MercadoLibre, Inc. Reports Fourth Quarter and Full Year 2017 Financial Results

81.2 million Sold Items, up 57.5%, 73.2 million Total Payment Transactions, up 72.2%

Net Revenues of $437.0 million, up 70.5% in USD, 99.6% on an FX neutral basis

Net loss of $67.7 million.

BUENOS AIRES, Argentina, Feb. 22, 2018 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com), the largest online commerce ecosystem in Latin America, today reported financial results for the fourth quarter and fiscal year ended December 31, 2017.

Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, “Some of the main structural factors that underpin ecommerce and fintech in Latin America are beginning to take shape through the growth of the installed base of smartphones, increasing consumer familiarity and affinity with buying and transacting online, greater number of broadband users, rising demand for online financial services, and growing interest on behalf of traditional retailers and brands to find technology partners to support them in developing their digital strategies. All of the aforementioned structural factors will be the catalysts that will continue to fuel the growth of Mercado Libre in the region for many years to come.”

Full Year 2017 Operational & Financial Highlights

  • MercadoLibre sold 270.1 million items during 2017, a year-over-year increase of 49.1%, resulting in Gross Merchandise Volume of $11.7 billion.
  • MercadoPago ended 2017 with 231.4 million Total Payment Transactions for the year, an increase of 66.8%, resulting in a full-year Total Payment Volume of $13.7 billion.
  • MercadoEnvíos shipped 150.7 million items during 2017, a 74.2% increase as compared to 2016.
  • Consolidated Net Revenues for 2017 were $1,398.1 million, a 65.6% year-over-year increase in USD.
  • Full-year net income was $13.8 million, or $0.31 per share.
  • Effective December 1, 2017, the Company determined that it no longer has accounting control of its subsidiaries in Venezuela as a result of the country’s recent selective default determination, restrictive exchange controls and other operating restrictions, all of which have significantly hindered the Company’s ability to make key financial decisions. As a result, the Company has decided to deconsolidate its Venezuelan operations as of December 1, 2017.
  • The Company will no longer include the results of its Venezuelan subsidiaries in its consolidated financial statements. However, Mercado Libre will remain fully committed to serving its Venezuelan users and will continue to operate in Venezuela after the aforementioned deconsolidation.

Fourth Quarter 2017 Business Highlights

  • Gross Merchandise Volume was $3,617.7 million, reflecting a 62.8% year-over-year increase in USD and a 132.4% increase on an FX neutral basis. Items sold during the fourth quarter of 2017 increased to 81.2 million, a 57.5% year-over-year increase.
  • Successful items per unique buyer grew to 4.6 from 3.9 last year, a 17.1% year-over-year increase.
  • We continue to grow the number of listings in our platform, ending the year with over 114.2 million listings, a 56.0% year-over-year increase.
  • MercadoPago ended the year with an extraordinary fourth quarter, processing $4,342.8 million in payments, a 77.5% year-over-year increase. Total Payment Transactions through MercadoPago grew to 73.2 million, a 72.2% year-over-year increase.
  • Penetration of MercadoPago in countries beyond Brazil, Mexico and Argentina continues to increase. On platform penetration in Colombia and Chile rose to 81.8% and 75.0% versus 60.3%and 41.5% when compared to the fourth quarter of 2016, respectively.
  • Mobile engagement continues to grow as we move from a desktop centric model to a multi-device ecosystem, already representing 50% of our GMV during the fourth quarter of 2017.
  • Successful execution of commercial initiatives, automated onboarding of small merchants, strong seasonal campaigns and outstanding results in our mobile payments initiatives resulted in off platform payment volume growth on an FX neutral basis of 127.9% year-over-year.
  • As compared to the fourth quarter of 2016, we multiplied the number of mobile point-of-sale devices sold in Brazil by nearly 13 times, while in Argentina we have grown sales of devices by a factor of 20.
  • Items shipped through MercadoEnvíos increased 86.9%, to 48.3 million items delivered in the fourth quarter. The service continues to gain adoption across the board; MercadoEnvíos arranged shipping for 75.5% of items sold on our platform in Brazil, 74.8% in Mexico, 60.5% in Colombia, 46.7% in Chile and 31.0% in Argentina.
  • Free shipping penetration continues to gain traction as well, as over 70% of shipped GMV is already being done with free shipping.
  • We are making meaningful advances in taking our classifieds business to a transactional model, with our down payment pilot launch in Brazil and Argentina.

