QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| ||||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||
PART I. FINANCIAL INFORMATION | |||||
ITEM 1 — UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Credit card receivables and other means of payments, net | |||||||||||
Loans receivable, net of allowances of $ | |||||||||||
Inventories | |||||||||||
Customer crypto-assets safeguarding assets | |||||||||||
Other assets | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Long-term investments | |||||||||||
Loans receivable, net of allowances of $ | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Intangible assets at fair value | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Funds payable to customers | |||||||||||
Amounts payable due to credit and debit card transactions | |||||||||||
Salaries and social security payable | |||||||||||
Taxes payable | |||||||||||
Loans payable and other financial liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Customer crypto-assets safeguarding liabilities | |||||||||||
Other liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Amounts payable due to credit and debit card transactions | |||||||||||
Loans payable and other financial liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Other liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Equity | |||||||||||
Common stock, $ | $ | $ | |||||||||
Additional paid-in capital | |||||||||||
Treasury stock | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 (1) | ||||||||||
Net service revenues and financial income | $ | $ | |||||||||
Net product revenues | |||||||||||
Net revenues and financial income | |||||||||||
Cost of net revenues and financial expenses | ( | ( | |||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Product and technology development | ( | ( | |||||||||
Sales and marketing | ( | ( | |||||||||
Provision for doubtful accounts | ( | ( | |||||||||
General and administrative | ( | ( | |||||||||
Total operating expenses | ( | ( | |||||||||
Income from operations | |||||||||||
Other income (expenses): | |||||||||||
Interest income and other financial gains | |||||||||||
Interest expense and other financial losses | ( | ( | |||||||||
Foreign currency losses, net | ( | ( | |||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | |||||||||||
Income tax expense | ( | ( | |||||||||
Equity in earnings of unconsolidated entity | |||||||||||
Net income | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic earning per share | |||||||||||
Basic net income available to shareholders per common share | $ | $ | |||||||||
Weighted average of outstanding common shares | |||||||||||
Diluted earning per share | |||||||||||
Diluted net income available to shareholders per common share | $ | $ | |||||||||
Weighted average of outstanding common shares |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive (loss) income, net of income tax: | |||||||||||
Currency translation adjustment | ( | ||||||||||
Unrealized gains (losses) on hedging activities | ( | ||||||||||
Tax (expense) benefit on unrealized gains (losses) on hedging activities | ( | ||||||||||
Less: Reclassification adjustment for losses on hedging activities included in cost of net revenues and financial expenses, interest expense and other financial losses and foreign currency losses, net | ( | ( | |||||||||
Less: Reclassification adjustment for estimated tax benefit on unrealized losses | |||||||||||
Total other comprehensive (loss) income, net of income tax | ( | ||||||||||
Total comprehensive income | $ | $ |
Common stock | Additional paid-in capital | Treasury Stock (1) | Retained Earnings | Accumulated other comprehensive loss | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Treasury Stock | Retained Earnings | Accumulated other comprehensive loss | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Stock repurchased | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operations: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of unconsolidated entity | ( | ||||||||||
Unrealized foreign currency losses, net | |||||||||||
Depreciation and amortization | |||||||||||
Accrued interest income | ( | ( | |||||||||
Non cash interest expense and amortization of debt issuance costs and other charges | |||||||||||
Provision for doubtful accounts | |||||||||||
Results on derivative instruments | |||||||||||
Long term retention program (“LTRP”) accrued compensation | |||||||||||
Results on digital assets at fair value | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Credit card receivables and other means of payments | ( | ||||||||||
Inventories | ( | ||||||||||
Other assets | ( | ( | |||||||||
Payables and accrued expenses | |||||||||||
Funds payable to customers | ( | ||||||||||
Amounts payable due to credit and debit card transactions | |||||||||||
Other liabilities | |||||||||||
Interest received from investments | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | ( | ( | |||||||||
Proceeds from sale and maturity of investments | |||||||||||
Payments from settlements of derivative instruments | ( | ( | |||||||||
Purchases of intangibles assets | ( | ||||||||||
Changes in loans receivable, net | ( | ( | |||||||||
Investments of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from loans payable and other financial liabilities | |||||||||||
Payments on loans payable and other financing liabilities | ( | ( | |||||||||
Payments of finance lease liabilities | ( | ( | |||||||||
Common Stock repurchased | ( | ||||||||||
Net cash used in financing activities | ( | ||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | ( | ( | |||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and cash equivalents | ( | ||||||||||
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | |||||||||||
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Non-cash transactions: | |||||||||||
Right-of-use assets obtained under operating leases | $ | $ | |||||||||
Property and equipment obtained under finance leases |
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 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net product revenues | |||||||||||||||||||||||||||||||||||||||||
Net revenues and financial income | |||||||||||||||||||||||||||||||||||||||||
Cost of net revenues and financial expenses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Product and technology development | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Sales and marketing | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Provision for doubtful accounts | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total operating expenses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||||||||||||||||||
Interest income and other financial gains | ( | ||||||||||||||||||||||||||||||||||||||||
Interest expense and other financial losses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign currency losses, net | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated entity | |||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
As reported | Brazil | Argentina | Mexico | Other countries | Total | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Commerce services | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commerce products sales | |||||||||||||||||||||||||||||
Total commerce revenues | |||||||||||||||||||||||||||||
Fintech services | |||||||||||||||||||||||||||||
Credit revenues | |||||||||||||||||||||||||||||
Fintech products sales | |||||||||||||||||||||||||||||
Total fintech revenues | |||||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Reclassification | Brazil | Argentina | Mexico | Other countries | Total | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fintech services and financial income | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total fintech revenues | |||||||||||||||||||||||||||||
Total net revenues and financial income | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Recast | Brazil | Argentina | Mexico | Other countries | Total | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Commerce services | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commerce products sales | |||||||||||||||||||||||||||||
Total commerce revenues | |||||||||||||||||||||||||||||
Fintech services and financial income | |||||||||||||||||||||||||||||
Credit revenues | |||||||||||||||||||||||||||||
Fintech products sales | |||||||||||||||||||||||||||||
Total fintech revenues | |||||||||||||||||||||||||||||
Total net revenues and financial income | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Assets | $ | $ | |||||||||
Liabilities | |||||||||||
Net assets | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
Net revenues and financial income | $ | $ | |||||||||
Direct contribution |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
Net income per common share (1) | $ | $ | $ | $ | |||||||||||||||||||
Numerator (in millions): | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Effect of dilutive 2028 Notes | — | — | |||||||||||||||||||||
Net income available to common stock | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average of common stock outstanding for earnings per share | |||||||||||||||||||||||
Adjustment for assumed conversions | — | — | |||||||||||||||||||||
Adjusted weighted average of common stock outstanding for earnings per share |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Cash in bank accounts | $ | $ | |||||||||
Money market | |||||||||||
Time deposits | |||||||||||
U.S. government debt securities | |||||||||||
Foreign government debt securities | |||||||||||
Total cash and cash equivalents | |||||||||||
Securitization transactions (1) | |||||||||||
Foreign government debt securities (Central Bank of Brazil mandatory guarantee) | |||||||||||
Cash in bank accounts (Argentine Central Bank regulation) | |||||||||||
Cash in bank accounts (Mexican National Banking and Securities Commission regulation) | |||||||||||
Time deposits (Mexican National Banking and Securities Commission regulation) | |||||||||||
Cash in bank accounts (Chilean Commission for the Financial Market regulation) | |||||||||||
Time deposits (Chilean Commission for the Financial Market regulation) | |||||||||||
Money market (Secured lines of credit guarantee) | |||||||||||
Cash in bank accounts (Central Bank of Uruguay mandatory guarantee) | |||||||||||
Time deposits (Central Bank of Uruguay mandatory guarantee) | |||||||||||
Money market (Central Bank of Uruguay mandatory guarantee) | |||||||||||
Foreign government debt securities (Central Bank of Uruguay mandatory guarantee) | |||||||||||
Total restricted cash and cash equivalents | |||||||||||
Total cash, cash equivalents, restricted cash and cash equivalents (2) | $ | $ | |||||||||
U.S. government debt securities | $ | $ | |||||||||
Foreign government debt securities (3) | |||||||||||
Time deposits (4) | |||||||||||
Corporate debt securities | |||||||||||
Total short-term investments | $ | $ | |||||||||
Foreign government debt securities | $ | $ | |||||||||
Securitization transactions (1) | |||||||||||
Corporate debt securities | |||||||||||
Equity securities held at cost | |||||||||||
Total long-term investments | $ | $ |
March 31, 2024 | |||||||||||||||||
Loans receivable | Allowance for doubtful accounts | Loans receivable, net | |||||||||||||||
(In millions) | |||||||||||||||||
On-line merchant | $ | $ | ( | $ | |||||||||||||
Consumer | ( | ||||||||||||||||
In-store merchant | ( | ||||||||||||||||
Credit cards | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||
Loans receivable | Allowance for doubtful accounts | Loans receivable, net | |||||||||||||||
(In millions) | |||||||||||||||||
On-line merchant | $ | $ | ( | $ | |||||||||||||
Consumer | ( | ||||||||||||||||
In-store merchant | ( | ||||||||||||||||
Credit cards | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
1-14 days past due | $ | $ | |||||||||
15-30 days past due | |||||||||||
31-60 days past due | |||||||||||
61-90 days past due | |||||||||||
91-120 days past due | |||||||||||
121-150 days past due | |||||||||||
151-180 days past due | |||||||||||
181-210 days past due | |||||||||||
211-240 days past due | |||||||||||
241-270 days past due | |||||||||||
271-300 days past due | |||||||||||
301-330 days past due | |||||||||||
331-360 days past due | |||||||||||
Total past due | |||||||||||
To become due | |||||||||||
Total | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||
On-line merchant | Consumer | In-store merchant | Credit cards | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net charged to Net Income | |||||||||||||||||||||||||||||
Currency translation adjustments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Write-offs (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ |
March 31, 2023 | |||||||||||||||||||||||||||||
On-line merchant | Consumer | In-store merchant | Credit cards | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net charged to Net Income | |||||||||||||||||||||||||||||
Currency translation adjustments | |||||||||||||||||||||||||||||
Write-offs (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Goodwill | $ | $ | |||||||||
Intangible assets with indefinite lives | |||||||||||
Trademarks | |||||||||||
Amortizable intangible assets | |||||||||||
Licenses and others | |||||||||||
Non-compete agreements | |||||||||||
Customer lists | |||||||||||
Trademarks | |||||||||||
Hubs network | |||||||||||
Others | |||||||||||
Total intangible assets | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Total intangible assets, net | $ | $ |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Chile | Colombia | Other countries | Total | |||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of the period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Effect of exchange rates changes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance, end of the period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Chile | Colombia | Other countries | Total | |||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of the period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Effect of exchange rates changes | |||||||||||||||||||||||||||||||||||||||||
Balance, end of the period | $ | $ | $ | $ | $ | $ | $ |
For year to be ended December 31, 2024 | $ | ||||
For year to be ended December 31, 2025 | |||||
For year to be ended December 31, 2026 | |||||
For year to be ended December 31, 2027 | |||||
Thereafter | |||||
$ |
Digital asset name | March 31, 2024 | ||||||||||
Cost basis (1) | Fair value | Number of units held | |||||||||
(In millions, except for number of units held) | |||||||||||
Bitcoin | $ | $ | |||||||||
Ether |
Digital asset name | December 31, 2023 | ||||||||||
Cost basis (1) | Fair value | Number of units held | |||||||||
(In millions, except for number of units held) | |||||||||||
Bitcoin | $ | $ | |||||||||
Ether |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net revenues and financial income | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Direct costs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Direct contribution | |||||||||||||||||||||||||||||
Operating expenses and indirect costs of net revenues and financial expenses | ( | ||||||||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||||||
Interest income and other financial gains | |||||||||||||||||||||||||||||
Interest expense and other financial losses | ( | ||||||||||||||||||||||||||||
Foreign currency losses, net | ( | ||||||||||||||||||||||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | $ |
Three Months Ended March 31, 2023 (1) | |||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net revenues and financial income | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Direct costs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Direct contribution | |||||||||||||||||||||||||||||
Operating expenses and indirect costs of net revenues and financial expenses | ( | ||||||||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||||||
Interest income and other financial gains | |||||||||||||||||||||||||||||
Interest expense and other financial losses | ( | ||||||||||||||||||||||||||||
Foreign currency losses, net | ( | ||||||||||||||||||||||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | $ |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | ||||||||||||||||||||||||||||||||||||||||
2024 | 2023 (1) | 2024 | 2023 (1) | 2024 | 2023 (1) | 2024 | 2023 (1) | 2024 | 2023 (1) | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Commerce services (2) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commerce products sales (3) | ||||||||||||||||||||||||||||||||||||||||||||
Total commerce revenues | ||||||||||||||||||||||||||||||||||||||||||||
Fintech services and financial income (4) | ||||||||||||||||||||||||||||||||||||||||||||
Credit revenues (5) | ||||||||||||||||||||||||||||||||||||||||||||
Fintech products sales (6) | ||||||||||||||||||||||||||||||||||||||||||||
Total fintech revenues | ||||||||||||||||||||||||||||||||||||||||||||
Total net revenues and financial income | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
US property and equipment, net | $ | $ | |||||||||
Other countries | |||||||||||
Argentina | |||||||||||
Brazil | |||||||||||
Mexico | |||||||||||
Other countries | |||||||||||
Total property and equipment, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
US right of use asset, net | $ | $ | |||||||||
Other countries | |||||||||||
Argentina | |||||||||||
Brazil | |||||||||||
Mexico | |||||||||||
Other countries | |||||||||||
Total right of use asset, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
US intangible assets at fair value | $ | ||||||||||
$ | $ | ||||||||||
Goodwill and intangible assets, net | |||||||||||
Argentina | $ | $ | |||||||||
Brazil | |||||||||||
Mexico | |||||||||||
Other countries | |||||||||||
Total goodwill and intangible assets | $ | $ |
