20190331 Form 8K









 



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





 

 



 

 



FORM 8-K



 

 



 

 





CURRENT REPORT





 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Date of Report (Date of earliest event Reported): May 2, 2019





 

 



 

 

MercadoLibre, Inc.

(Exact name of Registrant as specified in Charter)

Commission file number 001-33647





 

 



 

 







 

 



 

 

Delaware

 

98-0212790

(State or other jurisdiction of

incorporation )

 

(I.R.S. Employer

Identification Number)

Arias 3751, 7th Floor

Buenos Aires, Argentina, C1430CRG

(Address of registrant’s principal executive offices) (ZIP Code)

(+5411) 4640-8000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)





 

 



 

 



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



 

 

Securities registered pursuant to Section 12(b) of the Act:

Title of Class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

MELI

Nasdaq Global Select Market


 

Item 2.02. Results of Operations and Financial Condition.

On May 2, 2019, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.



Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated May 2, 2019


 

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



 

 

 

 

 

 



 

 

 

 

 

 



 

 

 

MERCADOLIBRE, INC.



 

 

 

Registrant



 

 

 

Date: May 2, 2019

 

 

 

By:

 

/s/ Pedro Arnt



 

 

 

 

 

Pedro Arnt



 

 

 

 

 

Chief Financial Officer






Exhibit 99.1



Imagen 2

MercadoLibre, Inc. Reports First Quarter 2019 Financial Results



Net Revenues of $473.8 million, up 92.9% on an FX neutral basis

$5.6  billion Total Payment Volume, up 82.5% on an FX neutral basis

$3.1 billion Gross Merchandise Volume, up 26.6% on an FX neutral basis

BUENOS AIRES, Argentina, May 2nd, 2019 (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 March 31, 2019.

 

Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented,  I am very pleased with the results we delivered this quarter. It is encouraging to enter the new year with continued momentum in our business and to see our strategy delivering on multiple fronts in a sustainable manner. Our Marketplace business showed great resiliency, our Payments business is gaining traction in its online to offline efforts, and our Shipping efforts continue growing the size of our managed network. From a financial perspective, the 1Q’19 was a very strong quarter, as net revenues accelerated to 92.9% YoY growth on an FX neutral basis. 



First Quarter 2019 Business Highlights1

·

Total payment volume through MercadoPago surpassed the $5.5 billion mark for the first time, reaching $5.6 billion, a year-over-year increase of 35.1% in USD and 82.5% on an FX neutral basis. Total payment transactions increased 93.7% year-over-year, totaling 143.9 million transactions for the quarter.

·

MercadoPago experienced continued success in execution of off-platform payments (online and offline) through merchant services, mobile point-of-sale (“MPOS”) devices, and the mobile wallet business. On a consolidated basis, off-platform total payment volume grew 118.8% year-over-year in USD and 194.2% on an FX neutral basis.

·

For the first time ever, off-platform payments processed over $2.5 billion in transactions, surpassing 80 million payment transactions in a single quarter with 88.2 million payment transactions.

·

MPOS business is still one of the fastest growing non-marketplace business units, representing 43.9% of total off-platform payment volume for the quarter. On a consolidated basis, MPOS total payment volume grew 260.4% year-over-year on an FX neutral basis.

·

Our mobile wallet again reached four times the number of active payers during the quarter as compared to the same period in 2018, and total payment volume from mobile wallet in Argentina, Brazil and Mexico continued to reflect triple digits growth year-over-year.

·

Our asset management product, Mercado Fondo, is now available in Argentina and Brazil, where we offer our entire suite of FinTech solutions: MPOS devices, QR code in-store payments, mobile wallet and asset management.

·

Gross merchandise volume (“GMV”) reaccelerated surpassing the $3 billion mark, reaching $3.1 billion, a 1.7% year-over-year decrease in USD, and a 26.6% year-over-year increase on an FX neutral basis, following a decrease of 10.6% in USD and growth of 17.6% on an FX neutral basis in the fourth quarter of 2018.

·

Items sold reached 82.8 million, growing 3.3% year-over-year, compared to a growth of 50.8%  in the first quarter of 2018.  The decline in the year-over-year growth rate is attributable to Brazil, where in July of last year we launched the R$5 flat listing fee on items below R$ 120 and removed listings below R$ 6 as we shift towards incentivizing buyers to purchase higher-ticket items.

·

Unique buyers also reaccelerated increasing 10.8% year-over-year versus 7.5% during the fourth quarter of 2018.

