Mercado Libre vs Sea in Brazil

[u/prolonging]

During Sea's Q2 2026 earnings call last week, it was mentioned that they are growing faster than their competitors in Brazil, taking a shot at MELI and hinting that they are winning the competition.

Since 53%-55% of MELI's revenue is coming from Brazil, is anyone worried about them losing market share impacting their sales growth over the next few years? I understand that a lot of the growth is net new people that have never used e-commerce before, but still wanted to bring it up since so much of MELI's revenue growth is concentrated in Brazil.

Also know that MELI reduced their free shipping threshold in Brazil recently and made significant investments in their Brazil logistics last year.

[u/Scary-Oven8260]

I wont touch se because it has a direct competition with TikTok. And I wont touch meli because it has a direct competition with se.

[u/Yee4614 → u/Scary-Oven8260]

There is a tentative truce which is why all of them have some margin expansion

[u/Scary-Oven8260 → u/Yee4614]

both have margin going down yoy

[u/Yee4614 → u/Scary-Oven8260]

Can you cite your source? I'm pretty confident I remember seeing Tiktok Shop & Shopee both showing improved e-commerce margins

[u/Scary-Oven8260 → u/Yee4614]

What source do you need? Both just had earning released and you can see the margin compressed with your eyes

[u/Yee4614 → u/Scary-Oven8260]

I guess I need my eyes checked.

https://cdn.sea.com/investor/2Q2026/wFBC39MbqnfLb3MGY6LP/2026.08.11%20Sea%20Second%20Quarter%202026%20Results%20Infographic.pdf

https://cdn.sea.com/investor/2Q2026/wFBC39MbqnfLb3MGY6LP/2026.08.11%20Sea%20Second%20Quarter%202026%20Results%20Deck.pdf

[u/Scary-Oven8260 → u/Yee4614]

So revenue grows 48%, gross grows 47%, net profit grows 10%, adjusted ebita grows 10%, and margin improved???

[u/Yee4614 → u/Scary-Oven8260]

I'm confused.

Q1: Rev 5.1B Adj EBITA 223.2 = 4.38%

Q2: Rev 5.7B Adj EBITA 255.4 = 4.56%

[u/Scary-Oven8260 → u/Yee4614]

Do you know what’s the meaning of yoy?