Balances as of March 31, 2024 | Quoted Prices in active markets for identical Assets (Level 1) | Significant other observable inputs (Level 2) | Balances as of December 31, 2023 | Quoted Prices in active markets for identical Assets (Level 1) | Significant other observable inputs (Level 2) | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||||||||||||
Money Market | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. government debt securities (1) | |||||||||||||||||||||||||||||||||||
Foreign government debt securities (1) | |||||||||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents: | |||||||||||||||||||||||||||||||||||
Money Market (2) | |||||||||||||||||||||||||||||||||||
Foreign government debt securities (1) | |||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
U.S. government debt securities (1) | |||||||||||||||||||||||||||||||||||
Foreign government debt securities (1) (3) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||
Other Assets: | |||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||
Customer crypto-assets safeguarding assets | |||||||||||||||||||||||||||||||||||
Intangible assets at fair value | |||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Salaries and social security payable: | |||||||||||||||||||||||||||||||||||
Long-term retention plan | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other Liabilities: | |||||||||||||||||||||||||||||||||||
Customer crypto-assets safeguarding liabilities | |||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
One year or less | $ | $ | |||||||||
One year to two years | |||||||||||
Two years to three years | |||||||||||
Three years to four years | |||||||||||
Four years to five years | |||||||||||
Total available for sale investments | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
One year or less | $ | $ | |||||||||
One year to two years | |||||||||||
Two years to three years | |||||||||||
Three years to four years | |||||||||||
Four years to five years | |||||||||||
More than five years | |||||||||||
$ | $ |
Balances as of March 31, 2024 | Estimated fair value as of March 31, 2024 | Balances as of December 31, 2023 | Estimated fair value as of December 31, 2023 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Accounts receivables, net | |||||||||||||||||||||||
Credit card receivables and other means of payment, net | |||||||||||||||||||||||
Loans receivable, net | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Accounts payable and accrued expenses | $ | $ | $ | $ | |||||||||||||||||||
Funds payable to customers | |||||||||||||||||||||||
Amounts payable due to credit and debit card transactions | |||||||||||||||||||||||
Salaries and social security payable | |||||||||||||||||||||||
Loans payable and other financial liabilities | |||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
LTRP 2018 | $ | $ | |||||||||
LTRP 2019 | |||||||||||
LTRP 2020 | |||||||||||
LTRP 2021 | |||||||||||
LTRP 2022 | |||||||||||
LTRP 2023 | |||||||||||
LTRP 2024 | |||||||||||
Total LTRP | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Loans from banks | $ | $ | |||||||||
Bank overdrafts | |||||||||||
Secured lines of credit | |||||||||||
Deposit Certificates | |||||||||||
Commercial Notes | |||||||||||
Finance lease obligations | |||||||||||
Collateralized debt | |||||||||||
2026 Sustainability Notes | |||||||||||
2031 Notes | |||||||||||
Other lines of credit | |||||||||||
Current loans payable and other financial liabilities | $ | $ | |||||||||
Loans from banks | $ | $ | |||||||||
Secured lines of credit | |||||||||||
Financial Bills | |||||||||||
Commercial Notes | |||||||||||
Finance lease liabilities | |||||||||||
Collateralized debt | |||||||||||
2026 Sustainability Notes | |||||||||||
2031 Notes | |||||||||||
Other lines of credit | |||||||||||
Non-Current loans payable and other financial liabilities | $ | $ |
Type of instrument | Currency | Interest | Weighted Average Interest Rate | Maturity | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||
Loans from banks | ||||||||||||||||||||||||||||||||||||||
Chilean Subsidiaries | Chilean Pesos | Fixed | April 2024 - April 2025 | $ | $ | |||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | CDI + | March 2025 | ||||||||||||||||||||||||||||||||||
Brazilian Subsidiary (1) | US Dollar | Fixed | August - November 2024 | |||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | TJLP + | April 2024 - May 2031 | ||||||||||||||||||||||||||||||||||
Mexican Subsidiary | Mexican Pesos | Variable | TJLP + | April 2024 - June 2027 | ||||||||||||||||||||||||||||||||||
Uruguayan Subsidiary | Uruguayan Pesos | Fixed | April 2024 | |||||||||||||||||||||||||||||||||||
Colombian Subsidiary | Colombian Pesos | Fixed | May 2024 | |||||||||||||||||||||||||||||||||||
Bank overdrafts | ||||||||||||||||||||||||||||||||||||||
Uruguayan Subsidiary | Uruguayan Pesos | — | — | |||||||||||||||||||||||||||||||||||
Chilean Subsidiary | Chilean Pesos | — | April 2024 | |||||||||||||||||||||||||||||||||||
Argentine Subsidiaries | Argentine Pesos | — | April 2024 | |||||||||||||||||||||||||||||||||||
Secured lines of credit | ||||||||||||||||||||||||||||||||||||||
Argentine Subsidiaries | Argentine Pesos | Fixed | April 2024 | |||||||||||||||||||||||||||||||||||
Mexican Subsidiary | Mexican Pesos | Fixed | April 2024 - July 2027 | |||||||||||||||||||||||||||||||||||
Financial Bills | ||||||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | CDI + | April 2025 - March 2026 | ||||||||||||||||||||||||||||||||||
Deposit Certificates | ||||||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | April 2024 - March 2025 | |||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Fixed | April - September 2024 | |||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | April 2024 | |||||||||||||||||||||||||||||||||||
Commercial Notes | ||||||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | DI + | April 2024 - August 2027 | ||||||||||||||||||||||||||||||||||
Brazilian Subsidiary | Brazilian Reais | Variable | IPCA + | April 2024 - August 2029 | ||||||||||||||||||||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||||||||||||||||||||
Collateralized debt | ||||||||||||||||||||||||||||||||||||||
2026 Sustainability Notes | US Dollar | Fixed | July 2024 - January 2026 | |||||||||||||||||||||||||||||||||||
2031 Notes | US Dollar | Fixed | July 2024 - January 2031 | |||||||||||||||||||||||||||||||||||
Other lines of credit | ||||||||||||||||||||||||||||||||||||||
$ | $ |
SPEs | Collateralized debt as of March 31, 2024 | Interest rate | Currency | Maturity | ||||||||||||||||||||||
Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados | $ | CDI + | Brazilian Reais | May 2025 | ||||||||||||||||||||||
Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado | CDI + | Brazilian Reais | August 2025 | |||||||||||||||||||||||
Olimpia Fundo de Investimento Em Direitos Creditórios | CDI + | Brazilian Reais | November 2024 | |||||||||||||||||||||||
Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados | CDI + | Brazilian Reais | January 2030 | |||||||||||||||||||||||
Seller Fundo De Investimento Em Direitos Creditórios | CDI + | Brazilian Reais | March 2026 | |||||||||||||||||||||||
Seller Fundo De Investimento Em Direitos Creditórios | CDI + | Brazilian Reais | May 2026 | |||||||||||||||||||||||
Seller Fundo De Investimento Em Direitos Creditórios | CDI + | Brazilian Reais | September 2026 | |||||||||||||||||||||||
Seller Fundo De Investimento Em Direitos Creditórios | CDI + | Brazilian Reais | November 2026 | |||||||||||||||||||||||
Mercado Crédito Consumo XXI | Badlar rates plus | Argentine Pesos | June 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXII | Badlar rates plus | Argentine Pesos | June 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXIII | Badlar rates plus | Argentine Pesos | August 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXIV | Badlar rates plus | Argentine Pesos | October 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXV | Badlar rates plus | Argentine Pesos | November 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXVI | Badlar rates plus | Argentine Pesos | November 2024 | |||||||||||||||||||||||
Mercado Crédito Consumo XXVII | Badlar rates plus | Argentine Pesos | March 2025 | |||||||||||||||||||||||
Mercado Crédito Consumo XXVIII | Badlar rates plus | Argentine Pesos | April 2025 | |||||||||||||||||||||||
Mercado Crédito Consumo XXIX | Badlar rates plus | Argentine Pesos | March 2025 | |||||||||||||||||||||||
Mercado Crédito Consumo XXX | Badlar rates plus | Argentine Pesos | April 2025 | |||||||||||||||||||||||
Mercado Crédito Consumo XXXI (1) | Badlar rates plus | Argentine Pesos | March 2025 | |||||||||||||||||||||||
Mercado Crédito XIX | Badlar rates plus | Argentine Pesos | August 2024 | |||||||||||||||||||||||
Mercado Crédito XX | Badlar rates plus | Argentine Pesos | December 2024 | |||||||||||||||||||||||
Mercado Crédito XXI (1) | Badlar rates plus | Argentine Pesos | March 2025 | |||||||||||||||||||||||
Fideicomiso de administración y fuente de pago CIB/3756 | The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus | Mexican Pesos | August 2026 |
SPEs | Collateralized debt as of March 31, 2024 | Interest rate | Currency | Maturity | ||||||||||||||||||||||
Fideicomiso de administración y fuente de pago CIB/3369 | The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus | Mexican Pesos | April 2025 | |||||||||||||||||||||||
Fideicomiso de administración y fuente de pago CIB/3369 | The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus | Mexican Pesos | April 2025 | |||||||||||||||||||||||
$ |
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | (In millions) | ||||||||||
Current assets: | |||||||||||
Restricted cash and cash equivalents | $ | $ | |||||||||
Credit card receivables and other means of payments, net | |||||||||||
Loans receivable, net | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Long-term investments | |||||||||||
Loans receivable, net | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Loans payable and other financial liabilities | $ | $ | |||||||||
Other liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Loans payable and other financial liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Operating Leases | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Operating lease liabilities | $ | $ | |||||||||
Finance Leases | |||||||||||
Property and equipment, at cost | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
Loans payable and other financial liabilities | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Weighted average remaining lease term | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate (1) | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
Operating lease cost | $ | $ | |||||||||
Finance lease cost: | |||||||||||
Depreciation of property and equipment | $ | $ | |||||||||
Interest on lease liabilities | |||||||||||
Total finance lease cost | $ | $ |
Period Ending March 31, 2024 | Operating Leases | Finance Leases | |||||||||
(In millions) | |||||||||||
One year or less | $ | $ | |||||||||
One year to two years | |||||||||||
Two years to three years | |||||||||||
Three years to four years | |||||||||||
Four years to five years | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less imputed interest | ( | ( | |||||||||
Total | $ | $ |
Notional Amount as of | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Designated as hedging instrument | |||||||||||
Foreign exchange contracts | $ | $ | |||||||||
Cross currency swap contracts | |||||||||||
Not designated as hedging instrument | |||||||||||
Foreign exchange contracts | $ | $ | |||||||||
Interest rate swap contracts |
Derivative instruments | Balance sheet location | March 31, | December 31, | ||||||||||||||
2024 | 2023 | ||||||||||||||||
(In millions) | |||||||||||||||||
Cross currency swap contracts designated as fair value hedge | Other current assets | $ | $ | ||||||||||||||
Interest rate swap contracts not designated as hedging instruments | Other non-current assets | ||||||||||||||||
Cross currency swap contracts designated as net investment hedge | Other current liabilities | ||||||||||||||||
Cross currency swap contracts designated as fair value hedge | Other current liabilities | ||||||||||||||||
Interest rate swap contracts not designated as hedging instruments | Other current liabilities | ||||||||||||||||
Foreign exchange contracts not designated as hedging instruments | Other current liabilities | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | Other current liabilities | ||||||||||||||||
Interest rate swap contracts not designated as hedging instruments | Other non-current liabilities |
December 31, 2023 | Amount of gain recognized in other comprehensive loss | Amount of loss reclassified from accumulated other comprehensive loss | March 31, 2024 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Cross currency swap contracts designated as net investment hedge | ( | ( | |||||||||||||||||||||
$ | ( | $ | $ | $ | ( |
December 31, 2022 | Amount of gain (loss) recognized in other comprehensive income | Amount of (gain) loss reclassified from accumulated other comprehensive loss | March 31, 2023 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Interest swap contracts designated as cash flow hedges | ( | ( | ( | ||||||||||||||||||||
Cross currency swap contracts designated as net investment hedge | ( | ( | ( | ||||||||||||||||||||
$ | ( | $ | ( | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
Foreign exchange contracts not designated as hedging instruments recognized in Foreign currency losses, net | $ | $ | ( | ||||||||
Interest rate contracts not designated as hedging instruments recognized in Interest expense and other financial losses | ( | ||||||||||
$ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
(% of total consolidated net revenues) | 2024 | 2023 (1) | |||||||||
Brazil | 59.3 | % | 51.4 | % | |||||||
Argentina | 14.2 | 24.7 | |||||||||
Mexico | 22.4 | 19.2 | |||||||||
Other Countries | 4.1 | 4.7 |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 (1) | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Brazil | $ | 2,571 | $ | 1,639 | $ | 932 | 56.9 | % | |||||||||||||||
Argentina (2) | 615 | 787 | (172) | (21.9) | |||||||||||||||||||
Mexico | 971 | 610 | 361 | 59.2 | |||||||||||||||||||
Other Countries | 176 | 150 | 26 | 17.3 | |||||||||||||||||||
Total Net Revenues | $ | 4,333 | $ | 3,186 | $ | 1,147 | 36.0 | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 (1) | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Net revenues and financial income | $ | 4,333 | $ | 3,186 | $ | 1,147 | 36.0 | % |
Consolidated net revenues and financial income | Three Months Ended March 31, | Change from 2023 to 2024 | |||||||||||||||||||||
2024 | 2023 (1) | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Brazil | |||||||||||||||||||||||
Commerce | $ | 1,563 | $ | 907 | $ | 656 | 72.3 | % | |||||||||||||||
Fintech | 1,008 | 732 | 276 | 37.7 | |||||||||||||||||||
2,571 | 1,639 | 932 | 56.9 | ||||||||||||||||||||
Argentina | |||||||||||||||||||||||
Commerce | 200 | 273 | (73) | (26.7) | |||||||||||||||||||
Fintech | 415 | 514 | (99) | (19.3) | |||||||||||||||||||
615 | 787 | (172) | (21.9) | ||||||||||||||||||||
Mexico | |||||||||||||||||||||||
Commerce | 613 | 398 | 215 | 54.0 | |||||||||||||||||||
Fintech | 358 | 212 | 146 | 68.9 | |||||||||||||||||||
971 | 610 | 361 | 59.2 | ||||||||||||||||||||
Other countries | |||||||||||||||||||||||
Commerce | 120 | 98 | 22 | 22.4 | |||||||||||||||||||
Fintech | 56 | 52 | 4 | 7.7 | |||||||||||||||||||
176 | 150 | 26 | 17.3 | ||||||||||||||||||||
Consolidated | |||||||||||||||||||||||
Commerce | 2,496 | 1,676 | 820 | 48.9 | |||||||||||||||||||
Fintech | 1,837 | 1,510 | 327 | 21.7 | |||||||||||||||||||
Total | $ | 4,333 | $ | 3,186 | $ | 1,147 | 36.0 | % |
Quarter Ended | |||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
2024 | |||||||||||||||||||||||
Net revenues and financial income | $ | 4,333 | n/a | n/a | n/a | ||||||||||||||||||
Percent change from prior quarter | (2) | % | |||||||||||||||||||||
2023 (1) | |||||||||||||||||||||||
Net revenues and financial income | $ | 3,186 | $ | 3,585 | $ | 3,927 | $ | 4,409 | |||||||||||||||
Percent change from prior quarter | 2 | % | 13 | % | 10 | % | 12 | % |
Change from 2023 to 2024 | |||||
(% of revenue growth in Local Currency) (1) | Three-month period | ||||
Brazil | 49.5 | % | |||
Argentina (2) | 238.6 | ||||
Mexico | 45.1 | ||||
Other countries | 24.7 | ||||
Total consolidated | 94.2 | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 (1) | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Cost of net revenues and financial expenses | $ | 2,309 | $ | 1,572 | $ | 737 | 46.9% | ||||||||||||||||
As a percentage of net revenues and financial income | 53.3% | 49.3% |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Product and technology development | $ | 458 | $ | 381 | $ | 77 | 20.2% | ||||||||||||||||
As a percentage of net revenues and financial income | 10.6% | 12.0% |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Sales and marketing | $ | 478 | $ | 383 | $ | 95 | 24.8% | ||||||||||||||||
As a percentage of net revenues and financial income | 11.0 | % | 12.0 | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Provision for doubtful accounts | $ | 374 | $ | 252 | $ | 122 | 48.4% | ||||||||||||||||
As a percentage of net revenues and financial income | 8.6% | 7.9% |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
General and administrative | $ | 186 | $ | 180 | $ | 6 | 3.3% | ||||||||||||||||
As a percentage of net revenues and financial income | 4.3% | 5.6% |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 (1) | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Other income (expenses), net | $ | (47) | $ | (98) | $ | 51 | (52.0)% | ||||||||||||||||
As a percentage of net revenues and financial income | (1.1) | % | (3.1) | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Income tax expense | $ | 137 | $ | 122 | $ | 15 | 12.3 | % | |||||||||||||||
