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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): November 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)

WTC Free Zone

Dr. Luis Bonavita 1294, Of. 1733, Tower II

Montevideo, Uruguay , 11300

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

Pasaje Posta 4789, 6th Floor

Buenos Aires, Argentina, C1430EKG

(Former Address) (Zip Code)

(+598) 2927-2770

(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 November 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 November 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: November 4, 2021

By:

/s/ Pedro Arnt

Pedro Arnt

Chief Financial Officer

Exhibit 991





Imagen 1

MercadoLibre, Inc. Reports Third Quarter 2021 Financial Results



Net Revenues of $1.9 billion, up 72.9% year-over-year on an FX neutral basis

$20.9 billion Total Payment Volume, up 59.0% year-over-year on an FX neutral basis

$7.3 billion Gross Merchandise Volume, up 29.7% year-over-year on an FX neutral basis



BUENOS AIRES, Argentina, November 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 September 30, 2021.

 

Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, As a result of what we believe to be these lasting contributions to financial inclusion and the democratization of commerce through an improved experience for our users, our volume growth rates continue to demonstrate a solid trajectory over the long term. We have once again reached new records in gross merchandise volume, payment volumes and credit portfolio size; which demonstrates resilience and strength across all parts of our ecosystem. Moreover, we see our engagement and satisfaction improving sequentially for both commerce and fintech services, which is particularly encouraging given the user base expansion that we have driven over the last year.





Third Quarter 2021 Business Highlights

·

Considering our entire ecosystem, Unique active users reached 78.7 million.

·

Gross merchandise volume (“GMV”) grew to $7.3 billion, representing an increase of 23.9% in USD and 29.7% on an FX neutral basis.

·

Successful items sold reached 259.8 million, increasing by 26.3% year-over-year.

·

Live listings offered on MercadoLibre’s marketplace reached 335.1 million.

·

Mobile gross merchandise volume reached 74.1% of GMV.

·

Mercado Envios shipped 247.8 million items during the quarter, representing a 32.1% year-over-year increase.

·

Total payment volume (“TPV”) through Mercado Pago almost topped $20.9 billion, a year-over-year increase of 43.9% in USD and 59.0% on an FX neutral basis. Total payment transactions increased 54.7% year-over-year, totaling 865.7 million transactions for the quarter.

·

Off-platform TPV grew 59.0% year-over-year in USD and 78.8% year-over-year on a FX neutral basis, reaching $13.4 billion, while payment transactions reached 697.4 million, a year-over-year increase of 67.3%.

·

We are offering a more robust breakdown of our total payments volume, including Acquiring TPV and Digital Account TPV.

·

Acquiring TPV, which includes On-Platform, Online Payments, MPoS and QR payments, was $15.4 billion, growing 45.5% 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 $5.5 billion, growing 101.1% on an FX neutral basis.

·

Our asset management product, Mercado Fondo, has now almost $919 million under management and approximately 20.7 million users across Latin America.

·

Mercado Credito’s portfolio is now over $ 1.1 billion, almost 4x its size compared to the third quarter of 2020.

1

 


 



Third Quarter 2021 Financial Highlights

·

Net revenues for the third quarter were $1.9 billion, a year-over-year increase of 66.5% in USD and 72.9% on an FX neutral basis.

·

Commerce revenues increased 69.0% year-over-year in USD reaching $1,224.7 million, while Fintech revenues increased 61.7% year-over-year in USD reaching $632.8 million.

·

Gross profit was $806.6 million with a margin of 43.4%, compared to 43.0% in the third quarter of 2020.

·

Total operating expenses were $646.2 million, an increase of 62.7% year-over-year in USD. As a percentage of revenues, operating expenses were 34.8%, compared to 35.6% during the third quarter of 2020.

·

Income from operations was $160.4 million, compared to $83.1 million during the prior year. As a percentage of revenues, income from operations was 8.6%.

·

Interest income and other financial gains was $35.4 million, a 44.0% increase year-over-year. We incurred $44.4 million in interest expense and other financial losses this quarter, an 81.0% increase year-over-year.

·

We had foreign currency losses of $25.2 million, mainly attributable to a general deterioration in FX currencies of our 3 key geographies.

·

During the quarter, our Argentine subsidiary was approved as eligible under the knowledge-based economy promotional regime the tax benefits granted under the promotional regime are retroactive to January 2020 and will also apply to our future results. For more details, please see our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.

·

Net income before income tax expense was $126.1 million, a 139.5% increase from the $52.7 million during the third quarter of 2020.

·

Income tax expense was $30.9 million, mainly as a result of higher income tax expense in Brazil due to higher pre-tax gain in Brazil this quarter, partially offset by an income tax benefit in Argentina related to the approval of our Argentine subsidiary’s application for eligibility pursuant to the knowledge-based economy promotional regime.

