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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): March 1, 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 March 1, 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 March 1, 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: March 1, 2021

By:

/s/ Pedro Arnt

Pedro Arnt

Chief Financial Officer

Exhibit 991



Imagen 2

MercadoLibre, Inc. Reports Fourth Quarter 2020 Financial Results



Net Revenues of $1.3 billion, up 148.5% year-over-year on an FX neutral basis

$15.9 billion Total Payment Volume, up 134.4% year-over-year on an FX neutral basis

$6.6 billion Gross Merchandise Volume, up 109.7% year-over-year on an FX neutral basis



BUENOS AIRES, Argentina, March 1st, 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 December 31, 2020.

 

Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, “Our strong performance during the quarter further established our leadership position in Latin America, which is the world’s fastest growing region for e-commerce, according to e-Marketer. These positive market dynamics, combined with our strong execution and focus, are reflected in our quarterly performance, where growth continued accelerating despite the gradual reopening of physical retail during the period.”



Fourth Quarter 2020 Business Highlights

Ï

Unique active users grew by 71.3% year-over-year, reaching 74.0 million.

Ï

Gross merchandise volume (“GMV”) grew to $6.6 billion, representing an increase of 69.6% in USD and 109.7% on an FX neutral basis.

Ï

Items sold reached 229.4 million, increasing by 109.5% year-over-year.

Ï

Live listings offered on MercadoLibre’s marketplace reached 275.4 million.

Ï

Mobile gross merchandise volume grew by 271.4% year-over-year on an FX neutral basis, reaching 72.1% of GMV.

Ï

Mercado Envios shipped 214.0 million items during the quarter, representing a 131.2% year-over-year increase, totaling almost 650 million deliveries for the full year 2020.

Ï

Total payment volume (“TPV”) through Mercado Pago reached $15.9 billion, a year-over-year increase of 83.9% in USD and 134.4% on an FX neutral basis. Total payment transactions increased 131.0% year-over-year, totaling 659.3 million transactions for the quarter.

Ï

Off-platform TPV grew 93.3% year-over-year in USD and 150.4% year-over-year on a FX neutral basis, reaching $9.2 billion, while payment transactions reached 501.7 million, a year-over-year increase of 139.6%.

Ï

Online Payments TPV grew 142.9% year-over-year on an FX neutral basis and continued expanding its merchant base. The sequential deceleration was mostly explained by a higher impact on long tail sellers amidst the easing of COVID-19 restrictions.

Ï

MPOS continued its recovery towards pre-COVID levels, reaching 87.4% year-over-year growth on an FX neutral basis, with record activation rates and device sales leading to an increase in the amount of new active devices.

Ï

Mobile Wallet delivered $3.3 billion in Total Payment Volume on a consolidated basis, leading to a 246.9% year-over-year growth on an FX neutral basis.

Ï

Our asset management product, Mercado Fondo, now has almost $700 million under management and approximately 15.0 million users across Latin America.

Ï

Mercado Credito’s portfolio grew to $479 million, more than doubling its size compared to the fourth quarter of 2019.

1

 


 



Fourth Quarter 2020 Financial Highlights

·

Net revenues for the fourth quarter were $1.3 billion, a year-over-year increase of 96.9% in USD and 148.5% on an FX neutral basis.

·

Commerce revenues increased 124.2% year-over-year in USD reaching $872.9 million, while Fintech revenues increased 59.5% year-over-year in USD reaching $454.4 million.

·

Gross profit was $489.0 million with a margin of 36.8%, compared to 45.7% in the fourth quarter of 2019.

·

Total operating expenses were $514.2 million, an increase of 36% year-over-year in USD. As a percentage of revenues, operating expenses were 38.7%, compared to 55.9% during the fourth quarter of 2019.

·

Loss from operations was $25.1 million, compared to a loss of $68.9 million during the prior year. As a percentage of revenues, income from operations was (1.9)%.

