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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended
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Jun. 30, 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 |  | Six Months Ended June 30, 2023 |  | Nine Months Ended September 30, 2023 |  | For the Year Ended December 31, 2023
| Recast |  | As reported |  | Reclassification |  | Recast |  | Recast |  | Recast
| (In millions) |  | (In millions) |  | (In millions) |  | (In millions)
Net service revenues and financial income | $ | 2,912 |  |  | $ | 5,814 |  |  | $ | 319 |  |  | $ | 6,133 |  |  | $ | 9,719 |  |  | $ | 13,617 |
Net product revenues | 274 |  |  | 638 |  |  | — |  |  | 638 |  |  | 979 |  |  | 1,490 |
Net revenues and financial income | 3,186 |  |  | 6,452 |  |  | 319 |  |  | 6,771 |  |  | 10,698 |  |  | 15,107 |
Cost of net revenues and financial expenses | (1,572) |  |  | (3,196) |  |  | (130) |  |  | (3,326) |  |  | (5,158) |  |  | (7,517) |
Gross profit | 1,614 |  |  | 3,256 |  |  | 189 |  |  | 3,445 |  |  | 5,540 |  |  | 7,590 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Product and technology development | (381) |  |  | (749) |  |  | — |  |  | (749) |  |  | (1,145) |  |  | (1,831) |
Sales and marketing | (383) |  |  | (766) |  |  | — |  |  | (766) |  |  | (1,207) |  |  | (1,736) |
Provision for doubtful accounts | (252) |  |  | (474) |  |  | — |  |  | (474) |  |  | (751) |  |  | (1,050) |
General and administrative | (180) |  |  | (369) |  |  | — |  |  | (369) |  |  | (565) |  |  | (766) |
Total operating expenses | (1,196) |  |  | (2,358) |  |  | — |  |  | (2,358) |  |  | (3,668) |  |  | (5,383) |
Income from operations | 418 |  |  | 898 |  |  | 189 |  |  | 1,087 |  |  | 1,872 |  |  | 2,207 |
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains | 23 |  |  | 349 |  |  | (292) |  |  | 57 |  |  | 95 |  |  | 135 |
Interest expense and other financial losses | (34) |  |  | (186) |  |  | 103 |  |  | (83) |  |  | (136) |  |  | (174) |
Foreign currency losses, net | (87) |  |  | (269) |  |  | — |  |  | (269) |  |  | (508) |  |  | (615) |
Net income before income tax expense and equity in earnings of unconsolidated entity | 320 |  |  | 792 |  |  | — |  |  | 792 |  |  | 1,323 |  |  | 1,553 |
Income tax expense | (122) |  |  | (332) |  |  | — |  |  | (332) |  |  | (504) |  |  | (569) |
Equity in earnings of unconsolidated entity | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | 3 |  |  | 3 |
Net income | $ | 201 |  |  | $ | 463 |  |  | $ | — |  |  | $ | 463 |  |  | $ | 822 |  |  | $ | 987 |
| 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
| Recast |  | As reported |  | Reclassification |  | Recast |  | Recast |  | Recast |  | Recast
| (In millions) |  | (In millions) |  | (In millions) |  | (In millions) |  | (In millions)
Net service revenues and financial income | $ | 2,912 |  |  | $ | 3,051 |  |  | $ | 170 |  |  | $ | 3,221 |  |  | $ | 3,586 |  |  | $ | 3,898 |  |  | $ | 13,617 |
Net product revenues | 274 |  |  | 364 |  |  | — |  |  | 364 |  |  | 341 |  |  | 511 |  |  | 1,490 |
Net revenues and financial income | 3,186 |  |  | 3,415 |  |  | 170 |  |  | 3,585 |  |  | 3,927 |  |  | 4,409 |  |  | 15,107 |
