MercadoLibre, Inc. Reports Financial Results for First Quarter 2014

MercadoLibre, Inc. Reports Financial Results for First Quarter 2014

  * Net Revenues of $115.4 million, growing 12.3% year-over-year in USD. In
  local currencies net revenues grew 50%, excluding Venezuela they grew 39%.

  * Income from operations grew to $34.0 million, a year-over-year growth of
                 19.0% in USD and 67.8% in local currencies.

          * Net Income grew 73.1% in USD resulting in a $ 0.69 EPS.

BUENOS AIRES, Argentina, May 8, 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 first
quarter ended March 31, 2014.

Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc.,
commented, "MercadoLibre's e-commerce ecosystem continued to strengthen in the
first quarter of 2014. Solid first quarter results showed progress in key
initiatives such as payments, mobile and customer experience, encouraging us
to keep innovating, executing and seizing the huge potential of our region's
e-commerce."

Q1'14 Operational Highlights

  *Gross merchandise volume grew to $1,797.3 million, a year-over-year growth
    of 15.0% in USD and 57.9% in local currencies. Items sold on MercadoLibre
    during the first quarter of 2014 increased 20.1% to 21.7 million.
  *Total payment volume reached $664.0 million, a year-over-year growth of
    24.8% in USD and 63.5% in local currencies. Total payment transactions
    through MercadoPago increased 36.3% to 9.2 million.

This growth was sustained by our strategic initiatives:

  *Total payments penetration was up, with a strong push from on-platform
    which reached new highs in our total marketplace surpassing 60% of GMVe in
    Brazil and 38% in Argentina.
  *Shipping gained considerable ground, adoption in Brazil went to 14% of SIe
    in March.
  *Mobile doubled its year-on-year penetration from March to March, from 7%
    to 14% of our GMVe, and our mobile app reached more than 10 million
    downloads by the end of March.
  *Verticals keep gaining share of GMVe in Argentina and Brazil while we
    continue to on-board brands in both countries. Official stores more than
    doubled during this quarter.
  *Our customer experience efforts result in significant gains to our net
    promoter score.

Q1'14 Financial Highlights

  *Net revenues grew to $115.4 million, a year-over-year growth of 12.3% in
    USD and 49.9% in local currencies. Excluding Venezuela revenue growth was
    stable at 9.6% in USD and 38.6% in local currencies. Brazil, our biggest
    market, grew revenues by 30% in local currencies.
  *Gross profit for the first quarter of 2014 was $83.8 million. Gross profit
    margin was 72.7% up from 72.1% the first quarter of 2013, as scale in our
    customer support operations and lower withdrawal costs in MercadoPago
    Argentina offset higher payment processing fees due to strong TPV growth.
  *Total operating expenses were $49.8 million, 43.2% of net revenues, a
    decrease of 110 basis points from 44.3% last year's first quarter. Lower
    long term retention plan accrual and improved chargebacks drive
    year-over-year improvement.
  *Income from operations grew to $34.0 million, a year-over-year growth of
    19.0% in USD and 67.8% in local currencies. Operating income margin was
    29.5%, improving 166 basis points from 27.8% last year's first quarter.
    Excluding Venezuela Income from operations grew 4.6% in USD and 28.6% in
    local currencies.
  *Our forex line saw a $3.1 million gain mainly due to currency devaluation
    in Argentina where our US dollar denominated net assets appreciated,
    partially offset by currency devaluation in Venezuela (Sicad I*)
    depreciating our net monetary asset position in local currency.
  *Net income before taxes was $39.1 million a year-over-year growth of 54.2%
    in USD and 117% in local currencies.
  *Blended tax rate for the quarter was 22.4%, as compared to 30.9% last
    year's first quarter. Excluding tax decrease resulting from Venezuela
    devaluation, blended tax rate would have been 31.4%.
  *Net income grew to $30.3 million, a year-over-year growth of 73.1%. In
    local currencies this growth was 150.3%. Excluding Venezuela, net income
    grew 16.3% in USD and 48.0% in local currencies.
  *Earnings per share during Q1'14 were $ 0.69.Had forex loss and tax
    reduction resulting from Venezuela's devaluation not occurred, earnings
    per share would have been $ 0.63.
  *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 $20.5 million.**
  *We declared a quarterly dividend of $0.166 cents per share, payable on
    July 15, 2014 to shareholders of record as of the close of business on
    June 30, 2014.

