The Company
MercadoLibre, Inc. (NASDAQ: MELI) is a leading e-commerce and fintech platform in Latin America, operating across 18 countries including Brazil, Mexico, and Argentina. Founded in 1999, the company aims to democratize commerce and financial services in the region by offering a comprehensive ecosystem that facilitates buying, selling, payments, and logistics for both individuals and businesses.
Financials
In the third quarter of 2024, MercadoLibre reported net revenue of $5.3 billion, marking a 35% year-over-year increase. The company’s operational income for the same period was $557 million.
Total Addressable Market (TAM) and Compound Annual Growth Rate (CAGR)
MercadoLibre operates in several high-growth market segments in Latin America:
| Market Segment | Estimated TAM (2023) | Expected CAGR (2021-2026) |
|---|---|---|
| E-commerce | Over $100 billion | 15.2% (Chile) |
| Fintech/Payments | Approximately $85 billion | Not specified |
The e-commerce market in Latin America is experiencing significant growth, with countries like Chile projected to have a CAGR of 15.2% between 2021 and 2026.
Statista The fintech sector is also expanding rapidly, driven by technological advancements and increased adoption of digital financial services.
ETF & Mutual Fund Manager | VanEck
Products
MercadoLibre offers a diverse range of products and services across its ecosystem:
| Product/Service | Description |
|---|---|
| Marketplace | Platform connecting buyers and sellers for a wide range of goods. |
| Mercado Pago | Digital payments platform offering online and offline payment solutions. |
| Mercado Envios | Logistics and shipping services ensuring efficient product delivery. |
| Mercado Credito | Credit offerings providing loans to individuals and businesses. |
| Mercado Ads | Advertising platform enabling sellers to promote their products. |
| Mercado Shops | Tool for businesses to create and manage their own online stores. |
While specific revenue contributions for each segment are not publicly detailed, the company’s diversified revenue streams have collectively grown tenfold since 2018.
Mercado Libre | Investor Relations
Customers
As of Q3 2024, MercadoLibre’s platform had approximately 60.8 million unique buyers, reflecting a 21% year-over-year increase. This growth underscores the platform’s expanding reach and the increasing adoption of e-commerce and digital financial services in Latin America.
Competitors
MercadoLibre faces competition from both regional and international players in the e-commerce and fintech sectors, including:
- Amazon: A global e-commerce giant with a growing presence in Latin America.
- B2W Digital: A major Brazilian e-commerce company operating platforms like Submarino and Americanas.com.
- Magazine Luiza: Another significant Brazilian retailer expanding its online presence.
- PagSeguro: A Brazilian fintech company offering digital payment solutions.
- StoneCo: A fintech company providing payment processing and financial services in Brazil.
Main Investors
As of the latest available data, MercadoLibre’s major institutional investors include:
| Investor | Percentage Holding |
|---|---|
| Baillie Gifford & Co. | Approximately 11% |
| Capital Research Global Investors | Around 10% |
| Jennison Associates LLC | About 9% |
| Price (T.Rowe) Associates Inc. | Close to 8% |
| BlackRock Institutional Trust Company N.A. | Nearly 7% |
These institutional investors collectively hold a significant portion of MercadoLibre’s outstanding
Invest Alpha 