Fourth Quarter 2017 Financial Highlights

  • Net revenues for the fourth quarter were $437.0 million, a year-over-year increase of 70.5% in USD and 99.6% on an FX neutral basis. Marketplace revenues grew 71.2% in USD, and 116.1% on an FX neutral basis, while non-marketplace revenues grew 69.5% in USD and 76.4% on an FX neutral basis.
  • Gross profit for the fourth quarter of 2017 was $203.4 million. Gross profit margin was 46.5%, compared to 63.5% in the fourth quarter of 2016. Most of the margin compression is explained by increases in costs associated with our free shipping & loyalty programs.
  • We incurred a $85.8 million loss as a result of the deconsolidation of our Venezuelan operations.
  • Total operating expenses increased to $268.0 million, up 173.3% year-over-year on an as reported basis. As a percentage of revenues, operating expenses were 61.3% versus 38.3% in the fourth quarter of 2016.
  • Income from operations was negative $64.6 million, down 199.9% year-over-year on an as reported basis.
  • Interest income contracted 13.4% year-over-year, ending the quarter with $8.9 million, due to lower interest rates in Brazil and Argentina.
  • The company incurred $6.8 million dollars in financial expenses, mainly as a consequence of interest payments on its Convertible Bond issued in June of 2014.
  • Foreign currency exchange saw a $2.1 million dollar loss due to local currency devaluations.
  • Net income before taxes was negative $64.7 million, down 195.6% year-over-year on an as reported basis.
  • Income tax expense was $3.0 million during the fourth quarter.
  • Net loss as reported for the fourth quarter was $67.7 million dollars, resulting in basic net loss per common share of $1.53.
  • Net cash provided by operating activities was $26.6 million. Net decrease in cash and cash equivalents was $72.9 million dollars for the three months ended December 31st (*).
  • Excluding Venezuela, revenues would have been $421.0 million, a 71.1% year-over-year increase. Total operating expenses would have been $178.2 million, or 42.3% of net revenues versus 38.1% in the fourth quarter of 2016. Net income would have been $8.8 million dollars, a margin of 2.0%, and earnings per share of 20 cents, vs 19.7% and $1.10 a year ago respectively.

(*)Three month period ended December 31st is calculated by taking the difference between twelve months ended December 31st and nine months ended September 30th

Fourth Quarter 2017 Corporate Highlights

  • During the fiscal year ended December 31, 2017, the Company approved total cash dividends for a total amount of $26,496 thousand or $0.600 per share, all of which had been paid as of year-end, except for the one approved in October 2017, consisting of $6,624 thousand (or $0.150 per share, which was paid on January 12, 2018) to stockholders of record as of the close of business on December 31, 2017.
  • After reviewing our capital allocation process the Board of Directors has concluded that the Company has multiple investment opportunities that should generate greater returns to shareholders through investing capital into the business than issuing a dividend. Consequently, the decision has been made to suspend the payment of dividend to shareholders as of the first quarter of 2018, as it will free up capital for investment in multiple projects in our various platforms.

The following table summarizes certain key performance metrics for the three months ended December 31, 2017 and 2016.