(*) Due to changes in Venezuelan regulation, since January 24, 2014the
exchange rate the Company uses to re-measure its net monetary asset
positionand local currency (BsF) transactions of its Venezuelan operations is
the SICAD 1 exchange rate. As of March 31, 2014, the SICAD 1 exchange rate was
10.7 BsF per U.S. dollar. The average exchange rate of the first quarter of
2014 was 10.1 BsF per U.S. dollar.

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

The following table summarizes certain key performance metrics for the three
months ended March 31, 2014 and 2013.

Three months ended March 31, (in  2014       2013       %YoY %YoY Constant
MM)                                                            USD
Total confirmed registered users  103.7      85.7       21.1%  --
at the end of period
New confirmed registered users    4.3        4.2        0.6%   --
during the period
Gross merchandise volume         $1,797.3 $1,563.3 15.0%  57.9%
Items sold                       21.7       18.1       20.1%  --
Total payments volume            $664.0   $532.1   24.8%  63.5%
Total payments transactions      9.2        6.7        36.3%  --

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

                          YoY Growth rates at previous years exchange rates
                                                                
Consolidated Net                                                
Revenues
                          Q1'13    Q2'13    Q3'13   Q4'13   Q1'14
Brazil                   28%        22%        28%       29%       30%
Argentina                63%        66%        66%       69%       65%
Mexico                   15%        19%        19%       20%       9%
Venezuela                49%        68%        92%       104%      116%
Others                   13%        19%        13%       15%       32%
Total                    36%        38%        45%       50%       50%

Conference Call and Webcast

The Company will host a conference call and audio webcast on May 8, 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 37234714) 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. Since 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. Since 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
                                                  March 31,     December 31,
                                                   2014          2013
Assets                                                          
Current assets:                                                 
Cash and cash equivalents                          $131,139,549 $140,285,104
Short-term investments                             87,390,844    76,593,214
Accounts receivable, net                           30,331,297    25,884,260
Credit cards receivables, net                      54,322,496    52,045,851
Prepaid expenses                                   4,554,266     3,836,081
Deferred tax assets                                20,809,295    16,030,880
Other assets                                       8,663,385     11,488,845
Total current assets                               337,211,132   326,164,235
Non-current assets:                                             
Long-term investments                              45,001,998    45,719,737
Property and equipment, net                        129,464,927   131,371,909
Goodwill                                           51,959,430    55,101,218
Intangible assets, net                             6,393,604     6,591,585
Deferred tax assets                                2,906,037     3,014,905
Other assets                                       24,921,540    24,399,184
Total non-current assets                           260,647,536   266,198,538
                                                               
Total assets                                       $597,858,668 $592,362,773
                                                               
Liabilities and Equity                                          
Current liabilities:                                            
Accounts payable and accrued expenses              $36,582,107  $34,405,333
Funds payable to customers                         132,368,104   129,038,663
Salaries and social security payable               26,094,290    23,182,811
Taxes payable                                      16,788,250    17,854,110
Loans payable and other financial liabilities      7,677,659     13,370,823
Dividends payable                                  7,329,546     6,313,869
Total current liabilities                          226,839,956   224,165,609
Non-current liabilities:                                        
Salaries and social security payable               6,054,510     9,185,269
Loans payable and other financial liabilities      1,812,047     2,489,819
Deferred tax liabilities                           5,511,531     5,339,359
Other liabilities                                 3,775,268     3,699,109
Total non-current liabilities                      17,153,356    20,713,556
Total liabilities                                  $243,993,312 $244,879,165
                                                               
Commitments and contingencies                                   
Redeemable noncontrolling interest                 $4,000,000   $4,000,000
Equity:                                                         
Common stock, $0.001 par value, 110,000,000 shares
authorized, 44,153,892 and 44,153,473 shares       $44,154      $44,153
issued and outstanding at March 31, 2014 and
December 31, 2013, respectively
Additional paid-in capital                         120,595,008   121,562,193
Treasury stock                                     --            (1,012,216)
Retained earnings                                  333,404,534  310,345,448
Accumulated other comprehensive loss               (104,178,340) (87,455,970)
Total Equity                                      349,865,356   343,483,608
                                                               
Total Liabilities, Redeemable Noncontrolling       $597,858,668 $592,362,773
Interest and Equity



Consolidated statements of income
                                                 Three Months Ended March 31,
                                                 2014           2013
                                                 
Net revenues                                      $115,382,319  $102,725,747
Cost of net revenues                              (31,539,665)   (28,649,167)
Gross profit                                      83,842,654     74,076,580
                                                               