·

Net income was $95.2 million, resulting in net income per share of $1.92.



The following table summarizes certain key performance metrics for the nine and three-month periods ended September 30, 2021 and 2020.





 

 

 

 

 

 

 

 

 

 

 

 



  

Nine-month Periods Ended

September 30, (*)

  

 

Three-month Periods Ended

September 30, (*)

(in millions)

  

2021

 

2020

 

 

2021

2020



  

 

 

  

 

 

  

 

 

  

 

 

Unique active users

  

 

224.5 

  

 

112.5 

  

 

78.7 

  

 

76.1 

Gross merchandise volume

  

$

20,394.2 

  

$

14,361.4 

  

$

7,314.4 

  

$

5,902.4 

Number of successful items sold

  

 

726.5 

  

 

489.9 

  

 

259.8 

  

 

205.7 

Number of successful items shipped

 

 

686.4 

 

 

435.2 

 

 

247.8 

 

 

187.6 

Total payment volume

  

$

53,126.9 

  

$

33,814.8 

  

$

20,879.8 

  

$

14,506.0 

Total volume of payments on marketplace

  

$

19,673.1 

  

$

13,615.4 

  

$

7,058.0 

  

$

5,648.9 

Total payment transactions

 

 

2,225.6 

 

 

1,255.2 

 

 

865.7 

 

 

559.7 

Capital expenditures

  

$

433.9 

  

$

166.8 

  

$

171.0 

  

$

65.0 

Depreciation and amortization

  

$

136.8 

  

$

72.4 

  

$

52.3 

  

$

28.2 



(*) 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

 

Q3’20

 

Q4’20

 

Q1’21

 

Q2’21

 

Q3’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

57

%

68

%

93

%

104

%

74

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

145

%

144

%

124

%

53

%

38

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

111

%

141

%

143

%

105

%

94

%



 

 

 

 

 

 

 

 

 

 

 



2

 


 

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





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Consolidated

Net Revenues

 

Q3’20

 

Q4’20

 

Q1’21

 

Q2’21

 

Q3’21

 



 

 

 

 

 

 

 

 

 

 

 

Brazil

 

112

%

120

%

139 

%

101 

%

69 

%



 

 

 

 

 

 

 

 

 

 

 

Argentina

 

260

%

229

%

223 

%

112 

%

83 

%



 

 

 

 

 

 

 

 

 

 

 

Mexico

 

140

%

155

%

148 

%

76 

%

76 

%



 

 

 

 

 

 

 

 

 

 

 



























Conference Call and Webcast

The Company will host a conference call and audio webcast on November 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 – 7238308 –) 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)



 

 

 



September 30,

 

December 31,



2021

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$                          987,213

 

$                    1,856,394

Restricted cash and cash equivalents

435,348 

 

651,830 

Short-term investments (739,176 and 636,949 held in guarantee)

1,041,868 

 

1,241,306 

Accounts receivable, net

70,542 

 

49,691 

Credit cards receivable and other means of payments, net

1,428,454 

 

863,073 

Loans receivable, net

772,753 

 

385,036 

Prepaid expenses

52,337 

 

28,378 

Inventory

226,694 

 

118,140 

Other assets

267,912 

 

152,959 

Total current assets

5,283,121 

 

5,346,807 

Non-current assets:

 

 

 

Long-term investments

38,027 

 

166,111 

Loans receivable, net

31,184 

 

16,619 

Property and equipment, net

702,528 

 

391,684 

Operating lease right-of-use assets

389,806 

 

303,214 

Goodwill

80,949 

 

85,211 

Intangible assets, net

30,709 

 

14,155 

Deferred tax assets

127,508 

 

134,916 

Other assets

116,185 

 

67,615 

Total non-current assets

1,516,896 

 

1,179,525 

Total assets

$                       6,800,017

 

$                    6,526,332

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$                          906,393

 

$                       767,336

Funds payable to customers and amounts due to merchants

1,987,083 

 

1,733,095 

Salaries and social security payable

277,489 

 

207,358 

Taxes payable

196,561 

 

215,918 

Loans payable and other financial liabilities

765,135 

 

548,393 

Operating lease liabilities

83,677 

 

55,246 

Other liabilities

70,193 

 

108,534 

Total current liabilities

4,286,531 

 

3,635,880 

Non-current liabilities:

 

 

 

Salaries and social security payable

22,691 

 

49,852 

Loans payable and other financial liabilities

1,970,393 

 

860,876 

Operating lease liabilities

307,333 

 

243,601 

Deferred tax liabilities

54,951 

 

64,354 

Other liabilities

35,142 

 

20,191 

Total non-current liabilities

2,390,510 

 

1,238,874 

Total liabilities

$                       6,677,041

 

