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. These forward-looking statements are contained throughout this
report. 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;

•credit risk and other risks of lending, such as increases in defaults by customers and other delinquencies;

•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; and

•our long-term sustainability goals.



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 the Company's 2022 10-K filed
with the SEC on February 24, 2023 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 the
Company's 2022 10-K. 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 three-month periods ended March 31, 2023 and 2022;

•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 orders processed, and we are present in 18 countries: Argentina,
Brazil, 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 and digital financial services: the Mercado Libre Marketplace, the Mercado Pago Fintech platform, the Mercado Envios logistics service, the Mercado Ads solution, the Mercado Libre Classifieds service and the Mercado Shops online storefronts solution.


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The Mercado Libre 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 Mercado Libre's Marketplaces.
Currently, Mercado Pago processes and settles all transactions on our
Marketplaces in Argentina, Brazil, Mexico, Chile, Colombia, Uruguay and Peru and
is available to process and settle transactions on our Marketplace in Ecuador.

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. Finally, we have also deepened our fintech offerings by growing our
online-to-offline ("O2O") products and services.

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 aircraft 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 March 31, 2023, we offer our
shipping solution directed towards deliveries in Argentina, Brazil, Mexico,
Chile, Colombia, Uruguay, Peru and Ecuador and we also offer free shipping to
buyers in Argentina, Brazil, Mexico, Chile, Colombia, Uruguay and Peru.

Mercado Credito, our credit solution available in Argentina, Brazil, Mexico and
Chile, leverages our user base, which is loyal and engaged, and in part 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 build 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, we
launched a digital assets feature as part of the Mercado Pago wallet in Brazil
in 2021, in Mexico in 2022 and in Chile in 2023. This service allows our
millions of users to purchase, hold and sell selected digital assets 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,
benefiting both the commerce and fintech businesses.

Complementing the services that we offer, 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 three-month periods ended March 31, 2023 and 2022:



                                                         Three Months Ended
                                                              March 31,
(% of total consolidated net revenues)                                      2023        2022
Brazil                                                                     52.0  %     55.7  %
Argentina                                                                  23.7        23.0
Mexico                                                                     19.5        16.2
Other Countries                                                             4.8         5.1

The following table summarizes the changes in our net revenues by segment for the three-month periods ended March 31, 2023 and 2022:



                                           Three Months Ended            Change from 2022
                                               March 31,                     to 2023
                                                                        2023          2022        in Dollars       in %
                                     (in millions, except percentages)
Net Revenues:
Brazil                                                               $   1,579      $ 1,252      $      327       26.1  %
Argentina                                                                  721          518             203       39.2
Mexico                                                                     591          364             227       62.4
Other Countries                                                            146          114              32       28.1
Total Net Revenues                                                   $   3,037      $ 2,248      $      789       35.1  %



Description of Line Items

Net revenues

We disaggregate revenues into four geographical reporting segments. Within each
of our segments, the services we provide and the 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 three-month periods ended March 31, 2023 and 2022:

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