·

Live listings offered on MercadoLibre’s marketplace surpassed for the first time the 200 million mark reaching 200.6 million in the first quarter of 2019, a 57.9% year-over-year increase.

·

Mobile gross merchandise volume grew 10.9% year-over-year on an FX neutral basis reaching 62.9% of GMV.

·

Items shipped through MercadoEnvios reached 62.9 million, an 18.6% year-over-year increase, driven primarily by the expansion of our free shipping program. The number of items shipped in Argentina, Mexico, Chile and Colombia were highlights of the quarter, growing 110.8%, 74.9%, 29.8% and 44.0%, respectively, year-over-year.



 1 Percentages have been calculated using whole amounts rather than rounded amounts.

1

 


 

The tables below present our gross billing and amounts paid by us in connection with our free shipping service.

The Company presents net revenue net of amounts paid in connection with the Company’s free shipping initiative, when the Company acts as an agent, rather than including these amounts in the cost of net sales, as previously recorded. For the three-month period ended March 31, 2019 the Company incurred $74.0 million of shipping subsidies that have been netted from revenues.





 

 

 

 

 

 



 

 

In Millions (*)



 

 

Q1 2019

 

 

Q1 2018



Brazil

$

358.6 

 

$

276.3 

Gross

Argentina

$

103.0 

 

$

106.1 

Billings

Mexico

$

61.2 

 

$

29.4 



Others

$

25.0 

 

$

21.8 



Total

$

547.8 

 

$

433.5 











 

 

 

 

 

 



 

 

In Millions (*)



 

 

Q1 2019

 

 

Q1 2018



Brazil

$

(56.2)

 

$

(92.1)

Free Shipping

Argentina

$

(9.2)

 

$

(4.1)

service cost

Mexico

$

(6.6)

 

$

(12.3)



Others

$

(2.0)

 

$

(3.9)



Total

$

(74.0)

 

$

(112.5)







 

 

 

 

 

 



 

 

 

 

 

 



 

 

In Millions (*)



 

 

Q1 2019

 

 

Q4 2018



Brazil

$

302.4 

 

$

184.2 

Net

Argentina

$

93.8 

 

$

101.9 

Revenues

Mexico

$

54.6 

 

$

17.1 



Others

$

23.0 

 

$

17.8 



Total

$

473.8 

 

$

321.0 


*The table above may not total due to rounding.



First Quarter 2019 Financial Highlights

·

Net revenues for the first quarter grew to $473.8 million, a year-over-year increase of 47.6% in USD and 92.9% on an FX neutral basis.

·

Enhanced marketplace revenues increased 79.8% year-over-year in USD, and increased 128.4% on an FX neutral basis, while non-marketplace revenues increased 22.4% year-over-year in USD and 65.2% on an FX neutral basis.

·

Gross profit was $237.0 million with a margin of 50.0%, compared to 50.7% in the first quarter of 2018. Most of the gross margin compression is attributable to shipping carrier and operating costs.

·

Total operating expenses were $226.9 million, an increase of 18.1% year-over-year in USD. As a percentage of revenues, operating expenses were 47.9%, as compared to 59.9% during the first quarter of 2018.

·

Income from operations was $10.1 million, as compared to a loss of $0.8 million last quarter and a loss of $29.4 million during the first quarter 2018. As a percentage of revenues, income from operations was 2.1%.

·

Interest income was $24.4 million, a 165.9% increase year-over-year, mainly attributable to a higher float in Argentina and Brazil, as well as the proceeds from the convertible note issued in August 2018.

·

The company incurred $15.6 million in financial expenses in the first quarter of 2019,  attributed to interest paid on the 2028 convertible notes.

·

The foreign exchange loss for the first quarter of 2019 was $3.7 million, mainly as a consequence of the U.S. Dollar revaluation over our Argentine Peso net asset position in Argentina.

·

Net income before taxes was $15.4 million, up from a loss of $25.4 million during the first quarter 2018.

·

Income tax loss was $3.5 million, yielding a blended tax rate for the period of 22.7%.

·

Net income was $11.9 million, resulting in basic net income per share of $0.13.

·

Operating cash flow was $138.4 million. Net increase in cash, cash equivalents, restricted cash and cash equivalents was $841.6 million.

2

 


 



The following table summarizes certain key performance metrics for the three months ended March 31, 2019 and 2018.





