Cautionary Statement Regarding Forward-Looking Statements



Any statements made or implied in this report that are not statements of
historical fact, including statements about our beliefs and expectations, are
forward-looking statements within the meaning of Section 27 A of the Securities
Act of 1933, as amended, (the "Securities Act") and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and should be
evaluated as such. The words "anticipate," "believe," "expect," "intend,"
"plan," "estimate," "target," "project," "should," "may," "could," "will" and
similar words and expressions are intended to identify forward-looking
statements. Forward-looking statements generally relate to information
concerning our possible or assumed future results of operations, business
strategies, financing plans, competitive position, industry environment,
potential growth opportunities, future economic, political and social conditions
in the countries in which we operate and their possible impact on our business,
and the effects of future regulation and the effects of competition. Such
forward-looking statements reflect, among other things, our current
expectations, plans, projections and strategies, anticipated financial results,
future events and financial trends affecting our business, all of which are
subject to known and unknown risks, uncertainties and other important factors
(in addition to those discussed elsewhere in this report) that may cause our
actual results to differ materially from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, among other
things:

?our expectations regarding the continued growth of e-commerce and Internet usage in Latin America;

?competition;

?our ability to expand our operations and adapt to rapidly changing technologies;

?our ability to attract new customers, retain existing customers and increase revenues;

?the impact of government, central bank and other regulations on our business;

?litigation and legal liability;

?security breaches and illegal uses of our services;

?systems interruptions or failures;

?our ability to attract and retain qualified personnel;

?consumer trends;

?reliance on third-party service providers;

?enforcement of intellectual property rights;

?our expectations regarding benefits and synergies from recent or future strategic investments, acquisitions of businesses, technologies, services or products;



?seasonal fluctuations;

?our indebtedness;

?volatility of market prices, impairment and unique risks related to loss of the digital assets that we acquire;

?political, social and economic conditions in Latin America;

?our long-term sustainability goals; and



?the current and potential impact of COVID-19 on our net revenues, gross profit
margins, operating margins and liquidity due to future disruptions in operations
as well as the macroeconomic instability caused by the pandemic.

Many of these risks are beyond our ability to control or predict. New risk
factors emerge from time to time and it is not possible for Management to
predict all such risk factors, nor can it assess the impact of all such risk
factors on our company's business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
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These statements are based on currently available information and our current
assumptions, expectations and projections about future events. While we believe
that our assumptions, expectations and projections are reasonable in view of the
currently available information, you are cautioned not to place undue reliance
on our forward-looking statements. These statements are not guarantees of future
performance. They are subject to future events, risks and uncertainties-many of
which are beyond our control- as well as potentially inaccurate assumptions that
could cause actual results to differ materially from our expectations and
projections. Some of the material risks and uncertainties that could cause
actual results to differ materially from our expectations and projections are
described in "Item 1A - Risk Factors" in Part I of our Annual Report on Form
10-K for the fiscal year ended December 31, 2021 filed with the Securities and
Exchange Commission ("SEC") on February 23, 2022 and in other reports we file
from time to time with the SEC.

You should read that information in conjunction with "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in Item 2 of
Part I of this report, our unaudited interim condensed consolidated financial
statements and related notes in Item 1 of Part I of this report and our audited
consolidated financial statements and related notes in Item 8 of Part II of our
Annual Report on Form 10-K for the year ended December 31, 2021. We note such
information for investors as permitted by the Private Securities Litigation
Reform Act of 1995. There also may be other factors that we cannot anticipate or
that are not described in this report, generally because they are unknown to us
or we do not perceive them to be material that could cause results to differ
materially from our expectations. Certain monetary amounts included elsewhere in
this document have been subject to rounding adjustments. Accordingly, figures
shown as totals in certain tables may not be the arithmetic aggregation of the
figures that precede them.

Forward-looking statements speak only as of the date they are made, and we do
not undertake to update these forward-looking statements except as may be
required by law. You are advised, however, to review any further disclosures we
make on related subjects in our periodic filings with the SEC.

The discussion and analysis of our financial condition and results of operations has been organized to present the following:

?a brief overview of our company;

?a review of our financial presentation and accounting policies, including our critical accounting policies;

?a discussion of our principal trends and results of operations for the nine and three-month periods ended September 30, 2022 and 2021;

?a discussion of the principal factors that influence our results of operations, financial condition and liquidity;

?a discussion of our liquidity and capital resources and a discussion of our capital expenditures; and

?a description of our non-GAAP financial measures.

