MercadoLibre, Inc. Reports Financial Results for Fourth Quarter 2013 and Full Year 2013

MercadoLibre, Inc. Reports Financial Results for Fourth Quarter 2013 and Full
Year 2013

     * Accelerating Net Revenues of $134.6 million, a 50% growth in local
                            currencies, 30% in USD

* Gross Merchandise Volume of $2.1 billion, a 49% growth in local currencies,
                                  30% in USD

* Accelerating Total Payments Volume of $746.0 million, a 66% growth in local
                            currencies, 42% in USD

                 * Earnings per share during Q4'13 were $0.93

BUENOS AIRES, Argentina, Feb. 27, 2014 (GLOBE NEWSWIRE) -- MercadoLibre, Inc.
(Nasdaq:MELI) (http://www.mercadolibre.com), Latin America's leading
e-commerce technology company, today reported financial results for the fourth
quarter ended December 31, 2013.

Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc.,
commented, "MercadoLibre's e-commerce ecosystem clearly benefited from our
ongoing initiatives in 2013, with growing functionalities complementing the
unmatched value and selection of our marketplace. Strong fourth quarter
results showed positive momentum in marketplace and payments as we kept
driving improvements to user experience. I look forward to more innovation in
2014, as we continue to unlock the huge potential behind Latin America's shift
from offline to online commerce."

Financial Results Summary

MercadoLibre reported consolidated net revenues for the three months ended
December 31, 2013 of $134.6 million, representing a year-over-year growth of
29.8% in USD and 49.7% in local currencies.

For the three months ended December 31, 2013, gross merchandise volume grew to
$2,138.9 million, while total payment volume reached $746.0 million,
representing year-over-year growth of 29.9% and 42.1% respectively. In local
currencies, gross merchandise volume grew 49.3% year-over-year, while payment
volume grew 66.1% year-over-year.

Items sold on MercadoLibre during the fourth quarter 2013 increased 20.1% to
22.8 million, while total payment transactions through MercadoPago increased
33.8% to 9.0 million.

Gross profit for the fourth quarter of 2013 was $98.4 million. Gross profit
margin for the period was 73.1%, down from 73.6% during the fourth quarter of
2012, as the lower margin payments volume continued to grow at a faster pace
than the merchandise volume.

Total operating expenses during the fourth quarter 2013 were $46.3 million.
Total operating expenses as a percentage of net revenues for the fourth
quarter of 2013 were 34.4%, a decrease of 148 basis points from 35.9% for the
same quarter one year earlier, and a decrease of 747 basis points from 41.9%
in third quarter of 2013.

Income from operations for the fourth quarter 2013 was $52.1 million,
representing a year-over-year growth of 33.2% in USD and 55.5% in local
currencies. Operating income margin for the period was 38.7%, up 100 basis
points from 37.7% during the fourth quarter of 2012. Operating income margin
increased 832 basis points from 30.4% in the third quarter of 2013.

Net income before taxes was $55.8 million. The blended tax rate for the
quarter was 26.8%, as compared to 28.4% during the same quarter one year
earlier.

Consequently, net income for the three months ended December 31, 2013, was
$40.8 million, growing 35.0% year-on-year in USD, and 58.1% in local
currencies.

Free cash flow, defined as cash from operating activities less payment for the
acquisition of property, equipment, intangible assets and payment for acquired
business net of cash acquired, was -$18.7 million for the three months ended
December 31, 2013.*

For the full year, MercadoLibre generated $7.3 billion in gross merchandise
volume, consolidated net revenues of $472.6 million, and net income of $117.5
million, or $2.66 per share. Gross merchandise volume was up 28.1% in 2013
when compared to the full year 2012, while net revenues increased 26.5% and
net income increased 16.0%. In constant dollars, gross merchandise volume
increased 44%, consolidated net revenues were up by 43%, and net income was up
by 32%, all versus the previous year.

(*) See note on "Non-GAAP Financial Measures"

The following table summarizes certain key performance metrics for the three
months ended December 31, 2013 and 2012.

