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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): August 4, 2021

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)

Pasaje Posta 4789, 6th Floor

Buenos Aires, Argentina, C1430EKG

(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))

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  

2.375% Sustainability Notes due 2026

MELI26

The Nasdaq Stock Market LLC

3.125% Notes due 2031

MELI31

The Nasdaq Stock Market LLC

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. ¨



Item 2.02. Results of Operations and Financial Condition.

On August 4, 2021, 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 Number

Description

99.1

Press release dated August 4, 2021

104

The cover page from this Current Report on Form 8-K, formatted in Inline XBRL



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: August 4, 2021

By:

/s/ Pedro Arnt

Pedro Arnt

Chief Financial Officer

Exhibit 99.1





Imagen 1

MercadoLibre, Inc. Reports Second Quarter 2021 Financial Results



Net Revenues of $1.7 billion, up 102.6% year-over-year on an FX neutral basis

$17.5 billion Total Payment Volume, up 72% year-over-year on an FX neutral basis

$7.0 billion Gross Merchandise Volume, up 46% year-over-year on an FX neutral basis



BUENOS AIRES, Argentina, August 4th, 2021 (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 June 30, 2021.

 

Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, I am pleased to announce that the team here at MercadoLibre delivered another quarter of strong growth in our commerce and fintech businesses in Q2 2021, achieving record levels in both volume and revenues. This strong performance builds on the solid first quarter we had this year. We believe that our business is showing tremendous momentum despite immense volatility in our key markets due to the frequent closing of physical retail across Latin America. I am proud to see the consistent execution of our plans while prioritizing innovation, speed of execution and user experience, all elements that are at the core of our corporate DNA.





Second Quarter 2021 Business Highlights

·

Unique active users grew by 47.4% year-over-year, reaching 75.9 million.

·

Gross merchandise volume (“GMV”) grew to $7.0 billion, representing an increase of 39.2% in USD and 46.1% on an FX neutral basis.

·

Successful items sold reached 244.6 million, increasing by 37.0% year-over-year.

·

Live listings offered on MercadoLibre’s marketplace reached 319.1 million.

·

Mobile gross merchandise volume grew by 218.2% year-over-year on an FX neutral basis, reaching 73.4% of GMV.

·

Mercado Envios shipped 230.5 million items during the quarter, representing a 46.4% year-over-year increase.

·

Total payment volume (“TPV”) through Mercado Pago surpassed $17.5 billion, a year-over-year increase of 56.3% in USD and 72.2% on an FX neutral basis. Total payment transactions increased 80.3% year-over-year, totaling 729.9 million transactions for the quarter.

·

Off-platform TPV grew 70.5% year-over-year in USD and 93.5% year-over-year on a FX neutral basis, reaching $10.3 billion, while payment transactions reached 566.0 million, a year-over-year increase of 101.6%.

·

Online Payments TPV grew 67.2% year-over-year on an FX neutral basis.

·

MPOS accelerated TPV growth, reaching 93.7% year-over-year growth on an FX neutral basis.

·

Mobile Wallet TPV grew 106.5% year-over-year on an FX neutral basis.

·

Our asset management product, Mercado Fondo, has over $810 million under management and approximately 19.3 million users across Latin America.

·

Mercado Credito’s portfolio is now over $ 800 million, almost 5x its size compared to the second quarter of 2020.



1

 


 



Second Quarter 2021 Financial Highlights

·

Net revenues for the second quarter were $1.7 billion, a year-over-year increase of 93.9% in USD and 102.6% on an FX neutral basis.

·

Commerce revenues increased 96.4% year-over-year in USD reaching $1,142.3 million, while Fintech revenues increased 88.9% year-over-year in USD reaching $560.4 million.

·

Gross profit was $753.9 million with a margin of 44.3%, compared to 48.6% in the second quarter of 2020.

·

Total operating expenses were $587.8 million, an increase of 79.3% year-over-year in USD. As a percentage of revenues, operating expenses were 34.5%, compared to 37.3% during the second quarter of 2020.

·

Income from operations was $166.2 million, compared to $99.4 million during the prior year. As a percentage of revenues, income from operations was 9.8%.

·

Interest income was $24.2 million, a 28.7% increase year-over-year. We incurred $39.3 million in interest and financial expenses this quarter, a 45.8% increase year-over-year.

·

We had foreign currency losses of $12.1 million, mainly 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 income before income tax expense was $138.9 million, a 55.5% increase from the $89.3 million during the second quarter of 2020.

·

Income tax expense was $70.7 million, mainly as a result of higher income tax expense in Argentina as a consequence of higher pre-tax gain in our Argentine segment in 2021 and higher income tax expense due to withholding tax on dividends from our Argentine subsidiary.

