MELI

MERCADOLIBRE INC

Consumer Cyclical | Mega Cap

$13.38

EPS Forecast

$5,478

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 meli-20220222xex99_1.htm EX-99.1 Exhibit 99.1

Imagem 1

MercadoLibre, Inc. Reports Fourth Quarter 2021 Financial Results



Net Revenues of $2.1 billion, up 73.9% year-over-year on an FX neutral basis

$24.2 billion Total Payment Volume, up 72.8% year-over-year on an FX neutral basis

$8.0 billion Gross Merchandise Volume, up 32.2% year-over-year on an FX neutral basis



MONTEVIDEO, Uruguay, February 22nd, 2022 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com), Latin America’s leading e-commerce technology company, today reported financial results for the quarter ended December 31, 2021.



Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, “Last year presented us with challenges, and with those also came many more opportunities. With our teams’ resilience and focus on delivering on our strategic objectives, we have been able to overcome shifting pandemic lockdown measures, rising inflationary cost pressures and a highly competitive environment in the digital commerce space. The final outcome was a year with record results across the board, sustained strong growth in key business metrics and topline, and improving margins and operating income for a second consecutive year.”







Fourth Quarter 2021 Business Highlights

·

Considering our entire ecosystem, Unique active users reached 82.2 million.

·

Gross merchandise volume (“GMV”) grew to $8.0 billion, representing an increase of 21.2% in USD and 32.2% on an FX neutral basis.

·

Successful items sold reached 287.9 million, increasing by 25.5% year-over-year.

·

Live listings offered on MercadoLibre’s marketplace reached almost 300 million.

·

Mobile gross merchandise volume reached 75.5% of GMV.

·

Mercado Envios shipped 275.9 million items during the quarter, representing a 29.0% year-over-year increase. Managed network penetration was 89.5% in the fourth quarter.

·

Total payment volume (“TPV”) through Mercado Pago reached $24.2 billion, a year-over-year increase of 52.1% in USD and 72.8% on an FX neutral basis. Total payment transactions increased 56.1% year-over-year, totaling 1,028.9 million transactions for the quarter.

·

Off-platform TPV grew 75.1% year-over-year in USD and 96.5% year-over-year on an FX neutral basis, reaching $16.1 billion, while payment transactions reached 849.9 million, a year-over-year increase of 69.4%.

·

Acquiring TPV, which includes On-Platform, Online Payments, MPoS and QR payments, was $17.2 billion, growing 51.1% on an FX neutral basis.

·

Digital accounts TPV, which includes wallet payments, P2P transfers between Mercado Pago accounts and Cards transactions (debit, prepaid and credit), was $7.1 billion, growing 138.3% on an FX neutral basis.

·

Unique fintech active users reached 34.5 million.  

·

Our asset management product, Mercado Fondo, has now over $1.2 billion under management and in the fourth quarter had 22.3 million users across Latin America.

·

Mercado Credito’s portfolio is now almost $1.7 billion, over 3x its size compared to the fourth quarter of 2020.

1

 


 



Fourth Quarter 2021 Financial Highlights

·

Net revenues for the fourth quarter were $2.1 billion, a year-over-year increase of 60.5% in USD and 73.9% on an FX neutral basis.

·

Commerce revenues increased 55.6% year-over-year in USD reaching $1,357.8 million, while Fintech revenues increased 70.1% year-over-year in USD reaching $773.0 million.

·

Gross profit was $853.2 million with a margin of 40.0%, compared to 36.8% in the fourth quarter of 2020.

·

Total operating expenses were $829.8 million, an increase of 61.4% year-over-year in USD. As a percentage of revenues, operating expenses were 38.9%, mostly in line with the 38.7% in the fourth quarter of 2020.

·

Income from operations was $23.3 million, compared to a loss of $25.1 million during the same period of the prior year. As a percentage of revenues, income from operations was 1.1%.

·

Interest income and other financial gains was $53.4 million, a 135.7% increase year-over-year. We incurred $53.7 million in interest expense and other financial losses this quarter, an 69.8% increase year-over-year.