Three months ended December 31, (in MM)
2017 2016 %YoY %YoY Local
Currency
Total confirmed registered users at the end of period 211.9 174.221.7%
New confirmed registered users during the period 10.7 7.936.2%
Gross merchandise volume $ 3,618 $ 2,222 62.8%132.4%
Number of successful items sold 81.2 51.657.5%
Number of successful items shipped 48.3 25.986.9%
Total payment volume $ 4,343 $ 2,447 77.5%94.5%
Total volume of payments on marketplace $ 3,007 $ 1,760 70.9%
Tota payments transactions 73.2 42.572.2%
Unique Buyers 17.7 13.234.5%
Unique Sellers 4.6 3.916.8%

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

YoY Growth rates
Consolidated Net Revenues
Q4'16 Q1'17 Q2'17 Q3'17 Q4'17
Brazil 64%66%60%71%79%
Argentina 60%58%44%51%62%
Mexico 29%55%80%82%124%
Venezuela 199%291%353%571%650%
Others 42%36%34%55%59%
Total 68%79%65%79%100%

Table of Year-over-Year USD Revenue Growth Rates by Quarter

YoY Growth rates
Consolidated Net Revenues
Q4'16 Q1'17 Q2'17 Q3'17 Q4'17
Brazil 92%106%75%75%82%
Argentina 4%48%30%30%42%
Mexico 8%40%76%91%136%
Venezuela -10%19%90%42%49%
Others 46%47%39%57%62%
Total 42%74%59%61%70%

Conference Call and Webcast

The Company will host a conference call and audio webcast on February 22, 2018 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing +(970) 315-0420 or +(877) 303-7209 (Conference ID 2790306) and requesting inclusion in the call for Mercado Libre. 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

Foreign Exchange (“FX”) Neutral – Calculated by using the average monthly exchange rate of each month of 2016 and applying it to the corresponding months in the current year, so as to calculate what the results would have been had exchange rates remained constant. Intercompany allocations are excluded from this calculation. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations.

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

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

Total volume of payments on marketplace - Measure of the total U.S. dollar sum of all marketplace transactions paid for using MercadoPago, excluding shipping and financing fees.

Total payment volume – Measure of total U.S. dollar sum of all transactions paid for using MercadoPago, including marketplace and non-marketplace transactions.

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

Items shipped- Measure of the number of items that were shipped through our shipping service.

Local Currency Growth Rates – Refer to FX Neutral definition.

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

New confirmed registered users – Measure of the number of new users who have registered on the Mercado Libre platform (including Mercado Pago) and confirmed their registration. Since July’12, registration and confirmation take place in the same step of the registration flow.

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

Total confirmed registered users – Measure of the cumulative number of users who have registered on the Mercado Libre platform (including Mercado Pago) and confirmed their registration. Since July ’12, registration and confirmation take place in the same step of the registration flow.

Unique Buyers – New or existing buyers with at least one purchase made in the period.

Unique Sellers – New or existing sellers with at least one sale made in the period.

About Mercado Libre

Founded in 1999, Mercado Libre is one of the largest online commerce ecosystems in Latin America. Through its primary platforms, Mercado Libre.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) since its initial public offering in 2007.

For more information about the Company visit: http://investor.mercadolibre.com.

The Mercado Libre, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4193

Forward-Looking Statements

Any statements herein regarding MercadoLibre, Inc. that are not historical or current facts are forward-looking statements. These forward-looking statements convey MercadoLibre, Inc.’s current expectations or forecasts of future events. Forward-looking statements regarding MercadoLibre, Inc. involve known and unknown risks, uncertainties and other factors that may cause MercadoLibre, Inc.’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary Note Regarding Forward-Looking Statements” sections of MercadoLibre, Inc’s annual report on Form 10-K for the year ended December 31, 2017, and any of MercadoLibre, Inc.’s other applicable filings with the Securities and Exchange Commission. Unless required by law, MercadoLibre, Inc. undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

Consolidated balance sheets
(In thousands of U.S. dollars, except par value)