Operating expenses:                                             
Product and technology development                (12,257,198)   (9,382,389)
Sales and marketing                              (22,351,958)   (22,337,937)
General and administrative                        (15,232,411)   (13,785,070)
 Total operating expenses                     (49,841,567)   (45,505,396)
Income from operations                            34,001,087     28,571,184
                                                               
Other income (expenses):                                        
Interest income and other financial gains         3,035,630      3,394,006
Interest expense and other financial losses       (1,027,180)    (360,352)
Foreign currency gains (losses)                   3,093,471      (6,249,714)
Other losses, net                                --             (3,733)
Net income before income / asset tax expense     39,103,008     25,351,391
                                                               
Income / asset tax expense                        (8,775,055)    (7,828,800)
Net income                                       $30,327,953   $17,522,591
                                                               
Less: Net Income attributable to Redeemable                     
 Noncontrolling Interest                      63,980         42,338
Net income attributable to MercadoLibre, Inc.     $30,263,973   $17,480,253
shareholders
                                                               
                                                               
                                                 Three Months Ended March 31,
                                                 2014           2013
                                                 
Basic EPS                                                       
Basic net income attributable to MercadoLibre,                  
Inc.
Shareholders per common share                     $0.69         $0.40
                                                               
Weighted average of outstanding common shares     44,153,818     44,151,323
                                                               
                                                               
Diluted EPS                                                     
Diluted net income attributable to MercadoLibre,                
Inc.
Shareholders per common share                     $0.69         $0.40
                                                               
Weighted average of outstanding common shares     44,153,818     44,151,357



Consolidated statements of cash flows
                                                Three Months Ended March 31,
                                                2014           2013
Cash flows from operations:                                    
Net income attributable to MercadoLibre, Inc.    $30,263,973  $17,480,253
Shareholders
Adjustments to reconcile net income to net cash                
provided by operating activities:
Net income attributable to Redeemable            63,980        42,338
Noncontrolling Interest
Net Devaluation (Gain) Loss in Venezuela and     (2,657,792)   6,420,929
Argentina
Depreciation and amortization                    3,519,100     2,621,339
Accrued interest                                 (2,019,040)   (2,531,301)
LTRP accrued compensation                       765,775       1,710,752
Deferred income taxes                            (4,675,345)   (140,238)
Changes in assets and liabilities:                             
Accounts receivable                             (9,409,832)   (994,003)
Credit Card Receivables                          (9,870,986)   (5,734,899)
Prepaid expenses                                 (961,907)     (1,069,904)
Other assets                                     924,587       (4,595,498)
Accounts payable and accrued expenses            11,754,682    2,243,694
Funds payable to customers                       7,365,588     8,854,986
Other liabilities                                318,251       2,297,188
Interest received from investments               2,245,543     3,485,861
Net cash provided by operating activities        27,626,577    30,091,497
Cash flows from investing activities:                          
Purchase of investments                          (386,755,370) (136,522,055)
Proceeds from sale and maturity of investments   379,720,253   146,413,859
Payment for acquired businesses, net of cash     --           (3,224,162)
acquired
Purchases of intangible assets                   (144,479)     --
Purchases of property and equipment              (6,966,127)   (2,861,295)
Net cash (used in) provided by investing         (14,145,724)  3,806,347
activities
Cash flows from financing activities:                          
Payments on loans payable and other financial    (582,157)     --
liabilities
Dividends paid                                   (6,313,869)   (4,812,396)
Stock options exercised                          --           3,020
Net cash used in financing activities           (6,896,026)   (4,809,376)
Effect of exchange rate changes on cash and cash (15,730,383)  (8,410,089)
equivalents
Net (decrease) increase in cash and cash         (9,145,555)   20,678,379
equivalents
Cash and cash equivalents, beginning of the      140,285,104   101,489,002
period
                                                              
Cash and cash equivalents, end of the period     $131,139,549 $122,167,381



Financial results of reporting segments
            Three Months Ended March 31, 2014
            Brazil       Argentina    Mexico      Venezuela   Other       Total
                                                               Countries
                                                                     
Net revenues $52,434,098 $ 27,961,744 $8,083,185 $           $7,546,705 $
                                                   19,356,587              115,382,319
Direct costs (30,516,894) (16,915,878) (4,577,716) (5,634,981) (3,914,533) (61,560,002)
Direct       21,917,204   11,045,866   3,505,469   13,721,606  3,632,172   53,822,317
contribution
                                                                     
Operating
expenses and
indirect                                                              (19,821,230)
costs of net
revenues
Income from                                                           34,001,087
operations
                                                                     