·

We had foreign currency losses of $56.9 million, mainly related to higher foreign exchange losses attributable to our own common stock acquisition in the Argentine market at a price that reflects the additional cost of accessing US dollars through an indirect mechanism due to restrictions imposed by the Argentine government for buying US dollars at the official exchange rate.

·

Net loss before income tax expense was $33.9 million, a 22.9% decrease from the $44.0 million net loss during the fourth quarter of 2020.

·

Income tax expense was $3.6 million, mainly as a result of income tax expense as a consequence of pre-tax gains in our Argentine segment offset by income tax benefit in our Brazilian segment related to higher deferred tax assets due to tax loss carry forwards.

·

Net loss was $46.1 million, resulting in net loss per share of $0.92.



The following table summarizes certain key performance metrics for the twelve and three-month periods ended December 31, 2021 and 2020.





 

 

 

 

 

 

 

 

 

 

 

 



  

Year ended
December 31,

  

 

Three-month Periods Ended
December 31,

(in millions) (*)

  

2021

 

2020

 

 

2021

2020



  

 

 

  

 

 

  

 

 

  

 

 

Unique active users 

  

 

139.5 

  

 

132.5 

  

 

82.2 

  

 

74.0 

Gross merchandise volume

  

$

28,350.9 

  

$

20,926.8 

  

$

7,956.7 

  

$

6,565.4 

Number of successful items sold

  

 

1,014.3 

  

 

719.3 

  

 

287.9 

  

 

229.4 

Number of successful items shipped 

 

 

962.3 

 

 

649.2 

 

 

275.9 

 

 

214.0 

Total payment volume 

  

$

77,371.1 

  

$

49,756.8 

  

$

24,244.2 

  

$

15,942.1 

Total volume of payments on marketplace 

  

$

27,432.4 

  

$

19,951.4 

  

$

7,759.3 

  

$

6,336.0 

Total payment transactions 

 

 

3,254.5 

 

 

1,914.5 

 

 

1,028.9 

 

 

659.3 

Capital expenditures

  

$

630.1 

  

$

254.1 

  

$

196.3 

  

$

87.3 

Depreciation and amortization

  

$

203.9 

  

$

105.0 

  

$

67.2 

  

$

32.6 



(*) Figures have been calculated using rounded amounts. Growth calculations based on this table may not total due to rounding.

Year-over-year USD Revenue Growth Rates by Quarter





 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

Q4’20

 

Q1’21

 

Q2’21

 

Q3’21

 

Q4’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

68

%

93

%

104

%

74

%

51

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

144

%

124

%

53

%

38

%

47

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

141

%

143

%

105

%

94

%

92

%

2

 


 

Year-over-year Local Currency Revenue Growth Rates by Quarter 





 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

Q4’20

 

Q1’21

 

Q2’21

 

Q3’21

 

Q4’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

120 

%

139 

%

101 

%

69 

%

61 

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

229 

%

223 

%

112 

%

83 

%

84 

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

155 

%

148 

%

76 

%

76 

%

96 

%







Conference Call and Webcast

The Company will host a conference call and audio webcast on February 22nd, 2022 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID – 2894134 –) and requesting inclusion in the call for MercadoLibre. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at http://investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.

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Definition of Selected Operational Metrics

Unique Active User – New or existing user who performed at least one of the following actions during the reported period: (1) made one purchase, or reservation, or asked one question on MercadoLibre Marketplace or Classified Marketplace (2) maintained an active listing on MercadoLibre Marketplace or Classified Marketplace (3) maintained an active account in Mercado Shops (4) made a payment, money transfer, collection and/or advance using Mercado Pago (5) maintained an outstanding credit line through Mercado Credito or (6) maintained a balance of more than $5 invested in a Mercado Fondo asset management account.

Foreign Exchange (“FX”) Neutral – Calculated by using the average monthly exchange rate of each month of 2020 and applying it to the corresponding months in the current year, so as to calculate what the results would have been had exchange rates remained constant. Intercompany allocations are excluded from this calculation. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations.

