The direct ownership of these shares is subject to certain restrictions, with 75 shares liable to forfeiture until the next annual shareholders meeting. MercadoLibre (NASDAQ:MELI), a prominent e-commerce and financial technology company in Latin America, continues to be a significant player in the region's digital marketplace, demonstrating impressive growth with revenue of $18.5 billion and industry-leading gross margins of 52.5%. For deeper insights into MercadoLibre's valuation and growth metrics, InvestingPro subscribers have access to 14+ additional exclusive tips and comprehensive financial analysis.
The direct ownership of these shares is subject to certain restrictions, with 75 shares liable to forfeiture until the next annual shareholders meeting. MercadoLibre, a prominent e-commerce and financial technology company in Latin America, continues to be a significant player in the region's digital marketplace, demonstrating impressive growth with revenue of $18.5 billion and industry-leading gross margins of 52.5%. For deeper insights into MercadoLibre's valuation and growth metrics, InvestingPro subscribers have access to 14+ additional exclusive tips and comprehensive financial analysis.
In other recent news, MercadoLibre has reported significant growth in its third quarter of 2024, with its revenue increasing by 35% year-on-year. This resulted in an EBIT of $557 million and net income of $397 million. The company also experienced a 34% Gross Merchandise Volume (GMV) increase in Brazil and 27% in Mexico, along with the addition of six new fulfillment centers.
MercadoLibre's fintech segment saw a notable expansion with the issuance of 1.5 million new credit cards and a 166% increase in credit card TPV. Despite margin pressures due to upfront provisioning for credit expansion, the company maintains a positive outlook on its credit quality and long-term growth.
In the wake of these developments, MercadoLibre plans to double its fulfillment centers in Brazil by the end of 2025 and increase its same-day delivery capabilities by 40%. The company is also targeting lower-risk customers with larger credit lines to expand its market reach. Despite initial costs from new fulfillment centers and higher provisions for credit expansion impacting margins, the company's growth trajectory remains solid.
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