MercadoLibre, Inc. (MELI) Bundle
A Brief History of MercadoLibre, Inc.
Founded in 1999 by Marcos Galperin, MercadoLibre, Inc. (NASDAQ: MELI) has grown to become the largest e-commerce platform in Latin America. The company operates in 18 countries, offering a marketplace for buying and selling goods, alongside a robust fintech operation through Mercado Pago, which provides payment solutions.
Financial Performance Overview
As of September 30, 2024, MercadoLibre reported significant growth in its financial metrics compared to the same period in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Revenues and Financial Income | $14,718 million | $10,698 million | 37.6% |
| Net Income | $1,272 million | $822 million | 55.5% |
| Gross Merchandise Volume | $36,919 million | $31,299 million | 17.9% |
| Active Users (Fintech) | 56 million | 42 million | 33.3% |
Segment Performance
The company's operations are segmented by geography, with Brazil, Mexico, and Argentina as the primary markets. The following table summarizes net revenues and financial income by region for the nine months ended September 30, 2024.
| Region | Net Revenues (in millions) | Direct Costs (in millions) | Direct Contribution (in millions) |
|---|---|---|---|
| Brazil | $8,270 | ($6,528) | $1,742 |
| Mexico | $3,317 | ($2,707) | $610 |
| Argentina | $2,511 | ($1,449) | $1,062 |
| Other Countries | $620 | ($543) | $77 |
Investment and Capital Expenditures
MercadoLibre's capital expenditures have also seen an upward trend, reflecting continued investment in technology and logistics improvements.
| Period | Capital Expenditures (in millions) |
|---|---|
| 2024 (9 Months) | $555 |
| 2023 (9 Months) | $329 |
Key Financial Ratios
Further analysis of MercadoLibre's financial health can be assessed through the following key ratios:
| Metric | 2024 | 2023 |
|---|---|---|
| Gross Profit Margin | 46.4% | 45.9% |
| Net Income Margin | 8.6% | 7.7% |
| Effective Tax Rate | 23.8% | 38.1% |
Recent Developments
In January 2024, MercadoLibre signed a 5-year agreement for naming rights to the Complexo Pacaembu stadium in São Paulo for a total of $56 million, showcasing its commitment to enhancing brand visibility in the region.
As of September 30, 2024, MercadoLibre's total debt stood at $6,324 million, with a net debt of $1,907 million. The company continues to leverage its strong market position to expand its logistics and fintech operations, aiming for sustained growth in the coming years.
A Who Owns MercadoLibre, Inc. (MELI)
Ownership Structure
As of 2024, MercadoLibre, Inc. (MELI) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders of MercadoLibre as of the latest available data:
| Shareholder Type | Shareholder Name | Percentage Ownership |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.7% |
| Institutional Investor | BlackRock, Inc. | 7.1% |
| Institutional Investor | Fidelity Investments | 5.5% |
| Insider | Marcos Galperin (CEO) | 17.4% |
| Insider | Company Executives and Board Members | 5.3% |
| Retail Investors | Various | 56.0% |
Recent Changes in Ownership
In the past year, there have been notable changes in MercadoLibre's ownership, particularly among institutional investors. The percentage of shares held by the top three institutional investors has fluctuated slightly, reflecting the dynamic nature of stock market investments.
Stock Performance
MercadoLibre's stock has shown significant growth, with a year-to-date increase of approximately 45% as of September 2024. The stock price reached approximately $2,061.16 per share, reflecting strong investor confidence and positive market sentiment towards the company's growth prospects in e-commerce and fintech sectors.
Market Capitalization
The market capitalization of MercadoLibre, Inc. is approximately $104 billion as of September 30, 2024. This valuation places it among the leading e-commerce companies in Latin America, driven by its robust business model and expanding user base.
Financial Overview
For the nine months ended September 30, 2024, MercadoLibre reported:
- Net Revenues: $14.72 billion
- Net Income: $1.27 billion
- Gross Merchandise Volume: $36.92 billion
- Unique Active Buyers: 87 million
- Fintech Monthly Active Users: 56 million
| Financial Metric | Value (in millions) |
|---|---|
| Net Revenues | $14,718 |
| Net Income | $1,272 |
| Gross Merchandise Volume | $36,919 |
| Unique Active Buyers | 87 |
| Fintech Monthly Active Users | 56 |
Conclusion on Ownership and Financial Position
MercadoLibre, Inc. remains a key player in the Latin American e-commerce and fintech landscape, with a solid ownership base and robust financial performance. The company's strategic initiatives and market positioning continue to attract significant investment interest.