Cost of net revenues and financial expenses | (1,572) |  |  | (1,695) |  |  | (59) |  |  | (1,754) |  |  | (1,832) |  |  | (2,359) |  |  | (7,517) |
Gross profit | 1,614 |  |  | 1,720 |  |  | 111 |  |  | 1,831 |  |  | 2,095 |  |  | 2,050 |  |  | 7,590 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Product and technology development | (381) |  |  | (368) |  |  | — |  |  | (368) |  |  | (396) |  |  | (686) |  |  | (1,831) |
Sales and marketing | (383) |  |  | (383) |  |  | — |  |  | (383) |  |  | (441) |  |  | (529) |  |  | (1,736) |
Provision for doubtful accounts | (252) |  |  | (222) |  |  | — |  |  | (222) |  |  | (277) |  |  | (299) |  |  | (1,050) |
General and administrative | (180) |  |  | (189) |  |  | — |  |  | (189) |  |  | (196) |  |  | (201) |  |  | (766) |
Total operating expenses | (1,196) |  |  | (1,162) |  |  | — |  |  | (1,162) |  |  | (1,310) |  |  | (1,715) |  |  | (5,383) |
Income from operations | 418 |  |  | 558 |  |  | 111 |  |  | 669 |  |  | 785 |  |  | 335 |  |  | 2,207 |
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains | 23 |  |  | 188 |  |  | (154) |  |  | 34 |  |  | 38 |  |  | 40 |  |  | 135 |
Interest expense and other financial losses | (34) |  |  | (92) |  |  | 43 |  |  | (49) |  |  | (53) |  |  | (38) |  |  | (174) |
Foreign currency losses, net | (87) |  |  | (182) |  |  | — |  |  | (182) |  |  | (239) |  |  | (107) |  |  | (615) |
Net income before income tax expense and equity in earnings of unconsolidated entity | 320 |  |  | 472 |  |  | — |  |  | 472 |  |  | 531 |  |  | 230 |  |  | 1,553 |
Income tax expense | (122) |  |  | (210) |  |  | — |  |  | (210) |  |  | (172) |  |  | (65) |  |  | (569) |
Equity in earnings of unconsolidated entity | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |
Net income | $ | 201 |  |  | $ | 262 |  |  | $ | — |  |  | $ | 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 six and three-month periods ended June 30, 2023:
| Six Months Ended June 30, 2023
As reported | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Commerce services | $ | 1,608 |  |  | $ | 467 |  |  | $ | 731 |  |  | $ | 193 |  |  | $ | 2,999 |
Commerce products sales | 348 |  |  | 108 |  |  | 142 |  |  | 15 |  |  | 613 |
Total commerce revenues | 1,956 |  |  | 575 |  |  | 873 |  |  | 208 |  |  | 3,612 |
Fintech services | 888 |  |  | 583 |  |  | 123 |  |  | 89 |  |  | 1,683 |
Credit revenues | 504 |  |  | 331 |  |  | 294 |  |  | 3 |  |  | 1,132 |
Fintech products sales | 11 |  |  | 3 |  |  | 4 |  |  | 7 |  |  | 25 |
Total fintech revenues | 1,403 |  |  | 917 |  |  | 421 |  |  | 99 |  |  | 2,840 |
Total net revenues | $ | 3,359 |  |  | $ | 1,492 |  |  | $ | 1,294 |  |  | $ | 307 |  |  | $ | 6,452 |
| Six Months Ended June 30, 2023
Reclassification | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Financial services and income | $ | 122 |  |  | $ | 150 |  |  | $ | 40 |  |  | $ | 7 |  |  | $ | 319 |
Total fintech revenues | 122 |  |  | 150 |  |  | 40 |  |  | 7 |  |  | 319 |
Net revenues and financial income | $ | 122 |  |  | $ | 150 |  |  | $ | 40 |  |  | $ | 7 |  |  | $ | 319 |
| Six Months Ended June 30, 2023
Recast | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Commerce services | $ | 1,608 |  |  | $ | 467 |  |  | $ | 731 |  |  | $ | 193 |  |  | $ | 2,999 |
