<SEC-DOCUMENT>0001193125-14-328590.txt : 20141022
<SEC-HEADER>0001193125-14-328590.hdr.sgml : 20141022
<ACCEPTANCE-DATETIME>20140902123929
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ACCESSION NUMBER:		0001193125-14-328590
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140902

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MERCADOLIBRE INC
		CENTRAL INDEX KEY:			0001099590
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		ARIAS 3751, 7TH FLOOR
		CITY:			BUENOS AIRES
		STATE:			C1
		ZIP:			C1430CRG
		BUSINESS PHONE:		000-000-0000

	MAIL ADDRESS:	
		STREET 1:		ARIAS 3751, 7TH FLOOR
		CITY:			BUENOS AIRES
		STATE:			C1
		ZIP:			C1430CRG
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<TYPE>CORRESP
<SEQUENCE>1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">MERCADOLIBRE, INC. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">ARIAS 3751, 7<SUP STYLE="font-size:85%; vertical-align:top">TH</SUP> FLOOR </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">BUENOS AIRES, C1430CRG </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">ARGENTINA
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">TEL +5411 <FONT STYLE="FONT-FAMILY:'WINGDINGS 2'">&#151;</FONT> 4640 <FONT STYLE="FONT-FAMILY:'WINGDINGS 2'">&#151;</FONT> 8000 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">PEDRO ARNT </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">DIRECT DIAL: +5411 <FONT
STYLE="FONT-FAMILY:'WINGDINGS 2'">&#151;</FONT> 4640 <FONT STYLE="FONT-FAMILY:'WINGDINGS 2'">&#151;</FONT> 8006 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">EMAIL:
pedro@mercadolibre.com </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">September&nbsp;2, 2014 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Stephen Krikorian </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accounting Branch Chief </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of
Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C.
20549-4561 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top"><B>MercadoLibre, Inc.</B> </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Form 10-K for Fiscal Year Ended December&nbsp;31, 2013 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Filed March&nbsp;3, 2014 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>File No.&nbsp;001-33647 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear
Mr.&nbsp;Krikorian: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">MercadoLibre, Inc., a Delaware corporation (the &#147;Company,&#148; &#147;MercadoLibre&#148;, &#147;we&#148; or &#147;us&#148;), is
transmitting for filing the Company&#146;s responses to the comments of the Staff of the Division of Corporation Finance (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;SEC&#148;), with respect to the Company&#146;s
Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2013 (the &#147;Form 10-K&#148;) filed on March&nbsp;3, 2014 (File No.&nbsp;001-33647), contained in your comment letter dated August&nbsp;18, 2014 (the &#147;Comment
Letter&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For convenience of reference, each Staff comment contained in the Comment Letter is reprinted below in italics, numbered to correspond
with the paragraph number assigned in the Comment Letter and is followed by the corresponding response of the Company. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form 10-K for Fiscal Year Ended December&nbsp;31, 2013 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Results of operations </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Net revenues, page 59
</U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><I>1.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>We note your response to prior comment 1. Please clarify how your disclosures on page 60 comply with the requirements of Item&nbsp;303(a)(3)(iii) of Regulation S-K and Section III.D of SEC Release No.&nbsp;33-6835.
In this regard, for each of your segments, you attribute increases in your marketplace revenues to increase in unit sales and growth in fees, without quantifying the amount that each source contributed to the change. While we note that your prices
are fixed percentages of the prices which the sellers post on your web site, and you have not changed such percentages significantly, the increase in your revenues as a result of increases in seller prices represents a source of change that should
be quantified, if material. </I></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Response: </U></B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We advise the Staff that we believe we have complied with the rules prescribed by Item&nbsp;303(a)(3)(iii) of Regulation S-K and Section III.D of SEC Release
No.&nbsp;33-6835 because our disclosures allow for an understanding of the material factors that drove revenue growth in each of our segments in 2013. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In
response to the Staff&#146;s inquiry regarding increases of marketplace revenue as a result of increases in prices, the Company advises the staff that, upon further review, it believes that the most insightful way to explain marketplace revenue
growth for each of its segments is through three principal drivers: growth in the volume transacted through our marketplace as measured in local currencies (&#147;local currency volume&#148;), and/or changes in prices charged to sellers, and/or
foreign exchange fluctuations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For each of our segments, for the year ended 2013 as compared to 2012, one or more, but not necessarily all, of these
three drivers have a material effect on marketplace revenue growth. The following paragraphs describe and quantify, if material, each of these growth drivers. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Specifically, marketplace revenue growth in Brazil of 14.9% during 2013 primarily reflects increased local currency volume of 18.2%. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Marketplace revenue growth in Mexico of 19.8% during 2013&nbsp;primarily reflects increased local currency volume&nbsp;of 6.3% and a 9.2% increase in prices
charged to sellers that resulted from an increase in the fees for marketplace transactions charged to sellers. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Marketplace revenues of our Venezuelan
segment increased 68.3% during 2013 mainly due to a 125.4% increase in local currency volume that&nbsp;was partially offset by a 16.8% devaluation of the local currency during the year, and a 12.7% decrease in the prices charged to sellers that
resulted from certain caps that we applied to our fees for marketplace transactions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Marketplace revenues of our Argentine segment increased 28.9% during
2013, mainly due to a 47.5% increase in local currency volume that was substantially offset by a 20.4% devaluation of the Argentine peso during the year. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company will continue to monitor the impact that the change in local currency volume, prices charged to sellers, and foreign currency fluctuations have on
the total change in marketplace revenues and will quantify these when their effect is material. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Finally, for knowledge of the Staff, we advise that it&#146;s inquiry regarding the impact of unit sales and of
the prices at which sellers post on our websites represent additional information that explain growth of local currency volume, which is only one of the drivers behind revenue growth. Notwithstanding, and in order to satisfy the Staff&#146;s request
for further clarification, unit growth for the full year period 2013 represented 23.2% while average prices at which sellers post on our website during that year, as measured in US dollars increased by 4.0%. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company hereby acknowledges that: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company is responsible for the adequacy and accuracy of the disclosure in the filing; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Staff comments or changes to disclosure in response to Staff comments do not foreclose the SEC from taking any action with respect to the filing; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company may not assert Staff&#146;s comments as a defense in any proceeding initiated by the SEC or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If you have any questions or comments regarding the foregoing, please contact our Chief Accounting Officer, Marcelo Melamud at +5411 4640 8053,
marcelo.melamud@mercadolibre.com. We look forward working with you on these matters. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sincerely, </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Pedro Arnt</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Name: Pedro Arnt </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Title:
Executive Vice President and Chief Financial Officer </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">Jacobo Cohen Imach </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Pedro Arnt </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Marcelo Melamud </P>
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