MercadoLibre, Inc. (MELI) Mission Statement
Company Overview
MercadoLibre, Inc. is a leading e-commerce platform in Latin America, primarily operating in countries such as Brazil, Mexico, and Argentina. The company focuses on facilitating online commerce and providing fintech solutions through its Mercado Pago platform.
Mission Statement
As of 2024, MercadoLibre's mission is to "democratize commerce and financial services in Latin America." The company aims to empower individuals and businesses by providing access to technology and financial solutions that foster growth, inclusivity, and economic development across the region.
Financial Performance
For the nine-month period ending September 30, 2024, MercadoLibre reported the following financial metrics:
| Metric | 2024 (in millions USD) | 2023 (in millions USD) | Change (%) |
|---|---|---|---|
| Net Revenues and Financial Income | 14,718 | 10,698 | 37.6 |
| Gross Merchandise Volume | 36,919 | 31,299 | 17.9 |
| Unique Active Buyers | 87 million | 74 million | 17.6 |
| Total Payment Volume | 137,746 | 102,278 | 34.6 |
Market Position
MercadoLibre continues to strengthen its market position, with significant revenue growth driven by both its e-commerce and fintech segments. The company reported a 49.2% increase in net revenues from Brazil and a 55.8% increase from Mexico for the nine-month period ending September 30, 2024.
Strategic Initiatives
To further its mission, MercadoLibre has implemented several strategic initiatives:
- Expansion of logistics capabilities to enhance delivery speed and efficiency.
- Investment in technology to improve user experience on its platform.
- Enhancement of the Mercado Pago platform to increase financial service offerings.
Recent Developments
In 2024, MercadoLibre's Fintech revenues grew by 23.3%, totaling $6,113 million for the nine-month period, reflecting increased adoption of its financial services across the region.
Key Performance Indicators
As of September 30, 2024, the company has achieved the following:
| Indicator | 2024 | 2023 |
|---|---|---|
| Fintech Monthly Active Users | 56 million | 42 million |
| Gross Merchandise Volume | $36,919 million | $31,299 million |
| Number of Items Sold | 1,262 million | 991 million |
| Total Payment Transactions | 8,030 million | 5,275 million |
Conclusion on Mission Fulfillment
MercadoLibre's mission to democratize commerce and financial services is reflected in its robust growth metrics, strategic initiatives, and ongoing investment in technology and infrastructure, positioning it as a leader in the Latin American e-commerce and fintech markets.
How MercadoLibre, Inc. (MELI) Works
Business Model Overview
MercadoLibre, Inc. operates as a leading e-commerce platform in Latin America, offering a variety of services including online marketplace, payment solutions, and logistics. As of September 30, 2024, the company reported net revenues and financial income of $14,718 million, a significant increase from $10,698 million in the same period of 2023, representing a growth rate of 37.6%.
Revenue Breakdown
The company's revenue is primarily derived from two segments: Commerce and Fintech. For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Segment | Net Revenues (in millions) | Change from 2023 |
|---|---|---|
| Commerce | $8,270 | 49.2% |
| Fintech | $6,113 | 23.3% |
| Total | $14,718 | 37.6% |
Geographic Revenue Distribution
MercadoLibre's operations are concentrated in Brazil, Mexico, and Argentina. The following table illustrates the net revenues and financial income by geographic segment:
| Country | Net Revenues (in millions) | Change from 2023 |
|---|---|---|
| Brazil | $8,270 | 49.2% |
| Mexico | $3,317 | 55.8% |
| Argentina | $2,511 | (1.6%) |
| Other Countries | $620 | 31.1% |
Operating Expenses
For the nine months ended September 30, 2024, MercadoLibre reported total operating expenses of $5,017 million, up from $3,668 million in 2023, reflecting an increase of 36.8%. The breakdown of operating expenses is as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Product and Technology Development | $1,422 |
| Sales and Marketing | $1,555 |
| Provision for Doubtful Accounts | $1,331 |
| General and Administrative | $709 |
| Total Operating Expenses | $5,017 |
Profitability Metrics
MercadoLibre reported a gross profit of $6,828 million for the nine months ended September 30, 2024, with a gross profit margin of 46.4%. The income from operations was $1,811 million.