·

Interest income was $22.6 million, a 15.9% decrease year-over-year, as a result of lower interest rates in our investment as a consequence of the pandemic, mainly offset by higher interest income in Argentina due to higher float.

·

We incurred $31.6 million in financial expenses this quarter, mostly attributable to financial loans entered into 2020, mainly in Brazil and Argentina. We also incurred interest expenses from our trusts related to the factoring of our credit card receivables in Argentina.

·

This quarter we had a foreign currency losses of $9.9 million mainly related to the difference between Argentina’s official exchange rate and the blue-chip swap rate at which we effectively carry out stock repurchases in Argentine Pesos.

·

Net loss before taxes was $44.0 million, down from a loss of $63.0 million during the fourth quarter  of 2019.

·

Income tax expense was $6.6 million, driven for pre-tax gains in our Argentine segment offset by the impact of operating losses in Brazil.

·

Net loss was $50.6 million, resulting in net loss per share of $1.02.



The following table summarizes certain key performance metrics for the twelve and three months periods ended December 31, 2020 and 2019.









 

 

 

 

 

 

 

 

 

 

 

 



  

Year ended
December 31,

  

 

Three-month Periods Ended
December 31,

(in millions) (*)

  

2020

 

2019

 

 

2020

2019



  

 

 

  

 

 

  

 

 

  

 

 

Unique active users 

  

 

132.5 

  

 

74.2 

  

 

74.0 

  

 

43.2 

Number of confirmed new registered users during period

  

 

57.5 

  

 

53.2 

  

 

10.7 

  

 

14.6 

Gross merchandise volume

  

$

20,926.8 

  

$

13,997.4 

  

$

6,565.4 

  

$

3,871.3 

Number of successful items sold

  

 

719.3 

  

 

378.9 

  

 

229.4 

  

 

109.5 

Number of successful items shipped 

 

 

649.2 

 

 

306.9 

 

 

214.0 

 

 

92.6 

Total payment volume 

  

$

49,756.8 

  

$

28,389.9 

  

$

15,942.1 

  

$

8,668.2 

Total volume of payments on marketplace 

  

$

19,951.4 

  

$

13,051.7 

  

$

6,336.0 

  

$

3,658.0 

Total payment transactions 

 

 

1,914.5 

 

 

838.0 

 

 

659.3 

 

 

285.5 

Capital expenditures

  

$

254.1 

  

$

141.4 

  

$

87.3 

  

$

40.6 

Depreciation and amortization

  

$

105.0 

  

$

73.3 

  

$

32.6 

  

$

20.8 



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



Year-over-year USD Revenue Growth Rates by Quarter





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

 

Q4’19

 

Q1’20

 

Q2’20

 

Q3’20

 

Q4’20

 



 

 

 

 

 

 

 

 

 

 

 

 

Brazil

 

 

61

%

31

%

37

%

57

%

68

%



 

 

 

 

 

 

 

 

 

 

 

 

Argentina

 

 

46

%

42

%

110

%

145

%

144

%



 

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

 

86

%

74

%

96

%

111

%

141

%



 

 

 

 

 

 

 

 

 

 

 

 



2

 


 



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







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Revenues

 

 

Q4’19

 

Q1’20

 

Q2’20

 

Q3’20

 

Q4’20

 



 

 

 

 

 

 

 

 

 

 

 

 

Brazil

 

 

74

%

55

%

87

%

112 

%

120 

%



 

 

 

 

 

 

 

 

 

 

 

 

Argentina

 

 

133

%

123

%

224

%

260 

%

229 

%



 

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

 

80

%

81

%

138

%

140 

%

155 

%



 

 

 

 

 

 

 

 

 

 

 

 

















Conference Call and Webcast

The Company will host a conference call and audio webcast on March 1st, 2021 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID – 4762658 –) 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 2019 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.

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

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, and any of MercadoLibre, Inc.’s other applicable filings with the Securities and Exchange Commission. Unless required by law, MercadoLibre, Inc. undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

5

 


 





MercadoLibre, Inc.

