MercadoLibre Reports 37.6% Revenue Growth, Net Income Increase for Nine Months Ended September 30, 2024

MercadoLibre, Inc. reported significant financial growth for the nine months ended September 30, 2024, with total net revenues and financial income reaching $14,718 million, a 37.6% increase from $10,698 million in the same period of 2023. The company’s gross profit also rose to $6,828 million, up 23.2% from $5,540 million year-over-year. However, income from operations decreased slightly by 3.3% to $1,811 million, reflecting increased operational costs.

For the third quarter of 2024, net revenues and financial income were $5,312 million, a 35.3% increase from $3,927 million in Q3 2023. Gross profit for this quarter was $2,439 million, up 16.4% from $2,095 million, while income from operations fell 29.0% to $557 million compared to $785 million in the prior year.

The company's net income for the nine-month period was $1,272 million, a substantial increase from $822 million in 2023. For Q3 2024, net income was $397 million, compared to $359 million in Q3 2023. Basic and diluted earnings per share for the nine months ended September 30, 2024, were $25.09, up from $16.40 in the previous year.

MercadoLibre's total current assets increased to $17,824 million as of September 30, 2024, from $14,294 million at the end of 2023. Total assets also rose to $22,623 million, compared to $17,646 million previously. Total equity increased to $4,002 million from $3,071 million.

The company’s operational performance was bolstered by strong growth in both commerce and fintech segments. Commerce revenues for the nine months ended September 30, 2024, reached $5,073 million, a 60.2% increase in Brazil and 58.2% in Mexico. Fintech revenues also grew, totaling $6,113 million, a 23.3% increase from the previous year.

MercadoLibre has been actively managing its expenses, with total operating expenses for the nine months rising to $5,017 million from $3,668 million in 2023. This increase was driven by higher shipping costs, marketing expenses, and provisions for doubtful accounts, which rose significantly due to increased credit originations.

The company has also made strategic moves, including a $400 million amended revolving credit agreement and a commitment to purchase cloud services totaling $1,114 million. As of September 30, 2024, total debt increased to $6,324 million from $5,333 million at the end of 2023.

Overall, MercadoLibre's robust revenue growth and strategic investments reflect its strong position in the Latin American e-commerce and fintech markets, despite facing challenges related to rising operational costs and market conditions.