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Segment Reporting | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Reporting | 5. Segment reporting Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed and resources are assigned, the criteria used by Management to evaluate the Company’s performance, the availability of separate financial information and overall materiality considerations. Segment reporting is based on geography as the main basis of segment breakdown in accordance with the criteria used for evaluation of the Company’s performance as determined by Management. The Company’s segments include Brazil, Argentina, Mexico and other countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Honduras, Nicaragua, El Salvador, Bolivia, Guatemala, Panama, Paraguay, Peru, Uruguay and the United States of America). Direct contribution consists of net revenues from external customers less direct costs, which include costs of net revenues, product and technology development expenses, sales and marketing expenses and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, allowances for doubtful accounts, payroll and third-party fees. All corporate related costs have been excluded from the Company’s direct contribution. Expenses over which segment managers do not currently have discretionary control, such as certain technology and general and administrative costs are monitored by Management through shared cost centers and are not evaluated in the measurement of segment performance. The following tables summarize the financial performance of the Company’s reporting segments:
|  |  | Three Months Ended June 30, 2019
|  |  | Brazil |  | Argentina |  | Mexico |  |  | Other Countries |  | Total
|  |  | (In thousands)
Net revenues |  | $ 340,858 |  | $ 113,913 |  | $ 64,383 |  |  | $ 26,088 |  | $ 545,242
Direct costs |  | (275,917) |  | (83,909) |  | (85,216) |  |  | (24,441) |  | (469,483)
Direct contribution |  | 64,941 |  | 30,004 |  | (20,833) |  |  | 1,647 |  | 75,759
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  | (88,247)
Loss from operations |  |  |  |  |  |  |  |  |  |  | (12,488)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
| Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  | 33,684
| Interest expense and other financial losses |  |  |  |  |  |  |  |  |  |  | (14,679)
| Foreign currency gains |  |  |  |  |  |  |  |  |  |  | 783
Net income before income tax gain |  |  |  |  |  |  |  |  |  |  | $ 7,300
|  |  | Three Months Ended June 30, 2018
|  |  | Brazil |  | Argentina |  | Mexico |  |  | Other Countries |  | Total
|  |  | (In thousands)
Net revenues |  | $ 195,839 |  | $ 100,110 |  | $ 17,540 |  |  | $ 21,888 |  | $ 335,377
Direct costs |  | (176,987) |  | (68,051) |  | (39,534) |  |  | (21,088) |  | (305,660)
Direct contribution |  | 18,852 |  | 32,059 |  | (21,994) |  |  | 800 |  | 29,717
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  | (57,959)
Loss from operations |  |  |  |  |  |  |  |  |  |  | (28,242)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
| Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  | 9,915
| Interest expense and other financial losses |  |  |  |  |  |  |  |  |  |  | (13,202)
| Foreign currency gains |  |  |  |  |  |  |  |  |  |  | 12,577
Net loss before income tax gain |  |  |  |  |  |  |  |  |  |  | $ (18,952)
|  | Six Months Ended June 30, 2019
|  | Brazil |  | Argentina |  | Mexico |  |  | Other Countries |  | Total
|  | (In thousands)
Net revenues |  | $ 643,242 |  | $ 207,689 |  | $ 118,944 |  |  | $ 49,137 |  | $ 1,019,012
Direct costs |  | (501,260) |  | (151,401) |  | (150,801) |  |  | (44,888) |  | (848,350)
Direct contribution |  | 141,982 |  | 56,288 |  | (31,857) |  |  | 4,249 |  | 170,662
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  | (173,011)
Loss from operations |  |  |  |  |  |  |  |  |  |  | (2,349)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  | 58,128
Interest expense and other financial losses |  |  |  |  |  |  |  |  |  |  | (30,238)
Foreign currency losses |  |  |  |  |  |  |  |  |  |  | (2,886)
Net income before income tax gain |  |  |  |  |  |  |  |  |  |  | $ 22,655
|  | Six Months Ended June 30, 2018
|  | Brazil |  | Argentina |  | Mexico |  |  | Other Countries |  | Total
|  | (In thousands)
Net revenues |  | $ 379,994 |  | $ 202,049 |  | $ 34,605 |  |  | $ 39,705 |  | $ 656,353
Direct costs |  | (353,967) |  | (125,346) |  | (65,857) |  |  | (38,361) |  | (583,531)
Direct contribution |  | 26,027 |  | 76,703 |  | (31,252) |  |  | 1,344 |  | 72,822
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  | (130,483)
Loss from operations |  |  |  |  |  |  |  |  |  |  | (57,661)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  | 19,110
Interest expense and other financial losses |  |  |  |  |  |  |  |  |  |  | (23,936)
Foreign currency gains |  |  |  |  |  |  |  |  |  |  | 18,178
Net loss before income tax gain |  |  |  |  |  |  |  |  |  |  | $ (44,309)
The following table summarizes the allocation of property and equipment, net based on geography:
|  | June 30, |  | December 31,
|  | 2019 |  | 2018
|  | (In thousands)
US property and equipment, net |  | $ 1,758 |  | $ 2,959
Other countries |  |  |  |
Argentina |  | 90,560 |  | 58,358
Brazil |  | 92,143 |  | 78,227
Mexico |  | 22,503 |  | 16,497
Other countries |  | 9,041 |  | 9,573
|  | $ 214,247 |  | $ 162,655
Total property and equipment, net |  | $ 216,005 |  | $ 165,614
The following table summarizes the allocation of the goodwill and intangible assets based on geography:
|  | June 30, |  | December 31,
|  | 2019 |  | 2018
|  | (In thousands)
US intangible assets |  | $ 21 |  | $ 46
Other countries goodwill and intangible assets |  |  |  |
Argentina |  | 8,417 |  | 9,050
Brazil |  | 32,147 |  | 32,955
Mexico |  | 36,222 |  | 35,993
Chile |  | 25,371 |  | 24,638
Other countries |  | 5,005 |  | 4,782
|  | $ 107,162 |  | $ 107,418
Total goodwill and intangible assets |  | $ 107,183 |  | $ 107,464
Consolidated net revenues by similar products and services for the six and three-month periods ended June 30, 2019 and 2018 were as follows:
|  | Six months Ended June 30, |  | Three months Ended June 30,
Consolidated Net Revenues |  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | (In thousands) |  | (In thousands)
Enhanced Marketplace (*) |  | $ 541,333 |  | $ 296,897 |  | $ 288,298 |  | $ 156,202
Non-marketplace (**) (***) |  | 477,679 |  | 359,456 |  | 256,944 |  | 179,175
Total |  | $ 1,019,012 |  | $ 656,353 |  | $ 545,242 |  | $ 335,377
(*) Includes Final Value Fees and Shipping fees. (**) Includes, among other things, Ad Sales, Classified Fees, Payment Fees and other ancillary services. (***) Includes $408,191 thousands and $288,678 thousands of Payment Fees for the six-month periods ended June 30, 2019 and 2018, respectively. Includes an amount of $221,226 thousands and $143,915 thousands of Payment Fees for the three-month periods ended June 30, 2019 and 2018, respectively. ‎

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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