As a percentage of net revenues and financial income | 3.2 | % | 3.8 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Effective tax rate (1) | 28.5% | 38.1% |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Effective tax rate by country | |||||||||||
Argentina | 19.6% | 31.2% | |||||||||
Brazil | 14.1% | 6.8% | |||||||||
Mexico | 36.2% | 40.6% |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | |||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||
Net revenues and financial income | $ | 2,571 | $ | 615 | $ | 971 | $ | 176 | $ | 4,333 | |||||||||||||||||||
Direct costs | (2,010) | (391) | (747) | (155) | (3,303) | ||||||||||||||||||||||||
Direct contribution | $ | 561 | $ | 224 | $ | 224 | $ | 21 | $ | 1,030 | |||||||||||||||||||
Margin | 21.8% | 36.4% | 23.1% | 11.9% | 23.8% |
Three Months Ended March 31, 2023 (1) | |||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | |||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||
Net revenues and financial income | $ | 1,639 | $ | 787 | $ | 610 | $ | 150 | $ | 3,186 | |||||||||||||||||||
Direct costs | (1,318) | (419) | (464) | (137) | (2,338) | ||||||||||||||||||||||||
Direct contribution | $ | 321 | $ | 368 | $ | 146 | $ | 13 | $ | 848 | |||||||||||||||||||
Margin | 19.6% | 46.8% | 23.9% | 8.7% | 26.6% |
Change from the Three Months Ended March 31, 2023 to March 31, 2024 | |||||||||||||||||||||||||||||
Brazil | Argentina | Mexico | Other Countries | Total | |||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||
Net revenues and financial income | |||||||||||||||||||||||||||||
in Dollars | $ | 932 | $ | (172) | $ | 361 | $ | 26 | $ | 1,147 | |||||||||||||||||||
in % | 56.9% | (21.9)% | 59.2% | 17.3 | % | 36.0% | |||||||||||||||||||||||
Direct costs | |||||||||||||||||||||||||||||
in Dollars | $ | (692) | $ | 28 | $ | (283) | $ | (18) | $ | (965) | |||||||||||||||||||
in % | 52.5% | (6.7)% | 61.0% | 13.1% | 41.3% | ||||||||||||||||||||||||
Direct contribution | |||||||||||||||||||||||||||||
in Dollars | $ | 240 | $ | (144) | $ | 78 | $ | 8 | $ | 182 | |||||||||||||||||||
in % | 74.8% | (39.1)% | 53.4 | % | 61.5% | 21.5% |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 1,512 | $ | 859 | |||||||
Investing activities | (1,466) | (538) | |||||||||
Financing activities | — | (112) | |||||||||
Effect of exchange rates on cash and cash equivalents, restricted cash and cash equivalents | (76) | (48) | |||||||||
Net (decrease) increase in cash and cash equivalents, restricted cash and cash equivalents | $ | (30) | $ | 161 |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Net cash provided by: | |||||||||||||||||||||||
Operating activities | $ | 1,512 | $ | 859 | $ | 653 | 76.0 | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Net cash used in: | |||||||||||||||||||||||
Investing activities | $ | (1,466) | $ | (538) | $ | (928) | 172.5 | % |
Three Months Ended March 31, | Change from 2023 to 2024 | ||||||||||||||||||||||
2024 | 2023 | in Dollars | in % | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Net cash used in: | |||||||||||||||||||||||
Financing activities | $ | — | $ | (112) | $ | 112 | (100.0) | % |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Current assets (1) (2) | $ | 12,057 | $ | 11,343 | |||||||
Non-current assets (3) | 3,490 | 3,032 | |||||||||
Current liabilities (4) | 10,701 | 9,683 | |||||||||
Non-current liabilities | 2,380 | 2,327 |
March 31, 2024 | ||||||||
(In millions) | ||||||||
Net revenues and financial income (1) | $ | 3,551 | ||||||
Gross profit (2) | 1,405 | |||||||
Income from operations (3) | 379 | |||||||
Net income (4) | 231 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except percentages) (1) | |||||||||||
Fintech monthly active users (2) | 49 | 36 | |||||||||
Unique active buyers (3) | 53 | 46 | |||||||||
Gross merchandise volume (4) | $ | 11,365 | $ | 9,434 | |||||||
Number of items sold (5) | 385 | 309 | |||||||||
Number of items shipped (6) | 379 | 302 | |||||||||
Total payment volume (7) | $ | 40,727 | $ | 30,270 | |||||||
Acquiring total payments volume (8) | $ | 30,579 | $ | 24,256 | |||||||
Total payment transactions (9) | 2,418 | 1,555 | |||||||||
NIMAL (10) | 31.5 | % | 30.6 | % | |||||||
Capital expenditures | $ | 148 | $ | 89 | |||||||
Depreciation and amortization | $ | 154 | $ | 126 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In millions) | |||||||||||
Net income | $ | 344 | $ | 201 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization | 154 | 126 | |||||||||
Interest income and other financial gains | (25) | (23) | |||||||||
Interest expense and other financial losses | 38 | 34 | |||||||||
Foreign currency losses, net | 34 | 87 | |||||||||
Income tax expense | 137 | 122 | |||||||||
Equity in earnings of unconsolidated entity | — | (3) | |||||||||
Adjusted EBITDA | $ | 682 | $ | 544 |
March 31, 2024 | December 31, 2023 | ||||||||||
(In millions) | |||||||||||
Current Loans payable and other financial liabilities | $ | 2,246 | $ | 2,292 | |||||||
Non-current Loans payable and other financial liabilities | 2,224 | 2,203 | |||||||||
Current Operating lease liabilities | 163 | 166 | |||||||||
Non-current Operating lease liabilities | 653 | 672 | |||||||||
Total debt | 5,286 | 5,333 | |||||||||
Less: | |||||||||||
Cash and cash equivalents | 2,579 | 2,556 | |||||||||
Short-term investments (1) | 1,173 | 1,191 | |||||||||
Long-term investments (2) | 167 | 81 | |||||||||
Net debt | $ | 1,367 | $ | 1,505 |
Three-Months ended March 31, | ||||||||||||||||||||||||||||||||||||||
As reported | As recast (1) | Percentage Change | FX Neutral Measures | As recast (1) | Percentage Change | |||||||||||||||||||||||||||||||||
(Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
(In millions, except percentages) | (In millions, except percentages) | |||||||||||||||||||||||||||||||||||||
Net revenues and financial income | $ | 4,333 | $ | 3,186 | 36.0 | % | $ | 6,188 | $ | 3,186 | 94.2 | % | ||||||||||||||||||||||||||
Cost of net revenues and financial expenses | (2,309) | (1,572) | 46.9 | % | (3,105) | (1,572) | 97.5 | % | ||||||||||||||||||||||||||||||
Gross profit | 2,024 | 1,614 | 25.4 | % | 3,083 | 1,614 | 91.0 | % | ||||||||||||||||||||||||||||||
Operating expenses | (1,496) | (1,196) | 25.1 | % | (2,453) | (1,196) | 105.1 | % | ||||||||||||||||||||||||||||||
Income from operations | $ | 528 | $ | 418 | 26.3 | % | $ | 630 | $ | 418 | 50.7 | % | ||||||||||||||||||||||||||
(10)% (1) | Actual | 10% (2) | |||||||||||||||
(In millions) | |||||||||||||||||
Net revenues and financial income | $ | 4,814 | $ | 4,333 | $ | 3,939 | |||||||||||
Expenses (3) | (4,211) | (3,805) | (3,473) | ||||||||||||||
Income from operations | 603 | 528 | 466 | ||||||||||||||
Other income (expenses) and income tax expense related to P&L items | (166) | (150) | (137) | ||||||||||||||
Foreign Currency impact related to the remeasurement of our Net Asset position | (38) | (34) | (31) | ||||||||||||||
Net Income | $ | 399 | $ | 344 | $ | 298 | |||||||||||
Total Shareholders’ Equity | $ | 3,781 | $ | 3,390 | $ | 3,070 |
Change in equity price in percentage | As of March 31, 2024 | ||||||||||
MercadoLibre, Inc Equity Price | 2019, 2020, 2021, 2022, 2023 and 2024 LTRP Variable contractual obligation | ||||||||||
(In millions, except equity price) | |||||||||||
40% | 2,127.92 | 804 | |||||||||
30% | 1,975.92 | 747 | |||||||||
20% | 1,823.93 | 689 | |||||||||
10% | 1,671.93 | 632 | |||||||||
Static (1) | 1,519.94 | 574 | |||||||||
(10)% | 1,367.95 | 517 | |||||||||
(20)% | 1,215.95 | 460 | |||||||||
(30)% | 1,063.96 | 402 | |||||||||
(40)% | 911.96 | 345 |
Period | Total Number of Shares Purchased | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Program (in millions) (1) | ||||||||||||||||||||||
January, 2024 | — | — | — | Up to $157 | ||||||||||||||||||||||
February, 2024 | — | — | — | Up to $157 | ||||||||||||||||||||||
March, 2024 | — | — | — | Up to $ _ |
Exhibit Number | Exhibit Description | Filed (*) or Furnished (**) Herewith | Incorporated by Reference | |||||||||||||||||||||||
Form | Filing Date | |||||||||||||||||||||||||
3.1 | S-1 | May 11, 2007 | ||||||||||||||||||||||||
3.2 | S-1 | May 11, 2007 | ||||||||||||||||||||||||
4.1 | 10-K | February 27, 2009 | ||||||||||||||||||||||||
4.2 | 8-K | August 24, 2018 | ||||||||||||||||||||||||
4.3 | 8-K | January 14, 2021 | ||||||||||||||||||||||||
4.4 | 8-K | January 14, 2021 | ||||||||||||||||||||||||
4.5 | 8-K | January 14, 2021 | ||||||||||||||||||||||||
4.6 | 8-K | January 14, 2021 | ||||||||||||||||||||||||
4.7 | 10-K | February 23, 2022 | ||||||||||||||||||||||||
22.1 | 10-K | February 24, 2023 | ||||||||||||||||||||||||
10.1 | 8-K | April 23, 2024 | ||||||||||||||||||||||||
31.1 | * | |||||||||||||||||||||||||
31.2 | * | |||||||||||||||||||||||||
32.1 | * | |||||||||||||||||||||||||
32.2 | * | |||||||||||||||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL: (i) Interim Condensed Consolidated Balance Sheets, (ii) Interim Condensed Consolidated Statements of Income, (iii) Interim Condensed Consolidated Statements of Comprehensive Income, (iv) Interim Condensed Statements of Equity, (v) Interim Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Interim Condensed Consolidated Financial Statements. | * | ||||||||||||||||||||||||
104 | The cover page from the Company’s Form 10-Q for the quarterly period ended March 31, 2024, formatted in Inline XBRL and contained in Exhibit 101. | * |
MERCADOLIBRE, INC. | ||||||||
Registrant | ||||||||
Date: May 3, 2024. | By: | /s/ Marcos Galperin | ||||||
Marcos Galperin | ||||||||
President and Chief Executive Officer | ||||||||
By: | /s/ Martín de los Santos | |||||||
Martín de los Santos | ||||||||
Executive Vice President and Chief Financial Officer |
May 3, 2024 | /s/ Marcos Galperin | ||||
Marcos Galperin | |||||
President and Chief Executive Officer (Principal Executive Officer) |
May 3, 2024 | /s/ Martín de los Santos | ||||
Martín de los Santos | |||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
/s/ Marcos Galperin | ||
Marcos Galperin | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Martín de los Santos | ||
Martín de los Santos | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Loans receivable allowance, current | $ 1,197 | $ 1,042 |
Loans receivable allowance, noncurrent | $ 46 | $ 42 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 110,000,000 | 110,000,000 |
Common stock, shares issued (in shares) | 50,697,442 | 50,697,442 |
Common stock, shares outstanding (in shares) | 50,697,442 | 50,697,442 |
Interim Condensed Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
||||
Net revenues and financial income | $ 4,333 | $ 4,409 | $ 3,927 | $ 3,585 | $ 3,186 | [1] | $ 15,107 | ||
Cost of net revenues and financial expenses | (2,309) | (2,359) | (1,832) | (1,754) | (1,572) | [1] | (7,517) | ||
Gross profit | 2,024 | 2,050 | 2,095 | 1,831 | 1,614 | [1] | 7,590 | ||
Operating expenses: | |||||||||
Product and technology development | (458) | (686) | (396) | (368) | (381) | [1] | (1,831) | ||
Sales and marketing | (478) | (529) | (441) | (383) | (383) | [1] | (1,736) | ||
Provision for doubtful accounts | (374) | (299) | (277) | (222) | (252) | [1] | (1,050) | ||
General and administrative | (186) | (201) | (196) | (189) | (180) | [1] | (766) | ||
Total operating expenses | (1,496) | (1,715) | (1,310) | (1,162) | (1,196) | [1] | (5,383) | ||
Income from operations | 528 | 335 | 785 | 669 | 418 | [1] | 2,207 | ||
Other income (expenses): | |||||||||
Interest income and other financial gains | 25 | 40 | 38 | 34 | 23 | [1] | 135 | ||
Interest expense and other financial losses | (38) | (38) | (53) | (49) | (34) | [1] | (174) | ||
Foreign currency losses, net | (34) | (107) | (239) | (182) | (87) | [1] | (615) | ||
Net income before income tax expense and equity in earnings of unconsolidated entity | 481 | 230 | 531 | 472 | 320 | [1] | 1,553 | ||
Income tax expense | (137) | (65) | (172) | (210) | (122) | [1] | (569) | ||
Equity in earnings of unconsolidated entity | 0 | 0 | 0 | 0 | 3 | [1] | 3 | ||
Net income | $ 344 | 165 | 359 | 262 | $ 201 | [1] | 987 | ||
Basic earning per share | |||||||||
Basic net income available to shareholders per common share (in dollars per share) | $ 6.78 | $ 4.01 | |||||||
Weighted average of outstanding common shares (in shares) | 50,697,442 | 50,245,073 | |||||||
Diluted earning per share | |||||||||
Diluted net income available to shareholders per common share (in dollars per share) | $ 6.78 | $ 3.97 | |||||||
Weighted average of outstanding common shares (in shares) | 50,697,442 | 51,235,341 | |||||||
Service | |||||||||
Net revenues and financial income | $ 3,955 | 3,898 | 3,586 | 3,221 | $ 2,912 | [1] | 13,617 | ||
Product | |||||||||
Net revenues and financial income | $ 378 | $ 511 | $ 341 | $ 364 | $ 274 | [1] | $ 1,490 | ||
|
Interim Condensed Consolidated Statements of Equity - USD ($) $ in Millions |
Total |
Common stock |
Additional paid-in capital |
Treasury Stock |
Retained Earnings |
Accumulated other comprehensive loss |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance (in shares) at Dec. 31, 2022 | 50,000,000 | |||||||||||
Beginning Balance at Dec. 31, 2022 | $ 1,827 | $ 0 | $ 2,309 | $ (931) | $ 913 | $ (464) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common Stock repurchased | (61) | (61) | ||||||||||
Net income | 201 | [1] | 201 | |||||||||
Other comprehensive income (loss) | 73 | 73 | ||||||||||
Ending Balance (in shares) at Mar. 31, 2023 | 50,000,000 | |||||||||||
Ending Balance at Mar. 31, 2023 | 2,040 | $ 0 | 2,309 | (992) | 1,114 | (391) | ||||||
Beginning Balance (in shares) at Dec. 31, 2022 | 50,000,000 | |||||||||||
Beginning Balance at Dec. 31, 2022 | 1,827 | $ 0 | 2,309 | (931) | 913 | (464) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 987 | |||||||||||
Ending Balance (in shares) at Dec. 31, 2023 | 50,697,442 | 50,000,000 | ||||||||||
Ending Balance at Dec. 31, 2023 | $ 3,071 | $ 0 | 1,770 | (310) | [2] | 1,901 | (290) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 344 | 344 | ||||||||||
Other comprehensive income (loss) | $ (25) | (25) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2024 | 50,697,442 | 50,000,000 | ||||||||||
Ending Balance at Mar. 31, 2024 | $ 3,390 | $ 0 | $ 1,770 | $ (310) | [2] | $ 2,245 | $ (315) | |||||
|
Interim Condensed Consolidated Statements of Equity (Parenthetical) |
Mar. 31, 2024
shares
|
---|---|
Statement of Stockholders' Equity [Abstract] | |
Treasury stock, shares (in shares) | 224,945 |
Interim Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
||||
Cash flows from operations: | |||||
Net income | $ 344 | $ 201 | [1] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Equity in earnings of unconsolidated entity | 0 | (3) | [1] | ||
Unrealized foreign currency losses, net | 9 | 117 | |||
Depreciation and amortization | 154 | 126 | |||
Accrued interest income | (83) | (72) | |||
Non cash interest expense and amortization of debt issuance costs and other charges | 48 | 52 | |||
Provision for doubtful accounts | 374 | 252 | [1] | ||
Results on derivative instruments | 1 | 11 | |||
Long term retention program (“LTRP”) accrued compensation | 68 | 47 | |||
Results on digital assets at fair value | (16) | 0 | |||
Deferred income taxes | (65) | 8 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | (22) | (12) | |||
Credit card receivables and other means of payments | (403) | 165 | |||
Inventories | 11 | (39) | |||
Other assets | (202) | (16) | |||
Payables and accrued expenses | 81 | 107 | |||
Funds payable to customers | 727 | (242) | |||
Amounts payable due to credit and debit card transactions | 292 | 63 | |||
Other liabilities | 109 | 39 | |||
Interest received from investments | 85 | 55 | |||
Net cash provided by operating activities | 1,512 | 859 | |||
Cash flows from investing activities: | |||||
Purchases of investments | (4,095) | (5,124) | |||
Proceeds from sale and maturity of investments | 3,728 | 5,104 | |||
Payments from settlements of derivative instruments | (5) | (8) | |||
Purchases of intangibles assets | (2) | 0 | |||
Changes in loans receivable, net | (946) | (421) | |||
Investments of property and equipment | (146) | (89) | |||
Net cash used in investing activities | (1,466) | (538) | |||
Cash flows from financing activities: | |||||
Proceeds from loans payable and other financial liabilities | 3,519 | 5,977 | |||
Payments on loans payable and other financing liabilities | (3,506) | (6,022) | |||
Payments of finance lease liabilities | (13) | (6) | |||
Common Stock repurchased | 0 | (61) | |||
Net cash used in financing activities | 0 | (112) | |||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (76) | (48) | |||
Net (decrease) increase in cash, cash equivalents, restricted cash and cash equivalents | (30) | 161 | |||
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | 3,848 | 3,363 | |||
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | 3,818 | 3,524 | |||
Non-cash transactions: | |||||
Right-of-use assets obtained under operating leases | 12 | 42 | |||
Property and equipment obtained under finance leases | $ 6 | $ 11 | |||
|