Other income                                                          
(expenses):
Interest
income and
other                                                                 3,035,630
financial
gains
Interest
expense and
other                                                                 (1,027,180)
financial
losses
Foreign
currency                                                              3,093,471
gain
Other                                                                 --
losses, net
Net income
before
income /                                                              $39,103,008
asset tax
expense
                                                                     
                                                                     
            Three Months Ended March 31, 2013
            Brazil       Argentina    Mexico      Venezuela   Other       Total
                                                               Countries
                                                                     
Net revenues $47,765,683 $ 25,620,747 $7,790,301 $           $6,418,465 $
                                                   15,130,551              102,725,747
Direct costs (30,993,544) (13,475,710) (4,116,828) (6,008,108) (2,867,981) (57,462,171)
Direct       16,772,139   12,145,037   3,673,473   9,122,443   3,550,484   45,263,576
contribution
                                                                     
Operating
expenses and
indirect                                                              (16,692,392)
costs of net
revenues
Income from                                                           28,571,184
operations
                                                                     
Other income                                                          
(expenses):
Interest
income and
other                                                                 3,394,006
financial
gains
Interest
expense and
other                                                                 (360,352)
financial
losses
Foreign
currency                                                              (6,249,714)
loss
Other                                                                 (3,733)
losses, net
Net income
before
income /                                                              $25,351,391
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, adjusted net income before
income / asset tax, adjusted income / asset tax, adjusted net income, adjusted
blended tax rate and adjusted earnings per share as non-GAAP measures.

These non-GAAP measures 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,
these non-GAAP measures are 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. These non-GAAP financial measures should
only be used to evaluate our results of operations in conjunction with the
most comparable GAAP financial measures.

Reconciliation of these non-GAAP financial measures to the most comparable
GAAP financial measures 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 March 31,
                                                 2014           2013
                                                               
                                                               
Net Cash provided by Operating Activities         $27.6        $30.1
                                                               
Payment for acquired businesses, net of cash      --           (3.2)
acquired
                                                               
Purchase of intangible assets                     (0.1)         --
                                                               
Purchases of property and equipment               (7.0)         (2.9)
                                                               
Free cash flows                                   $20.5        $24.0
                                                               
The table above may not total due to rounding.

Moreover, we believe that adjusted net income before income / asset tax,
adjusted income / asset tax, adjusted net income, adjusted blended tax rate
and adjusted earnings per share provide useful information to both management
and investors by excluding the foreign exchange loss attributable to the
devaluation in Venezuela, because it may not be indicative of our results of
operations. In addition, we report adjusted net income before income / asset
tax, adjusted income / asset tax, adjusted net income, adjusted blended tax
rate and adjusted earnings per share to investors because we believe that the
inclusion of these measures provides consistency in the Company's financial
reporting and because these financial measures provide useful information to
management and investors about what our adjusted net income before income /
asset tax, adjusted income / asset tax, adjusted net income, adjusted blended
tax rate and adjusted earnings per share, would have been, had the foreign
exchange loss in Venezuela not occurred. A limitation of the utility of
adjusted net income before income / asset tax, adjusted income / asset tax,
adjusted net income, adjusted blended tax rate and adjusted earnings per
share, as measures of financial performance, is that these measures do not
represent the total foreign exchange effect in our Income Statement for the
three month period ended March 31, 2014. Additionally, we present these
non-gaap financial measures compared to the three months period ended March
31, 2013:

                                               Three-months period ended (**)
                                               March 31,       March 31,
                                                2014            2013
Net income before income / asset tax expense    $39.1         $25.4
Devaluation loss in Venezuela                   1.3            6.4
                                                              
Adjusted Net income before income / asset tax   $40.4         $31.7
expense
                                                              
                                                              
Income and asset tax expense                    $(8.8)         $(7.8)
Income tax effect on devaluation loss in        (3.9)          (0.5) (1)
Venezuela
                                                              
Adjusted Income and asset tax                   $(12.7)        $(8.4)
                                                              
                                                              
Net Income                                      $30.3         $17.5
Devaluation loss in Venezuela                   1.3            6.4
Income tax effect on devaluation loss in        (3.9)          (0.5) (1)
Venezuela
                                                              
Adjusted Net Income                             $27.7         $23.4
                                                              
                                                              
Adjusted Blended Tax Rate                       31.4%           26.4%
                                                              
Weighted average of outstanding common shares   44,153,818      44,151,323
Adjusted Earnings per share                     $0.63         $0.53
                                                              
                                                              
(**) Stated in millions of U.S. dollars.
(1) Income tax charge related to the Venezuela devaluation under local tax
norms.
                                                              
The table above may not total due to rounding.