 Consolidated Balance Sheets

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





 

 

 



December 31,



2020

 

2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$                    1,856,394

 

$                    1,384,740

Restricted cash and cash equivalents

651,830 

 

66,684 

Short-term investments (636,949 and 522,798 held in guarantee)

1,241,306 

 

1,597,241 

Accounts receivable, net

49,691 

 

35,446 

Credit cards receivable and other means of payments, net

863,073 

 

379,969 

Loans receivable, net

385,036 

 

182,105 

Prepaid expenses

28,378 

 

45,309 

Inventories

118,140 

 

8,626 

Other assets

152,959 

 

88,736 

Total current assets

5,346,807 

 

3,788,856 

Non-current assets:

 

 

 

Long-term investments

166,111 

 

263,983 

Loans receivable, net

16,619 

 

6,439 

Property and equipment, net

391,684 

 

244,257 

Operating lease right-of-use assets

303,214 

 

200,449 

Goodwill

85,211 

 

87,609 

Intangible assets, net

14,155 

 

14,275 

Deferred tax assets

134,916 

 

117,582 

Other assets

67,615 

 

58,241 

Total non-current assets

1,179,525 

 

992,835 

Total assets

$                    6,526,332

 

$                    4,781,691



 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$                       767,336

 

$                       372,309

Funds payable to customers and amounts due to merchants

1,733,095 

 

894,057 

Salaries and social security payable

207,358 

 

101,841 

Taxes payable

215,918 

 

60,247 

Loans payable and other financial liabilities

548,393 

 

186,138 

Operating lease liabilities

55,246 

 

23,259 

Other liabilities

108,534 

 

114,469 

Total current liabilities

3,635,880 

 

1,752,320 

Non-current liabilities:

 

 

 

Salaries and social security payable

49,852 

 

26,803 

Loans payable and other financial liabilities

860,876 

 

631,353 

Operating lease liabilities

243,601 

 

176,673 

Deferred tax liabilities

64,354 

 

99,952 

Other liabilities

20,191 

 

12,627 

Total non-current liabilities

1,238,874 

 

947,408 

Total liabilities

$                    4,874,754

 

$                    2,699,728



 

 

 

Commitments and contingencies

 

 

 



 

 

 

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

 

 

 

authorized, 100,000 shares issued and outstanding at December 31, 2019

$                                —

 

$                         98,843



 

 

 

Equity

 

 

 



 

 

 

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

 

 

 

49,869,727 and 49,709,955 shares issued and outstanding at December 31,

 

 

 

2020 and December 31, 2019

$                                50

 

$                                50

Additional paid-in capital

1,860,502 

 

2,067,869 

Treasury stock

(54,805)

 

(720)

Retained earnings

314,115 

 

322,592 

Accumulated other comprehensive loss

(468,284)

 

(406,671)

Total Equity

1,651,578 

 

1,983,120 

Total Liabilities, Redeemable convertible preferred stock and Equity

$                    6,526,332

 

$                    4,781,691









6

 


 

MercadoLibre, Inc.

Consolidated Statements of Income

For the twelve and three-month periods ended December 31, 2020 and 2019

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





 

 

 

 

 

 

 



Year Ended December 31,

 

Three Months Ended December 31,



2020

 

2019

 

2020

 

2019

Net revenues

$                    3,973,465

 

$                2,296,314

 

$               1,327,304

 

$                  674,271

Cost of net revenues

(2,264,255)

 

(1,194,191)

 

(838,270)

 

(365,924)

Gross profit

1,709,210 

 

1,102,123 

 

489,034 

 

308,347 



 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Product and technology development

(352,474)

 

(223,807)

 

(116,989)

 

(58,020)

Sales and marketing

(902,554)

 

(834,022)

 

(282,350)

 

(269,751)

General and administrative

(326,490)

 

(197,455)

 

(114,821)

 

(49,463)

Total operating expenses

(1,581,518)

 

(1,255,284)

 

(514,160)

 

(377,234)