Gross merchandise volume – Measure of the total U.S. dollar sum of all transactions completed through the Mercado Libre Marketplace, excluding Classifieds transactions.

Total payment transactions – Measure of the number of all transactions paid for using Mercado Pago.

Total volume of payments on marketplace – Measure of the total U.S. dollar sum of all marketplace transactions paid for using Mercado Pago, excluding shipping and financing fees.

Total payment volume – Measure of total U.S. dollar sum of all transactions paid for using Mercado Pago, including marketplace and non-marketplace transactions.

MPOS – Mobile point-of-sale is a dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal wirelessly.

Commerce – Revenues from core marketplace fees, shipping fees, first-party sales, ad sales, classified fees and other ancillary services.

Fintech – Revenues includes fees from off-platform transactions, financing fees, interest earned from merchant and consumer credits and sale of MPOS.

Successful items sold – Measure of the number of items that were sold/purchased through the Mercado Libre Marketplace, excluding Classifieds items.

Successful items shipped – Measure of the number of items that were shipped through our shipping service.

Local Currency Growth Rates – Refer to FX Neutral definition.

Net income margin – Defined as net income as a percentage of net revenues.

Operating margin – Defined as income from operations as a percentage of net revenues.

4

 


 



About MercadoLibre

Founded in 1999, MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of the necessary digital and technology-based tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform which allows users to buy and sell in most of Latin America.



The Company is listed on NASDAQ (Nasdaq: MELI) following its initial public offering in 2007.



For more information about the Company visit: http://investor.mercadolibre.com.



The MercadoLibre, Inc. logo is available at https://resource.globenewswire.com/Resource/Download/6ab227b7-693f-4b17-b80c-552ae45c76bf?size=0



Forward-Looking Statements

Any statements herein regarding MercadoLibre, Inc. that are not historical or current facts are forward-looking statements. These forward-looking statements convey MercadoLibre, Inc.’s current expectations or forecasts of future events. Forward-looking statements regarding MercadoLibre, Inc. involve known and unknown risks, uncertainties and other factors that may cause MercadoLibre, Inc.’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary Note Regarding Forward-Looking Statements” sections of MercadoLibre, Inc.’s annual report on the upcoming Form 10-K for the year ended December 31, 2021, and any of MercadoLibre, Inc.’s other applicable filings with the Securities and Exchange Commission. Unless required by law, MercadoLibre, Inc. undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

5

 


 





MercadoLibre, Inc.

Consolidated Balance Sheets

(In thousands of U.S. dollars, except par value)



 

 

 



December 31,



2021

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$                    2,584,586

 

$                    1,856,394

Restricted cash and cash equivalents

1,063,377 

 

651,830 

Short-term investments (602,193 and 636,949 held in guarantee)

809,522 

 

1,241,306 

Accounts receivable, net

98,193 

 

49,691 

Credit cards receivable and other means of payments, net

1,839,389 

 

863,073 

Loans receivable, net

1,199,059 

 

385,036 

Prepaid expenses

40,426 

 

28,378 

Inventories

253,077 

 

118,140 

Other assets

287,350 

 

152,959 

Total current assets

8,174,979 

 

5,346,807 

Non-current assets:

 

 

 

Long-term investments

88,598 

 

166,111 

Loans receivable, net

61,011 

 

16,619 

Property and equipment, net

807,367 

 

391,684 

Operating lease right-of-use assets

461,175 

 

303,214 

Goodwill

148,243 

 

85,211 

Intangible assets, net

44,974 

 

14,155 

Deferred tax assets

181,266 

 

134,916 

Other assets

133,545 

 

67,615 

Total non-current assets

1,926,179 

 

1,179,525 

Total assets

$                  10,101,158

 

$                    6,526,332



 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$                    1,035,860

 

$                       767,336

Funds payable to customers

2,393,179 

 

1,695,424 

Amounts payable due to credit and debit card transactions

336,863 

 

37,671 

Salaries and social security payable

313,192 

 

207,358 

Taxes payable

291,456 

 

215,918 

Loans payable and other financial liabilities

1,285,416 

 