Other Information



We routinely post important information for investors on our Investor Relations
website, http://investor.mercadolibre.com. We use this website as a means of
disclosing material, non-public information and for complying with our
disclosure obligations under SEC Regulation FD (Fair Disclosure). Accordingly,
investors should monitor our Investor Relations website, in addition to
following our press releases, SEC filings, public conference calls and webcasts.
The information contained on, or that may be accessed through, our website is
not incorporated by reference into, and is not a part of, this report.

Business Overview



We are the largest online commerce ecosystem in Latin America based on unique
visitors and page views, and we are present in 18 countries: Brazil, Argentina,
Mexico, Chile, Colombia, Peru, Uruguay, Venezuela, Bolivia, Costa Rica,
Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, Paraguay
and El Salvador. Our platform is designed to provide users with a complete
portfolio of services to facilitate commercial transactions both digitally and
offline.

Through our e-commerce platform, we provide buyers and sellers with a robust and
safe environment that fosters the development of a large e-commerce community in
Latin America, a region with a population of over 650 million people and with
one of the fastest-growing Internet penetration and e-commerce growth rates in
the world. We believe that we offer world-class technological and commercial
solutions that address the distinctive cultural and geographic challenges of
operating a digital commerce platform in Latin America.

We offer our users an ecosystem of six integrated e-commerce services: the
Mercado Libre Marketplace, the Mercado Pago fintech solution, the Mercado Envios
logistics service, the Mercado Libre Ads solution, the Mercado Libre Classifieds
service and the Mercado Shops online storefronts solution.
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The Mercado Libre Marketplace, which we sometimes refer to as our marketplace,
is a fully-automated, topically-arranged and user-friendly online commerce
platform, which can be accessed through our website and mobile app. This
platform enables us (when we act as sellers in our first party sales), merchants
and individuals to list merchandise and conduct sales and purchases digitally.
The Marketplace has an ample assortment of products, with a wide range of
categories such as consumer electronics, apparel and beauty, home goods,
automotive accessories, toys, books and entertainment and consumer packaged
goods.

To complement the Mercado Libre Marketplace and enhance the user experience for
our buyers and sellers, we developed Mercado Pago, an integrated digital
payments solution. Mercado Pago was initially designed to facilitate
transactions on Mercado Libre's Marketplaces by providing a mechanism that
allowed our users to securely, easily and promptly send and receive payments.
Now Mercado Pago is a full ecosystem of Financial Technology solutions both in
the digital and physical world. Our digital payments solution enables any
MercadoLibre registered user to securely and easily send and receive digital
payments and to pay for purchases made on any of MercadoLibre's Marketplaces.
Currently, Mercado Pago processes and settles all transactions on our
Marketplaces in Brazil, Argentina, Mexico, Chile, Colombia, Uruguay, Peru and in
Ecuador. In addition, Mercado Pago grants through our Mercado Credito solution,
loans to sellers and buyers in Argentina, Brazil, Mexico, and Chile.

Beyond facilitating Marketplace transactions, over the years we have expanded
our array of Mercado Pago services to third parties outside Mercado Libre's
Marketplace. We began first by satisfying the growing demand for online-based
payment solutions by providing merchants the necessary digital payment
infrastructure for e-commerce to flourish in Latin America. Today, Mercado
Pago's digital payments business not only allows merchants to facilitate
checkout and payment processes on their websites through a branded or white
label solution or software development kits, but it also enables users to
transfer money in a simple manner to each other through the Mercado Pago website
or on Mercado Pago app. Through Mercado Pago, we brought trust to the merchant
customer relationship, allowing online consumers to shop easily and safely,
while giving them the confidence to share sensitive personal and financial data
with us.

The Mercado Envios logistics solution enables sellers on our platform to utilize
third-party carriers and other logistics service providers, while also providing
them with fulfillment and warehousing services. The logistics services we offer
are an integral part of our value proposition, as they reduce friction between
buyers and sellers, and allow us to have greater control over the full
experience. Sellers that opt into our logistics solutions are not only able to
offer a uniform and seamlessly integrated shipping experience to their buyers at
competitive prices, but are also eligible to access shipping subsidies to offer
free or discounted shipping for many of their sales on our Marketplaces. In
2020, we launched Meli Air with a fleet of dedicated aircrafts covering routes
across Brazil and Mexico, with the aim of improving our delivery times. We have
also developed a network of independent neighborhood stores and commercial
points (known as "MELI Places") to receive and store packages that are in
transit using our integrated technology. MELI Places network allows buyers and
sellers to pick-up, drop-off, or return packages with a better experience,
reducing the travel distance for all parties. As of September 30, 2022, we offer
our shipping solution directed towards deliveries in Argentina, Brazil, Mexico,
Colombia, Chile, Uruguay, Peru and Ecuador and we also offer free shipping to
buyers in Brazil, Argentina, Mexico, Chile, Colombia, Uruguay and Peru.