 

 

 

 

 

 



  

 

Three-month Periods Ended
March 31, (*)

(in millions)

 

 

2019

2018



  

 

 

  

 

 

Number of confirmed registered users at end of period

  

 

280.1 

  

 

223.1 

Number of confirmed new registered users during period

  

 

12.3 

  

 

11.2 

Gross merchandise volume 

  

$

3,087.8 

  

$

3,126.4 

Number of successful items sold

  

 

82.8 

  

 

80.1 

Number of successful items shipped

 

 

62.4 

 

 

52.5 

Total payment volume

  

$

5,639.1 

  

$

4,175.3 

Total volume of payments on Marketplace

  

$

2,896.1 

  

$

2,809.5 

Total payment transactions

 

 

143.9 

 

 

74.3 

Unique buyers

 

 

18.8 

 

 

17.0 

Unique sellers

 

 

4.2 

 

 

5.0 

Capital expenditures

  

$

33.0 

  

$

23.0 

Depreciation and amortization

  

$

15.7 

  

$

11.1 



(*) Figures have been expressed using rounding amounts. Growth calculations using this table may not total due to rounding.

Table of Year-over-year USD Revenue Growth Rates by Quarter





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

Q1’18

 

Q2’18

 

Q3’18

 

Q4’18

 

Q1’19

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

15

%

25

%

25

%

34

%

64

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

43

%

14

%

(8)

%

(16)

%

(8)

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

51

%

62

%

152

%

157

%

220

%



 

 

 

 

 

 

 

 

 

 

 



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





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

Q1’18

 

Q2’18

 

Q3’18

 

Q4’18

 

Q1’19

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

19

%

40

%

56

%

58

%

91

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

80

%

68

%

68

%

77

%

83

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

39

%

71

%

168

%

170

%

227

%



 

 

 

 

 

 

 

 

 

 

 





3

 


 

Conference Call and Webcast

The Company will host a conference call and audio webcast on May 2nd, 2019 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 2466479) 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.

Definition of Selected Operational Metrics

Gross Billings - Total accrued fees, commissions, interest, and other sales received from users.

Foreign Exchange (“FX”) Neutral – Calculated by using the average monthly exchange rate of each month of 2018 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 MercadoLibre Marketplace, excluding Classifieds transactions.

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

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

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

Enhanced Marketplace - Revenues from the Enhanced Marketplace service, include the final value fees and shipping fees charged to the Company’s customers.

Items sold – Measure of the number of items that were sold/purchased through the MercadoLibre Marketplace, excluding Classifieds items.

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.

New confirmed registered users – Measure of the number of new users who have registered on the MercadoLibre Marketplace and confirmed their registration, excluding Classifieds users.

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

Total confirmed registered users – Measure of the cumulative number of users who have registered on the MercadoLibre Marketplace and confirmed their registration, excluding Classifieds users.

Unique Buyers – New or existing users with at least one purchase made in the period, including Classifieds users.

Unique Sellers – New or existing users with at least one new listing in the period, including Classifieds users.



4

 


 

About Mercado Libre

Founded in 1999, Mercado Libre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of the necessary online 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 (including online classifieds for motor vehicles, vessels, aircraft, services and real estate), 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 Form 10-K for the year ended December 31, 2018, 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)



 

 

 



March 31,

 

December 31,



2019

 

2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$                    1,295,886

 

$                       440,332

Restricted cash and cash equivalents

10,375 

 

24,363 

Short-term investments (238,029 and 284,317 held in guarantee)

1,648,457 

 

461,541 

Accounts receivable, net

34,524 

 

35,153 

Credit cards receivable, net

308,468 

 

360,298 

Loans receivable, net

134,640 

 

95,778 

Prepaid expenses

24,132 

 

27,477 

Inventory

3,003 

 

4,612 

Other assets

60,968 

 

61,569 

Total current assets

3,520,453 

 

1,511,123 

Non-current assets:

 

 

 

Long-term investments

275,432 

 

276,136 

Property and equipment, net

188,956 

 

165,614 

Operating lease right-of-use assets

153,499 

 

 —

Goodwill

89,827 

 

88,883 

Intangible assets, net

17,683 

 

18,581 

Deferred tax assets

160,846 

 

141,438 

Other assets

41,464 

 

37,744 

Total non-current assets

927,707 

 

728,396 

Total assets

$                    4,448,160

 

$                    2,239,519

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$                       246,767

 

$                       266,759

Funds payable to customers

680,746 

 

640,954 

Salaries and social security payable

76,123 

 

60,406 

Taxes payable

34,414 

 

31,058 

Loans payable and other financial liabilities

141,162 

 