Income (loss) from operations

127,692 

 

(153,161)

 

(25,126)

 

(68,887)



 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

Interest income and other financial gains

102,767 

 

113,523 

 

22,648 

 

26,933 

Interest expense and other financial losses

(106,690)

 

(65,876)

 

(31,607)

 

(21,187)

Foreign currency (losses) gains

(42,454)

 

(1,732)

 

(9,930)

 

167 

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

81,315 

 

(107,246)

 

(44,015)

 

(62,974)



 

 

 

 

 

 

 

Income tax (expense) gain

(82,022)

 

(64,753)

 

(6,565)

 

8,976 

Net loss

$                             (707)

 

$                  (171,999)

 

$                  (50,580)

 

$                  (53,998)











 

 

 

 

 

 

 



 

 

 

 

 

 

 



Year Ended December 31,

Three Months Ended December 31,



2020

 

2019

 

2020

 

2019

Basic EPS

 

 

 

 

 

 

 

Basic net loss

 

 

 

 

 

 

 

Available to shareholders per common share

$                      (0.08)

 

$                     (3.71)

 

$                       (1.02)

 

$                        (1.11)

Weighted average of outstanding common shares

49,740,407 

 

48,692,906 

 

49,820,185 

 

49,709,955 

Diluted EPS

 

 

 

 

 

 

 

Diluted net loss

 

 

 

 

 

 

 

Available to shareholders per common share

$                      (0.08)

 

$                     (3.71)

 

$                       (1.02)

 

$                        (1.11)

Weighted average of outstanding common shares

49,740,407 

 

48,692,906 

 

49,820,185 

 

49,709,955 



 

 

 

 

 

 

 















7

 


 

MercadoLibre, Inc.

Consolidated Statements of Cash Flows

For the years ended December 31, 2020 and 2019





 

 

 

 



 

Year Ended December 31,



 

2020

 

2019

Cash flows from operations:

 

 

 

 

Net loss

 

$                           (707)

 

$              (171,999)

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

 

 

 

 

Unrealized devaluation loss, net

 

89,329 

 

44,326 

Depreciation and amortization

 

104,992 

 

73,320 

Accrued interest

 

(45,593)

 

(54,309)

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

 

147,977 

 

86,995 

Financial results on derivative instruments

 

(1,935)

 

(301)

Stock-based compensation expense - restricted shares

 

730 

 

395 

Sale of fixed assets and intangible assets

 

3,814 

 

 —

LTRP accrued compensation

 

129,575 

 

51,662 

Deferred income taxes

 

(70,315)

 

16,453 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable 

 

12,069 

 

(507)

Credit cards receivable and other means of payments

 

(521,979)

 

(29,315)

Prepaid expenses

 

16,204 

 

(17,956)

Inventories

 

(106,981)

 

(4,148)

Other assets

 

(113,819)

 

(49,390)

Payables and accrued expenses

 

584,281 

 

143,495 

Funds payable to customers and amounts due to merchants

 

937,639 

 

267,293 

Other liabilities

 

(34,586)

 

45,452 

Interest received from investments

 

51,857 

 

49,625 

Net cash provided by operating activities

 

1,182,552 

 

451,091 

Cash flows from investing activities:

 

 

 

 

Purchase of investments

 

(5,199,875)

 

(4,490,678)

Proceeds from sale and maturity of investments

 

5,532,463 

 

3,353,606 

Payment for acquired businesses, net of cash acquired

 

(6,937)

 

 —

Receipts from settlements of derivative instruments

 

17,779 

 

 —

Payment from settlements of derivative instruments

 

(4,136)

 

 —

Receipts from the sale of fixed assets and intangible assets

 

274 

 

 —

Purchases of intangible assets

 

(93)

 

(72)

Changes in principal loans receivable, net

 

(344,608)

 

(173,848)

Purchases of property and equipment

 

(247,048)

 

(136,798)

Net cash used in investing activities

 

(252,181)

 

(1,447,790)