Three months ended December 31,    2013      2012      %YoY  %YoY Constant USD
(in MM)
Total confirmed registered users   99.5      81.5      22.1% --
at the end of period
New confirmed registered users     4.5       4.3       4.2%  --
during the period
Gross merchandise volume           $ 2,138.9 $ 1,646.5 29.9% 49.3%
Items sold                         22.8      19.0      20.1% --
Total payments volume              $ 746.0   $ 524.9   42.1% 66.1%
Total payments transactions        9.0       6.7       33.8% --

Table of Year-on-Year Local Currency Revenue Growth Rates by Quarter

                          YoY Growth rates at previous years exchange rates
Consolidated Net Revenues 
                          Q4'12    Q1'13    Q2'13   Q3'13   Q4'13
Brazil                   19%        28%        22%       28%       29%
Argentina                62%        63%        66%       66%       69%
Mexico                   19%        15%        19%       19%       20%
Venezuela                43%        49%        68%       92%       104%
Others                   15%        13%        19%       13%       15%
Total                    31%        36%        38%       45%       50%

Conference Call and Webcast

The Company will host a conference call and audio webcast on February 27, 2014
at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing
+(970) 315-0420 or +(877) 303-7209 (Conference ID 2067277) 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

Total confirmed registered users – Measure of the cumulative number of users
who have registered on the MercadoLibre platform (including MercadoPago) and
confirmed their registration. As of July'12, registration and confirmation
take place in the same step of the registration flow.

New confirmed registered users – Measure of the number of new users who have
registered on the MercadoLibre platform (including MercadoPago) and confirmed
their registration. As of July'12, registration and confirmation take place in
the same step of the registration flow.

Gross merchandise volume – Measure of the total U.S. dollar sum of all
transactions completed through the MercadoLibre Marketplace, excluding motor
vehicles, vessels, aircraft, real estate, and services.

Items sold– Measure of the number of items sold/purchased through the
MercadoLibre Marketplace.

Total payment volume – Measure of total U.S. dollar sum of all transactions
paid for using MercadoPago.

Total payment transactions – Measure of the number of all transactions
completed using MercadoPago.

Operating margin – Defined as income from operations as a percentage of net
revenues.

Blended tax rate – Defined as income and asset tax expense as a percentage of
income before income and assets tax.

Net income margin – Defined as net income as a percentage of net revenues.

Free Cash Flow – Defined as cash flows from operating activities less
property, equipment, intangible assets and payment for acquired business net
of cash acquired.

Local Currency Growth Rates – Calculated by using the average monthly exchange
rate for each month during the previous year and applying it to the
corresponding month in the current year, so as to calculate what the growth
would have been had exchange rates been the same throughout both periods.

About MercadoLibre

Founded in 1999, MercadoLibre is Latin America's leading e-commerce technology
company. Through its primary platforms, MercadoLibre.com and MercadoPago.com,
it provides solutions to individuals and companies buying, selling,
advertising, and paying for goods and services online.

MercadoLibre.com serves millions of users and creates a market for a wide
variety of goods and services in an easy, safe and efficient way. The site is
among the top 50 in the world in terms of page views and is the leading retail
platform in unique visitors in the major countries in which it operates
according to metrics provided by comScore Networks. 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
http://www.globenewswire.com/newsroom/prs/?pkgid=4193

Consolidated balance sheets

                                                  December 31,  December 31,
                                                  2013          2012
Assets                                                          
Current assets:                                                 
Cash and cash equivalents                          $140,285,104 $101,489,002
Short-term investments                             76,593,214    93,694,805
Accounts receivable, net                           25,884,260    19,837,022
Credit cards receivables, net                      52,045,851    35,816,506
Prepaid expenses                                   3,836,081     2,080,079
Deferred tax assets                                16,030,880    11,040,543
Other assets                                       11,488,845    11,403,218
Total current assets                               326,164,235   275,361,175
Non-current assets:                                             
Long-term investments                              45,719,737    85,955,584
Property and equipment, net                        131,371,909   37,726,222
Goodwill                                           55,101,218    60,366,063
Intangible assets, net                             6,591,585     7,279,865
Deferred tax assets                                3,014,905     5,862,247
Other assets                                       24,399,184    6,118,120
Total non-current assets                           266,198,538   203,308,101
                                                               