132,949 

Operating lease liabilities

12,585 

 

 —

Other liabilities

56,418 

 

34,098 

Total current liabilities

1,248,215 

 

1,166,224 

Non-current liabilities:

 

 

 

Salaries and social security payable

31,827 

 

23,161 

Loans payable and other financial liabilities

602,061 

 

602,228 

Operating lease liabilities

143,047 

 

 —

Deferred tax liabilities

97,006 

 

91,698 

Other liabilities

13,258 

 

19,508 

Total non-current liabilities

887,199 

 

736,595 

Total liabilities

$                    2,135,414

 

$                    1,902,819



 

 

 

Redeemable convertible preferred stock, $0.001 par value, 40,000,000 shares

 

 

 

authorized, 100,000 shares issued and outstanding at March 31, 2019 (Note 10)

$                         98,688

 

$                                —



 

 

 

Equity

 

 

 



 

 

 

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

 

 

 

49,318,498 and 45,202,859 shares issued and outstanding at March 31,

 

 

 

2019 and December 31, 2018

$                                49

 

$                                45

Additional paid-in capital

2,097,142 

 

224,800 

Retained earnings

509,455 

 

503,432 

Accumulated other comprehensive loss

(392,588)

 

(391,577)

Total Equity

2,214,058 

 

336,700 

Total Liabilities, Redeemable convertible preferred stock and Equity

$                    4,448,160

 

$                    2,239,519



6

 


 



MercadoLibre, Inc.

Consolidated Statements of Income

For the three months ended March 31, 2019 and 2018

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



 

 

 

 



 

Three Months Ended March 31,



 

2019

 

2018

Net revenues

 

$                 473,770

 

$                 320,976

Cost of net revenues

 

(236,766)

 

(158,218)

Gross profit

 

237,004 

 

162,758 

Operating expenses:

 

 

 

 

Product and technology development

 

(52,369)

 

(38,396)

Sales and marketing

 

(130,676)

 

(110,723)

General and administrative

 

(43,820)

 

(43,058)

Total operating expenses

 

(226,865)

 

(192,177)

Income (loss) from operations

 

10,139 

 

(29,419)



 

 

 

 

Other income (expenses):

 

 

 

 

Interest income and other financial gains

 

24,444 

 

9,195 

Interest expense and other financial losses

 

(15,559)

 

(10,734)

Foreign currency (losses) gains

 

(3,669)

 

5,601 

Net income (loss) before income tax (expense) gain

 

15,355 

 

(25,357)



 

 

 

 

Income tax (expense) gain

 

(3,491)

 

12,438 

Net income (loss)

 

$                   11,864

 

$                 (12,919)











 

 

 

 



 

Three Months Ended March 31,



 

2019

 

2018

Basic EPS

 

 

 

 

Basic net income (loss)

 

 

 

 

Available to shareholders per common share

 

$                            0.13

 

$                               (0.29)

Weighted average of outstanding common shares

 

45,980,255 

 

44,157,364 

Diluted EPS

 

 

 

 

Diluted net income (loss)

 

 

 

 

Available to shareholders per common share

 

$                            0.13

 

$                               (0.29)

Weighted average of outstanding common shares

 

45,980,255 

 

44,157,364 



 

 

 

 







7

 


 

MercadoLibre, Inc.

Consolidated Statement of Cash Flows

For the three months ended March 31, 2019 and 2018







 

 

 

 



 

Three Months Ended March 31,



 

2019

 

2018



 

 

Cash flows from operations:

 

 

 

 

Net income (loss)

 

$                         11,864

 

$                       (12,919)

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

 

 

 

 

Unrealized devaluation loss, net

 

1,886 

 

 —

Depreciation and amortization

 

15,694 

 

11,084 

Accrued interest

 

(8,699)

 

(4,447)

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

 

3,018 

 

7,063 

LTRP accrued compensation

 

13,441 

 

15,737 

Deferred income taxes

 

(14,456)

 

(30,601)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable 

 

337 

 

(9,347)

Credit card receivables

 

35,893 

 

(33,870)

Prepaid expenses

 

3,316 

 

(16,164)

Inventory

 

1,652 

 

(872)

Other assets

 

(5,085)

 

(13,009)

Accounts payable and accrued expenses

 

(491)

 

22,773 

Funds payable to customers

 

63,730 

 

20,613 

Other liabilities

 

12,735 

 

3,041 

Interest received from investments

 

3,536 

 

3,912 

Net cash provided by (used in) operating activities

 

