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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables, recast for the changes summarized above, present condensed statement of income line items affected by the revisions and reclassifications of previously reported financial statements, detailing amounts previously reported, the impact upon those line items due to reclassifications and amounts as currently revised within the financial statements:

			Three Months Ended March 31, 2023																		Three Months Ended June 30, 2023						Three Months Ended September 30, 2023						Three Months Ended December 31, 2023						For the year ended December 31, 2023
			As reported						Reclassification						Recast						Recast						Recast						Recast						Recast
			(In millions)																		(In millions)						(In millions)						(In millions)						(In millions)
Net service revenues and financial income			$	2,763					$	149					$	2,912					$	3,221					$	3,586					$	3,898					$	13,617
Net product revenues			274						—						274						364						341						511						1,490
Net revenues and financial income			3,037						149						3,186						3,585						3,927						4,409						15,107
Cost of net revenues and financial expenses			(1,501)						(71)						(1,572)						(1,754)						(1,832)						(2,359)						(7,517)
Gross profit			1,536						78						1,614						1,831						2,095						2,050						7,590
Operating expenses:
Product and technology development			(381)						—						(381)						(368)						(396)						(686)						(1,831)
Sales and marketing			(383)						—						(383)						(383)						(441)						(529)						(1,736)
Provision for doubtful accounts			(252)						—						(252)						(222)						(277)						(299)						(1,050)
General and administrative			(180)						—						(180)						(189)						(196)						(201)						(766)
Total operating expenses			(1,196)						—						(1,196)						(1,162)						(1,310)						(1,715)						(5,383)
Income from operations			340						78						418						669						785						335						2,207
Other income (expenses):
Interest income and other financial gains			161						(138)						23						34						38						40						135
Interest expense and other financial losses			(94)						60						(34)						(49)						(53)						(38)						(174)
Foreign currency losses, net			(87)						—						(87)						(182)						(239)						(107)						(615)
Net income before income tax expense and equity in earnings of unconsolidated entity			320						—						320						472						531						230						1,553
Income tax expense			(122)						—						(122)						(210)						(172)						(65)						(569)
Equity in earnings of unconsolidated entity			3						—						3						—						—						—						3
Net income			$	201					$	—					$	201					$	262					$	359					$	165					$	987

Furthermore, the following tables, recast for the changes summarized above, present net revenues per reporting segment (which have been disaggregated by similar products and services), detailing amounts previously reported, the impact upon those line items due to reclassifications and amounts as currently revised within the financial statements for the three-month period ended March 31, 2023:

			Three Months Ended March 31, 2023
As reported			Brazil						Argentina						Mexico						Other countries						Total
			(In millions)
Commerce services			$	762					$	224					$	338					$	91					$	1,415
Commerce products sales			145						49						60						7						261
Total commerce revenues			907						273						398						98						1,676
Fintech services			426						287						56						43						812
Credit revenues			241						159						135						1						536
Fintech products sales			5						2						2						4						13
Total fintech revenues			672						448						193						48						1,361
Total net revenues			$	1,579					$	721					$	591					$	146					$	3,037

			Three Months Ended March 31, 2023
Reclassification			Brazil						Argentina						Mexico						Other countries						Total
			(In millions)
Fintech services and financial income			$	60					$	66					$	19					$	4					$	149
Total fintech revenues			60						66						19						4						149
Total net revenues and financial income			$	60					$	66					$	19					$	4					$	149

			Three Months Ended March 31, 2023
Recast			Brazil						Argentina						Mexico						Other countries						Total
			(In millions)
Commerce services			$	762					$	224					$	338					$	91					$	1,415
Commerce products sales			145						49						60						7						261
Total commerce revenues			907						273						398						98						1,676
Fintech services and financial income			486						353						75						47						961
Credit revenues			241						159						135						1						536
Fintech products sales			5						2						2						4						13
Total fintech revenues			732						514						212						52						1,510
Total net revenues and financial income			$	1,639					$	787					$	610					$	150					$	3,186

Schedule of Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries

The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of March 31, 2024 and December 31, 2023:

			March 31, 2024						December 31, 2023
			(In millions)
Assets			$	3,931					$	3,298
Liabilities			2,540						1,878
Net assets			$	1,391					$	1,420

Schedule of Net Revenues and Net Income Before Income Tax of Company's Subsidiaries

The following table provides information relating to net revenues and financial income and direct contribution (see Note 9 – Segments of these unaudited interim condensed consolidated financial statements for definition of direct contribution) for the three-month periods ended March 31, 2024 and 2023 of the Company’s Argentine subsidiaries and consolidated VIEs:

									Three Months Ended March 31,
															2024						2023
									(In millions)
Net revenues and financial income															$	615					$	787
Direct contribution															224						368

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Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

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