Mercado Credito, our credit solution, leverages our user base, which is not only
loyal and engaged, but has also been historically underserved or overlooked by
financial institutions and suffers from a lack of access to needed credit.
Facilitating credit is a key service overlay that enables us to further
strengthen the engagement and lock-in rate of our users, while also generating
additional touchpoints and incentives to use Mercado Pago as an end-to-end
financial solution.

Our asset management product, which is available in Argentina, Brazil and
Mexico, is a critical pillar to building our alternative two-sided network
vision. It incentivizes our users to begin to fund their digital wallets with
cash as opposed to credit or debit cards given that the return our product
offers is greater than traditional checking accounts. As an extension of our
asset management and savings solutions for users, in 2021 we launched in Brazil
a cryptocurrency feature as part of the Mercado Pago wallet. This service allows
our millions of users to purchase, hold and sell selected cryptocurrencies
through our interface without leaving the Mercado Pago application, while a
partner acts as the custodian and offers the blockchain infrastructure platform.
This feature is available for all users through their Mercado Pago wallet.

Our advertising platform, Mercado Ads, enables businesses to promote their
products and services on the Internet. Through our advertising platform,
MercadoLibre's brands and sellers are able to display ads on our webpages
through product searches, banner ads, or suggested products. Our advertising
platform enables merchants and brands to access the millions of consumers that
are on our Marketplaces at any given time with the intent to purchase, which
increases the likelihood of conversion.


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Through Mercado Libre Classifieds, our online classified listing service, our
users can also list and purchase motor vehicles, real estate and services in the
countries where we operate. Classifieds listings differ from Marketplace
listings as they only charge optional placement fees and not final value fees.
Our classifieds pages are also a major source of traffic to our platform,
benefitting both the Commerce and Fintech businesses.

Complementing the service that we offer to our users, our digital storefront
solution, Mercado Shops, allows users to set-up, manage and promote their own
digital stores. These stores are hosted by Mercado Libre and offer integration
with the rest of our ecosystem, namely our Marketplaces, payment services and
logistics services. Users can create a store at no cost, and can access
additional functionalities and value added services on commission.

Reporting Segments and Geographic Information



Our segment reporting is based on geography, which is the criterion our
Management currently uses to evaluate our segment performance. Our geographic
segments are Brazil, Argentina, Mexico and Other Countries (including Chile,
Colombia, Costa Rica, Ecuador, Peru and Uruguay). Although we discuss long-term
trends in our business, it is our policy not to provide earnings guidance in the
traditional sense. We believe that uncertain conditions make the forecasting of
near-term results difficult. Further, we seek to make decisions focused
primarily on the long-term welfare of our company and believe focusing on
short-term earnings does not best serve the interests of our stockholders. We
believe that execution of key strategic initiatives as well as our expectations
for long-term growth in our markets will best create stockholder value. A
long-term focus may make it more difficult for industry analysts and the market
to evaluate the value of our Company, which could reduce the value of our common
stock or permit competitors with short-term tactics to grow more rapidly than
us. We, therefore, encourage potential investors to consider this strategy
before making an investment in our common stock.

The following table sets forth the percentage of our consolidated net revenues
by segment for the nine and three-month periods ended September 30, 2022 and
2021:
                                      Nine Months Ended          Three Months Ended
                                        September 30,              September 30,
(% of total consolidated net
revenues)                             2022          2021         2022          2021
Brazil                                 54.9  %       56.3 %       53.2 %        57.2 %
Argentina                              23.7          21.4         25.1          21.2
Mexico                                 16.7          15.8         17.3          15.7
Other Countries                         4.7           6.5          4.4           5.9

The following table summarizes the changes in our net revenues by segment for the nine and three-month periods ended September 30, 2022 and 2021:


                          Nine Months Ended          Change from 2021           Three Months Ended       Change from 2021
                            September 30,                 to 2022                 September 30,              to 2022
                           2022            2021       in Dollars    in %         2022         2021     in Dollars     in %
                               (in millions, except percentages)                    (in millions, except percentages)