NATURE OF BUSINESS |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS MercadoLibre, Inc. (“MercadoLibre” and together with its consolidated entities, the “Company”) was incorporated in the state of Delaware, in the United States of America, in October 1999. MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of necessary digital and technology tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech solution, MercadoLibre enables individuals and businesses to send and receive digital payments; through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers; through the advertising products, MercadoLibre facilitates advertising services for large retailers and brands to promote their products and services on the web; through Mercado Shops, MercadoLibre allows users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model; through Mercado Credito, MercadoLibre extends loans to certain merchants and consumers; and through Mercado Fondo, MercadoLibre allows users to invest funds deposited in their Mercado Pago accounts. As of March 31, 2024, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates its fintech solution in Argentina, Brazil, Mexico, Colombia, Chile, Peru, Uruguay and Ecuador, and extends loans through Mercado Credito in Argentina, Brazil, Mexico and Chile. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia, Chile, Uruguay, Peru and Ecuador.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). Investments in entities where the Company holds joint control, but not control, over the investee are accounted for using the equity method of accounting. These unaudited interim condensed consolidated financial statements are stated in U.S. dollars, except where otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes. Substantially all net revenues and financial income, cost of net revenues and financial expenses and operating expenses, are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill and operating lease right-of-use assets located in the foreign jurisdictions totaled $2,297 million and $2,321 million as of March 31, 2024 and December 31, 2023, respectively. These unaudited interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2024 and December 31, 2023. These unaudited interim condensed consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2024 and 2023. These unaudited interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) (the “Company’s 2023 10-K”). The Company has evaluated all subsequent events through the date these unaudited interim condensed consolidated financial statements were issued. The interim condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see Note 2 to the financial statements in the Company’s 2023 10-K. During the three-month period ended March 31, 2024, there were no material updates made to the Company’s significant accounting policies. For information regarding the change in the presentation of the statements of income, please refer to section “Change in the presentation of certain financial results and reclassification of prior year results” of Note 2 – Summary of significant accounting policies of these unaudited interim condensed consolidated financial statements. Change in the presentation of certain financial results and reclassification of prior year results Change in the presentation of certain financial results Mercado Pago Fintech platform operations have significantly evolved during the last several years, not only because of the increase in the volume of transactions but also as a result of transitioning from being a non-regulated business to a regulated business, subject to the oversight of central banks and other regulators in the various countries in which the Company operates (refer to Note 3 – Fintech Regulations to the consolidated financial statements in the Company’s 2023 10-K for further details). Many of the regulations to which the Company is subject require that the Company, among other things, maintain liquidity reserves to guarantee the funds on users’ account balances in their Mercado Pago digital accounts. Depending on the country, these reserves can be partially or totally invested. During the last several years, these new regulations, coupled with the increase in the volume of transactions, have led the Company to view interest income and other financial gains from investments of these liquidity reserves as part of the Company’s operations. Furthermore, the evolution of Mercado Pago’s activities themselves has resulted in the Company managing a significant volume of cash, cash equivalents and investments. This is due to an increase in users’ account balances in their Mercado Pago digital account managed by the Company, and an increase in the level of the Company’s indebtedness to finance those operations. As a result, Mercado Pago’s available cash, together with the financing activities, have generated a significant volume of interest income and other financial gains and interest expenses and other financial losses, respectively. The Company believes that these regulatory trends and related activities will continue and, therefore, with the goal of creating a better measure of the performance of the Company, the Company decided to reclassify and present certain financial results from “Other income (expenses)” to “Net revenues and financial income” and “Cost of net revenues and financial expenses,” in the statement of income, starting January 1, 2024 and for all prior periods presented. The reclassified financial results are related to activities that are needed or mandatory for Mercado Pago’s operations, and consist of: ■interest income derived from investments, cash and cash equivalents, generated as part of the treasury strategy of the fintech business and because of the different regulations that require liquidity reserves, net of sales taxes; ■interest expense and other financing costs generated by the different sources of funding of the fintech activities; and ■gains and losses of derivatives hedging risks related to Mercado Pago’s activities. Reclassification of prior year results According to the Accounting Standards Codification (“ASC”) 205, Presentation of Financial Statements, the Company should present in a consistent manner all periods presented within the accompanying unaudited interim condensed consolidated financial statements. Therefore, prior period balances have been reclassified for consistency with the current presentation. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2023 10-K. This reclassification did not have an impact on previously reported net income, earnings per share, retained earnings or other components of equity or total equity. 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:
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:
Use of estimates The preparation of these unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting and disclosures for allowance for doubtful accounts and chargeback provisions, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of short-term and long-term investments, impairment of long-lived assets, separation of lease and non lease components for aircraft leases, asset retirement obligation, compensation costs relating to the Company’s long term retention program, fair value of customer crypto-assets safeguarding assets and liabilities, fair value of certain loans payable and other financial liabilities, fair value of loans receivable, fair value of derivative instruments, income taxes, contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates. Customer crypto-assets safeguarding assets and liabilities As of March 31, 2024 and December 31, 2023, the fair value of the crypto-assets held in customers’ names by third-party service providers that the Company recognized on its consolidated balance sheets for both the crypto-asset safeguarding liability and the corresponding safeguarding asset, which are included in “Customer crypto-assets safeguarding liabilities” and “Customer crypto-assets safeguarding assets,” respectively, was $71 million and $34 million, respectively, which consisted of $41 million and $18 million of Bitcoin, $15 million and $7 million of Ether, and $15 million and $9 million of other crypto-assets, respectively. For further information related to customer crypto-assets safeguarding assets and liabilities please refer to Note 2 to the consolidated financial statements in the Company’s 2023 10-K. Supplier finance programs The Company and certain financial institutions participate in a supplier finance program that enables certain of the Company’s suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in the Company’s payment policy. As of March 31, 2024 and December 31, 2023, the obligations outstanding that the Company has confirmed as valid to the financial institutions amounted to $368 million and $381 million, respectively. For further information related to Supplier Finance Programs please refer to Note 2 to the consolidated financial statements in the Company’s 2023 10-K. Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in Note 2 to the consolidated financial statements in the Company’s 2023 10-K. The aggregate gain included in “Fintech services and financial income” revenues arising from financing transactions and sales of financial assets, net of the costs recognized on sale of credit card receivables, is $365 million and $336 million for the three-month periods ended March 31, 2024 and 2023, respectively. Revenues recognized under ASC 606, Revenue from contracts with customers, amounted to $3,099 million and $2,165 million for the three-month periods ended March 31, 2024 and 2023, respectively. Revenues not recognized under ASC 606 amounted to $1,234 million and $1,021 million for the three-month periods ended March 31, 2024 and 2023, respectively. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Accounts receivable and credit card receivables and other means of payments are presented net of allowance for doubtful accounts and chargebacks of $40 million and $42 million as of March 31, 2024 and December 31, 2023, respectively. See Note 6 – Loans receivable, net of these unaudited interim condensed consolidated financial statements for information related to the allowance for doubtful accounts with respect to the Company’s loans receivable. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following months. Deferred revenue as of December 31, 2023 was $29 million, of which $18 million was recognized as revenue during the three-month period ended March 31, 2024. As of March 31, 2024, total deferred revenue recognized within current other liabilities was $38 million, mainly due to fees related to classifieds advertising services billed and loyalty programs that are expected to be recognized as revenue in the coming months. Foreign currency translation All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using period-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the period, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive income (loss). Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the interim condensed consolidated statements of income under the caption “Foreign currency losses, net”. Argentine currency status and macroeconomic outlook As of July 1, 2018, the Company transitioned its Argentine operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company. Argentina’s inflation rate for the three-month periods ended March 31, 2024 and 2023 was 51.6% and 21.7%, respectively. Additionally, Argentina's average inter-annual inflation rate was 272.8%, for the three-month period ended March 31, 2024. The Company uses Argentina’s official exchange rate to account for transactions in the Argentine segment, which as of March 31, 2024 and December 31, 2023 was 858.00 and 808.45 Argentine Pesos, respectively, against the U.S. dollar. For the three-month periods ended March 31, 2024 and 2023, Argentina’s official exchange rate against the U.S. dollar increased 6.1% and 18.0%, respectively. The average exchange rate for the three-month periods ended March 31, 2024 and 2023 was 834.46 and 192.41, respectively, resulting in an increase of 334%. 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:
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:
Argentine exchange regulations Since the second half of 2019, the Argentine government instituted exchange controls restricting the ability of companies and individuals to exchange Argentine Pesos for foreign currencies and their ability to remit foreign currency out of Argentina. An entity’s authorization request to the Central Bank of Argentina (“CBA”) to access the official exchange market to make foreign currency payments may be denied depending on the circumstances. As a result of these exchange controls, markets in Argentina developed trading mechanisms, in which an entity or individual buys U.S. dollar denominated securities in Argentina (i.e. shares, sovereign debt) using Argentine Pesos, and subsequently sells the securities for U.S. dollars, in Argentina, to access U.S. dollars locally, or outside Argentina, by transferring the securities abroad, prior to being sold (the latter commonly known as “Blue Chip Swap Rate”). The Blue Chip Swap Rate has diverged significantly from Argentina’s official exchange rate (commonly known as exchange spread). Since the increase of the Argentina’s official exchange rate in December 2023, the spread of the Blue Chip Swap has declined, being 26.5% and 20.4% as of March 31, 2024 and December 31, 2023, respectively. As part of the exchange controls, since 2019, the Argentine government imposes a tax on the acquisition of foreign currency through the official exchange market in certain circumstances. On July 24, 2023, through the Executive Power Decree No. 377/2023, the Argentine government extended the application of this tax to the following cases: (i) certain services acquired from abroad or services rendered by foreign residents in Argentina (i.e. technical, legal, accounting, management, advertising, engineering, audiovisual services, among others), which will be subject to a 25% tax rate, (ii) freight and other transportation services for import and export of goods, which will be subject to a 7.5% tax rate; and (iii) imported goods, which will be subject to a 7.5% tax rate, with certain exemptions (such as fuels and products of the basic food basket). Later, the Decree No. 29/2023, modified the tax rate for the cases mentioned above under ii) and iii) from 7.5% to 17.5%. Income taxes Income taxes’ accounting policy is described in Note 2 to the consolidated financial statements in the Company’s 2023 10-K. The Company’s consolidated estimated effective tax rate for the three-month period ended March 31, 2024 as compared to the same period in 2023, decreased from 38.1% to 28.5%, mainly as a result of (i) no foreign exchange losses recognition during the period related to the acquisition of the Company's common stock in the Argentine market, which was considered as non-deductible expense, ii) lower taxable foreign exchange gains accounted for in Argentina for local tax purposes that are not recorded for accounting purposes since, under U.S. GAAP, Argentine operations’ functional currency is the U.S. dollar due to the highly inflationary status of the country, and (iii) higher deductions related to tax inflation adjustments in Argentina. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. In accordance with ASC 740, Management periodically assesses the need to either establish or reverse a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. In its assessment, Management considers, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies, which would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Knowledge-based economy promotional regime in Argentina In August 2021, the Under Secretariat of Knowledge Economy issued the Disposition 316/2021 approving MercadoLibre S.R.L.’s application for eligibility under the knowledge-based economy promotional regime, established by the Law No. 27,506 and complemented by Argentina’s Executive Power Decree No. 1034/2020, Argentina’s Ministry of Productive Development’s Resolution No. 4/2021 and the Under Secretariat of Knowledge Economy’s Disposition No. 11/2021. As a result, the Company recorded an income tax benefit of $1 million and $10 million during the three-month periods ended March 31, 2024 and March 31, 2023, respectively. The aggregate per share effect of the income tax benefit amounted to $0.01 and $0.19 for the three-month periods ended March 31, 2024 and 2023, respectively. Furthermore, the Company recorded a social security benefit of $17 million and $18 million during the three-month periods ended March 31, 2024 and 2023, respectively. Fair value option applied to certain financial instruments Under ASC 825, U.S. GAAP provides an option to elect fair value with impact on the statement of income as an alternative measurement for certain financial instruments and other items on the balance sheet. The Company has elected to measure certain financial assets at fair value with impact on the statement of income for several reasons including to avoid the mismatch generated by the recognition of certain linked instruments / transactions, separately, in the interim condensed consolidated statements of income and interim condensed consolidated statements of comprehensive income and to better reflect the financial model applied for selected instruments. The Company’s election of the fair value option applies to: i) foreign government debt securities, and ii) U.S. government debt securities. Recently Adopted Accounting Standards As of the date of issuance of these unaudited interim condensed consolidated financial statements there were no accounting pronouncements recently adopted by the Company. Recently issued accounting pronouncements not yet adopted On November 27, 2023, the FASB issued the ASU 2023-07 “Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures”. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On December 14, 2023, the FASB issued the ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this update provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information, requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The other amendments in this update improve the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) and removing disclosures that no longer are considered cost beneficial or relevant. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The guidance should be applied on a prospective basis while retrospective application is permitted. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements.