Cash flows from financing activities:

 

 

 

 

Payments on convertible note

 

 —

 

(25)

Purchase of convertible note capped calls

 

(306,789)

 

(96,367)

Proceeds from loans payable and other financial liabilities

 

2,396,717 

 

629,891 

Payments on loans payable and other financing liabilities

 

(1,785,272)

 

(472,897)

Payment of finance lease obligations

 

(4,949)

 

(1,929)

Common Stock repurchased

 

(54,085)

 

(720)

Dividends paid of preferred stock

 

(3,356)

 

(2,844)

Proceeds from issuance of convertible redeemable preferred stock, net

 

 

 

98,688 

Proceeds from issuance of common stock, net

 

 

 

1,867,215 

Net cash provided by financing activities

 

242,266 

 

2,021,012 

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

 

(115,837)

 

(37,584)

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

 

1,056,800 

 

986,729 

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

 

1,451,424 

 

464,695 

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

 

$2,508,224 

 

$1,451,424 





8

 


 

Financial results of reporting segments





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended December 31, 2020

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Brazil

 

Argentina

 

Mexico

 

Other Countries

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

$720,575 

 

$323,451 

 

$204,088 

 

$79,190 

 

$1,327,304 

 

Direct costs

 

 

(617,055)

 

(242,855)

 

(215,793)

 

(70,676)

 

(1,146,379)

 

Direct contribution

 

 

103,520 

 

80,596 

 

(11,705)

 

8,514 

 

180,925 

 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(206,051)

 

Loss from operations

 

 

 

 

 

 

 

 

 

 

(25,126)

 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

22,648 

 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(31,607)

 

Foreign currency losses

 

 

 

 

 

 

 

 

 

 

(9,930)

 

Net Loss before income tax expense

 

 

 

 

 

 

 

 

 

 

$(44,015)

 



 

 

 

 

 

 

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended December 31, 2019

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Brazil

 

Argentina

 

Mexico

 

Other Countries

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

$428,327 

 

$132,440 

 

$84,825 

 

$28,679 

 

$674,271 

 

Direct costs

 

 

(373,417)

 

(107,790)

 

(135,840)

 

(34,242)

 

(651,289)

 

Direct contribution

 

 

54,910 

 

24,650 

 

(51,015)

 

(5,563)

 

22,982 

 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

(91,869)

 

Loss from operations

 

 

 

 

 

 

 

 

 

 

(68,887)

 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

26,933 

 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

(21,187)

 

Foreign currency gains

 

 

 

 

 

 

 

 

 

 

167 

 

Net loss before income tax gain

 

 

 

 

 

 

 

 

 

 

$(62,974)

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 











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 2019 and applying them to the corresponding months in 2020, so as to calculate what our results would have been had exchange rates remained stable from one year to the next.  The table below excludes intercompany allocation FX effects. Finally, these measures do not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.

The following table sets forth the FX neutral measures related to our reported results of the operations for the three-months period ended December 31, 2020:







 

 

 

 

 

 

 

 

 

 

 

 



 

Three-month Periods Ended
December 31, (*)



 

As reported

 

FX Neutral Measures

 

As reported

 

 

(In millions, except percentages)

 

2020

 

2019

 

Percentage Change

 

2020

 

2019

 

Percentage Change

Net revenues

 

$                               1,327.3

 

$                        674.3

 

96.9% 

 

$                        1,675.9

 

$                        674.3

 

148.5% 

Cost of net revenues

 

(838.3)

 

(365.9)

 

129.1% 

 

(1,045.4)

 

(365.9)

 

185.7% 

Gross profit

 

489.0 

 

308.3 

 

58.6% 

 

630.5 

 

308.3 

 

104.5% 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(514.2)

 

(377.2)

 

36.3% 

 

(633.3)

 

(377.2)

 

67.9% 

Loss from operations

 

(25.1)

 

(68.9)

 

63.5% 

 

(2.8)

 

(68.9)

 

95.9% 



(*) 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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