Source: Company reports

4Q15 RESULTS

MercadoLibre reported net revenues of US$180.7 million, a 12.0% year-over-year increase. Excluding Venezuela, net revenues grew 13.6% in USD and 51.3% in local currencies. EPS increased by US$0.12 to US$0.88, well above the consensus estimate of US$0.67. MercadoLibre sold 36.8 million items in 4Q15, reflecting a 27% increase year over year. This growth was primarily driven by its Argentinian operation, which reported 58.2% growth year over year. A total of 25.4 million payment transactions were made using MercadoPago, up 78.6% year over year, accounting for a total payment volume of US$1.6billion in 4Q15, a year-over-year growth of 97.0% in local currencies and 41.7% in USD. MercadoEnvios, a shipping service owned by MercadoLibre, shipped close to 70% of all units sold in Brazil, and half of the items in all four countries: Brazil, Argentina, Mexico and Colombia. MercadoEnvios and MercadoPago were the main drivers of non-marketplace revenue growth, which increased 79.1% in local currencies and 30.0% in USD.

2015 RESULTS

MercadoLibre sold 128.4 million items in 2015, a growth of 26.8% year over year, resulting in a Gross Merchandise Volume of US$7.2 billion. Revenues in 2015 were US$651.8 million, up 17.1% from US$556.5 million in 2014. EPS increased to US$2.63 in 2015 from US$2.36 in 2014. In 2015, MercadoLibre saw increases in mobile traffic, helping to drive Gross Merchandise Volume and increase user registration, which increased by nearly 24 million users. Mobile payments also increased to a total of 80.4 million Total Payment Transactions in 2015, up 73.7% compared to 2014.

GUIDANCE

Management characterized 2015 as “one of the strongest years ever,” and offered a positive outlook for 2016. As consumers across Latin America become increasingly connected with the Internet, credit cards, smartphones and mobile-payment methods, MercadoLibre has increased opportunities for consumer retention and sales. The 2016 consensus revenue estimate is US$700.3 million, up 7.4%, and the consensus EPS estimate is US$2.84.