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FINTECH REGULATIONS |
3 Months Ended |
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Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
FINTECH REGULATIONS | FINTECH REGULATIONS Regulations issued by the Central Banks and other regulators of the countries where the Company operates applicable to its Fintech business are described in Note 3 to the consolidated financial statements in the Company’s 2023 10-K. Brazil In March 2022, the Central Bank of Brazil announced new rules for payment institutions based on their size and complexity and raised standards for required capital. The new framework, which was effective starting in July 2023 with full implementation by January 2025, will extend the application of the rule regarding proportionality of regulatory requirements (currently applicable to conglomerates of financial institutions) to financial conglomerates led by payment institutions. The new rules require a gradual increase, between 2023 and 2025, in the regulatory capital requirements applicable to the Company’s regulated Brazilian subsidiaries based on the following schedule: from July 2023 onwards, 6.75%, from January 2024 onwards, 8.75% and from January 2025 onwards, 10.50%. On January 2, 2024, article 28 of Law 14,690 came into force, which caps the total amount that may be charged to a credit card holder in the form of interest and financial charges at the value of the original debt. The Central Bank of Brazil also defined rules on the Resolution CMN N° 5,112, clarifying the topic and defining criteria for calculating the original value of the debt in card revolving and invoice financing operations. To comply with the new regulation, Company’s subsidiaries reduced the duration of the credit card invoice financing plans since January 2024. Argentina On May 18, 2023, the Central Bank of Argentina (“CBA”) enacted a new regulation that established that QR Codes must be interoperable with credit card payments. This regulation is effective as from May 1, 2024. On September 14, 2023, the CBA issued Communication “A” 7861, establishing that starting on December 1, 2023, DEBIN (debit immediate), the main and simple funding source of Mercado Pago users’ accounts, will be suspended and replaced with a pull transfer method that requires the consent of the client outside of Mercado Pago’s environment before the first use. After several extensions of the application of the Communication "A" 7861, it came into effect as from May 1, 2024. Chile On October 12, 2022, the Chilean Congress approved the Fintech and Open-Banking Law Project, which was published on January 4, 2023, and came into effect on February 3, 2023. This law established a regulatory framework for certain technological financial services that did not have their own legal framework. These services are: (i) Alternative Transaction Systems, (ii) Crowdfunding Financing Platforms, (iii) Financial Instrument Intermediation, (iv) Order Routing, (v) Credit Advisory, and (vi) Investment Advisory. Pursuant to this law, Mercado Pago Crypto S.A. shall file a license request with the Commission for the Financial Market (“CMF” according to its Spanish acronym) in order to continue offering Order Routing services through the “buy, hold and sell” product launched in 2023 in collaboration with Ripio Chile SpA. The rules governing the specifics of this filing and the license that CMF must grant, were issued on January 12, 2024, giving Mercado Pago Crypto S.A. until February 3, 2025 to file the license request. In addition, an Open Finance System is created to allow financial service providers to exchange customer financial information. On April 8, 2024, the Cybersecurity Law was published. Although Mercado Pago Chilean entities already comply with the law’s main obligations as a result of being regulated entities, as a result of this new law, such entities will be subject to a new regulator and must comply with certain reporting requirements for cyber security incidents. We expect that the Mercado Pago Chilean entities will be required to comply with these new reporting requirements sometime during 2025 or 2026. Colombia In June 2023, MercadoPago S.A. Compañía de Financiamiento obtained a license to operate as a financial institution in Colombia, and therefore is able to offer credits, digital accounts, investments and prepaid cards. On April 22, 2024, MercadoPago S.A. Compañía de Financiamiento started operations offering, for the moment, the “Ordinary Deposit” product only and is subject to minimum capital, reporting, consumer protection and risk management requirements. Uruguay On April 12, 2024, MercadoPago Uruguay S.R.L. initiated a process with the Central Bank of Uruguay (“BCU”) to be authorized to act as a payment acquirer with transfers, as an activity related to electronic money issuances, in compliance with new regulations that came into effect on March 1, 2024. On April 17, 2024, MercadoPago Uruguay S.R.L. was approved as a participant in the automated clearing house managed by Urutec S.A. This approval allows MercadoPago Uruguay S.R.L. to participate in the fast payment system and offer a new payment method to its users: interoperable QR transfer payments. Even though the regulator initially set June 6, 2024 as the release date for interoperable QR transfer payments, this date is currently under review.
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NET INCOME PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER SHARE | NET INCOME PER SHARE Basic earnings per share for the Company’s common stock is computed by dividing, net income for the period by the weighted average number of common shares outstanding during the period. In August 2018, the Company issued an aggregate principal amount of $880 million of 2.00% Convertible Senior Notes due 2028 (“2028 Notes”) which were fully converted or redeemed in November 2023. The conversion of these notes was included in the calculation for diluted earnings per share utilizing the “if converted” method for the three-month period ended March 31, 2023. Accordingly, conversion of these Notes was not assumed for purposes of computing diluted earnings per share if the effect was antidilutive. The denominator for diluted net income per share for the three-month period ended March 31, 2023 did not include any effect from the capped call transactions entered into by the Company with certain financial institutions with respect to shares of the Company’s common stock (“2028 Notes Capped Call Transactions”), which were settled on September 1, 2023, because it would have been antidilutive. See Note 13 – Loans payable and other financial liabilities to these unaudited interim condensed consolidated financial statements and Note 17 to the financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K for more details regarding the 2028 Notes and the 2028 Notes Capped Call Transactions. Net income per share of common stock is as follows for the three-month periods ended March 31, 2024 and 2023:
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CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS | CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS The composition of cash, cash equivalents, restricted cash and cash equivalents, short-term and long-term investments is as follows:
(1) Cash, cash equivalents and investments from securitization transactions are restricted to the payment of amounts due to third-party investors. (2) Cash, cash equivalents, restricted cash and cash equivalents as reported in the interim condensed consolidated statements of cash flows. (3) As of March 31, 2024 and December 31, 2023, includes $2,452 million and $2,283 million, respectively, considered restricted due to the Central Bank of Brazil's mandatory guarantee. Also, as of March 31, 2024 and December 31, 2023, includes $6 million that guarantees a line of credit and is considered restricted. As of March 31, 2024, includes $5 million considered restricted due to the Central Bank of Uruguay's mandatory guarantee. (4) As of March 31, 2024, includes $35 million of collateral as part of card scheme arrangement rules in Brazil, and is considered restricted.
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LOANS RECEIVABLE, NET |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET The Company classifies loans receivable as “On-line merchant”, “Consumer”, “In-store merchant” and “Credit cards”. As of March 31, 2024 and December 31, 2023, the components of current and non-current Loans receivable, net were as follows:
The allowance for doubtful accounts with respect to the Company’s loans receivable amounts to $1,260 million and $1,102 million as of March 31, 2024 and December 31, 2023, respectively, which includes $17 million and $18 million related to unused agreed loan commitment on credit cards portfolio presented in Other liabilities of the interim condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company is exposed to off-balance sheet unused agreed loan commitments on credit cards portfolio, which expose the Company to credit risks for $1,407 million and $934 million, respectively. For the three-month periods ended March 31, 2024 and 2023, the Company recognized in Provision for doubtful accounts less than $1 million and $4 million as expected credit losses, respectively. The Company closely monitors credit quality for all loans receivable on a recurring basis to assess and manage its exposure to credit risk. To assess merchants and consumers seeking a loan under the Mercado Credito solution, the Company uses, among other indicators, risk models internally developed, as a credit quality indicator to help predict the merchant’s and consumer’s ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant’s and consumer’s ability to repay the credit, including external and internal indicators. Internal indicators consider user behavior related to credit/payment history, and with lower weight in the risk models, the Company uses the number of transactions in the Company’s ecosystem and the merchant’s annual sales volume, among other indicators. In addition, the Company considers external bureau information to enhance the model and the decision making process. The amortized cost of the loans receivable classified by the Company’s credit quality internal indicator was as follows:
As of March 31, 2024 and December 31, 2023, renegotiations represented 2.2% and 2.8% of the loans receivable portfolio, respectively. The following tables summarize the allowance for doubtful accounts activity during the three-month periods ended March 31, 2024 and 2023:
(1) The Company writes off loans when customer balance becomes 360 days past due. The decrease in write-offs for the three-month period ended March 31, 2024, compared to the same period in 2023, is mainly a consequence of better quality originations of loans receivable for the three-month period ended March 31, 2023, compared to the same period in 2022. This was partially off-set by higher originations of loans receivables for the three-month period ended March 31, 2023, compared to the same period in 2022.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Intangible assets The composition of goodwill and intangible assets is as follows:
Goodwill The changes in the carrying amount of goodwill for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:
Amortizable intangible assets Intangible assets with definite useful life are comprised of customer lists, non-compete and non-solicitation agreements, hubs network, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets for the three-month periods ended March 31, 2024 and 2023 amounted to $1 million and $2 million, respectively. The following table summarizes the remaining amortization of intangible assets (in millions) with definite useful life as of March 31, 2024:
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INTANGIBLE ASSETS AT FAIR VALUE |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS AT FAIR VALUE | INTANGIBLE ASSETS AT FAIR VALUE The following tables present the digital assets name, cost basis, fair value, and number of units for each significant digital asset holding as of March 31, 2024 and December 31, 2023:
(1) Cost basis of the digital assets is net of $21 million of impairment losses recognized prior to the adoption of ASU 2023-08.