Total assets                                       $592,362,773 $478,669,276
                                                               
Liabilities and Equity                                          
Current liabilities:                                            
Accounts payable and accrued expenses              $34,405,333  $23,976,613
Funds payable to customers                         129,038,663   101,472,662
Salaries and social security payable               23,182,811    19,974,463
Taxes payable                                      17,854,110    19,210,568
Loans payable and other financial liabilities      13,370,823    84,570
Dividends payable                                  6,313,869     4,812,396
Total current liabilities                          224,165,609   169,531,272
Non-current liabilities:                                        
Salaries and social security payable               9,185,269     3,452,445
Loans payable and other financial liabilities      2,489,819     59,493
Deferred tax liabilities                           5,339,359     8,975,290
Other liabilities                                 3,699,109     2,837,150
Total non-current liabilities                      20,713,556    15,324,378
Total liabilities                                  $244,879,165 $184,855,650
                                                               
Commitments and contingencies (Note 15)                         
Redeemable noncontrolling interest                 $4,000,000   $4,000,000
Equity:                                                         
                                                               
Common stock, $0.001 par value, 110,000,000 shares
authorized, 44,153,473 and 44,150,920 shares       $44,153      $44,151
issued and outstanding at December 31, 2013 and
December 31, 2012, respectively
Additional paid-in capital                         121,562,193   120,468,759
Treasury stock                                     (1,012,216)   --
Retained earnings                                  310,345,448  218,083,844
Accumulated other comprehensive loss               (87,455,970)  (48,783,128)
Total Equity                                      343,483,608   289,813,626
                                                               
Total Liabilities, Redeemable Noncontrolling       $592,362,773 $478,669,276
Interest and Equity

Consolidated statements of income

                                    Year Ended December 31,
                                    2013          2012          2011
                                                              
Net revenues                         $472,594,709 $373,601,494 $298,931,625
Cost of net revenues                 (130,076,879) (98,085,644)  (72,055,835)
Gross profit                         342,517,830   275,515,850   226,875,790
                                                              
Operating expenses:                                            
Product and technology development   (40,888,139)  (28,626,880)  (23,349,787)
Sales and marketing                 (90,484,296)  (72,002,954)  (64,968,755)
General and administrative           (57,606,340)  (45,228,145)  (38,785,083)
Total operating expenses            (188,978,775) (145,857,979) (127,103,625)
Income from operations               153,539,055   129,657,871   99,772,165
                                                              
Other income (expenses):                                       
Interest income and other financial  10,668,593    11,877,375    9,905,829
gains
Interest expense and other financial (2,355,929)   (1,138,379)   (3,648,733)
losses
Foreign currency gains               1,258,476     11,597        2,353,005
Other (losses) gains, net           (751)         (190,938)     73,894
Net income before income / asset tax 163,109,444   140,217,526   108,456,160
expense
                                                              
Income / asset tax expense           (45,583,181)  (38,871,379)  (31,659,821)
Net income                          $117,526,263 $101,346,147 $76,796,339
                                                              
Less: Net Income attributable to     18,825        98,849        16,286
RedeemableNoncontrolling Interest
Net income attributable to           $117,507,438 $101,247,298 $76,780,053
MercadoLibre, Inc. shareholders
                                                              
                                    Year Ended December 31,
                                    2013          2012          2011
                                                              
Basic EPS                                                      
Basic net income attributable to
MercadoLibre, Inc. Shareholders per  $2.66        $2.30        $1.73
common share
                                                              
Weighted average of outstanding      44,152,600    44,147,861    44,138,397
common shares
                                                              
                                                              
Diluted EPS                                                    
Diluted net income attributable to
MercadoLibre, Inc. Shareholders per  $2.66        $2.30        $1.73
common share
                                                              
Weighted average of outstanding      44,152,600    44,149,838    44,151,437
common shares