Venezuelan currency status

During December 2013, the Venezuelan regulation that created the SICAD 1 was
amended to expand its use, and to require publication of the average exchange
rate implied by transactions settled in SICAD 1 auctions. Additionally, on
January23, 2014, the exchange regulation was amended to include 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. Due to the change in rules that provided for the
creation of the SICAD 1 system, the official exchange rate remains only
available to obtain foreign currency to pay for a limited list of goods
considered to be of high priority by the Government, which does not include
those relating to the company´s business. So, SICAD 1 is now the primary
system to which the company will have to request US dollars to settle its
transactions. As a result, the exchange rate the Company uses to re-measure
its net monetary asset position and BsF transactions of our Venezuelan
operations from January 24, 2014 is the SICAD 1 exchange rate. As of March 31,
2014, the SICAD 1 exchange rate was 10.7 BsF per U.S. dollar. The average
exchange rate of the first quarter of 2014 was 10.1 BsF per U.S. dollar. At
the date of this release, the published SICAD 1 exchange rate is 10.0 BsF per
U.S. dollar.

Foreign Currency Sensitivity Analysis – Venezuela Segment

In order to assist investors in their overall understanding of the impact on
ourVenezuelan segment reporting of a hypothetical additional Venezuelan
devaluation,we developed a scenario that considers an exchange rate of 50 BsF
per U.S. dollar. Under this analysis, the assumed exchange rate was applied
starting on January1, 2014. These disclosures may help investors to project
sensitivities, on segment information captions, to devaluations of whatever
order of magnitude they choose by simple arithmetic calculations. The
information is just a scenario and does not represent a forward-looking
statement about our expectations or projections related to future events in
Venezuela. The investors and other readers or users of the financial
information presented in this caption are cautioned not to place undue
reliance on this scenario. This information is not a guarantee of future
events.

The information disclosed below does not include any inflation effect, nor the
one-time devaluation impact related to the assumed devaluation or any other
effect derived from the assumed devaluation. The information below should not
be considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP. In addition, this information is not based
on any comprehensive set of accounting rules or principles.

The evolution of the Venezuelan economy and any future governmental
interventions in the Venezuelan economy are beyond our ability to control or
predict. New events could happen in the future in Venezuela and it is not
possible for management to predict all such events, nor can it assess the
impact of all such events on our Venezuelan business.

The table below provides specific sensitivity information of our Venezuelan
segment reporting for the period indicated assumingan exchange rate of 50 BsF
per U.S. dollar,applied for the period starting on January1, 2014 to March
31, 2014:

            Three-month period ended March 31, 2014
            Actual (*)
            Brazil         Argentina      Mexico        Venezuela     Other         Total
                                                                       Countries
                                                                               
Net revenues $52,434,098   $27,961,744   $8,083,185   $19,356,587  $7,546,705   $115,382,319
Direct costs $(30,516,894) $(16,915,878) $(4,577,716) $(5,634,981) $(3,914,533) $(61,560,002)
Direct       $21,917,204   $11,045,866   $3,505,469   $13,721,606  $3,632,172   $53,822,317
contribution
Direct
Contribution 41.8%          39.5%          43.4%         70.9%         48.1%         46.6%
Margin %
                                                                               
Operating
expenses and
indirect                                                                        $(19,821,230)
costs of net
revenues
                                                                               
Income from                                                                     $34,001,087
operations
                                                                               
                                                                               
            Three-month period ended March 31, 2014
            Sensitivity (**)
            Brazil         Argentina      Mexico        Venezuela     Other         Total
                                                                       Countries
                                                                               
Net revenues $52,434,098   $27,961,744   $8,083,185   $3,820,537   $7,546,705   $99,846,269
Direct costs $(30,516,894) $(16,915,878) $(4,577,716) $(1,808,818) $(3,914,533) $(57,733,839)
Direct       $21,917,204   $11,045,866   $3,505,469   $2,011,719   $3,632,172   $42,112,430
contribution
Direct
Contribution 41.8%          39.5%          43.4%         52.7%         48.1%         42.2%
Margin %
                                                                               
Operating
expenses and
indirect                                                                        $(19,821,230)
costs of net
revenues
                                                                               
Income from                                                                     $22,291,200
operations
                                                                                                        
(*) As reported                                                                                          
(**) Computing a hypothetical devaluation of the Venezuelan Segment (50 BsF per U.S. dollar).            


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

company logo
 
Press spacebar to pause and continue. Press esc to stop.