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.”

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

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

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

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

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

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

Three Months Periods Ended

September 30
(IN MILLIONS) 2021 2020

Unique active users 78.7 76.1

Gross merchandise volume $ 7,314.4 $ 5,902.4
Number of successful items sold 259.8 205.7
Number of successful items shipped 247.8 187.6
Total payment volume $ 20,879.8 $ 14,506.0
Total volume of payments on marketplace $ 7,058.0 $ 5,648.9
Total payment transactions 865.7 559.7
Capital expenditures $ 171.0 $ 65.0
Depreciation and amortization $ 52.3 $ 28.2

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

TABLE OF YEAR-OVER-YEAR USD REVENUE

GROWTH RATES BY QUARTER

Year-over-year USD Revenue Growth Rates by Quarter

Consolidated
Q3’20 Q4’20 Q1’21 Q2’21 Q3’21
Net Revenues

Brazil 57 % 68 % 93 % 104% 74 %
Argentina 145 % 144 % 124 % 53% 38 %
Mexico 111 % 141 % 143 % 105% 94 %

TABLE OF YEAR-OVER-YEAR LOCAL CURRENCY

REVENUE GROWTH RATES BY QUARTER

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

Consolidated
Q3’20 Q4’20 Q1’21 Q2’21 Q3’21
Net Revenues

Brazil 112 % 120% 139 % 101% 69 %

Argentina 260 % 229% 223 % 112% 83 %
Mexico 140 % 155% 148 % 76% 76 %

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

 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.

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.

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.

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.
 ABOUT MERCADO LIBRE

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.

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

MercadoLibre, Inc.
Consolidated Balance Sheets
(In thousands of U.S. dollars, except par value)

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

MercadoLibre, Inc.
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)

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

 MercadoLibre, Inc.
Consolidated Statements of Cash Flows
For the nine months ended September 30, 2021 and 2020

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

 FINANCIAL RESULTS OF REPORTING SEGMENTS

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.

 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,
Percentage Percentage
except 2021 2020 2021 2020
Change Change
percentages)
(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
[email protected]

http://investor.mercadolibre.com

FINANCIALS & RESULTS 3Q’21. © 2021 MercadoLibre. All rights reserved.