                                              
                                              Three Months Ended December 31,
                                              2013            2012
                                              (Unaudited)
Net revenues                                   $134,630,171   $103,754,645
Cost of net revenues                           (36,205,508)    (27,402,861)
Gross profit                                   98,424,663      76,351,784
                                                             
Operating expenses:                                           
Product and technology development             (9,670,938)     (6,686,830)
Sales and marketing                           (23,147,365)    (19,182,428)
General and administrative                     (13,487,284)    (11,354,005)
Total operating expenses                      (46,305,587)    (37,223,263)
Income from operations                         52,119,076      39,128,521
                                                             
Other income (expenses):                                      
Interest income and other financial gains      2,295,481       2,880,600
Interest expense and other financial losses    (976,413)       (273,902)
Foreign currency gains                         2,331,729       489,094
Other gains, net                              43,806          31
Net income before income / asset tax expense  55,813,679      42,224,344
                                                             
Income / asset tax expense                     (14,977,714)    (11,977,955)
Net income                                    $40,835,965    $30,246,388
                                                             
                                                             
Less: Net Income attributable to Redeemable    72,037          55,985
Noncontrolling Interest
Net income attributable to MercadoLibre, Inc.  $40,763,928    $30,190,403
shareholders
                                                             
                                              
                                              Three Months Ended December 31,
                                              2013            2012
                                              (Unaudited)
Basic EPS                                                     
Basic net income attributable to MercadoLibre, $0.93          $0.69
Inc. Shareholders per common share
                                                             
Weighted average of outstanding common shares  44,153,185      44,150,920
                                                             
                                                             
Diluted EPS                                                   
Diluted net income attributable to
MercadoLibre, Inc. Shareholders per common     $0.93          $0.69
share
                                                             
Weighted average of outstanding common shares  44,153,185      44,152,895

                                
Consolidated statements of cash 
flows
                                Year Ended December 31,
                                2013             2012           2011
                                                              
Cash flows from operations:                                    
Net income attributable to       $117,507,438   $101,247,298  $76,780,053
MercadoLibre, Inc. Shareholders
Adjustments to reconcile net
income to net cash provided by                                 
operating activities:
Net income attributable to
Redeemable Noncontrolling        18,825          98,849         16,286
Interest
Net Devaluation Loss in          6,420,929       --             --
Venezuela
Depreciation and amortization    11,878,565      8,959,293      7,268,075
Accrued interest                 (9,882,991)     (7,630,203)    (7,354,746)
LTRP accrued compensation       11,645,077      4,442,822     4,079,265
Deferred income taxes            (7,847,513)     (492,362)      1,022,797
Changes in assets and                                          
liabilities:
Accounts receivable             (22,764,177)    (8,651,951)    (9,274,653)
Credit Card Receivables          (27,315,403)    (15,570,142)   (19,494,707)
Prepaid expenses                 (2,074,543)     (898,959)      (436,310)
Other assets                     (23,127,493)    (5,809,218)    (6,532,978)
Accounts payable and accrued     26,037,488      18,061,683     10,808,788
expenses
Funds payable to customers       47,557,504      39,889,201     27,875,755
Other liabilities                2,986,452       1,153,610      490,838
Interest received from           11,473,203      5,091,468      4,177,168
investments
Net cash provided by operating   142,513,361     139,891,389   89,425,631
activities
Cash flows from investing                                      
activities:
Purchase of investments          (1,135,940,553) (539,355,434)  (379,044,395)
Proceeds from sale and maturity  1,174,789,615   472,871,652    336,835,026
of investments
Payment for acquired businesses, (3,423,439)     --             (5,468,180)
net of cash acquired
Purchases of intangible assets   (458,804)       (1,390,654)    (280,706)
Purchases of property and        (113,755,566)   (16,747,746)   (18,924,161)
equipment
Net cash used in investing       (78,788,747)    (84,622,182)  (66,882,416)
activities
Cash flows from financing                                      
activities:
Proceeds from loans payable and  31,453,613      --             --
other financial liabilities
Payments on loans payable and    (15,936,551)    --             --
other financial liabilities
Dividends paid                   (23,754,005)    (17,968,004)   (10,593,206)
Common Stock repurchased         (1,012,225)     --             --
Stock options exercised          3,020           5,700          11,175
Net cash used in financing       (9,246,148)     (17,962,304)  (10,582,031)
activities
Effect of exchange rate changes  (15,682,364)    (3,199,578)    (1,409,973)
on cash and cash equivalents
Net increase in cash and cash    38,796,102      34,107,325     10,551,211
equivalents
Cash and cash equivalents,       101,489,002     67,381,677     56,830,466
beginning of the year
                                                              
