MELI - MercadoLibre Inc. (MELI) Q4 2023 Earnings Call Transcript
2024-02-22 22:15:22 ET
MercadoLibre, Inc. (MELI)
Q4 2023 Earnings Conference Call
February 22, 2024, 05:00 PM ET
Company Participants
Richard Cathcart - IR Officer
Marcos Galperin - CEO
Martin de los Santos - CFO
Osvaldo Gimenez - President, Fintech
Ariel Szarfsztejn - Commerce EVP
Conference Call Participants
Andrew Ruben - Morgan Stanley
Irma Sgarz - Goldman Sachs
Robert Ford - Bank of America
Kaio Prato - UBS
Maria Clara Infantozzi - Itau BBA
Trevor Young - Barclays
João Soares - Citi
Deepak Mathivanan - Wolfe Research
Marcelo Santos - JPMorgan
Soomit Datta - New Street Research
Neha Agarwala - HSBC
Marvin Fong - BTIG
Presentation
Operator
Hello, everyone and welcome to the MercadoLibre's Earnings Conference Call for the quarter ended December 31, 2023. Thank you for joining us. I’m 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 CEO, Marcos Galperin, Chief Financial Officer Martin de los Santos, Fintech President, Osvaldo Gimenez and Commerce EVP Ariel Szarfsztejn.
Before we go onto discuss our results for the fourth quarter of 2023, I’ll 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.
With that, let’s begin with a summary of our results.
Hello everyone. I’m delighted to share that MercadoLibre delivered solid results in Q4 marking a strong conclusion and outstanding year. Overall, 2023 highlighted their strength of our financial model and it’s future potential as well as a powerful impact of compounding of several years of investment in technology.
For our commerce business it was a year of accelerated growth and market share gains in most countries. We achieved this but continued to make improvements and the value proposition to buyers and sellers in our marketplace. I would like to highlight three important initiatives that contributed to our success in commerce. We continued to invest in having the widest product assortment in order to offer the best buying experience to consumers. A key contributor to this was the acceleration of our first-party business, particularly in Brazil, where it grew by 81% in 2023. We continued expanding our logistic network with record fulfillment penetration of almost 50%, which provided an improved user experience to our buyers. This resulted in faster shipping and fewer late deliveries, particularly around the Christmas season.
Our ads business continues to deliver impressive results, growing revenues at an accelerated pace. In 2023, we on boarded almost 50,000 new advertisers who appreciate the value of promoting their products on our parent regional platform. On the Fintech front, Mercado Pago maintained strong momentum as users and merchants continued to adopt our services....
MercadoLibre, Inc. (MELI) Q4 2023 Earnings Call Transcript