Fintech Performance
The Fintech segment continues to grow, with total payment volume reaching $137,746 million for the nine months ended September 30, 2024, up from $102,278 million in the same period of 2023.
Key Performance Indicators
As of September 30, 2024, the company's key performance indicators include:
| Metric | Value |
|---|---|
| Fintech Monthly Active Users | 56 million |
| Unique Active Buyers | 87 million |
| Gross Merchandise Volume | $36,919 million |
| Number of Items Sold | 1,262 million |
| Total Payment Transactions | 8,030 million |
Financial Position
As of September 30, 2024, MercadoLibre's total liabilities stood at $18,621 million, while total equity was $4,002 million. The company reported net debt of $1,907 million, up from $1,505 million in December 2023.
Market Performance
The stock performance of MercadoLibre, Inc. (MELI) reflects its growth trajectory, with significant increases in market capitalization following the robust financial results reported for 2024.
How MercadoLibre, Inc. (MELI) Makes Money
E-commerce Revenue Streams
MercadoLibre generates substantial revenue through its e-commerce operations, primarily through two key segments: Commerce services and Commerce product sales. For the nine-month period ended September 30, 2024, the company reported:
| Region | Commerce Services Revenue (in millions) | Commerce Products Sales Revenue (in millions) | Total Commerce Revenue (in millions) |
|---|---|---|---|
| Brazil | $4,176 | $897 | $5,073 |
| Mexico | $1,864 | $306 | $2,170 |
| Argentina | $795 | $123 | $918 |
| Other Countries | $396 | $48 | $444 |
| Total | $7,231 | $1,374 | $8,605 |
In the three-month period ended September 30, 2024, the revenues were:
| Region | Commerce Services Revenue (in millions) | Commerce Products Sales Revenue (in millions) | Total Commerce Revenue (in millions) |
|---|---|---|---|
| Brazil | $1,452 | $357 | $1,809 |
| Mexico | $647 | $111 | $758 |
| Argentina | $358 | $53 | $411 |
| Other Countries | $144 | $17 | $161 |
| Total | $2,601 | $538 | $3,139 |
Fintech Revenue Streams
MercadoLibre has significantly expanded its fintech services through Mercado Pago, which includes payment processing, credit offerings, and financial services. For the nine-month period ended September 30, 2024, fintech revenues were:
| Region | Fintech Revenue (in millions) |
|---|---|
| Brazil | $3,197 |
| Mexico | $1,147 |
| Argentina | $1,593 |
| Other Countries | $176 |
| Total | $6,113 |
In the three-month period ended September 30, 2024, the fintech revenues were:
| Region | Fintech Revenue (in millions) |
|---|---|
| Brazil | $1,104 |
| Mexico | $387 |
| Argentina | $622 |
| Other Countries | $60 |
| Total | $2,173 |
Growth Metrics and Financial Performance
MercadoLibre has reported impressive growth metrics across its operations. Key performance indicators for the nine-month period ended September 30, 2024 include:
- Gross merchandise volume (GMV): $36,919 million
- Total payment volume: $137,746 million
- Unique active buyers: 87 million
- Fintech monthly active users: 56 million
For the same period, the company reported a total net revenue and financial income of:
| Metric | Value (in millions) |
|---|---|
| Total Net Revenues and Financial Income | $14,718 |
| Direct Costs | ($11,227) |
| Direct Contribution | $3,491 |
| Margin | 23.7% |
For the three-month period ending September 30, 2024, the figures were:
| Metric | Value (in millions) |
|---|---|
| Total Net Revenues and Financial Income | $5,312 |
| Direct Costs | ($4,128) |
| Direct Contribution | $1,184 |
| Margin | 22.3% |
MercadoLibre’s effective tax rate for the nine-month period ended September 30, 2024, was 23.8%, a decrease from 38.1% in the previous year.
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Resources:
- MercadoLibre, Inc. (MELI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MercadoLibre, Inc. (MELI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MercadoLibre, Inc. (MELI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.