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SEGMENTS |
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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 and financial income from external customers less direct costs, which include costs of net revenues and financial expenses, 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:
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results. The following table summarizes net revenues and financial income per reporting segment, which have been disaggregated by similar products and services for the three-month periods ended March 31, 2024 and 2023:
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results. (2) 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. (3) Includes revenues from inventory sales and related shipping fees. (4) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company’s payment solution and asset management product, 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, interest earned on cash and investments as part of Mercado Pago activities, including those required due to fintech regulations, net of interest gains pass through our Brazilian users in connection with our asset management product, Mercado Pago credit and debit card fees and insurtech fees. (5) Includes interest earned on loans and advances granted to merchants and consumers, and interest earned on Mercado Pago credit card transactions. (6) Includes sales of mobile point of sales devices. The following table summarizes the allocation of property and equipment, net based on geography:
The following table summarizes the allocation of the operating lease right-of-use assets based on geography:
The following table summarizes the allocation of the goodwill and intangible assets based on geography:
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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES Assets and liabilities measured and recorded at fair value on a recurring basis The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
(1) Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments). (2) As of March 31, 2024 and December 31, 2023, includes $221 million and $269 million, respectively, of money market funds from securitization transactions. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments). (3) As of March 31, 2024 and December 31, 2023, includes $23 million and $23 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments). The Company’s assets and liabilities measured and recorded at fair value on a recurring basis were valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company’s assumptions. As of March 31, 2024 and December 31, 2023, there were no assets and liabilities measured and recorded at fair value using level 3 inputs. There were no transfers to and from Levels 1, 2 and 3 during the three-month period ended March 31, 2024, nor during the year ended December 31, 2023. The Company’s election of the fair value option applies to: i) foreign government debt securities and ii) U.S. government debt securities. The Company recognized fair value changes, which includes the related interest income of those instruments, in net revenues and financial income if it is related to Mercado Pago’s operations (please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results) or in interest income and other financial gains if not. Such fair value changes and interest income amount to gains of $69 million and $49 million in net revenues and financial income and to $10 million and $8 million in interest income and other financial gains, for the three-month periods ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the cost and the estimated fair value of the Company’s investment in corporate debt securities classified as available for sale amounted to $151 million and $30 million, respectively. The cost of these securities is determined under a specific identification basis. For the three-month period ended March 31, 2024, the proceeds from sales of corporate debt securities amounted to $3 million and the gross realized gains from such securities amount to less than $1 million. There were no sales of corporate debt securities during the three-month period ended March 31, 2023. The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:
The following table summarizes the net carrying amount of the debt securities not classified as available for sale, classified by its contractual maturities or Management expectation to convert the investments into cash:
Financial assets and liabilities not measured and recorded at fair value The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of March 31, 2024 and December 31, 2023:
As of March 31, 2024 and December 31, 2023, the carrying value of the Company’s financial assets (except for loans receivable and equity securities held at cost) not measured at fair value approximated their fair value mainly because of their short-term maturity. If these financial assets were measured at fair value in the financial statements, cash and restricted cash would be classified as Level 1 (where cost and fair value are aligned) and the remaining financial assets would be classified as Level 2. The estimated fair value of the loans receivable would be classified as Level 3 based on the Company’s assumptions. As of March 31, 2024 and December 31, 2023, the carrying value of the Company’s financial liabilities (except for 2026 Sustainability Notes and 2031 Notes) not measured at fair value approximated their fair value mainly because of their short-term maturity and the effective interest rates are not materially different from market interest rates. If these financial liabilities were measured at fair value in the financial statements, these would be classified as Level 2. As of March 31, 2024 and December 31, 2023, the estimated fair value of the 2026 Sustainability Notes would be $375 million and $375 million, respectively, and the estimated fair value of the 2026 Notes would be $585 million and $599 million, respectively, which is based on Level 2 inputs.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and Other Legal Matters The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers it to be probable that future costs will be incurred and such costs can be reasonably estimated. Proceeding-related liabilities are based on developments to date and historical information related to actions filed against the Company. As of March 31, 2024, the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $112 million within non-current other liabilities to cover legal actions against the Company for which Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided. In addition, as of March 31, 2024, the Company and its subsidiaries are subject to certain legal actions considered by the Company’s Management and its legal counsels to be reasonably possible of resulting in a loss for an estimated aggregate amount up to $198 million. No loss amounts have been accrued for such reasonably possible legal actions. For further information related to contingent liabilities please refer to Note 15 to the consolidated financial statements in the Company’s 2023 10-K. Tax Claims Brazilian preliminary injunction against the Brazilian tax authorities (withholding income tax) The tax claim related to the Brazilian preliminary injunction against the Brazilian tax authorities is described in Note 15 to the consolidated financial statements in the Company’s 2023 10-K. On April 3, 2024, the Superior Court of Justice decided to analyze whether the matter under consideration is capable of becoming a binding precedent. The Company will submit a petition claiming that the case is fully capable of being judged as a binding precedent. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case is probable based on the technical merits of the Company’s tax position and the existence of recent adverse decisions issued by the Superior Court of Justice. For that reason, the Company has recorded a provision for the disputed amounts, which was $338 million as of March 31, 2024, and which was recorded in non-current other liabilities in the consolidated balance sheets, net of the corresponding judicial deposits for $294 million (which includes $82 million of interest income). Interstate rate of ICMS-DIFAL on interstate sales Interstate rate of ICMS-DIFAL on interstate sales without Complementary Law The tax claim related to the interstate rate of ICMS-DIFAL (Imposto sobre Circulaçao de Mercadorias, Serviços de Transporte Interestadual, Intermunicipal e Comunicação on interstate sales at a differential rate) without the existence of a complementary law is described in Note 15 to the consolidated financial statements in the Company’s 2023 10-K. In March 2024, one of the cases related to the State of Santa Catarina (whose risk of losing had been considered probable), received judgment in favor of the State. The remaining cases pending as of December 31, 2023 had no updates during the three-month period ended March 31, 2024. The Company maintains a $2 million provision as of March 31, 2024 for the disputed amounts related to the 3 ongoing cases whose risk of losing is considered by Management to be probable, based on the opinion of external legal counsel. Exclusion of ICMS tax benefits from federal taxes base The tax claim related to the exclusion of ICMS tax benefits from the tax base of the Corporate Income Tax (“IRPJ”) and of the Social Contribution on Net Profits (“CSLL”) is described in Note 15 to the consolidated financial statements in the Company’s 2023 10-K. On April 17, 2024, the Federal Regional Court ruled in favor of the Company. The case has not yet become final and unappealable. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case is not more likely than not based on the technical merits of the Company’s tax position. For that reason, the Company has not recorded any expense or liability for the disputed amounts. As of March 31, 2024, the total amount under dispute was $48 million. Buyer protection program The buyer protection program (“BPP”) is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance for all transactions completed through the Company’s online payment solution Mercado Pago (except for certain excluded categories). The Company’s BPP provides protection to consumers by reimbursing them for the total value of a purchased item and the value of any shipping service paid if it does not arrive, arrives incomplete or damaged, does not match the seller’s description or if the buyer regrets the purchase. The Company is entitled to recover from the third-party carrier companies performing the shipping service certain amounts paid under the BPP. Furthermore, in some specific circumstances, the Company enters into insurance contracts with third-party insurance companies in order to cover contingencies that may arise from the BPP. The maximum potential exposure under this program is estimated to be the volume of payments on the Marketplace, for which claims may be made under the terms and conditions of the Company’s BPP. Based on historical losses to date, the Company does not believe that the maximum potential exposure is representative of the actual potential exposure. The Company records a liability with respect to losses under this program when they are probable and the amount can be reasonably estimated. As of March 31, 2024 and December 31, 2023, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $4,649 million and $5,072 million, respectively, for which the Company recorded a provision of $9 million and $8 million, respectively. Commitments The Company committed to purchase cloud platform services from two U.S. suppliers based on the following terms: 1.for a total amount of $824 million, to be paid between October 1, 2021 and September 30, 2026. As of March 31, 2024, the Company had paid $461 million; and 2.for a total amount of $200 million, to be paid between September 23, 2022 and September 23, 2025. As of March 31, 2024, the Company had paid $80 million. On April 8, 2022, the Company signed a 10-year agreement with Gol Linhas Aereas S.A. under which the Company is committed to contract a minimum amount of air logistics services for a total annual cost of $43 million (total amount once all the dedicated aircraft are in operation). Pursuant to the agreement, Gol Linhas Aereas S.A. provides logistics services in Brazil to Mercado Envios through six dedicated aircraft, all of which have already started operations as of March 31, 2024. Since October 2023, the Company signed 3-year agreements with certain shipping companies in Brazil, under which the Company is committed to contract a minimum amount of logistics services for a total cost of $66 million. On January 10, 2024, the Company signed a 5-year agreement for the naming rights of the Complexo Pacaembu (municipal stadium of the city of São Paulo), for a total amount of $56 million. The agreement has the option to extend the term for 5 additional independent periods of 5 years each, for the same amount indexed by the Brazilian inflation rate index IPCA.
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LONG TERM RETENTION PROGRAM |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG TERM RETENTION PROGRAM | LONG TERM RETENTION PROGRAM The following table summarizes the long term retention program accrued compensation expense for the three-month periods ended March 31, 2024 and 2023, which are payable in cash according to the decisions made by the Board of Directors (the “Board”):
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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES | LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES The following tables summarize the Company’s Loans payable and other financial liabilities as of March 31, 2024 and December 31, 2023:
(1) The carrying amount includes the effect of the derivative instrument that qualified for fair value hedge accounting. See Note 16 – Derivative instruments for further detail. See Note 14 – Securitization transactions and Note 15 – Leases to these unaudited interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively. 2.375% Sustainability Senior Notes Due 2026 and 3.125% Senior Notes Due 2031 On January 14, 2021, the Company closed a public offering of $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”, and together with the 2026 Sustainability Notes, the “Notes”). During 2023, the Company repurchased a $9 million and $70 million principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively, plus $1 million of interest accrued. The total amount paid amounted to $66 million. For additional information regarding the 2026 Sustainability Notes and the 2031 Notes please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K. 2.00% Convertible Senior Notes Due 2028 (“2028 Notes”) On September 19, 2023, the Company announced its intention to redeem all its 2028 Notes on November 14, 2023. Holders of the 2028 Notes could elect to convert their notes at any time before November 13, 2023. Each $1,000 principal amount of 2028 Notes was convertible into 2.2952 shares of MercadoLibre common stock. On November 13, 2023, holders of the 2028 Notes converted $439 million principal amount of 2028 Notes into 1,007,597 shares of the Company’s common stock which MercadoLibre held as treasury stock. As of December 31, 2023, no principal amount of 2028 Notes remained outstanding. For the three-month period ended March 31, 2023, the Company recognized interest expense, including the amortization of issuance costs, of $2 million. For additional information regarding the 2028 Notes and the 2028 Notes Capped Call Transactions please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K. Revolving Credit Agreement On March 31, 2022, the Company, as borrower, and certain of its Subsidiaries, as guarantors, entered into a $400 million revolving credit agreement. For additional information regarding the Credit Agreement please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K. As of March 31, 2024, no amounts have been borrowed under the facility.
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SECURITIZATION TRANSACTIONS |
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Securitization Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIZATION TRANSACTIONS | SECURITIZATION TRANSACTIONS The process of securitization consists of the issuance of securities collateralized by a pool of assets through a special purpose entity (“SPEs”), often under a VIE. The Company securitizes financial assets associated with its credit card receivables and loans receivable portfolio. The Company’s securitization transactions typically involve the legal transfer of financial assets to bankruptcy remote SPEs. The Company generally retains economic interests in the collateralized securitization transactions, which are retained in the form of subordinated interests. For accounting purposes, the Company is generally precluded from recording the transfers of assets in securitization transactions as sales or is required to consolidate the SPE. The Company securitizes certain credit card receivables related to users’ purchases through Chilean SPEs. Under the SPE contracts, the Company has determined that it has no obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it does not retain any equity certificate of participation or subordinated interest in the SPEs. As the Company does not control the vehicles, its assets, liabilities and related results are not consolidated in the Company’s financial statements. Additionally, the Company securitizes certain credit card receivables related to users’ purchases through Brazilian SPEs. Under the SPE contracts, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicles, the assets, liabilities and related results are consolidated in its financial statements. The Company securitizes certain loans receivable through Brazilian, Argentine and Mexican SPEs, formed to securitize loans receivable provided by the Company to its users or purchased from financial institutions that grant loans to the Company’s users through Mercado Pago. According to the SPE contracts, the Company has determined that it has both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant because it retains the equity certificates of participation and would therefore also be consolidated. When the Company controls the vehicle, it accounts for the securitization transactions as if they were secured financing and therefore the assets, liabilities and related results are consolidated in its financial statements. The following table summarizes the Company’s collateralized debt under securitization transactions, as of March 31, 2024:
(1) As of March 31, 2024, Loans payable owned by this trust were obtained through private placements. Mercado Crédito Consumo XXXI trust made a public bond offering in the Argentine stock market on April 8, 2024. Mercado Crédito XXI trust made a public bond offering in the Argentine stock market on April 11, 2024. This secured debt is issued by the SPEs and includes collateralized securities used to fund the Company’s Fintech business. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have recourse to the Company. Additionally, the cash flows generated by the SPEs are restricted to the payment of amounts due to third-party investors, but the Company retains the right to residual cash flows. The assets and liabilities of the SPEs are included in the Company’s unaudited interim condensed consolidated financial statements as of March 31, 2024 and December 31, 2023 as follows:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases certain fulfillment, cross-docking and services centers, office space, aircraft, aircraft hangars, machines, and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases was as follows:
The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases as of March 31, 2024 and December 31, 2023:
(1) Includes discount rates of leases in local currency and U.S. dollar. The components of lease expense were as follows:
The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases:
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LEASES | LEASES The Company leases certain fulfillment, cross-docking and services centers, office space, aircraft, aircraft hangars, machines, and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases was as follows:
The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases as of March 31, 2024 and December 31, 2023:
(1) Includes discount rates of leases in local currency and U.S. dollar. The components of lease expense were as follows:
The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases:
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DERIVATIVE INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Cash flow hedges As of March 31, 2024, the Company used foreign currency exchange contracts to hedge the foreign currency effects related to the forecasted purchase of MPOs devices in U.S. dollars owed by a Brazilian subsidiary whose functional currency is the Brazilian Real. The Company designated the foreign currency exchange contracts as cash flow hedges, the derivatives’ gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the interim condensed consolidated statements of income in the “Cost of net revenues and financial expenses” line item, in the same period the forecasted transaction affects earnings. As of March 31, 2024, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into the interim condensed consolidated statements of income within the next 12 months. In addition, the Company has entered into swap contracts to hedge the interest rate fluctuation of its financial debt held by one of its Brazilian subsidiaries. The Company designated the swap contracts as cash flow hedges. The derivatives’ gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the interim condensed consolidated statements of income in the “Cost of net revenues and financial expenses” line item within the next 12 months. Fair value hedges The Company has entered into swap contracts to hedge the interest rate and the foreign currency exposure of its fixed-rate, foreign currency financial debt held by its Brazilian subsidiaries. The Company designated the swap contracts as fair value hedges. The derivatives’ gain or loss is reported in the interim condensed consolidated statements of income in the same line items as the change in the value of the financial debt due to the hedged risks. Since the terms of the interest rate swaps match the terms of the hedged debts, changes in the fair value of the interest rate swaps are offset by changes in the fair value of the hedged debts attributable to changes in interest rates. Accordingly, the net impact in current earnings is that the interest expense associated with the hedged debts is recorded at the floating rates. Net investment hedge The Company used cross currency swap contracts, to reduce the foreign currency exchange risk related to its investment in its Brazilian foreign subsidiaries and the interest rate risk. This derivative was designated as a net investment hedge and, accordingly, gains and losses are reported as a component of accumulated other comprehensive loss. The derivative’s gain or loss is initially reported as a component of accumulated other comprehensive loss and subsequently reclassified into the interim condensed consolidated statements of income in the “Interest expense and other financial losses” and “Foreign currency losses, net” line items, in the same period that the interest expense affects earnings. Derivative instruments not designated as hedging instruments As of March 31, 2024, the Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions denominated in U.S. dollars of certain of its Brazilian subsidiaries, whose functional currencies are the Brazilian Real. These transactions were not designated as hedges for accounting purposes. In addition, the Company entered into full cross currency swap contracts to hedge the interest rate fluctuation and foreign currency fluctuations of its financial debt nominated in U.S. dollars held by its Brazilian subsidiaries. These transactions were not designated as hedges for accounting purposes. Finally, as of March 31, 2024, the Company entered into swap contracts to hedge the interest rate fluctuation of a certain portion of its financial debt in its Brazilian subsidiaries and VIEs. These transactions were not designated as hedges for accounting purposes. The following table presents the notional amounts of the Company’s outstanding derivative instruments:
Derivative instrument contracts The fair values of the Company’s outstanding derivative instruments as of March 31, 2024 and December 31, 2023 were as follows:
The effects of derivative contracts on the interim condensed consolidated statement of comprehensive income for the three-month periods ended March 31, 2024 and March 31, 2023 were as follows:
The effect of the Company’s fair value hedge relationships on the interim condensed consolidated statements of income for the three-month period ended March 31, 2024 is a net gain of $4 million, and affected Cost of net revenues and financial expenses and foreign exchange losses, net. For the three-month period ended March 31, 2023, the Company recognized a loss of $5 million that affected Cost of net revenues and financial expenses. The carrying amount of the hedged items for fair value hedges included in the “Loans payable and other financial liabilities” line item of the interim condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 was $219 million and $216 million, respectively. The effect of the Company’s fair value hedge relationships on the interim condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of March 31, 2024 and December 31, 2023 is $1 million, respectively. The effects of derivative contracts not designated as hedging instruments on the interim condensed consolidated statements of income for the three-month periods ended March 31, 2024 and 2023 were as follows:
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SHARE REPURCHASE PROGRAM |
3 Months Ended |
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Mar. 31, 2024 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | SHARE REPURCHASE PROGRAM On February 21, 2023, the Board authorized the Company to repurchase shares of the Company’s common stock, for an aggregate consideration of up to $900 million. This Program expired on March 31, 2024. The Company acquired shares of its own common stock in the Argentine market and paid for them in Argentine Pesos at a price that reflects the additional cost of accessing U.S. dollars through securities denominated in U.S. dollars, because of restrictions imposed by the Argentine government for buying U.S. dollars at the official exchange rate in Argentina (See Note 2 – Summary of significant accounting policies - Argentine currency status and macroeconomic outlook of these unaudited interim condensed consolidated financial statements). As a result, the Company recognized foreign currency losses of $56 million for the three-month period ended March 31, 2023. During the three-month periods ended March 31, 2024, the Company had not acquired any shares under the aforementioned share repurchase program.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
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Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Pay vs Performance Disclosure | |||||||||
Net income | $ 344 | $ 165 | $ 359 | $ 262 | $ 201 | [1] | $ 987 | ||
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Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation | Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). Investments in entities where the Company holds joint control, but not control, over the investee are accounted for using the equity method of accounting. These unaudited interim condensed consolidated financial statements are stated in U.S. dollars, except where otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes. Substantially all net revenues and financial income, cost of net revenues and financial expenses and operating expenses, are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill and operating lease right-of-use assets located in the foreign jurisdictions totaled $2,297 million and $2,321 million as of March 31, 2024 and December 31, 2023, respectively. These unaudited interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2024 and December 31, 2023. These unaudited interim condensed consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2024 and 2023. These unaudited interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) (the “Company’s 2023 10-K”). The Company has evaluated all subsequent events through the date these unaudited interim condensed consolidated financial statements were issued. The interim condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see Note 2 to the financial statements in the Company’s 2023 10-K. During the three-month period ended March 31, 2024, there were no material updates made to the Company’s significant accounting policies. For information regarding the change in the presentation of the statements of income, please refer to section “Change in the presentation of certain financial results and reclassification of prior year results” of Note 2 – Summary of significant accounting policies of these unaudited interim condensed consolidated financial statements.
