Guide to understand MELI
For over 20 years, we have been using technology to democratize commerce and money in Latin America, generating profound transformation for our 100 million+ unique active users.
We have built a trusted, agile and people-centric ecosystem that is formed by Mercado Libre, our commerce business, and Mercado Pago, our Fintech.
One of the principles of the Mercado Libre culture is “in continuous beta”; this means that we are permanently focused on innovating to bring the best experience to our users, and to extend our competitive advantages.
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Glossary
C
Commerce
Revenues from core marketplace fees, shipping fees, first-party sales, ad sales, classified fees and
other ancillary services.
F
Fintech
Revenues includes fees from off-platform transactions, financing fees, interest earned from merchant
and consumer credits and sale of MPOS.
Foreign Exchange (“FX”) Neutral
Calculated by using the average monthly exchange rate of each month of
2022 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.
G
G&A
General and administrative expenses
GMV – Gross merchandise volume
Measure of the total U.S. dollar sum of all transactions completed through the Mercado Libre Marketplace, excluding Classifieds transactions.
I
IMAL – Interest Margins After Losses
IMAL is the spread between credit revenues and the expenses associated
with provisions for doubtful accounts, and usually expressed as a percentage of the outstanding portfolio.
L
Local Currency Growth Rates
Refer to FX Neutral definition.
M
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.
N
Net income margin
Defined as net income as a percentage of net revenues.
Non-performing loan (NPL) ratio
Shows the percentage of the loan portfolio that is not being paid on-time
O
Operating margin
Defined as income from operations as a percentage of net revenues
S
Successful items shipped
Measure of the number of items that were shipped through our shipping service.
Successful items sold
Measure of the number of items that were sold/purchased through the Mercado Libre Marketplace, excluding Classifieds items.
T
Total payment transactions
Measure of the number of all transactions paid for using Mercado Pago
Total payment volume
Measure of total U.S. dollar sum of all transactions paid for using Mercado Pago, including marketplace and non-marketplace transactions.
Total volume of payments on marketplace
Measure of the total U.S. dollar sum of all marketplace transactions paid for using Mercado Pago
U
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.
Unique Fintech User
Users who engage in at least one of the following services within the quarter: wallet payments online, in app or in store; transfers; withdrawals; consumer or merchant credit borrowers; card users; fintech sellers; and fintech active products such as asset management and insurtech users.