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SEGMENTS
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
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, as determined by Management, used to evaluate the Company’s performance. The Company’s segments include Brazil, Argentina, Mexico and other countries (which includes Chile, Colombia, Costa Rica, Ecuador, Peru and Uruguay).
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, provision for doubtful accounts and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, payroll and third-party fees. All corporate related costs have been excluded from the segment’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:
Year Ended December 31, 2023
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Net revenues$7,595 $3,240 $2,985 $653 $14,473 
Direct costs(5,763)(1,837)(2,371)(595)(10,566)
Direct contribution 1,832 1,403 614 58 3,907 
Operating expenses and indirect costs of net revenues(2,084)
Income from operations1,823 
Other income (expenses):
Interest income and other financial gains723 
Interest expense and other financial losses(378)
Foreign currency losses, net(615)
Net income before income tax expense and equity in earnings of unconsolidated entity$1,553 
Year Ended December 31, 2022
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Net revenues$5,666 $2,500 $1,864 $507 $10,537 
Direct costs(4,717)(1,488)(1,579)(481)(8,265)
Direct contribution 949 1,012 285 26 2,272 
Operating expenses and indirect costs of net revenues(1,238)
Income from operations1,034 
Other income (expenses):
Interest income and other financial gains265 
Interest expense and other financial losses(321)
Foreign currency losses, net(198)
Net income before income tax expense and equity in earnings of unconsolidated entity$780 
Year Ended December 31, 2021
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Net revenues$3,910 $1,531 $1,172 $456 $7,069 
Direct costs(3,233)(998)(1,139)(380)(5,750)
Direct contribution677 533 33 76 1,319 
Operating expenses and indirect costs of net revenues(878)
Income from operations441 
Other income (expenses):
Interest income and other financial gains138 
Interest expense and other financial losses(229)
Foreign currency losses, net(109)
Net income before income tax expense and equity in earnings of unconsolidated entity$241 
The following tables summarize net revenues per reporting segment, which have been disaggregated by similar products and services for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31, 2023
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Commerce services (1)
$3,655 $1,036 $1,653 $410 $6,754 
Commerce products sales (2)
857 225 326 39 1,447 
Total commerce revenues4,512 1,261 1,979 449 8,201 
Fintech services (3)
1,910 1,292 296 185 3,683 
Credit revenues (4)
1,155 684 699 8 2,546 
Fintech products sales (5)
18 3 11 11 43 
Total fintech revenues3,083 1,979 1,006 204 6,272 
Total net revenues
$7,595 $3,240 $2,985 $653 $14,473 

Year Ended December 31, 2022
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Commerce services (1)
$2,585 $814 $1,036 $329 $4,764 
Commerce products sales (2)
487 271 246 40 1,044 
Total commerce revenues3,072 1,085 1,282 369 5,808 
Fintech services (3)
1,464 904 152 125 2,645 
Credit revenues (4)
1,102 506 421 4 2,033 
Fintech products sales (5)
28 5 9 9 51 
Total fintech revenues2,594 1,415 582 138 4,729 
Total net revenues
$5,666 $2,500 $1,864 $507 $10,537 
Year Ended December 31, 2021
BrazilArgentinaMexicoOther CountriesTotal
(In millions)
Commerce services (1)
$2,076 $614 $756 $304 $3,750 
Commerce products sales (2)
405 242 168 70 885 
Total commerce revenues2,481 856 924 374 4,635 
Fintech services (3)
938 490 80 82 1,590 
Credit revenues (4)
468 178 163 — 809 
Fintech products sales (5)
23 7 5 — 35 
Total fintech revenues1,429 675 248 82 2,434 
Total net revenues
$3,910 $1,531 $1,172 $456 $7,069 
(1) Includes final value fees and flat fees paid by sellers derived from intermediation services and related shipping and storage fees, classified fees derived from classified advertising services and ad sales.
(2) Includes revenues from inventory sales and related shipping fees.
(3) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company’s payment solution, revenues as a result of offering installments for the payment to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets, Mercado Pago credit and debit card fees and insurtech fees.
(4) Includes interest earned on loans and advances granted to merchants and consumers, and interest earned on Mercado Pago credit card transactions.
(5) Includes sales of mobile point of sales devices.
The following table summarizes the allocation of the property and equipment based on geography:
December 31,
20232022
(In millions)
US property and equipment, net$2 $1 
Other countries
Argentina208 188 
Brazil603 514 
Mexico345 206 
Other countries92 84 
1,248 992 
Total property and equipment, net$1,250 $993 
The following table summarizes the allocation of the operating lease right-of-use assets based on geography:
December 31,
20232022
(In millions)
Argentina$51 $53 
Brazil396 286 
Mexico380 245 
Other countries72 72 
Right of use asset, net$899 $656 
The following table summarizes the allocation of the goodwill and intangible assets based on geography:
December 31,
20232022
(In millions)
US intangible assets at fair value (1)
$24 $— 
$24 $— 
US intangible assets, net (1)
$— $9 
Goodwill and intangible assets, net
Argentina12 14 
Brazil68 63 
Mexico44 40 
Other countries50 52 
174 169 
Total goodwill and intangible assets$198 $178 
(1) Digital assets as of December 31, 2023 are included within “Intangible assets at fair value” of the consolidated balance sheets. See Note 2 – Summary of significant accounting policies – Recently Adopted Accounting Standards of these audited consolidated financial statements for further detail.