·

Net income was $68.2 million, resulting in net income per share of $1.37.



The following table summarizes certain key performance metrics for the six and three months periods ended June 30, 2021 and 2020.





 

 

 

 

 

 

 

 

 

 

 

 



  

Six-month Periods Ended

June 30,

  

 

Three-month Periods Ended

June 30,

(in millions)(*)

  

2021

 

2020

 

 

2021

2020



  

 

 

  

 

 

  

 

 

  

 

 

Unique active users

  

 

98.0 

  

 

65.5 

  

 

75.9 

  

 

51.5 

Gross merchandise volume

  

$

13,079.8 

  

$

8,459.0 

  

$

7,022.6 

  

$

5,044.8 

Number of successful items sold

  

 

466.6 

  

 

284.2 

  

 

244.6 

  

 

178.5 

Number of successful items shipped

 

 

438.6 

 

 

247.7 

 

 

230.5 

 

 

157.5 

Total payment volume

  

$

32,247.1 

  

$

19,308.8 

  

$

17,529.4 

  

$

11,214.3 

Total volume of payments on marketplace

  

$

12,615.2 

  

$

7,966.5 

  

$

6,775.2 

  

$

4,763.2 

Total payment transactions

 

 

1,360.0 

 

 

695.5 

 

 

729.9 

 

 

404.8 

Capital expenditures

  

$

262.8 

  

$

101.9 

  

$

150.2 

  

$

48.4 

Depreciation and amortization

  

$

84.5 

  

$

44.2 

  

$

46.1 

  

$

22.7 



(*) 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

 

Q2’20

 

Q3’20

 

Q4’20

 

Q1’21

 

Q2’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

37

%

57

%

68

%

93

%

104

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

110

%

145

%

144

%

124

%

53

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

96

%

111

%

141

%

143

%

105

%



 

 

 

 

 

 

 

 

 

 

 

2

 


 









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





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Consolidated

Net Revenues

 

Q2’20

 

Q3’20

 

Q4’20

 

Q1’21

 

Q2’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

87

%

112

%

120 

%

139 

%

101 

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

224

%

260

%

229 

%

223 

%

112 

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

138

%

140

%

155 

%

148 

%

76 

%



 

 

 

 

 

 

 

 

 

 

 



























Conference Call and Webcast

The Company will host a conference call and audio webcast on August 4th, 2021 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID – 8869655 –) 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.

3

 


 

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, sale of goods, 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 Form 10-K for the year ended December 31, 2020,  “Item 1A-Risk Factors” in Part II of our Form 10-Q for the quarter ended March 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.

Interim Condensed Consolidated Balance Sheets

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



 

 

 



June 30,

 

December 31,



2021

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$                       1,069,909

 

$                    1,856,394

Restricted cash and cash equivalents

361,180 

 

651,830 

Short-term investments (707,885 and 636,949 held in guarantee)

898,367 

 

1,241,306 

Accounts receivable, net

69,844 

 

49,691 

Credit cards receivable and other means of payments, net

1,189,802 

 

863,073 

Loans receivable, net

547,183 

 

385,036 

Prepaid expenses

58,143 

 

28,378 

Inventory

169,449 

 

118,140 

Other assets

203,774 

 

152,959 

Total current assets

4,567,651 

 

5,346,807 

Non-current assets:

 

 

 

Long-term investments

181,411 

 

166,111 

Loans receivable, net

23,269 

 

16,619 

Property and equipment, net

618,997 

 

391,684 

Operating lease right-of-use assets

396,253 

 

303,214 

Goodwill

85,165 

 

85,211 

Intangible assets, net

23,894 

 

14,155 

Deferred tax assets

132,618 

 

134,916 

Other assets

113,436 

 

67,615 

Total non-current assets

1,575,043 

 

1,179,525 

Total assets

$                       6,142,694

 

$                    6,526,332

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$                          857,622

 

$                       767,336

Funds payable to customers and amounts due to merchants

1,839,209 

 

1,733,095 

Salaries and social security payable

204,174 

 

207,358 

Taxes payable

232,090 

 

215,918 

Loans payable and other financial liabilities

579,786 

 

548,393 

Operating lease liabilities

80,597 

 

55,246 

Other liabilities

75,812 

 

108,534 

Total current liabilities

3,869,290 

 

3,635,880 

Non-current liabilities:

 

 

 

Salaries and social security payable

18,929 

 

49,852 

Loans payable and other financial liabilities

1,788,481 

 

860,876 

Operating lease liabilities

313,479 

 

243,601 

Deferred tax liabilities

48,529 

 

64,354 

Other liabilities

22,956 

 

20,191 

Total non-current liabilities

2,192,374 

 