December 31, December 31,
2017 2016
Assets
Current assets:
Cash and cash equivalents$ 388,260 $ 234,140
Short-term investments 209,432 253,321
Accounts receivable, net 28,168 25,435
Credit cards receivable, net 521,130 307,904
Loans receivable, net 73,409 6,283
Prepaid expenses 5,864 15,060
Inventory 2,549 1,103
Other assets 58,107 26,215
Total current assets 1,286,919 869,461
Non-current assets:
Long-term investments 34,720 153,803
Property and equipment, net 114,837 124,261
Goodwill 92,279 91,797
Intangible assets, net 23,174 26,277
Deferred tax assets 57,324 45,017
Other assets 63,934 56,819
Total non-current assets 386,268 497,974
Total assets$ 1,673,187 $ 1,367,435
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses$ 221,095 $ 105,106
Funds payable to customers 583,107 370,693
Salaries and social security payable 65,053 48,898
Taxes payable 32,150 27,338
Loans payable and other financial liabilities 56,325 11,583
Other liabilities 3,678 6,359
Dividends payable 6,624 6,624
Total current liabilities 968,032 576,601
Non-current liabilities:
Salaries and social security payable 25,002 16,173
Loans payable and other financial liabilities 312,089 301,940
Deferred tax liabilities 23,819 34,059
Other liabilities 18,466 9,808
Total non-current liabilities 379,376 361,980
Total liabilities$ 1,347,408 $ 938,581
Equity:
Common stock, $0.001 par value, 110,000,000 shares authorized,
44,157,364 shares issued and outstanding at December 31,
2017 and December 31, 2016$ 44 $ 44
Additional paid-in capital 70,661 137,982
Retained earnings 537,925 550,641
Accumulated other comprehensive loss (282,851) (259,813)
Total Equity 325,779 428,854
Total Liabilities and Equity$ 1,673,187 $ 1,367,435

Consolidated statements of cash flows
(In thousands of U.S. dollars, except par value)

Year Ended December 31,
2017 2016 2015
Cash flows from operations:
Net income attributable to MercadoLibre, Inc. Shareholders $ 13,780 $ 136,366 $ 105,789
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized Devaluation Loss, net 28,463 4,967 14,717
Impairment of Long-Lived Assets 2,837 13,717 16,226
Loss on deconsolidation of Venezuelan subsidiaries 85,761
Depreciation and amortization 40,921 29,022 23,209
Accrued interest (20,192) (17,794) (12,783)
Non cash interest and convertible bonds amortization of debt discount and amortization of debt issuance costs 10,855 9,837 17,272
LTRP accrued compensation 35,719 22,983 10,213
Deferred income taxes (24,575) (6,188) 4,354
Changes in assets and liabilities:
Accounts receivable (21,817) (15,428) (36,476)
Credit cards receivable (257,563) (180,592) (109,139)
Prepaid expenses 8,670 (9,133) (3,907)
Inventory (1,549) (787) (237)
Other assets (54,780) (24,425) (2,340)
Accounts payable and accrued expenses 150,215 47,980 63,668
Funds payable to customers 242,037 164,060 119,353
Other liabilities 7,680 (45) 1,765
Interest received from investments 22,548 15,719 9,686
Net cash provided by operating activities 269,010 190,259 221,370
Cash flows from investing activities:
Purchase of investments (4,553,649) (3,501,283) (1,949,769)
Proceeds from sale and maturity of investments 4,713,934 3,508,293 1,875,516
Payment for acquired businesses, net of cash acquired (8,568) (7,284) (45,009)
Reduction of cash due to Venezuela deconsolidation (27,230)
Purchases of intangible assets (33) (431) (1,746)
Changes in principal loans receivable, net (72,244) (6,599)
Advance for property and equipment (19,695) (8,412) (23,380)
Purchases of property and equipment (55,156) (68,527) (39,150)
Net cash used in investing activities (22,641) (84,243) (183,538)
Cash flows from financing activities:
Proceeds from loans payable and other financial liabilities 47,905 11,435 5,033
Payments on loans payable and other financing (5,004) (6,684) (9,059)
Dividends paid (26,496) (24,419) (20,974)
Purchase of convertible note capped call (67,308)
Repurchase of Common Stock (2,714)
Net cash used in financing activities (50,903) (19,668) (27,714)
Effect of exchange rate changes on cash and cash equivalents (41,346) (19,089) (66,381)
Net increase (decrease) in cash and cash equivalents 154,120 67,259 (56,263)
Cash and cash equivalents, beginning of the year $ 234,140 166,881 223,144
Cash and cash equivalents, end of the year $ 388,260 $ 234,140 $ 166,881

