MERCADOLIBRE, INC. 
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
?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 and central bank regulations on our business;
?litigation and legal liability;
?systems interruptions or failures;
?our ability to attract and retain qualified personnel;
?consumer trends;
?security breaches and illegal uses of our services;
?competition;
?reliance on third-party service providers;
?enforcement of intellectual property rights;
?seasonal fluctuations;
?political, social and economic conditions in
?the expected timing and amount of
?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.
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
31
--------------------------------------------------------------------------------
Table of Contents
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
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
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
three-month periods ended
?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,
Business Overview
We are the largest online commerce ecosystem in
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
We offer our users an ecosystem of six integrated e-commerce services: the
To complement the
32
--------------------------------------------------------------------------------
Table of Contents
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. As of
Our advertising platform, Mercado Ads, enables businesses to promote their
products and services on the Internet. Through our advertising platform,
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.
We also offer our digital storefront solution,
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
The following table sets forth the percentage of our consolidated net revenues
by segment for the three-month periods ended
Three-month Periods Ended
March 31,
(% of total consolidated net revenues) (*) 2021 2020
Brazil 55.8 % 60.9 %
Argentina 21.6 20.4
Mexico 16.7 14.5
Other Countries 5.9 4.1
(*) Percentages have been calculated using whole-dollar amounts rather than the rounded amounts that appear in the table. The table above may not total due to rounding.
?
33
--------------------------------------------------------------------------------
Table of Contents
The following table summarizes the changes in our net revenues by segment for
the three-month periods ended
Three-month Periods Ended Change from 2020
March 31, to 2021 (*)
2021 2020 in Dollars in %
(in millions, except percentages)
Net Revenues:
Brazil $ 768.7 $ 397.4 $ 371.3 93.4 %
Argentina 297.2 132.9 164.4 123.7
Mexico 230.5 94.8 135.7 143.3
Other Countries 82.0 27.0 55.0 203.5
Total Net Revenues $ 1,378.4 $ 652.1 $ 726.3 111.4 %
(*) Percentages have been calculated using whole-dollar amounts rather than the rounded amounts that appear in the table. The table above may not total due to rounding.
Description of Line Items Net revenues
We recognize revenues in each of our four geographical reporting segments. Within each of our segments, the services we provide and products we sale generally fall into two distinct revenue streams: "Commerce" and "Fintech."
The following table summarizes our consolidated net revenues by revenue stream
for the three-month periods ended
© Edgar Online, source