548,393 

Operating lease liabilities

92,343 

 

55,246 

Other liabilities

88,393 

 

108,534 

Total current liabilities

5,836,702 

 

3,635,880 

Non-current liabilities:

 

 

 

Amounts payable due to credit and debit card transactions

3,893 

 

 —

Salaries and social security payable

20,215 

 

49,852 

Loans payable and other financial liabilities

2,233,255 

 

860,876 

Operating lease liabilities

371,614 

 

243,601 

Deferred tax liabilities

62,496 

 

64,354 

Other liabilities

41,292 

 

20,191 

Total non-current liabilities

2,732,765 

 

1,238,874 

Total liabilities

$                    8,569,467

 

$                    4,874,754



 

 

 

Commitments and contingencies

 

 

 

Equity

 

 

 



 

 

 

Common stock, $0.001 par value, 110,000,000 shares authorized,

 

 

 

50,418,980 and 49,869,727 shares issued and outstanding at December 31,

 

 

 

2021 and December 31, 2020

$                                50

 

$                                50

Additional paid-in capital

2,439,345 

 

1,860,502 

Treasury stock

(789,982)

 

(54,805)

Retained earnings

397,419 

 

314,115 

Accumulated other comprehensive loss

(515,141)

 

(468,284)

Total Equity

1,531,691 

 

1,651,578 

Total Liabilities and Equity

$                  10,101,158

 

$                    6,526,332



6

 


 

MercadoLibre, Inc.

Consolidated Statements of Income

For the twelve and three-month periods ended December 31, 2021 and 2020

(In thousands of U.S. dollars, except for share data)





 

 

 

 

 

 

 



Year Ended December 31,

 

Three Months Ended December 31,



2021

 

2020

 

2021

 

2020

Net service revenues

$                    6,149,270

 

$                3,690,002

 

$               1,782,732

 

$               1,165,654

Net product revenues

920,139 

 

283,463 

 

348,034 

 

161,650 

Net revenues

7,069,409 

 

3,973,465 

 

2,130,766 

 

1,327,304 

Cost of net revenues

(4,064,357)

 

(2,264,255)

 

(1,277,601)

 

(838,270)

Gross profit

3,005,052 

 

1,709,210 

 

853,165 

 

489,034 



 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Product and technology development

(590,328)

 

(352,474)

 

(179,637)

 

(116,989)

Sales and marketing

(1,509,493)

 

(902,554)

 

(502,704)

 

(282,350)

General and administrative

(464,528)

 

(326,490)

 

(147,508)

 

(114,821)

Total operating expenses

(2,564,349)

 

(1,581,518)

 

(829,849)

 

(514,160)

Income (loss) from operations

440,703 

 

127,692 

 

23,316 

 

(25,126)



 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

Interest income and other financial gains

137,962 

 

102,767 

 

53,374 

 

22,648 

Interest expense and other financial losses (*)

(228,704)

 

(106,690)

 

(53,678)

 

(31,607)

Foreign currency losses

(109,333)

 

(42,454)

 

(56,951)

 

(9,930)

Net income (loss) before income tax expense

240,628 

 

81,315 

 

(33,939)

 

(44,015)



 

 

 

 

 

 

 

Income tax expense

(148,802)

 

(82,022)

 

(3,643)

 

(6,565)

Equity in earnings of unconsolidated entity

(8,522)

 

 —

 

(8,522)

 

 —

Net income (loss)

$                         83,304

 

$                         (707)

 

$                  (46,104)

 

$                  (50,580)





 

(*)

Includes $49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase recognized in January 2021.