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Use of estimates | Use of estimates The preparation of these unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting and disclosures for allowance for doubtful accounts and chargeback provisions, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of short-term and long-term investments, impairment of long-lived assets, separation of lease and non lease components for aircraft leases, asset retirement obligation, compensation costs relating to the Company’s long term retention program, fair value of customer crypto-assets safeguarding assets and liabilities, fair value of certain loans payable and other financial liabilities, fair value of loans receivable, fair value of derivative instruments, income taxes, contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates.
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Customer crypto-assets safeguarding assets and liabilities | Customer crypto-assets safeguarding assets and liabilities As of March 31, 2024 and December 31, 2023, the fair value of the crypto-assets held in customers’ names by third-party service providers that the Company recognized on its consolidated balance sheets for both the crypto-asset safeguarding liability and the corresponding safeguarding asset, which are included in “Customer crypto-assets safeguarding liabilities” and “Customer crypto-assets safeguarding assets,” respectively, was $71 million and $34 million, respectively, which consisted of $41 million and $18 million of Bitcoin, $15 million and $7 million of Ether, and $15 million and $9 million of other crypto-assets, respectively.
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Supplier finance programs | Supplier finance programs The Company and certain financial institutions participate in a supplier finance program that enables certain of the Company’s suppliers, at their own election, to request the payment of their invoices to the financial institutions earlier than the terms stated in the Company’s payment policy.
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Revenue recognition | Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in Note 2 to the consolidated financial statements in the Company’s 2023 10-K. The aggregate gain included in “Fintech services and financial income” revenues arising from financing transactions and sales of financial assets, net of the costs recognized on sale of credit card receivables, is $365 million and $336 million for the three-month periods ended March 31, 2024 and 2023, respectively. Revenues recognized under ASC 606, Revenue from contracts with customers, amounted to $3,099 million and $2,165 million for the three-month periods ended March 31, 2024 and 2023, respectively. Revenues not recognized under ASC 606 amounted to $1,234 million and $1,021 million for the three-month periods ended March 31, 2024 and 2023, respectively. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Accounts receivable and credit card receivables and other means of payments are presented net of allowance for doubtful accounts and chargebacks of $40 million and $42 million as of March 31, 2024 and December 31, 2023, respectively. See Note 6 – Loans receivable, net of these unaudited interim condensed consolidated financial statements for information related to the allowance for doubtful accounts with respect to the Company’s loans receivable. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following months.
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Foreign currency translation | Foreign currency translation All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using period-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the period, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive income (loss). Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the interim condensed consolidated statements of income under the caption “Foreign currency losses, net”. Argentine currency status and macroeconomic outlook As of July 1, 2018, the Company transitioned its Argentine operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company. Argentina’s inflation rate for the three-month periods ended March 31, 2024 and 2023 was 51.6% and 21.7%, respectively. Additionally, Argentina's average inter-annual inflation rate was 272.8%, for the three-month period ended March 31, 2024. The Company uses Argentina’s official exchange rate to account for transactions in the Argentine segment, which as of March 31, 2024 and December 31, 2023 was 858.00 and 808.45 Argentine Pesos, respectively, against the U.S. dollar. For the three-month periods ended March 31, 2024 and 2023, Argentina’s official exchange rate against the U.S. dollar increased 6.1% and 18.0%, respectively. The average exchange rate for the three-month periods ended March 31, 2024 and 2023 was 834.46 and 192.41, respectively, resulting in an increase of 334%. 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:
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:
Argentine exchange regulations Since the second half of 2019, the Argentine government instituted exchange controls restricting the ability of companies and individuals to exchange Argentine Pesos for foreign currencies and their ability to remit foreign currency out of Argentina. An entity’s authorization request to the Central Bank of Argentina (“CBA”) to access the official exchange market to make foreign currency payments may be denied depending on the circumstances. As a result of these exchange controls, markets in Argentina developed trading mechanisms, in which an entity or individual buys U.S. dollar denominated securities in Argentina (i.e. shares, sovereign debt) using Argentine Pesos, and subsequently sells the securities for U.S. dollars, in Argentina, to access U.S. dollars locally, or outside Argentina, by transferring the securities abroad, prior to being sold (the latter commonly known as “Blue Chip Swap Rate”). The Blue Chip Swap Rate has diverged significantly from Argentina’s official exchange rate (commonly known as exchange spread). Since the increase of the Argentina’s official exchange rate in December 2023, the spread of the Blue Chip Swap has declined, being 26.5% and 20.4% as of March 31, 2024 and December 31, 2023, respectively. As part of the exchange controls, since 2019, the Argentine government imposes a tax on the acquisition of foreign currency through the official exchange market in certain circumstances. On July 24, 2023, through the Executive Power Decree No. 377/2023, the Argentine government extended the application of this tax to the following cases: (i) certain services acquired from abroad or services rendered by foreign residents in Argentina (i.e. technical, legal, accounting, management, advertising, engineering, audiovisual services, among others), which will be subject to a 25% tax rate, (ii) freight and other transportation services for import and export of goods, which will be subject to a 7.5% tax rate; and (iii) imported goods, which will be subject to a 7.5% tax rate, with certain exemptions (such as fuels and products of the basic food basket). Later, the Decree No. 29/2023, modified the tax rate for the cases mentioned above under ii) and iii) from 7.5% to 17.5%.
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Income taxes | Income taxes Income taxes’ accounting policy is described in Note 2 to the consolidated financial statements in the Company’s 2023 10-K. The Company’s consolidated estimated effective tax rate for the three-month period ended March 31, 2024 as compared to the same period in 2023, decreased from 38.1% to 28.5%, mainly as a result of (i) no foreign exchange losses recognition during the period related to the acquisition of the Company's common stock in the Argentine market, which was considered as non-deductible expense, ii) lower taxable foreign exchange gains accounted for in Argentina for local tax purposes that are not recorded for accounting purposes since, under U.S. GAAP, Argentine operations’ functional currency is the U.S. dollar due to the highly inflationary status of the country, and (iii) higher deductions related to tax inflation adjustments in Argentina. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. In accordance with ASC 740, Management periodically assesses the need to either establish or reverse a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. In its assessment, Management considers, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies, which would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Knowledge-based economy promotional regime in Argentina In August 2021, the Under Secretariat of Knowledge Economy issued the Disposition 316/2021 approving MercadoLibre S.R.L.’s application for eligibility under the knowledge-based economy promotional regime, established by the Law No. 27,506 and complemented by Argentina’s Executive Power Decree No. 1034/2020, Argentina’s Ministry of Productive Development’s Resolution No. 4/2021 and the Under Secretariat of Knowledge Economy’s Disposition No. 11/2021. As a result, the Company recorded an income tax benefit of $1 million and $10 million during the three-month periods ended March 31, 2024 and March 31, 2023, respectively. The aggregate per share effect of the income tax benefit amounted to $0.01 and $0.19 for the three-month periods ended March 31, 2024 and 2023, respectively. Furthermore, the Company recorded a social security benefit of $17 million and $18 million during the three-month periods ended March 31, 2024 and 2023, respectively.
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Fair value option applied to certain financial instruments | Fair value option applied to certain financial instruments Under ASC 825, U.S. GAAP provides an option to elect fair value with impact on the statement of income as an alternative measurement for certain financial instruments and other items on the balance sheet. The Company has elected to measure certain financial assets at fair value with impact on the statement of income for several reasons including to avoid the mismatch generated by the recognition of certain linked instruments / transactions, separately, in the interim condensed consolidated statements of income and interim condensed consolidated statements of comprehensive income and to better reflect the financial model applied for selected instruments. The Company’s election of the fair value option applies to: i) foreign government debt securities, and ii) U.S. government debt securities.
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Recently Adopted Accounting Standards and Recently issued accounting pronouncements not yet adopted | Recently Adopted Accounting Standards As of the date of issuance of these unaudited interim condensed consolidated financial statements there were no accounting pronouncements recently adopted by the Company. Recently issued accounting pronouncements not yet adopted On November 27, 2023, the FASB issued the ASU 2023-07 “Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures”. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On December 14, 2023, the FASB issued the ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this update provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information, requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The other amendments in this update improve the effectiveness and comparability of disclosures by adding disclosures of pretax income (or loss) and income tax expense (or benefit) and removing disclosures that no longer are considered cost beneficial or relevant. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The guidance should be applied on a prospective basis while retrospective application is permitted. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
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:
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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:
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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:
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NET INCOME PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share of Common Stock | Net income per share of common stock is as follows for the three-month periods ended March 31, 2024 and 2023:
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CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Cash, Cash Equivalents, Restricted Cash and Cash Equivalents and Investments | The composition of cash, cash equivalents, restricted cash and cash equivalents, short-term and long-term investments is as follows:
(1) Cash, cash equivalents and investments from securitization transactions are restricted to the payment of amounts due to third-party investors. (2) Cash, cash equivalents, restricted cash and cash equivalents as reported in the interim condensed consolidated statements of cash flows. (3) As of March 31, 2024 and December 31, 2023, includes $2,452 million and $2,283 million, respectively, considered restricted due to the Central Bank of Brazil's mandatory guarantee. Also, as of March 31, 2024 and December 31, 2023, includes $6 million that guarantees a line of credit and is considered restricted. As of March 31, 2024, includes $5 million considered restricted due to the Central Bank of Uruguay's mandatory guarantee. (4) As of March 31, 2024, includes $35 million of collateral as part of card scheme arrangement rules in Brazil, and is considered restricted.
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LOANS RECEIVABLE, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable, Net | The Company classifies loans receivable as “On-line merchant”, “Consumer”, “In-store merchant” and “Credit cards”. As of March 31, 2024 and December 31, 2023, the components of current and non-current Loans receivable, net were as follows:
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Schedule of Credit Quality Analysis of Loans Receivables | The amortized cost of the loans receivable classified by the Company’s credit quality internal indicator was as follows:
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Summary of Allowance for Uncollectible Accounts Activity | The following tables summarize the allowance for doubtful accounts activity during the three-month periods ended March 31, 2024 and 2023:
(1) The Company writes off loans when customer balance becomes 360 days past due.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Goodwill and Intangible Assets | The composition of goodwill and intangible assets is as follows:
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Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:
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Expected Intangible Asset Amortization Expense | The following table summarizes the remaining amortization of intangible assets (in millions) with definite useful life as of March 31, 2024:
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INTANGIBLE ASSETS AT FAIR VALUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Crypto Asset Information | The following tables present the digital assets name, cost basis, fair value, and number of units for each significant digital asset holding as of March 31, 2024 and December 31, 2023:
(1) Cost basis of the digital assets is net of $21 million of impairment losses recognized prior to the adoption of ASU 2023-08.
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SEGMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Performance of Company's Reporting Segments | The following tables summarize the financial performance of the Company’s reporting segments:
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results.
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Consolidated Net Revenues by Similar Products and Services | The following table summarizes net revenues and financial income per reporting segment, which have been disaggregated by similar products and services for the three-month periods ended March 31, 2024 and 2023:
(1) Recast for consistency with the current presentation due to the change in the presentation of certain financial results. Please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results. (2) 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. (3) Includes revenues from inventory sales and related shipping fees. (4) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company’s payment solution and asset management product, 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, interest earned on cash and investments as part of Mercado Pago activities, including those required due to fintech regulations, net of interest gains pass through our Brazilian users in connection with our asset management product, Mercado Pago credit and debit card fees and insurtech fees. (5) Includes interest earned on loans and advances granted to merchants and consumers, and interest earned on Mercado Pago credit card transactions. (6) Includes sales of mobile point of sales devices.
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Allocation of Property and Equipment Based on Geography | The following table summarizes the allocation of property and equipment, net based on geography:
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Schedule of Operating Lease Right of Use Assets Based on Geography | The following table summarizes the allocation of the operating lease right-of-use assets based on geography:
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Allocation of Goodwill and Intangible Assets Based on Geography | The following table summarizes the allocation of the goodwill and intangible assets based on geography:
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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
(1) Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments). (2) As of March 31, 2024 and December 31, 2023, includes $221 million and $269 million, respectively, of money market funds from securitization transactions. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments). (3) As of March 31, 2024 and December 31, 2023, includes $23 million and $23 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments).
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Summary of Debt Securities Classified as Available for Sale | The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:
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Summary of Debt Securities Classified as Held to Maturity | The following table summarizes the net carrying amount of the debt securities not classified as available for sale, classified by its contractual maturities or Management expectation to convert the investments into cash:
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Summary of Estimated Fair Value Level of Financial Assets and Liabilities | The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of March 31, 2024 and December 31, 2023:
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LONG TERM RETENTION PROGRAM (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Term Retention Program Accrued Compensation Expense | The following table summarizes the long term retention program accrued compensation expense for the three-month periods ended March 31, 2024 and 2023, which are payable in cash according to the decisions made by the Board of Directors (the “Board”):
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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans Payable and Other Financial Liabilities | The following tables summarize the Company’s Loans payable and other financial liabilities as of March 31, 2024 and December 31, 2023:
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SECURITIZATION TRANSACTIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitization Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized Debt | The following table summarizes the Company’s collateralized debt under securitization transactions, as of March 31, 2024:
(1) As of March 31, 2024, Loans payable owned by this trust were obtained through private placements. Mercado Crédito Consumo XXXI trust made a public bond offering in the Argentine stock market on April 8, 2024. Mercado Crédito XXI trust made a public bond offering in the Argentine stock market on April 11, 2024.
