<SEC-DOCUMENT>0001099590-25-000032.txt : 20250814
<SEC-HEADER>0001099590-25-000032.hdr.sgml : 20250814
<ACCEPTANCE-DATETIME>20250523141943
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001099590-25-000032
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250523

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MERCADOLIBRE INC
		CENTRAL INDEX KEY:			0001099590
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		ORGANIZATION NAME:           	07 Trade & Services
		EIN:				980212790
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		DR. LUIS BONAVITA 1294 OF. 1733 TOWER II
		CITY:			MONTEVIDEO
		STATE:			X3
		ZIP:			11300
		BUSINESS PHONE:		598-2-2927-2770

	MAIL ADDRESS:	
		STREET 1:		DR. LUIS BONAVITA 1294 OF. 1733 TOWER II
		CITY:			MONTEVIDEO
		STATE:			X3
		ZIP:			11300

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MERCADOLIBRE INC.
		DATE OF NAME CHANGE:	20211028

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MERCADOLIBRE INC
		DATE OF NAME CHANGE:	19991123
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<title>Document</title></head><body><div id="ia70f10d791704b5680b311c42ace8f4f_37"></div><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">MERCADOLIBRE, INC.</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">WTC FREE ZONE</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">DR. LUIS BONAVITA 1294, OF. 1733 TOWER II</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">MONTEVIDEO URUGUAY 11300</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">TEL +598 &#8212; 2927 &#8212; 2770</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">MARTIN DE LOS SANTOS </font></div><div style="text-align:right"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">EMAIL&#58; martin.delossantos&#64;mercadolibre.com</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">May 23, 2025</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%;text-decoration:underline">Via EDGAR Correspondence</font></div><div style="margin-top:10pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">United States Securities and Exchange Commission</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Division of Corporation Finance</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Office of Trade &#38; Services</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Attention&#58; Mr. Scott Stringer and Mr. Adam Phippen</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Washington, D.C. 20549-4561</font></div><div style="margin-top:10pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Re&#58;        </font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%">MercadoLibre, Inc.</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%">              Form 10-K for Fiscal Year Ended December 31, 2024</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%">              Filed February 21, 2025</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%">              File No. 001-33647</font></div><div style="margin-top:10pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Dear Mr. Stringer and Mr. Phippen&#58;</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">MercadoLibre, Inc., a Delaware corporation (the &#8220;Company,&#8221; &#8220;MercadoLibre,&#8221; &#8220;we&#8221; or &#8220;us&#8221;), responds below to the comment of the Staff of the Division of Corporation Finance (the &#8220;Staff&#8221;) of the Securities and Exchange Commission (the &#8220;SEC&#8221;), with respect to the Company&#8217;s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the &#8220;2024 Form 10-K&#8221;) filed on February 21, 2025 (File No. 001-33647), contained in your comment letter dated May 13, 2025 (the &#8220;Comment Letter&#8221;).</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">For convenience of reference, the 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 response of the Company.</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%;text-decoration:underline">Form 10-K for Fiscal Year Ended December 31, 2024 </font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%;text-decoration:underline">Consolidated Financial Statements </font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%;text-decoration:underline">Consolidated Statements of Cash Flows, page 83 </font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:115%">1. We note consumers have access to credit lines for loans that can be used for a purchase on the Mercado Libre Marketplace. Please tell us how you classify cash receipts for loans from inventory sales reflected as &#34;commerce product sales&#34; in Note 10. Refer to ASC 230-10-45-16a.</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:700;line-height:115%;text-decoration:underline">Response</font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#58; </font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">MercadoLibre, Inc. offers its users (both merchants and consumers) an ecosystem of integrated e-commerce and digital financial services, mainly through Mercado Libre Marketplace and the Mercado Pago fintech platform (&#8220;Mercado Pago&#8221;). That is, Mercado Libre is not a purely commercial entity, but rather a hybrid entity that provides digital financial services beyond the e-commerce platform. The Company has two distinctive revenue streams in its business&#58; commerce revenues and fintech revenues. Included in the Company&#8217;s fintech revenue stream is &#8220;Credit Revenues,&#8221; which includes &#8220;revenues from interest earned on loans and advances granted to merchants and consumers,&#8221; as mentioned in the Company&#8217;s 2024 Form 10-K, Part I, Item 1. Business (page 7).          </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:120%">1</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:107%">The Company offers credit mostly to consumers and merchants who already form part of the Company&#8217;s user base. Facilitating credit is a key service overlay that enables the Company to provide incentives to use Mercado Pago as an end-to-end financial solution. The Company has two main classes of loans&#58; </font></div><div style="margin-top:10pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:107%">a)</font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:107%;padding-left:10.25pt">For consumers, Mercado Pago offers personal loans to eligible users. For loans granted through Mercado Pago, the use of the funds is not pre-defined by the Company. The borrower has the option to elect how to use the funds among the following options&#58; (i) to purchase products and services offered by third party sellers on the Mercado Libre Marketplace (&#8220;Marketplace 3P sales&#8221;), (ii) to purchase the Company&#8217;s own products on the Mercado Libre Marketplace (&#8220;Marketplace 1P sales&#8221;), (iii) to make an off-platform payment through the digital wallet (or withdraw it) or (iv) a combination of any of the above.</font></div><div style="margin-top:10pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:107%">b)</font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:107%;padding-left:9.77pt">For merchants, Mercado Pago provides loans to merchants who use the Mercado Libre ecosystem. The merchants normally use the funds for working capital needs or to expand their business. However, they can also use the funds in the same manner as consumer borrowers, as discussed above.</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">As part of the Company&#8217;s oversight of the credit process, management monitors the transactions related to the lending solution and Marketplace 1P sales. Cash flows for loans used for Marketplace 3P sales or used to make off-platform payments through the digital wallet are appropriately included in investing activities in the Consolidated Statement of Cash Flows in accordance with ASC 230-10-45-12 and 45-13. All Marketplace 1P sales cash inflows are presented in Operating activities (net income) of the Consolidated Statement of Cash Flows, consistent with ASC 230-10-45-16a. However, the amount not collected from borrowers for the loans provided to them for Marketplace 1P sales is included in </font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:115%">Changes in loans receivable, net</font><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%"> in the investing activities of the Consolidated Statement of Cash Flows, instead of as an adjustment to operating activities. That is, the Company records a gross up of cash flow amounts in investing activities and operating activities, even though these amounts are non-cash transactions. Nonetheless, due to the immaterial amounts involved, the Company does not remove this non-cash activity from the Consolidated Statement of Cash Flows. For the year ending December 31, 2024, loans granted for Marketplace 1P sales at checkout were $61 million, which is less than 0.3% of total loan originations. As of December 31, 2024, $19 million of loans used for Marketplace 1P sales in 2024 were still outstanding, reflecting the non-cash gross up that should be removed from the Consolidated Statement of Cash Flows.       </font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">In light of these considerations, the Company will continue to monitor the amounts related to loans granted for purchases of Marketplace 1P sales that are not collected as of period end and will adjust the Consolidated Statement of Cash Flows to remove the non-cash amounts, if and when they become material.</font></div><div style="margin-top:10pt;text-align:center"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">***</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">If you have any questions or comments regarding the foregoing, please contact the Company&#8217;s Chief Accounting Officer, Marcelo Melamud at marcelo.melamud&#64;mercadolibre.com. The Company looks forward to working with you on these matters.</font></div><div style="margin-top:10pt;text-align:justify"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Sincerely,</font></div><div style="margin-top:10pt"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%;text-decoration:underline">&#47;s&#47; Martin de los Santos</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Name&#58; Martin de los Santos </font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Title&#58; Chief Financial Officer</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">cc&#58; Jacobo Cohen Imach</font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Martin de los Santos </font></div><div><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Marcelo Melamud</font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Proxima Nova',sans-serif;font-size:10pt;font-weight:400;line-height:120%">2</font></div></div></div></body></html>
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</DOCUMENT>
</SEC-DOCUMENT>