1,238,874 

Total liabilities

$                       6,061,664

 

$                    4,874,754



 

 

 

Commitments and Contingencies

 

 

 



 

 

 

Equity

 

 

 



 

 

 

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

 

 

 

49,711,650 and 49,869,727 shares issued and outstanding at June 30,

 

 

 

2021 and December 31, 2020

$                                   50

 

$                                50

Additional paid-in capital

455,206 

 

1,860,502 

Treasury stock

(276,220)

 

(54,805)

Retained earnings

348,298 

 

314,115 

Accumulated other comprehensive loss

(446,304)

 

(468,284)

Total Equity

81,030 

 

1,651,578 

Total Liabilities and Equity

$                       6,142,694

 

$                    6,526,332









6

 


 

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Income

For the six and three-month periods ended June 30, 2021 and 2020

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







 

 

 

 

 

 

 

 



 

Six Months Ended June 30,

 

Three Months Ended June 30,



 

2021

 

2020

 

2021

 

2020

Net service revenues

 

$              2,735,624

 

$              1,485,774

 

$              1,504,720

 

$                 845,882

Net product revenues

 

345,567 

 

44,686 

 

198,030 

 

32,487 

Net revenues

 

3,081,191 

 

1,530,460 

 

1,702,750 

 

878,369 

Cost of net revenues

 

(1,735,894)

 

(790,474)

 

(948,830)

 

(451,197)

Gross profit

 

1,345,297 

 

739,986 

 

753,920 

 

427,172 

Operating expenses:

 

 

 

 

 

 

 

 

Product and technology development

 

(273,020)

 

(146,689)

 

(146,985)

 

(73,254)

Sales and marketing

 

(621,266)

 

(390,583)

 

(333,107)

 

(184,076)

General and administrative

 

(194,002)

 

(132,970)

 

(107,663)

 

(70,404)

Total operating expenses

 

(1,088,288)

 

(670,242)

 

(587,755)

 

(327,734)

Income from operations

 

257,009 

 

69,744 

 

166,165 

 

99,438 



 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

49,236 

 

55,566 

 

24,165 

 

18,782 

Interest expense and other financial losses (*)

 

(130,631)

 

(50,561)

 

(39,342)

 

(26,977)

Foreign currency losses

 

(27,180)

 

(2,089)

 

(12,091)

 

(1,903)

Net income before income tax expense

 

148,434 

 

72,660 

 

138,897 

 

89,340 



 

 

 

 

 

 

 

 

Income tax expense

 

(114,251)

 

(37,822)

 

(70,702)

 

(33,393)

Net income

 

$                   34,183

 

$                   34,838

 

$                   68,195

 

$                   55,947







 

(*)

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









 

 

 

 

 

 

 

 



 

Six Months Ended June 30,

 

Three Months Ended June 30,



 

2021

 

2020

 

2021

 

2020

Basic EPS

 

 

 

 

 

 

 

 

Basic net income

 

 

 

 

 

 

 

 

Available to shareholders per common share

 

$                      0.69

 

$                      0.66

 

$                      1.37

 

$                      1.11

Weighted average of outstanding common shares

 

49,844,823 

 

49,709,964 

 

49,822,272 

 

49,709,973 

Diluted EPS

 

 

 

 

 

 

 

 

Diluted net income

 

 

 

 

 

 

 

 

Available to shareholders per common share

 

$                      0.69

 

$                      0.66

 

$                      1.37

 

$                      1.11

Weighted average of outstanding common shares

 

49,844,823 

 

49,709,964 

 

49,822,272 

 

49,709,973 



 

 

 

 

 

 

 

 









7

 


 

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Cash Flows

For the six months ended June  30, 2021 and 2020







 

 

 

 



 

Six Months Ended June 30,



 

2021

 

2020



 

 

Cash flows from operations:

 

 

 

 

Net income

 

$                   34,183

 

$                   34,838

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

 

 

 

 

Unrealized devaluation loss, net

 

45,046 

 

29,348 

Impairment of digital assets

 

7,175 

 

 —

Depreciation and amortization

 

84,525 

 

44,202 

Accrued interest

 

(9,395)

 

(28,933)

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

 

48,053 

 

11,932 

Bad debt charges

 

165,999 

 

63,636 

Financial results on derivative instruments

 

10,799 

 

(21,826)

Stock-based compensation expense — restricted shares

 

357 

 

366 

LTRP accrued compensation

 

50,925 

 

51,907 

Deferred income taxes

 

16,411 

 

(31,145)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable 

 

(30,010)

 

23,147 

Credit cards receivables and other means of payments

 

(301,289)

 

(343,229)

Prepaid expenses

 

(29,497)

 