Net Revenues:
Brazil                $     4,134       $  2,783   $       1,351   48.5 %    $     1,431   $  1,063   $        368    34.6 %
Argentina                   1,787          1,056             731   69.2              675        393            282    71.8
Mexico                      1,257            780             477   61.2              465        291            174    59.8
Other Countries               357            320              37   11.6              119        111              8     7.2
Total Net Revenues    $     7,535       $  4,939   $       2,596   52.6 %    $     2,690   $  1,858   $        832    44.8 %

Description of Line Items

Net revenues



We disaggregate revenues into four geographical reporting segments. Within each
of our segments, the services we provide and products we sell generally fall
into two distinct revenue streams: "Commerce" and "Fintech."
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The following table summarizes our consolidated net revenues by revenue stream for the nine and three-month periods ended September 30, 2022 and 2021:


                                          Nine Months Ended              Three Months Ended
                                            September 30,                  September 30,
Consolidated net revenues by
revenue stream                          2022               2021          2022          2021
                                            (in millions)                  (in millions)
Commerce                             $     4,147       $    3,278    $     1,465   $    1,225
Fintech                                    3,388            1,661          1,225          633
Total                                $     7,535       $    4,939    $     2,690   $    1,858

Revenues from Commerce transactions are mainly generated from:

?marketplace fees that include final value fees and flat fees for transactions below a certain merchandise value;

?first party sales;

?shipping fees, net of the third-party carrier costs (when we act as an agent);



?ad sales up-front fees;

?classifieds fees; and

?fees from other ancillary businesses.



Final value fees represent a percentage of the sale value that is charged to the
seller once an item is successfully sold and flat fees represent a fixed charge
for transactions below a certain merchandise value.

Revenues from first-party sales are generated when control of the good is transferred, upon delivery to our customers.



Shipping revenues are generated when a buyer elects to receive an item through
our shipping service net of the third-party carrier costs (when we act as an
agent).

Through our classifieds offerings in vehicles, real estate and services, we generate revenues from up-front fees. These fees are charged to sellers who opt to give their listings greater exposure throughout our websites.

Our Advertising revenues are generated by selling either display product and/or text link ads throughout our websites to interested advertisers.

Fintech revenues correspond to our Mercado Pago service, which are attributable to:

?commissions representing a percentage of the payment volume processed that are charged to sellers in connection with off Marketplace-platform transactions;

?commissions from additional fees we charge when a buyer elects to pay in installments through our Mercado Pago platform, for transactions that occur either on or off our Marketplace platform;

?commissions from additional fees we charge when our sellers elect to withdraw cash;

?interest, cash advances and fees from merchant and consumer credits granted under our Mercado Credito solution;

?commissions that we charge from transactions carried out with Mercado Pago credit and debit cards; and

?revenues from the sale of mobile points of sale products and insurtech fees.

Although we also process payments on the Marketplace, we do not charge sellers an added commission for this service, as it is already included in the Marketplace final value fee that we charge.



When more than one service is included in one single arrangement with the same
customer, we recognize revenue according to multiple element arrangements
accounting, distinguishing between each of the services provided and allocating
revenues based on their respective estimated selling prices.

We have a highly fragmented customer revenue base given the large numbers of
sellers and buyers who use our platforms. For the nine-month periods ended
September 30, 2022 and 2021, no single customer accounted for more than 5.0% of
our net revenues.
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Our Mercado Libre Marketplace is available in 18 countries (Argentina, Brazil,
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Peru,
Uruguay, Venezuela (deconsolidated since December 1, 2017), Bolivia, Honduras,
Nicaragua, El Salvador, Guatemala and Paraguay), and Mercado Pago is available
in 7 countries (Argentina, Brazil, Chile, Peru, Colombia, Mexico and Uruguay).
Additionally, Mercado Envios is available in 8 countries (Argentina, Brazil,
Mexico, Colombia, Chile, Peru, Uruguay and Ecuador). The functional currency for
each country's operations is the country's local currency, except for Argentina,
where the functional currency is the U.S. dollar due to Argentina's status as a
highly inflationary economy. Our net revenues are generated in multiple foreign
currencies and then translated into U.S. dollars at the average monthly exchange
rate. Please refer to "Summary of significant accounting policies" in Note 2 of
our unaudited interim condensed consolidated financial statements for further
detail on foreign currency translation.