Cash and cash equivalents, end   $140,285,104   $101,489,002 $67,381,677
of the year

                                                               
                                       Year Ended December 31,
                                       2013         2012         2011
                                                               
Supplemental cash flow information:                             
Cash paid for interest                  $657,776    $68,916     $58,559
Cash paid for income and asset taxes    $55,995,590 $38,837,721 $31,050,206
                                                               
Non-cash financing activities:                                  
Stock based compensation                $58,492     $--         $--
LTRP shares issued                      $1,031,933  $--         $--
                                                               
Acquisition of business                 2013 (1)     2012         2011 (2)
Cash and cash equivalents               $31,058     $--         $3,876
Accounts receivable                     537,706      --           --
Tax credits                             --           --           49,951
Other current assets                    14,674       --           --
Non current assets                      94,367       --           99,522
Fixed Assets                            5,800        --           --
Total assets acquired                   683,605      --           153,349
Accounts payable and accrued expenses   143,071      --           --
Taxes payable                           179,545      --           --
Payroll and social security payable     123,098      --           --
Total liabilities assumed               445,714      --           --
Net assets acquired                     237,891      --           153,349
Goodwill, Identifiable Intangible       2,668,661    --           8,966,744
Assets and deferred tax liabilities
Escrow for employment relationship      547,945      --           --
Non-controlling interest                --           --           (3,648,037)
Total purchase price                    3,454,497    --           5,472,056
Cash and cash equivalents acquired      31,058       --           3,876
Payment for acquired businesses, net of $3,423,439  $--         $5,468,180
cash acquired
                                                               
(1) Related to the acquisition of software development company - Neosur
(2) Related to the acquisition of Autoplaza.com

            
Financial
results of   
reporting
segments
            Year Ended December 31, 2013
            Brazil        Argentina     Mexico       Venezuela    Other        Total
                                                                   Countries
                                                                          
Net revenues $206,394,480 $122,123,347 $32,843,482 $84,572,485 $26,660,915 $472,594,709
Direct costs (119,422,924) (66,492,770)  (18,558,010) (29,578,762) (12,339,112) (246,391,578)
Direct       86,971,556    55,630,577    14,285,472   54,993,723   14,321,803   226,203,131
contribution
                                                                          
Operating
expenses and
indirect                                                                   (72,664,076)
costs of net
revenues
Income from                                                                153,539,055
operations
                                                                          
Other income                                                               
(expenses):
Interest
income and
other                                                                      10,668,593
financial
gains
Interest
expense and
other                                                                      (2,355,929)
financial
losses
Foreign
currency                                                                   1,258,476
gain
Other                                                                      (751)
losses, net
Net income
before
income /                                                                   $163,109,444
asset tax
expense
                                                                          
                                                                          
            Year Ended December 31, 2012
            Brazil        Argentina     Mexico       Venezuela    Other        Total
                                                                   Countries
                                                                          
Net revenues $179,639,592 $88,513,640  $26,987,130 $54,676,170 $23,784,962 $373,601,494
Direct costs (104,501,652) (41,841,587)  (14,912,375) (17,768,989) (11,458,627) (190,483,230)
Direct       75,137,940    46,672,053    12,074,755   36,907,181   12,326,335   183,118,264
contribution
                                                                          
Operating
expenses and
indirect                                                                   (53,460,393)
costs of net
revenues
Income from                                                                129,657,871
operations
                                                                          