Consolidated statements of income
(In thousands of U.S. dollars, except for share data)

Year Ended December 31, Three Months Ended December 31,
2017 2016 2015 2017 2016
Net revenues $ 1,398,095 $ 844,396 $ 651,790 $ 436,978 $ 256,275
Cost of net revenues (678,495) (307,538) (214,994) (233,616) (93,546)
Gross profit 719,600 536,858 436,796 203,362 162,729
Operating expenses:
Product and technology development (127,160) (98,479) (76,423) (34,161) (26,256)
Sales and marketing (325,375) (156,296) (128,609) (117,433) (48,554)
General and administrative (122,194) (87,310) (76,342) (30,620) (23,250)
Impairment of Long-Lived Assets (2,837) (13,717) (16,226)
Loss on deconsolidation of Venezuelan subsidiaries (85,761) (85,761)
Total operating expenses (663,327) (355,802) (297,600) (267,975) (98,060)
Income from operations 56,273 181,056 139,196 (64,613) 64,669
Other income (expenses):
Interest income and other financial gains 45,901 35,442 20,561 8,881 10,250
Interest expense and other financial losses (26,469) (25,605) (20,391) (6,783) (6,799)
Foreign currency (losses) gains (21,635) (5,565) 11,125 (2,157) (501)
Net income before income tax expense 54,070 185,328 150,491 (64,672) 67,619
Income tax expense (40,290) (48,962) (44,702) (3,048) (16,272)
Net income attributable to MercadoLibre, Inc. shareholders $ 13,780 $ 136,366 $ 105,789 $ (67,720) $ 51,347


Year Ended December 31, Three Months Ended December 31,
2017 2016 2015 2017 2016
Basic EPS
Basic net income
Available to shareholders per common share$ 0.31 $ 3.09 $ 2.40 $ (1.53) $ 1.16
Weighted average of outstanding common shares 44,157,364 44,157,251 44,155,680 44,157,364 44,157,355
Diluted EPS
Diluted net income
Available to shareholders per common share$ 0.31 $ 3.09 $ 2.40 $ (1.53) $ 1.16
Weighted average of outstanding common shares 44,157,364 44,157,251 44,155,680 44,157,364 44,157,355
Cash Dividends declared (per share) 0.600 0.600 0.412 0.150 0.150

Financial results of reporting segments

Year Ended December 31, 2017
Brazil Argentina Mexico Venezuela (*) Other Countries Total
(In thousands)
Net revenues $ 831,416 $ 359,357 $ 86,486 $ 54,327 $ 66,509 $ 1,398,095
Direct costs (612,196) (215,831) (142,559) (22,101) (58,995) (1,051,682)
Impairment of Long-lived Assets - - - (2,837) - (2,837)
Loss on deconsolidation of Venezuelan subsidiary - - - (76,617) - (76,617)
Direct contribution 219,220 143,526 (56,073) (47,228) 7,514 266,959
Operating expenses and indirect costs of net revenues (201,542)
Loss on Deconsolidation of Venezuelan's Intercompany balances (9,144)
Income from operations 56,273
Other income (expenses):
Interest income and other financial gains 45,901
Interest expense and other financial losses (26,469)
Foreign currency losses (21,635)
Net income before income tax expense $ 54,070


