MercadoLibre, Inc.

Hello, everyone, and welcome to the MercadoLibre earnings conference call for the quarter ended March 31st, 2025. 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 management team. Before we go on to discuss our results for the first 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 IR website as well. With that, let's begin with a short message from our CFO.

Hello, everyone. We are excited to kick off 2025 with another great quarter at MercadoLibre as we continue to deliver strong growth across both e-commerce and fintech. In Q1, we maintained the rapid pace of net revenue growth achieved in 2024 while making solid progress on all of our strategic initiatives. This momentum is fueled by continued investments and improvements in the valuable position for our users. In commerce, we continue to deliver strong growth outpacing all of our major markets. Brand preference metrics for our marketplace reached all-time highs in Brazil, Mexico, Argentina, and Chile during the quarter. This is clear evidence that our investments are working and that we're further consolidating our position as a destination of choice for online purchasing in Latin America. In fintech services, monthly active users continue to grow at startup rates of more than 30% year-on-year, reaching a total of 64 million. Our strategy of offering attractive remuneration on deposits is proving to be a powerful tool to attract, retain, and engage users. Our credit portfolio grew by 75% year-on-year while maintaining delinquency at comfortable levels. In March, Fersberg defaults on the credit card in Brazil, which is a new all-time low. driven by ongoing improvements in our scoring models and a successful move up market. As a result, we are scaling the credit card business while improving its profitability. Argentina performed exceptionally well in Q1 in all of our business units. with US dollar revenues more than doubling year-on-year. The stabilization of the macroeconomic environment has helped us to fully leverage the strength of our brands and value proposition in the country. Income from operations grew at a faster pace than revenue, helped by the strong performance in Argentina. We are very encouraged by the positive impact of our strategic investments across the MercadoLibre ecosystem, which are critical for us to capture the many long-term growth opportunities that we see in both commerce and fintech in Latin America. Thank you for your continued support and interest. Now, I hand it over to Richard for some exciting updates on FinTech.

Q1 was the most recent of a long series of quarterly results that reflect Mercado Pago's fantastic momentum. Monthly active users, for example, continue to grow above 30% year on year and reached 64 million in Q125. Today, we want to highlight some of the exciting changes that are taking place as we continue to democratize financial services in the region. Our aim is to transform people's relationships with financial services so that as many people as possible have access to products such as a yielding account, credit, investments, insurance and much more. Perhaps more importantly, we want users to see the relationship as win-win. This is a core pillar of Mercado Pago's positioning and, more importantly, how we intend to continue disrupting the markets in which we operate. Here's a short video that should help investors understand how we're thinking about every decision we take as we build Mercado Pago to become users' primary financial relationship.