Commerce products sales | 348 |  |  | 108 |  |  | 142 |  |  | 15 |  |  | 613 |
Total commerce revenues | 1,956 |  |  | 575 |  |  | 873 |  |  | 208 |  |  | 3,612 |
Financial services and income | 1,010 |  |  | 733 |  |  | 163 |  |  | 96 |  |  | 2,002 |
Credit revenues | 504 |  |  | 331 |  |  | 294 |  |  | 3 |  |  | 1,132 |
Fintech products sales | 11 |  |  | 3 |  |  | 4 |  |  | 7 |  |  | 25 |
Total fintech revenues | 1,525 |  |  | 1,067 |  |  | 461 |  |  | 106 |  |  | 3,159 |
Net revenues and financial income | $ | 3,481 |  |  | $ | 1,642 |  |  | $ | 1,334 |  |  | $ | 314 |  |  | $ | 6,771 |
| Three Months Ended June 30, 2023
As reported | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Commerce services | $ | 846 |  |  | $ | 243 |  |  | $ | 393 |  |  | $ | 102 |  |  | $ | 1,584 |
Commerce products sales | 203 |  |  | 59 |  |  | 82 |  |  | 8 |  |  | 352 |
Total commerce revenues | 1,049 |  |  | 302 |  |  | 475 |  |  | 110 |  |  | 1,936 |
Fintech services | 462 |  |  | 296 |  |  | 67 |  |  | 46 |  |  | 871 |
Credit revenues | 263 |  |  | 172 |  |  | 159 |  |  | 2 |  |  | 596 |
Fintech products sales | 6 |  |  | 1 |  |  | 2 |  |  | 3 |  |  | 12 |
Total fintech revenues | 731 |  |  | 469 |  |  | 228 |  |  | 51 |  |  | 1,479 |
Total net revenues | $ | 1,780 |  |  | $ | 771 |  |  | $ | 703 |  |  | $ | 161 |  |  | $ | 3,415 |
| Three Months Ended June 30, 2023
Reclassification | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Financial services and income | $ | 62 |  |  | $ | 84 |  |  | $ | 21 |  |  | $ | 3 |  |  | $ | 170 |
Total fintech revenues | 62 |  |  | 84 |  |  | 21 |  |  | 3 |  |  | 170 |
Total net revenues and financial income | $ | 62 |  |  | $ | 84 |  |  | $ | 21 |  |  | $ | 3 |  |  | $ | 170 |
| Three Months Ended June 30, 2023
Recast | Brazil |  | Argentina |  | Mexico |  | Other countries |  | Total
| (In millions)
Commerce services | $ | 846 |  |  | $ | 243 |  |  | $ | 393 |  |  | $ | 102 |  |  | $ | 1,584 |
Commerce products sales | 203 |  |  | 59 |  |  | 82 |  |  | 8 |  |  | 352 |
Total commerce revenues | 1,049 |  |  | 302 |  |  | 475 |  |  | 110 |  |  | 1,936 |
Financial services and income | 524 |  |  | 380 |  |  | 88 |  |  | 49 |  |  | 1,041 |
Credit revenues | 263 |  |  | 172 |  |  | 159 |  |  | 2 |  |  | 596 |
Fintech products sales | 6 |  |  | 1 |  |  | 2 |  |  | 3 |  |  | 12 |
Total fintech revenues | 793 |  |  | 553 |  |  | 249 |  |  | 54 |  |  | 1,649 |
Total net revenues and financial income | $ | 1,842 |  |  | $ | 855 |  |  | $ | 724 |  |  | $ | 164 |  |  | $ | 3,585 |
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 June 30, 2024 and December 31, 2023:
| June 30, 2024 |  | December 31, 2023
| (In millions)
Assets | $ | 3,642 |  |  | $ | 3,298 |
Liabilities | 2,899 |  |  | 1,878 |
Net assets | $ | 743 |  |  | $ | 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 six and three-month periods ended June 30, 2024 and 2023 of the Company’s Argentine subsidiaries and consolidated VIEs:
| Six Months Ended June 30, |  | Three Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions) |  | (In millions)
Net revenues and financial income | $ | 1,478 |  |  | $ | 1,642 |  |  | $ | 863 |  |  | $ | 855 |
Direct contribution | 605 |  |  | 775 |  |  | 381 |  |  | 407 |

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