Three months Ended December 31, 2017
Brazil Argentina Mexico Venezuela
(*)
Other Countries Total
Net revenues $ 262,096 $ 108,666 $ 28,162 $ 15,999 $ 22,056 436,979
Direct costs (222,188) (64,858) (46,879) (5,260) (21,940) (361,125)
Loss on Deconsolidation of Venezuelan Subsidiaries - - - (76,617) - (76,617)
Direct contribution 39,908 43,808 (18,717) (65,878) 116 (763)
Operating expenses and indirect costs of net revenues (54,701)
Loss on Deconsolidation of Venezuelan's Intercompany balances (9,143)
Income from operations (64,607)
Other income (expenses):
Interest income and other financial gains 8,881
Interest expense and other financial results (6,783)
Foreing currency losses (2,160)
Net Income before Income Tax (64,669)
Income Tax (3,049)
Net Income $ (67,718)

(*)Excludes results of operations for Venezuela for the month of December 2017.

Year Ended December 31, 2016
Brazil Argentina Mexico Venezuela Other Countries Total
(In thousands)
Net revenues $ 455,024 $ 262,252 $ 46,332 $ 37,185 $ 43,603 $ 844,396
Direct costs (270,922) (152,103) (40,951) (17,732) (31,549) $ (513,257)
Impairment of Long-lived Assets - - - (13,717) - $ (13,717)
Direct contribution 184,102 110,149 5,381 5,736 12,054 317,422
Operating expenses and indirect costs of net revenues (136,366)
Income from operations 181,056
Other income (expenses):
Interest income and other financial gains 35,442
Interest expense and other financial losses (25,605)
Foreign currency losses (5,565)
Net income before income tax expense $ 185,328


Three Months Ended December 31, 2016
Brazil Argentina Mexico Venezuela Other Countries Total
(In thousands)
Net revenues $ 143,597 $ 76,367 $ 11,957 $ 10,734 $ 13,620 $ 256,275
Direct costs (82,150) (46,886) (11,947) (5,041) (10,268) $ (156,292)
Direct contribution 61,447 29,481 10 5,693 3,352 99,983
Operating expenses and indirect costs of net revenues (35,311)
Income from operations 64,672
Other income (expenses):
Interest income and other financial gains 10,250
Interest expense and other financial results (6,798)
Foreing currency losses (503)
Net income tax $ 67,621

Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use foreign exchange (“FX”) neutral measures 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 U.S. 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 U.S. GAAP. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the most comparable U.S. GAAP financial measures.

Reconciliation of these non-GAAP measures to the most comparable U.S. GAAP financial measures can be found in the tables included in our annual report.

Non-GAAP financial measures are provided to enhance investors’ overall understanding of our current financial performance. Specifically, we believe that reconciliation of FX neutral measures to the most directly comparable GAAP measures provides investors an overall understanding of our current financial performance and its prospects for the future. Specifically, we believe these non-GAAP measures provide useful information to both management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.

The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2016 and applying them to the corresponding months in 2017, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. The table below excludes intercompany allocation FX effects. Finally, these measures do not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate local currency inflation or devaluations.

The following table sets forth the FX neutral measures related to our reported results of the operations for the three months ended December 31, 2017 and 2016:

Three-months Periods Ended
December 31, (*)
As reported FX Neutral Measures
(In millions, except percentages) 2017 2016 Percentage
Change
2017 2016 Percentage
Change
Net revenues $ 437.0 $ 256.3 70.5% $ 511.6 $ 256.3 99.6%
Cost of net revenues (233.6) (93.5) 149.7% (245.7) (93.5) 162.7%
Gross profit 203.4 162.7 25.0% 265.9 162.7 63.4%
Operating expenses (182.2) (98.1) 85.8% (198.1) (98.1) 102.0%
Loss on Desconsolidation of Venezuelan Subsidiaries (85.8) 100.0% (85.8) 100.0%
Total operating expenses (268.0) (98.1) 173.3% (283.9) (98.1) 189.5%
Income from operations (64.6) 64.7 -199.9% (18.0) 64.7 -127.8%

(*) The table above may not total due to rounding,


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


Source:MercadoLibre, Inc.