Other income                                                               
(expenses):
Interest
income and
other                                                                      11,877,375
financial
gains
Interest
expense and
other                                                                      (1,138,379)
financial
losses
Foreign
currency                                                                   11,597
gain
Other                                                                      (190,938)
losses, net
Net income
before
income /                                                                   140,217,526
asset tax
expense
                                                                          
                                                                          
            Year Ended December 31, 2011
            Brazil        Argentina     Mexico       Venezuela    Other        Total
                                                                   Countries
                                                                          
Net revenues $165,905,789 $56,714,941  $22,275,213 $34,828,878 $19,206,804 $298,931,625
Direct costs (96,910,310)  (23,463,871)  (12,472,204) (13,287,279) (10,062,446) (156,196,110)
Direct       68,995,479    33,251,070    9,803,009    21,541,599   9,144,358    142,735,515
contribution
                                                                          
Operating
expenses and
indirect                                                                   (42,963,350)
costs of net
revenues
Income from                                                                99,772,165
operations
                                                                          
Other income                                                               
(expenses):
Interest
income and
other                                                                      9,905,829
financial
gains
Interest
expense and
other                                                                      (3,648,733)
financial
losses
Foreign
currency                                                                   2,353,005
gain
Other                                                                      73,894
income, net
Net income
before
income /                                                                   $108,456,160
asset tax
expense
                                                                          
            Three Months Ended December 31, 2013
            Brazil        Argentina     Mexico       Venezuela    Other        Total
                                                                   Countries
            (Unaudited)
Net revenues $55,249,748  $34,362,444  $9,086,505  $28,877,100 $7,054,374  $134,630,171
Direct costs (30,193,588)  (18,427,699)  (4,207,763)  (9,169,908)  (3,391,509)  (65,390,467)
Direct       25,056,160    15,934,745    4,878,742    19,707,192   3,662,865    69,239,704
contribution
                                                                          
Operating
expenses and
indirect                                                                   (17,120,628)
costs of net
revenues
Income from                                                                52,119,076
operations
                                                                          
Other income                                                               
(expenses):
Interest
income and
other                                                                      2,295,481
financial
gains
Interest
expense and
other                                                                      (976,413)
financial
losses
Foreign
currency                                                                   2,331,729
gain
Other gains,                                                               43,806
net
Net income
before
income /                                                                   $55,813,679
asset tax
expense
                                                                          
                                                                          
            Three Months Ended December 31, 2012
            Brazil        Argentina     Mexico       Venezuela    Other        Total
                                                                   Countries
            (Unaudited)
Net revenues $47,067,048  $25,713,148  $7,620,346  $16,803,819 $6,550,285  $103,754,646
Direct costs (26,395,391)  (12,884,121)  (3,745,018)  (5,134,006)  (2,890,020)  (51,048,556)
Direct       20,671,657    12,829,027    3,875,328    11,669,813   3,660,265    52,706,090
contribution
                                                                          
Operating
expenses and
indirect                                                                   (13,577,569)
costs of net
revenues
Income from                                                                39,128,521
operations
                                                                          
Other income                                                               
(expenses):
Interest
income and
other                                                                      2,880,600
financial
gains
Interest
expense and
other                                                                      (273,902)
financial
losses
Foreign
currency                                                                   489,094
loss
Other gains,                                                               31
net
Net income
before
income /                                                                   $42,224,344
asset tax
expense

Non-GAAP Financial Measures

To supplement our interim condensed consolidated financial statements
presented in accordance with generally accepted accounting principles in the
United States (U.S. GAAP), we use free cash flows as non-GAAP measure.

This non-GAAP measure should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with 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 GAAP. This non-GAAP financial measure should only be used to
evaluate our results of operations in conjunction with the most comparable
GAAP financial measures.

Reconciliation of this non-GAAP financial measure to the most comparable GAAP
financial measure can be found in the tables included in this press release.