138,371 

 

(37,006)

Cash flows from investing activities:

 

 

 

 

Purchase of investments

 

(1,624,226)

 

(632,734)

Proceeds from sale and maturity of investments

 

439,712 

 

683,909 

Purchases of intangible assets

 

(34)

 

(97)

Advance for property and equipment

 

 —

 

(3,390)

Changes in principal of loans receivable, net

 

(42,609)

 

(52,243)

Purchases of property and equipment

 

(32,928)

 

(19,542)

Net cash used in investing activities

 

(1,260,085)

 

(24,097)

Cash flows from financing activities:

 

 

 

 

Purchase of convertible note capped call

 

 —

 

(45,692)

Proceeds from loans payable and other financial liabilities

 

33,977 

 

80,925 

Payments on loans payable and other financing liabilities

 

(23,816)

 

(4,583)

Payment of finance lease obligations

 

(662)

 

 —

Dividends paid

 

 —

 

(6,624)

Proceeds from issuance of convertible redeemable preferred stock, net

 

98,688 

 

 —

Proceeds from issuance of common stock, net

 

1,866,500 

 

 —

Net cash provided by financing activities

 

1,974,687 

 

24,026 

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

 

(11,407)

 

(772)

Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents

 

841,566 

 

(37,849)

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

 

$                       464,695

 

$                       388,260

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

 

$                    1,306,261

 

$                       350,411







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Financial results of reporting segments





 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2019



 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

(In thousands)

Net revenues

 

$                302,384 

 

$                      93,776 

 

$                      54,561 

 

 

$                      23,049 

 

$                  473,770 

Direct costs

 

(225,343)

 

(67,492)

 

(65,585)

 

 

(20,447)

 

(378,867)

Direct contribution

 

77,041 

 

26,284 

 

(11,024)

 

 

2,602 

 

94,903 



 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(84,764)

Income from operations

 

 

 

 

 

 

 

 

 

 

10,139 



 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

24,444 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(15,559)

Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(3,669)

Net income before income tax expense

 

 

 

 

 

 

 

 

 

 

$                    15,355 











 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2018



 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

(In thousands)

Net revenues

 

$                184,155 

 

$                    101,939 

 

$                      17,065 

 

 

$                      17,817 

 

$                  320,976 

Direct costs

 

(176,980)

 

(57,295)

 

(26,323)

 

 

(17,272)

 

(277,870)

Direct contribution

 

7,175 

 

44,644 

 

(9,258)

 

 

545 

 

43,106 



 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(72,525)

Loss from operations

 

 

 

 

 

 

 

 

 

 

(29,419)



 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

9,195 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(10,734)

Foreign currency gains

 

 

 

 

 

 

 

 

 

 

5,601 

Net loss before income tax gains

 

 

 

 

 

 

 

 

 

 

$                   (25,357)





Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use foreign exchange (“FX”) neutral measures.

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.

Reconciliation of this non-GAAP financial measure to the most comparable U.S. GAAP financial measures can be found in the tables included in this quarterly report.

The Company believes that reconciliation of FX neutral measures to the most directly comparable GAAP measure provides investors an overall understanding of our current financial performance and its prospects for the future. Specifically, we believe this non-GAAP measure 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 2018 and applying them to the corresponding months in 2019, 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, this measure does 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.



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The following table sets forth the FX neutral measures related to our reported results of the operations for the three-months ended March 31, 2019:





 

 

 

 

 

 

 

 

 

 

 

 



 

Three-month Periods Ended
March 31, (*)



 

As reported

 

FX Neutral Measures

 

As reported

 

 

(In millions, except percentages)

 

2019

 

2018

 

Percentage Change

 

2019

 

2018

 

Percentage Change



 

(Unaudited)

 

 

 

(Unaudited)

 

 

Net revenues

 

$                                 473.8

 

$                        321.0

 

47.6% 

 

$                           619.2

 

$                        321.0

 

92.9% 

Cost of net revenues

 

(236.8)

 

(158.2)

 

49.6% 

 

(317.1)

 

(158.2)

 

100.4% 

Gross profit

 

237.0 

 

162.8 

 

45.6% 

 

302.2 

 

162.8 

 

85.7% 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(226.9)

 

(192.2)

 

18.1% 

 

(332.9)

 

(192.2)

 

73.3% 

Income (Loss) from operations

 

10.1 

 

(29.4)

 

-134.5%

 

(30.8)

 

(29.4)

 

4.6% 



(*) 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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