 

 

 

 

 

 

 



Year Ended December 31,

 

Three Months Ended December 31,



2021

 

2020

 

2021

 

2020

Basic EPS

 

 

 

 

 

 

 

Basic net income (loss)

 

 

 

 

 

 

 

Available to shareholders per common share

$                        1.67

 

$                   (0.08)

 

$                      (0.92)

 

$                        (1.02)

Weighted average of outstanding common shares

49,802,993 

 

49,740,407 

 

49,926,533 

 

49,820,185 

Diluted EPS

 

 

 

 

 

 

 

Diluted net income (loss)

 

 

 

 

 

 

 

Available to shareholders per common share

$                        1.67

 

$                   (0.08)

 

$                      (0.92)

 

$                        (1.02)

Weighted average of outstanding common shares

49,802,993 

 

49,740,407 

 

49,926,533 

 

49,820,185 



 

 

 

 

 

 

 







7

 


 

MercadoLibre, Inc.

Consolidated Statements of Cash Flows

For the twelve months ended December 31, 2021 and 2020





 

 

 

 



 

Year Ended December 31,



 

2021

 

2020

Cash flows from operations:

 

 

 

 

Net income (loss)

 

$                         83,304

 

$                      (707)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Equity in earnings of unconsolidated entity

 

8,522 

 

 —

Unrealized devaluation loss, net

 

90,629 

 

89,329 

Impairment of digital assets

 

8,647 

 

 —

Depreciation and amortization

 

203,942 

 

104,992 

Accrued interest income

 

(35,880)

 

(45,593)

Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges

 

86,038 

 

15,033 

Bad debt charges

 

435,314 

 

132,944 

Financial results on derivative instruments

 

429 

 

(1,935)

Settlement of the call option

 

(10,674)

 

 —

Stock-based compensation expense - restricted shares

 

755 

 

730 

Sale of fixed assets and intangible assets

 

 —

 

3,814 

LTRP accrued compensation

 

88,698 

 

129,575 

Deferred income taxes

 

(29,481)

 

(70,315)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable 

 

(26,331)

 

12,069 

Credit cards receivable and other means of payments

 

(1,062,794)

 

(521,979)

Prepaid expenses

 

(12,715)

 

16,204 

Inventories

 

(142,382)

 

(106,981)

Other assets

 

(174,682)

 

(113,819)

Payables and accrued expenses

 

379,767 

 

584,281 

Funds payable to customers

 

808,754 

 

900,513 

Amounts payable due to credit and debit card transactions

 

309,078 

 

37,126 

Other liabilities

 

(79,007)

 

(34,586)

Interest received from investments

 

35,112 

 

51,857 

Net cash provided by operating activities

 

965,043 

 

1,182,552 

Cash flows from investing activities:

 

 

 

 

Purchase of investments

 

(7,370,742)

 

(5,199,875)

Proceeds from sale and maturity of investments

 

7,800,545 

 

5,532,463 

Payment for acquired businesses, net of cash acquired

 

(50,615)

 

(6,937)

Capital contributions in joint ventures

 

(5,113)

 

 —

Receipts from settlements of derivative instruments

 

6,345 

 

17,779 

Payment from settlements of derivative instruments

 

(19,747)

 

(4,136)

Receipts from the sale of fixed assets and intangible assets

 

 —

 

274 

Purchases of intangible assets

 

(36,567)

 

(93)

Changes in principal loans receivable, net

 

(1,347,710)

 

(344,608)

Purchases of property and equipment

 

(572,929)

 

(247,048)

Net cash used in investing activities

 

(1,596,533)

 

(252,181)

Cash flows from financing activities:

 

 

 

 

Purchase of convertible note capped calls

 

(100,769)

 

(306,789)

Excercise of Convertible Notes

 

(3,137)

 

 —

Payments on repurchase of the 2028 Notes

 

(1,865,076)

 

 —

Unwind of convertible note capped calls

 

396,739 

 

 —

Proceeds from loans payable and other financial liabilities

 

9,261,703 

 

2,396,717 

Payments on loans payable and other financing liabilities

 

(6,781,612)

 

(1,785,272)

Payment of finance lease obligations

 

(16,524)

 

(4,949)

Common Stock repurchased

 

(485,886)

 

(54,085)

Dividends paid of preferred stock

 

 —

 

(3,356)

Proceeds from issuance of common stock, net

 

1,519,545 

 

 —

Net cash provided by financing activities

 

1,924,983 

 

242,266 

Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents

 

(153,754)

 

(115,837)