$                    4,874,754



 

 

 

Commitments and Contingencies

 

 

 



 

 

 

Equity

 

 

 



 

 

 

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

 

 

 

49,458,958 and 49,869,727 shares issued and outstanding at September 30,

 

 

 

2021 and December 31, 2020

$                                   49

 

$                                50

Additional paid-in capital

919,584 

 

1,860,502 

Treasury stock

(744,102)

 

(54,805)

Retained earnings

443,523 

 

314,115 

Accumulated other comprehensive loss

(496,078)

 

(468,284)

Total Equity

122,976 

 

1,651,578 

Total Liabilities and Equity

$                       6,800,017

 

$                    6,526,332









6

 


 

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Income

For the nine and three-month periods ended September 30, 2021 and 2020

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







 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,

 

Three Months Ended September 30,



 

2021

 

2020

 

2021

 

2020

Net service revenues

 

$              4,366,538

 

$              2,524,348

 

$              1,630,914

 

$              1,038,574

Net product revenues

 

572,105 

 

121,813 

 

226,538 

 

77,127 

Net revenues

 

4,938,643 

 

2,646,161 

 

1,857,452 

 

1,115,701 

Cost of net revenues

 

(2,786,756)

 

(1,425,985)

 

(1,050,862)

 

(635,511)

Gross profit

 

2,151,887 

 

1,220,176 

 

806,590 

 

480,190 

Operating expenses:

 

 

 

 

 

 

 

 

Product and technology development

 

(410,691)

 

(235,485)

 

(137,671)

 

(88,796)

Sales and marketing

 

(1,006,789)

 

(620,204)

 

(385,523)

 

(229,621)

General and administrative

 

(317,020)

 

(211,669)

 

(123,018)

 

(78,699)

Total operating expenses

 

(1,734,500)

 

(1,067,358)

 

(646,212)

 

(397,116)

Income from operations

 

417,387 

 

152,818 

 

160,378 

 

83,074 



 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

84,588 

 

80,119 

 

35,352 

 

24,553 

Interest expense and other financial losses (*)

 

(175,026)

 

(75,083)

 

(44,395)

 

(24,522)

Foreign currency losses

 

(52,382)

 

(32,524)

 

(25,202)

 

(30,435)

Net income before income tax expense

 

274,567 

 

125,330 

 

126,133 

 

52,670 



 

 

 

 

 

 

 

 

Income tax expense

 

(145,159)

 

(75,457)

 

(30,908)

 

(37,635)

Net income

 

$                 129,408

 

$                   49,873

 

$                   95,225

 

$                   15,035







 

(*)

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









 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,

 

Three Months Ended September 30,



 

2021

 

2020

 

2021

 

2020

Basic EPS

 

 

 

 

 

 

 

 

Basic net income

 

 

 

 

 

 

 

 

Available to shareholders per common share

 

$                      2.60

 

$                      0.94

 

$                      1.92

 

$                      0.28

Weighted average of outstanding common shares

 

49,761,360 

 

49,713,621 

 

49,597,157 

 

49,720,854 

Diluted EPS

 

 

 

 

 

 

 

 

Diluted net income

 

 

 

 

 

 

 

 

Available to shareholders per common share

 

$                      2.60

 

$                      0.94

 

$                      1.92

 

$                      0.28

Weighted average of outstanding common shares

 

49,761,360 

 

49,713,621 

 

49,597,157 

 

49,720,854 



 

 

 

 

 

 

 

 









7

 


 

MercadoLibre, Inc.

Interim Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2021 and 2020







 

 

 

 



 

Nine Months Ended September 30,



 

2021

 

2020



 

 

Cash flows from operations:

 

 

 

 

Net income

 

$                 129,408

 

$                   49,873

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Unrealized devaluation loss, net

 

67,119 

 

59,471 

Impairment of digital assets

 

7,741 

 

 —

Depreciation and amortization

 

136,761 

 

72,436 

Accrued interest

 

(20,714)

 

(37,550)

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

 

60,550 

 

15,001 

Bad debt charges

 

271,332 

 

79,491 

Financial results on derivative instruments

 

872 

 

(26,535)

Stock-based compensation expense — restricted shares

 

538 

 

548 

LTRP accrued compensation

 

83,972 

 

75,142 

Sale of fixed assets and intangible assets

 

 —

 

3,814 

Deferred income taxes

 

18,383 

 

(58,485)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable 

 

(7,206)

 

51,250 

Credit cards receivables and other means of payments

 

(616,595)

 

(351,397)

Prepaid expenses

 

(24,312)

 

15,627 

Inventory

 

(113,692)

 

(40,322)

Other assets

 

(147,897)

 

(18,240)

Payables and accrued expenses

 

127,044 

 