Our subsidiaries in Brazil, Argentina and Colombia are subject to certain taxes
on revenues, which are classified as a cost of net revenues. These taxes
represented 7.5% of net revenues for the nine-month period September 30, 2022,
as compared to 8.7% for the same period in 2021. For the three-month periods
ended September 30, 2022 and 2021, these taxes represented 7.5% and 9.2% of net
revenues, respectively.

Cost of net revenues

Cost of net revenues primarily includes cost of sales of goods, shipping operation costs (including warehousing costs), carrier and other operating costs, collection fees, sales taxes, funding costs related to our credits business, fraud prevention fees, certain taxes on bank transactions, hosting and site operation fees, compensation for customer support personnel, ISP connectivity charges and depreciation and amortization.

Product and technology development expenses



Our product and technology development related expenses consist primarily of
compensation for our engineering and web-development staff, depreciation and
amortization costs related to product and technology development,
telecommunications costs and payments to third-party suppliers who provide
technology maintenance services to us.

Sales and marketing expenses



Our sales and marketing expenses consist primarily of costs related to marketing
our platforms through online and offline advertising and agreements with
portals, search engines and other sales expenses related to strategic marketing
initiatives, charges related to our buyer protection programs, the salaries of
employees involved in these activities, chargebacks related to our Mercado Pago
operations, branding initiatives, marketing activities for our users and
depreciation and amortization costs.

We carry out the majority of our marketing efforts on the Internet. We enter
into agreements with portals, search engines, social networks, ad networks and
other sites in order to attract Internet users to the Mercado Libre Marketplace
and convert them into registered users and active traders on our platform.

We also work intensively on attracting, developing and growing our seller
community through our customer support efforts. We have dedicated professionals
in most of our operations that work with sellers through trade show
participation, seminars and meetings to provide them with important tools and
skills to become effective sellers on our platform.

Provision for doubtful accounts



Provision for doubtful accounts consists of the expected credit losses on our
financial assets, mainly loans receivable, accounts receivable and credit card
receivables and other means of payments.

General and administrative expenses



Our general and administrative expenses consist primarily of salaries for
management and administrative staff, compensation of non-employee directors,
long term retention program compensation, expenses for legal, audit and other
professional services, insurance expenses, office space rental expenses,
impairment losses from digital assets, travel and business expenses, as well as
depreciation and amortization costs. Our general and administrative expenses
include the costs of the following areas: general management, finance, treasury,
internal audit, administration, accounting, tax, legal and human resources.

Other income (expenses), net



Other income (expenses) consists primarily of interest income derived from our
investments and cash equivalents, interest expense and other financial charges
related to financial liabilities and foreign currency gains or losses.
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Income tax



We are subject to federal and state taxes in the United States, as well as
foreign taxes in the multiple jurisdictions where we operate. Our tax
obligations consist of current and deferred income taxes incurred in these
jurisdictions. We account for income taxes following the liability method of
accounting. A valuation allowance is recorded when, based on the available
evidence, it is more likely than not that all or a portion of our deferred tax
assets will not be realized. Therefore, our income tax expense consists of taxes
currently payable, if any (given that in certain jurisdictions we still have net
operating loss carry-forwards), plus the change in our deferred tax assets and
liabilities during each period.

Equity in earnings of unconsolidated entity

Equity in earnings of unconsolidated entity consists primarily of earnings and losses related to our share in our equity investment.

Critical Accounting Policies and Estimates



There have been no significant changes in our critical accounting policies,
Management estimates or accounting policies since the year ended December 31,
2021 and disclosed in the Form 10-K, see "Critical Accounting Policies and
Estimates," except for the adoption of ASU 2020-06 and SAB 121 as of January 1,
2022. See section Recently Adopted Accounting Standards of Note 2 to our
unaudited interim condensed consolidated financial statements included in Item 1
of Part I of this report.

Results of operations for the nine and three-month periods ended September 30, 2022 compared to the nine and three-month periods ended September 30, 2021



The selected financial data for the nine and three-month periods ended September
30, 2022 and 2021 discussed herein is derived from our unaudited interim
condensed consolidated financial statements included in Item 1 of Part I of this
report. These statements include all normal recurring adjustments that
Management believes are necessary to fairly state our financial position,
results of operations and cash flows. The results of operations for the nine and
three-month periods ended September 30, 2022, are not necessarily indicative of
the results that may be expected for the full year ending December 31, 2022 or
for any other period.


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