Net increase in cash, cash equivalents, restricted cash and cash equivalents

 

1,139,739 

 

1,056,800 

Cash, cash equivalents, restricted cash and cash equivalents, beginning of the year

 

2,508,224 

 

1,451,424 

Cash, cash equivalents, restricted cash and cash equivalents, end of the year

 

$3,647,963 

 

$2,508,224 





8

 


 

Financial results of reporting segments





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended December 31, 2021

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Brazil

 

Argentina

 

Mexico

 

Other Countries

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

$1,127,152 

 

$474,617 

 

$392,289 

 

$136,708 

 

$2,130,766 

 

Direct costs

 

 

(1,063,045)

 

(323,591)

 

(371,770)

 

(133,072)

 

(1,891,478)

 

Direct contribution

 

 

64,107 

 

151,026 

 

20,519 

 

3,636 

 

239,288 

 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(215,972)

 

Income from operations

 

 

 

 

 

 

 

 

 

 

23,316 

 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

53,374 

 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(53,678)

 

Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(56,951)

 

Net loss before income tax expense

 

 

 

 

 

 

 

 

 

 

$(33,939)

 



 

 

 

 

 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended December 31, 2020

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Brazil

 

Argentina

 

Mexico

 

Other Countries

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

$720,575 

 

$323,451 

 

$204,088 

 

$79,190 

 

$1,327,304 

 

Direct costs

 

 

(617,055)

 

(242,855)

 

(215,793)

 

(70,676)

 

(1,146,379)

 

Direct contribution

 

 

103,520 

 

80,596 

 

(11,705)

 

8,514 

 

180,925 

 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(206,051)

 

Loss from operations

 

 

 

 

 

 

 

 

 

 

(25,126)

 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

22,648 

 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(31,607)

 

Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(9,930)

 

Net loss before income tax expense

 

 

 

 

 

 

 

 

 

 

$(44,015)

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 





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Non-GAAP Financial Measures

To supplement our audited consolidated financial statements presented in accordance with U.S. GAAP, we present foreign exchange (“FX”) neutral measures as a non-GAAP measure. Reconciliation of this non-GAAP financial measure to the most comparable U.S. GAAP financial measure can be found in the tables below.

This non-GAAP measure should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP and may be different from non-GAAP measures used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. This non-GAAP financial measure should only be used to evaluate our results of operations in conjunction with the most comparable U.S. GAAP financial measures.

We provide this non-GAAP financial measure to enhance overall understanding of our current financial performance and its prospects for the future, and we understand that this measure provides useful information to both Management and investors. In particular, we believe that FX neutral measures provide useful information to both Management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.

The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2020 and applying them to the corresponding months in 2021, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.  The table below excludes intercompany allocation FX effects. Finally, these measures do not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.

The following table sets forth the FX neutral measures related to our reported results of the operations for the three-months period ended December 31, 2021:







 

 

 

 

 

 

 

 

 

 

 

 



 

Three-month Periods Ended
December 31, (*)



 

As reported

 

FX Neutral Measures

 

As reported

 

 

(In millions, except percentages)

 

2021

 

2020

 

Percentage Change

 

2021

 

2020

 

Percentage Change

Net revenues

 

$                               2,130.8

 

$                     1,327.3

 

60.5% 

 

$                        2,308.8

 

$                     1,327.3

 

73.9% 

Cost of net revenues

 

(1,277.6)

 

(838.3)

 

52.4% 

 

(1,372.5)

 

(838.3)

 

63.7% 

Gross profit

 

853.2 

 

489.0 

 

74.5% 

 

936.3 

 

489.0 

 

91.5% 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(829.8)

 

(514.2)

 

61.4% 

 

(897.0)

 

(514.2)

 

74.5% 

Income (loss) from operations

 

23.3 

 

(25.1)

 

192.8% 

 

39.2 

 

(25.1)

 

256.2% 





(*) The table above may not total due to rounding.





CONTACT: MercadoLibre, Inc.

 Investor Relations

investor@mercadolibre.com


 http://investor.mercadolibre.com 

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