Q2 2025 MercadoLibre Inc Earnings Call Transcript
Key Points
- MercadoLibre Inc (MELI) reported a strong financial performance with revenues growing over 30% year on year and record income from operations of $825 million.
- The company successfully lowered the free shipping threshold in Brazil, which attracted new users, increased engagement, and accelerated GMV growth.
- Advertising revenue grew 38% year on year, with the integration with Google Manager positioning Mercado Ads as a key strategic partner for advertisers.
- FinTech services showed strong traction with monthly active users of Mercado Pago reaching 68 million and the credit portfolio growing by 91% year on year.
- The quality of the credit business improved, with NIMAL remaining stable and 50 to 90 days NPLs falling below 7% for the first time since reporting began.
- Higher sales and marketing spend, excluding provisions, was up almost 50% in US dollar terms, compressing margins by 1 percentage point.
- The company faced short-term margin pressure due to high-profile marketing campaigns and increased paid advertising.
- There was a slight increase in over 90 days NPLs, which rose from 18% to 18.5% sequentially.
- The credit card business, while performing well in Brazil, is not yet NIMAL breakeven in Mexico.
- The adaptation to a lower ASP strategy in Brazil may not immediately match the profitability of higher ticket items, posing a challenge to maintain margins.
Hello, everyone, and welcome to the MercadoLibre Earnings Conference Call for the quarter ended June 30, 2025. Thank you for joining us. I am Richard Cathcart, MercadoLibre's Investor Relations Officer.
Today, we will share our quarterly highlights on video, after which we will begin our live Q&A session with our management.
Before we go on to discuss our results of the second quarter of 2025, I remind you that management may make or refer to and this presentation may contain forward-looking statements and non-GAAP measures. So please refer to the disclaimer on screen, which will also be available in our earnings materials on our Investor Relations website. Please note that this call is being recorded, and a replay will be made available on our Investor Relations website as well. As we continue to evolve our communications with investors, we have decided to launch our quarterly product update video after earnings rather than together with our results call. So watch out for this coming
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
