the company's long-term vision to strengthen the marketplace through strategic investments focused on user experience, product offerings and logistics capabilities," the company said in a statement.
In that sense, in 2024 Mercado Libre opened 10 new fulfillment centers and expanded its free shipping offering, leading to a record number of new buyers and the incorporation of premium global brands such as Lancôme, Ralph Lauren and Lacoste, in addition to other brands such as Natura. Logistics initiatives throughout the year paved the way for record levels of efficiency and greater fulfillment penetration in all markets, with 21% year-over-year growth in same-day and next-day shipments in the fourth quarter, in which 49% of shipments were delivered within the same day or the next day. "These initiatives not only allow us to capture new segments of buyers and sellers, but also drive sustainable profitability throughout the operation," Mercado Libre said.
FINTECH RESULTS
On the fintech front, in Q4 2024 Mercado Pago saw a 34% increase in monthly active users, reaching 61 million, and a 129% year-on-year growth in assets under management, reaching US$10.6 billion. The loan portfolio reached US$6.6 billion in Q4, a 74% year-on-year increase, with credit cards as the main growth driver, supported by improved credit scoring models that allow for competitive propositions. Investments were made to expand the credit card portfolio, a key pillar in Mercado Pago’s ambition to become the largest digital bank in Latin America. Excellent progress was made on our goal to offer the best digital account in the region. NPS reached record levels in Brazil and Mexico in Q4 2024 and its highest point since 2021 in Argentina.
“We closed 2024 on a strong note and look to 2025 and beyond with great optimism. The strategic investments we made over the years to strengthen our value proposition are driving strong financial results and further consolidating our competitive advantage. The power of our ecosystem is increasingly clear, with each component reinforcing the engagement of the others. Even after 25 years of growth, we continue to see enormous opportunities: from the accelerated transition to online commerce to the expansion of access to better financial services for millions of people in the region. Our confidence has never been greater and the future looks more promising than ever. As we say at Mercado Libre, the best is yet to come,” said Martín de los Santos, CFO of Mercado Libre.