Non-GAAP financial measures are provided to enhance investors' overall
understanding of our current financial performance. Specifically, we believe
that free cash flow provides useful information to both management and
investors by excluding payments for the acquisition of property, equipment, of
intangible assets and of acquired businesses net of cash acquired, that may
not be indicative of our core operating results. In addition, we report free
cash flows to investors because we believe that the inclusion of this measure
provides consistency in our financial reporting.

Free cash flow represents cash from operating activities less payment for the
acquisition of property, equipment and intangible assets and acquired
businesses net of cash acquired. We consider free cash flow to be a liquidity
measure that provides useful information to management and investors about the
amount of cash generated by our operations after the purchase of property,
equipment, of intangible assets and of acquired businesses net of cash
acquired. A limitation of the utility of free cash flow as a measure of
financial performance is that it does not represent the total increase or
decrease in our cash balance for the period.

Reconciliation of Operating Cash Flows to Free Cash Flows:

                                         Three Months Ended December 31,
                                         2013             2012
                                                         
                                                         
Net Cash provided by Operating Activities $19.7          $56.2
                                                         
Purchase of intangible assets            (0.5)           (0.0)
                                                         
Purchases of property and equipment       (37.9)          (5.1)
                                                         
Free cash flows                           $(18.7)        $51.1
                                                         
The table above may not total due to rounding.

Venezuela foreign currency status

As of December31, 2013, the exchange rate used to re-measure our net monetary
assets of our Venezuelan operations was the official rate of 6.30 Bolivares
Fuertes per U.S. dollar and transactions carried out by the Company's
Venezuelan subsidiaries were re-measured at the monthly average exchange rate
for the year ended December 31, 2013.

On January 23, 2014, the Exchange Agreement number 25 was published in the
Special Official Gazette Number 6,122, providing the exchange rate applicable
to foreign currency sales for certain transactions such us but not limited to:
contracts for leasing and services, use and exploitation of patents,
trademarks, foreign investments and payments of royalties, contracts for
technology import and technical assistance, which will be the exchange rate
from the most recent auction conducted by the SICAD and published on its
website.

As a result of the above described change in regulations, the Company will
have to use the auction resulting SICAD exchange rate to re-measure the
Venezuelan subsidiaries' non-U.S. dollar denominated monetary assets and
liabilities from January 2014, which management estimates would result in a
loss of approximately between $1.5 million and $ 2.5 million to be recorded in
the first quarter of fiscal year 2014. Also, the use of the SICAD exchange
rate from fiscal year 2014 implies that the company´s revenues and costs will
be re-measured using the auction resulting rate, which would vary from auction
to auction.

Foreign Currency Sensitivity Analysis – Venezuela Segment

In order to assist investors in their overall understanding of the impact of a
hypothetical Venezuelan devaluation on our Venezuelan segment reporting, we
developed a scenario that approximates a 60% devaluation of the SICAD rate as
of the date of this release. Under this analysis, the assumed exchange rate
was applied starting on January 1, 2013. These disclosures may help investors
project sensitivities, on segment information captions, to devaluations of
whatever order of magnitude they choose by simple arithmetic calculations.

            Year Ended December 31, 2013             Year Ended December 31, 2013
            Venezuela    Other         Total         Venezuela    Other         Total
                          Countries                                Countries
                                                                           
Net revenues $84,572,485 $388,022,224 $472,594,709 $28,101,429 $388,022,224 $416,123,653
Direct costs (29,578,762) (216,812,816) (246,391,578) (13,411,094) (216,812,816) (230,223,910)
Direct       $54,993,723 $171,209,408 226,203,131   $14,690,335 $171,209,408 185,899,744
contribution
                                                                           
Operating
expenses and
indirect                              (72,664,076)                           (72,664,076)
costs of net
revenues
Income from                           $153,539,055                          $113,235,668
operations

Direct
Contribution 65.0%        44.1%         47.9%         52.3%        44.1%         44.7%
Margin %
Income from
operations                            32.5%                                  27.2%
Margin %

CONTACT: MercadoLibre, Inc.
         Investor Relations
         investor@mercadolibre.com
         http://investor.mercadolibre.com

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