357,804 

Funds payable to customers and amounts due to merchants

 

331,873 

 

711,987 

Other liabilities

 

(63,373)

 

(69,829)

Interest received from investments

 

22,543 

 

35,909 

Net cash provided by operating activities

 

264,347 

 

925,995 

Cash flows from investing activities:

 

 

 

 

Purchase of investments

 

(6,499,127)

 

(3,600,715)

Proceeds from sale and maturity of investments

 

6,798,408 

 

3,081,643 

Receipts from settlements of derivative instruments

 

3,598 

 

17,779 

Capital contributions in joint ventures

 

(5,113)

 

 —

Payment for acquired businesses, net of cash acquired

 

 —

 

(6,937)

Receipts from the sale of fixed assets and intangible assets

 

 —

 

274 

Payment for settlements of derivative instruments

 

(19,620)

 

 —

Purchases of intangible assets

 

(29,211)

 

(93)

Changes in principal of loans receivable, net

 

(711,699)

 

(170,284)

Purchases of property and equipment

 

(424,646)

 

(159,797)

Net cash used in investing activities

 

(887,410)

 

(838,130)

Cash flows from financing activities:

 

 

 

 

Proceeds from loans payable and other financial liabilities

 

6,056,090 

 

1,890,156 

Payments on loans payable and other financial liabilities

 

(4,365,252)

 

(1,415,845)

Payments on repurchase of the 2028 Notes

 

(1,865,076)

 

 —

Payment of finance lease obligations

 

(12,612)

 

(2,499)

Purchase of convertible note capped call

 

(100,769)

 

(186,777)

Unwind of convertible note capped call

 

396,739 

 

 —

Common Stock repurchased

 

(440,005)

 

(39,671)

Exercise of Convertible Notes

 

(3,137)

 

 —

Dividends paid of preferred stock

 

 —

 

(3,000)

Net cash (used in) provided by financing activities

 

(334,022)

 

242,364 

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

 

(128,578)

 

(157,524)

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

 

(1,085,663)

 

172,705 

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

 

$              1,422,561

 

$              1,624,129



8

 


 

Financial results of reporting segments











 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended September 30, 2021



 

 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

 

(In thousands)

Net revenues

 

$                         1,062,620 

 

$                        393,109 

 

$                          291,496 

 

 

$                         110,227 

 

$                        1,857,452 

Direct costs

 

(831,656)

 

(253,069)

 

(284,751)

 

 

(91,886)

 

(1,461,362)

Direct contribution

 

230,964 

 

140,040 

 

6,745 

 

 

18,341 

 

396,090 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(235,712)

Income from operations

 

 

 

 

 

 

 

 

 

 

160,378 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 



Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

35,352 



Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(44,395)



Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(25,202)

Net income before income tax expense

 

 

 

 

 

 

 

 

 

 

$                           126,133 



 

 

 

 

 

 

 

 

 

 

 

 











 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended September 30, 2020



 

 

Brazil

 

Argentina

 

Mexico

 

 

Other Countries

 

Total



 

 

(In thousands)

Net revenues

 

$                           610,721 

 

$                        284,746 

 

$                          150,382 

 

 

$                           69,852 

 

$                        1,115,701 

Direct costs

 

(501,544)

 

(193,373)

 

(144,914)

 

 

(53,212)

 

(893,043)

Direct contribution

 

109,177 

 

91,373 

 

5,468 

 

 

16,640 

 

222,658 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(139,584)

Income from operations

 

 

 

 

 

 

 

 

 

 

83,074 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 



Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

24,553 



Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(24,522)



Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(30,435)

Net income before income tax expense

 

 

 

 

 

 

 

 

 

 

$                             52,670 



















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 September 30, 2021:







 

 

 

 

 

 

 

 

 

 

 

 



 

Three-month Periods Ended

September 30, (*)



 

As reported

 

FX Neutral Measures

 

As reported

 

 

(In millions, except percentages)

 

2021

 

2020

 

Percentage Change

 

2021

 

2020

 

Percentage Change



 

(Unaudited)

 

 

 

(Unaudited)

 

 

Net revenues

 

$                               1,857.5

 

$                     1,115.7

 

66.5% 

 

$                        1,929.1

 

$                     1,115.7

 

72.9% 

Cost of net revenues

 

(1,050.9)

 

(635.5)

 

65.4% 

 

(1,076.3)

 

(635.5)

 

69.4% 

Gross profit

 

806.6 

 

480.2 

 

68.0% 

 

852.8 

 

480.2 

 

77.6% 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(646.2)

 

(397.1)

 

62.7% 

 

(664.9)

 

(397.1)

 

67.4% 

Income from operations

 

160.4 

 

83.1 

 

93.1% 

 

187.9 

 

83.1 

 

126.2% 





(*) 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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