20,807 

Inventory

 

(47,125)

 

(14,270)

Other assets

 

(91,488)

 

(6,965)

Payables and accrued expenses

 

10,364 

 

170,100 

Funds payable to customers and amounts due to merchants

 

83,233 

 

606,307 

Other liabilities

 

(64,072)

 

(73,134)

Interest received from investments

 

14,847 

 

27,597 

Net cash (used in) provided by operating activities

 

(959)

 

564,685 

Cash flows from investing activities:

 

 

 

 

Purchase of investments

 

(5,207,862)

 

(2,326,013)

Proceeds from sale and maturity of investments

 

5,574,560 

 

1,910,311 

Receipts from settlements of derivative instruments

 

3,570 

 

8,624 

Payment for acquired businesses, net of cash acquired

 

 

 

(6,937)

Payment for settlements of derivative instruments

 

(11,141)

 

 —

Purchases of intangible assets

 

(19,543)

 

(87)

Changes in principal of loans receivable, net

 

(333,363)

 

(39,092)

Purchases of property and equipment

 

(262,780)

 

(94,834)

Net cash used in investing activities

 

(256,559)

 

(548,028)

Cash flows from financing activities:

 

 

 

 

Proceeds from loans payable and other financial liabilities

 

3,502,009 

 

1,781,040 

Payments on loans payable and other financial liabilities

 

(2,239,681)

 

(1,353,658)

Payments on repurchase of the 2028 Notes

 

(1,865,076)

 

 —

Payment of finance lease obligations

 

(9,117)

 

(1,064)

Purchase of convertible note capped call

 

(100,769)

 

(104,095)

Unwind of convertible note capped call

 

102,382 

 

 —

Common Stock repurchased

 

(141,963)

 

(720)

Exercise of Convertible Notes

 

(3,137)

 

 —

Dividends paid of preferred stock

 

 

 

(2,000)

Net cash (used in) provided by financing activities

 

(755,352)

 

319,503 

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

 

(64,265)

 

(124,226)

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

 

(1,077,135)

 

211,934 

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

 

$              2,508,224

 

$              1,451,424

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

 

$              1,431,089

 

$              1,663,358



8

 


 

Financial results of reporting segments











 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended June, 2021



 

 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

 

(In thousands)

Net revenues

 

$                           951,090 

 

$                        366,065 

 

$                          258,076 

 

 

$                         127,519 

 

$                        1,702,750 

Direct costs

 

(720,470)

 

(232,176)

 

(261,424)

 

 

(91,258)

 

(1,305,328)

Direct contribution

 

230,620 

 

133,889 

 

(3,348)

 

 

36,261 

 

397,422 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(231,257)

Income from operations

 

 

 

 

 

 

 

 

 

 

166,165 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 



Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

24,165 



Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(39,342)



Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(12,091)

Net income before income tax expense

 

 

 

 

 

 

 

 

 

 

$                           138,897 



 

 

 

 

 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended June 30, 2020



 

 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

 

(In thousands)

Net revenues

 

$                           465,298 

 

$                        239,204 

 

$                          125,950 

 

 

$                           47,917 

 

$                           878,369 

Direct costs

 

(324,754)

 

(171,408)

 

(110,553)

 

 

(34,943)

 

(641,658)

Direct contribution

 

140,544 

 

67,796 

 

15,397 

 

 

12,974 

 

236,711 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(137,273)

Income from operations

 

 

 

 

 

 

 

 

 

 

99,438 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 



Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

18,782 



Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(26,977)



Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(1,903)

Net income before income tax expense

 

 

 

 

 

 

 

 

 

 

$                            89,340 

















9

 


 



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 June 30, 2021:







 

 

 

 

 

 

 

 

 

 

 

 



 

Three-month Periods Ended

June 30, (*)



 

As reported

 

FX Neutral Measures

 

As reported

 

 

(In millions, except percentages)

 

2021

 

2020

 

Percentage Change

 

2021

 

2020

 

Percentage Change



 

(Unaudited)

 

 

 

(Unaudited)

 

 

Net revenues

 

$                               1,702.7

 

$                        878.4

 

93.9% 

 

$                        1,780.0

 

$                        878.4

 

102.6% 

Cost of net revenues

 

(948.8)

 

(451.2)

 

110.3% 

 

(980.3)

 

(451.2)

 

117.3% 

Gross profit

 

753.9 

 

427.2 

 

76.5% 

 

799.7 

 

427.2 

 

87.2% 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(587.8)

 

(327.7)

 

79.3% 

 

(625.6)

 

(327.7)

 

90.9% 

Income from operations

 

166.2 

 

99.4 

 

67.1% 

 

174.1 

 

99.4 

 

75.1% 





(*) 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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