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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

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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Assets liabilities and net assets of company's subsidiaries.

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Schedule Of Net Revenues And Net Income Before Income Tax Of Company's Subsidiaries

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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.

+ References

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

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-7

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

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