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Assets and Liabilities of the Trust | The assets and liabilities of the SPEs are included in the Company’s unaudited interim condensed consolidated financial statements as of March 31, 2024 and December 31, 2023 as follows:
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows:
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Summary of Weighted Average Remaining Lease Term and Discount Rate | The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases as of March 31, 2024 and December 31, 2023:
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Components of Lease Expense | The components of lease expense were as follows:
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Maturities of Lease Liabilities | The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases:
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DERIVATIVE INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notional Amounts | The following table presents the notional amounts of the Company’s outstanding derivative instruments:
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Summary of Outstanding Derivative Instruments | The fair values of the Company’s outstanding derivative instruments as of March 31, 2024 and December 31, 2023 were as follows:
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Effect of Derivative Contracts on Comprehensive Income | The effects of derivative contracts on the interim condensed consolidated statement of comprehensive income for the three-month periods ended March 31, 2024 and March 31, 2023 were as follows:
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Effect of Derivative Contracts on Income Statement | The effects of derivative contracts not designated as hedging instruments on the interim condensed consolidated statements of income for the three-month periods ended March 31, 2024 and 2023 were as follows:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024
USD ($)
$ / shares
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Dec. 31, 2023
USD ($)
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Sep. 30, 2023
USD ($)
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Jun. 30, 2023
USD ($)
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Mar. 31, 2023
USD ($)
$ / shares
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Mar. 31, 2024
USD ($)
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Dec. 31, 2023
USD ($)
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Significant Accounting Policies [Line Items] | ||||||||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 2,297 | $ 2,321 | $ 2,297 | $ 2,321 | ||||||
Customer crypto-assets safeguarding assets | 71 | 34 | 71 | 34 | ||||||
Supplier finance program | 368 | 381 | 368 | 381 | ||||||
Aggregate gain included in net revenues arising from financing transactions, net of the costs recognized on sale of credit card receivables, | 365 | $ 336 | ||||||||
Net revenues and financial income | 3,099 | 2,165 | ||||||||
Revenue not recognized | 1,234 | $ 1,021 | ||||||||
Allowance for doubtful accounts, loan receivables and chargebacks | 40 | 42 | 40 | 42 | ||||||
Deferred revenue | 38 | 29 | $ 38 | 29 | ||||||
Deferred revenue, revenue recognized | $ 18 | |||||||||
Weighted average exchange rate increase | 834.46 | 192.41 | ||||||||
Income tax benefit | $ (137) | $ (65) | $ (172) | $ (210) | $ (122) | [1] | $ (569) | |||
2028 Notes | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Effective tax rate | 38.10% | 28.50% | ||||||||
Secretariat Of Knowledge Economy Resolution Issued | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Income tax benefit | $ 1 | $ 10 | ||||||||
Aggregate per share effect of the Argentine tax holiday (in dollars per share) | $ / shares | $ 0.01 | $ 0.19 | ||||||||
Social security benefit | $ 17 | $ 18 | ||||||||
Argentina | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Annual inflation rate | 0.516 | 0.217 | ||||||||
Foreign exchange rate | 858.00 | 808.45 | 858.00 | 808.45 | ||||||
Percentage of increase in exchange rate | 0.061 | 0.180 | ||||||||
Percentage of increase in weighted average exchange rate | 3.34 | |||||||||
Spread of exchange rate | 0.265 | 0.204 | 0.265 | 0.204 | ||||||
Bitcoin | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Customer crypto-assets safeguarding assets | $ 41 | $ 18 | $ 41 | $ 18 | ||||||
Ether | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Customer crypto-assets safeguarding assets | 15 | 7 | 15 | 7 | ||||||
Crypto-Asset, Other | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Customer crypto-assets safeguarding assets | $ 15 | $ 9 | $ 15 | $ 9 | ||||||
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Revisions and Reclassifications of Previously Reported Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 4,333 | $ 4,409 | $ 3,927 | $ 3,585 | $ 3,186 | [1] | $ 15,107 | ||
Cost of net revenues and financial expenses | (2,309) | (2,359) | (1,832) | (1,754) | (1,572) | [1] | (7,517) | ||
Gross profit | 2,024 | 2,050 | 2,095 | 1,831 | 1,614 | [1] | 7,590 | ||
Operating expenses: | |||||||||
Product and technology development | (458) | (686) | (396) | (368) | (381) | [1] | (1,831) | ||
Sales and marketing | (478) | (529) | (441) | (383) | (383) | [1] | (1,736) | ||
Provision for doubtful accounts | (374) | (299) | (277) | (222) | (252) | [1] | (1,050) | ||
General and administrative | (186) | (201) | (196) | (189) | (180) | [1] | (766) | ||
Total operating expenses | (1,496) | (1,715) | (1,310) | (1,162) | (1,196) | [1] | (5,383) | ||
Income from operations | 528 | 335 | 785 | 669 | 418 | [1] | 2,207 | ||
Other income (expenses): | |||||||||
Interest income and other financial gains | 25 | 40 | 38 | 34 | 23 | [1] | 135 | ||
Interest expense and other financial losses | (38) | (38) | (53) | (49) | (34) | [1] | (174) | ||
Foreign currency losses, net | (34) | (107) | (239) | (182) | (87) | [1] | (615) | ||
Net income before income tax expense and equity in earnings of unconsolidated entity | 481 | 230 | 531 | 472 | 320 | [1] | 1,553 | ||
Income tax expense | (137) | (65) | (172) | (210) | (122) | [1] | (569) | ||
Equity in earnings of unconsolidated entity | 0 | 0 | 0 | 0 | 3 | [1] | 3 | ||
Net income | 344 | 165 | 359 | 262 | 201 | [1] | 987 | ||
As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 3,037 | ||||||||
Cost of net revenues and financial expenses | (1,501) | ||||||||
Gross profit | 1,536 | ||||||||
Operating expenses: | |||||||||
Product and technology development | (381) | ||||||||
Sales and marketing | (383) | ||||||||
Provision for doubtful accounts | (252) | ||||||||
General and administrative | (180) | ||||||||
Total operating expenses | (1,196) | ||||||||
Income from operations | 340 | ||||||||
Other income (expenses): | |||||||||
Interest income and other financial gains | 161 | ||||||||
Interest expense and other financial losses | (94) | ||||||||
Foreign currency losses, net | (87) | ||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | 320 | ||||||||
Income tax expense | (122) | ||||||||
Equity in earnings of unconsolidated entity | 3 | ||||||||
Net income | 201 | ||||||||
Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Cost of net revenues and financial expenses | (71) | ||||||||
Gross profit | 78 | ||||||||
Operating expenses: | |||||||||
Product and technology development | 0 | ||||||||
Sales and marketing | 0 | ||||||||
Provision for doubtful accounts | 0 | ||||||||
General and administrative | 0 | ||||||||
Total operating expenses | 0 | ||||||||
Income from operations | 78 | ||||||||
Other income (expenses): | |||||||||
Interest income and other financial gains | (138) | ||||||||
Interest expense and other financial losses | 60 | ||||||||
Foreign currency losses, net | 0 | ||||||||
Net income before income tax expense and equity in earnings of unconsolidated entity | 0 | ||||||||
Income tax expense | 0 | ||||||||
Equity in earnings of unconsolidated entity | 0 | ||||||||
Net income | 0 | ||||||||
Service | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 3,955 | 3,898 | 3,586 | 3,221 | 2,912 | [1] | 13,617 | ||
Service | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2,763 | ||||||||
Service | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Product | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 378 | $ 511 | $ 341 | $ 364 | 274 | [1] | $ 1,490 | ||
Product | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 274 | ||||||||
Product | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 0 | ||||||||
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Reclassifications of Previously Reported Segment Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 4,333 | $ 4,409 | $ 3,927 | $ 3,585 | $ 3,186 | [1] | $ 15,107 | ||
As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 3,037 | ||||||||
Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2,496 | 1,676 | |||||||
Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,837 | 1,510 | |||||||
Services | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2,128 | 1,415 | |||||||
Services | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,057 | 961 | |||||||
Credit Revenues | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 770 | 536 | |||||||
Operating Segments | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 3,186 | ||||||||
Operating Segments | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 3,037 | ||||||||
Operating Segments | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Operating Segments | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,676 | ||||||||
Operating Segments | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,676 | ||||||||
Operating Segments | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,510 | ||||||||
Operating Segments | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,361 | ||||||||
Operating Segments | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Operating Segments | Brazil | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2,571 | 1,639 | |||||||
Operating Segments | Brazil | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,579 | ||||||||
Operating Segments | Brazil | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 60 | ||||||||
Operating Segments | Brazil | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,563 | 907 | |||||||
Operating Segments | Brazil | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 907 | ||||||||
Operating Segments | Brazil | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,008 | 732 | |||||||
Operating Segments | Brazil | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 672 | ||||||||
Operating Segments | Brazil | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 60 | ||||||||
Operating Segments | Argentina | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 615 | 787 | |||||||
Operating Segments | Argentina | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 721 | ||||||||
Operating Segments | Argentina | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 66 | ||||||||
Operating Segments | Argentina | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 200 | 273 | |||||||
Operating Segments | Argentina | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 273 | ||||||||
Operating Segments | Argentina | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 415 | 514 | |||||||
Operating Segments | Argentina | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 448 | ||||||||
Operating Segments | Argentina | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 66 | ||||||||
Operating Segments | Mexico | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 971 | 610 | |||||||
Operating Segments | Mexico | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 591 | ||||||||
Operating Segments | Mexico | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 19 | ||||||||
Operating Segments | Mexico | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 613 | 398 | |||||||
Operating Segments | Mexico | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 398 | ||||||||
Operating Segments | Mexico | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 358 | 212 | |||||||
Operating Segments | Mexico | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 193 | ||||||||
Operating Segments | Mexico | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 19 | ||||||||
Operating Segments | Other countries | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 150 | ||||||||
Operating Segments | Other countries | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 146 | ||||||||
Operating Segments | Other countries | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 4 | ||||||||
Operating Segments | Other countries | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 98 | ||||||||
Operating Segments | Other countries | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 98 | ||||||||
Operating Segments | Other countries | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 52 | ||||||||
Operating Segments | Other countries | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 48 | ||||||||
Operating Segments | Other countries | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 4 | ||||||||
Operating Segments | Services | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,415 | ||||||||
Operating Segments | Services | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,415 | ||||||||
Operating Segments | Services | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 961 | ||||||||
Operating Segments | Services | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 812 | ||||||||
Operating Segments | Services | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 149 | ||||||||
Operating Segments | Services | Brazil | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1,313 | 762 | |||||||
Operating Segments | Services | Brazil | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 762 | ||||||||
Operating Segments | Services | Brazil | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 587 | 486 | |||||||
Operating Segments | Services | Brazil | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 426 | ||||||||
Operating Segments | Services | Brazil | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 60 | ||||||||
Operating Segments | Services | Argentina | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 176 | 224 | |||||||
Operating Segments | Services | Argentina | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 224 | ||||||||
Operating Segments | Services | Argentina | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 295 | 353 | |||||||
Operating Segments | Services | Argentina | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 287 | ||||||||
Operating Segments | Services | Argentina | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 66 | ||||||||
Operating Segments | Services | Mexico | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 531 | 338 | |||||||
Operating Segments | Services | Mexico | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 338 | ||||||||
Operating Segments | Services | Mexico | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 123 | 75 | |||||||
Operating Segments | Services | Mexico | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 56 | ||||||||
Operating Segments | Services | Mexico | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 19 | ||||||||
Operating Segments | Services | Other countries | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 91 | ||||||||
Operating Segments | Services | Other countries | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 91 | ||||||||
Operating Segments | Services | Other countries | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 47 | ||||||||
Operating Segments | Services | Other countries | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 43 | ||||||||
Operating Segments | Services | Other countries | Fintech | Reclassification | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 4 | ||||||||
Operating Segments | Product Sales | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 261 | ||||||||
Operating Segments | Product Sales | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 261 | ||||||||
Operating Segments | Product Sales | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 13 | ||||||||
Operating Segments | Product Sales | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 13 | ||||||||
Operating Segments | Product Sales | Brazil | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 145 | ||||||||
Operating Segments | Product Sales | Brazil | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 145 | ||||||||
Operating Segments | Product Sales | Brazil | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 5 | ||||||||
Operating Segments | Product Sales | Brazil | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 5 | ||||||||
Operating Segments | Product Sales | Argentina | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 49 | ||||||||
Operating Segments | Product Sales | Argentina | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 49 | ||||||||
Operating Segments | Product Sales | Argentina | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2 | ||||||||
Operating Segments | Product Sales | Argentina | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2 | ||||||||
Operating Segments | Product Sales | Mexico | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 60 | ||||||||
Operating Segments | Product Sales | Mexico | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 60 | ||||||||
Operating Segments | Product Sales | Mexico | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2 | ||||||||
Operating Segments | Product Sales | Mexico | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 2 | ||||||||
Operating Segments | Product Sales | Other countries | Commerce | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 7 | ||||||||
Operating Segments | Product Sales | Other countries | Commerce | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 7 | ||||||||
Operating Segments | Product Sales | Other countries | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 4 | ||||||||
Operating Segments | Product Sales | Other countries | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 4 | ||||||||
Operating Segments | Credit Revenues | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 536 | ||||||||
Operating Segments | Credit Revenues | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 536 | ||||||||
Operating Segments | Credit Revenues | Brazil | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 416 | 241 | |||||||
Operating Segments | Credit Revenues | Brazil | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 241 | ||||||||
Operating Segments | Credit Revenues | Argentina | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 119 | 159 | |||||||
Operating Segments | Credit Revenues | Argentina | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 159 | ||||||||
Operating Segments | Credit Revenues | Mexico | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 232 | 135 | |||||||
Operating Segments | Credit Revenues | Mexico | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 135 | ||||||||
Operating Segments | Credit Revenues | Other countries | Fintech | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | 1 | ||||||||
Operating Segments | Credit Revenues | Other countries | Fintech | As reported | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net revenues and financial income | $ 1 | ||||||||
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 19,062 | $ 17,646 |
Liabilities | 15,672 | 14,575 |
Argentinean Subsidiaries | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 3,931 | 3,298 |
Liabilities | 2,540 | 1,878 |
Net assets | $ 1,391 | $ 1,420 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Revenues and Net Income before Income Tax of Company's Argentenian Subsidiaries (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Subsidiary or Equity Method Investee [Line Items] | ||
Net revenues and financial income | $ 3,099 | $ 2,165 |
Direct contribution | 1,030 | 848 |
Argentinean Subsidiaries | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Net revenues and financial income | 615 | 787 |
Direct contribution | $ 224 | $ 368 |
NET INCOME PER SHARE - Narrative (Details) - Convertible Senior Notes - 2028 Notes $ in Millions |
Aug. 31, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Convertible senior notes, issued | $ 880 |
Convertible senior notes, interest rate | 2.00% |
NET INCOME PER SHARE - Net Income Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
||||
Net income attributable to MercadoLibre, Inc. per common share | |||||||||
Net income per common share, Basic (in dollars per share) | $ 6.78 | $ 4.01 | |||||||
Net income per common share, Diluted (in dollars per share) | $ 6.78 | $ 3.97 | |||||||
Numerator: | |||||||||
Net income | $ 344 | $ 165 | $ 359 | $ 262 | $ 201 | [1] | $ 987 | ||
Effect of dilutive 2028 Notes | 0 | 2 | |||||||
Net income corresponding to common stock, Basic | 344 | 201 | |||||||
Net income corresponding to common stock, Diluted | $ 344 | $ 203 | |||||||
Denominator: | |||||||||
Weighted average of outstanding common shares, Basic (in shares) | 50,697,442 | 50,245,073 | |||||||
Adjustment for assumed conversions, Diluted (in shares) | 0 | 990,268 | |||||||
Weighted average of outstanding common shares, Diluted (in shares) | 50,697,442 | 51,235,341 | |||||||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS - Components of Cash, Cash Equivalents, Restricted Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 2,579 | $ 2,556 | ||
Restricted cash and cash equivalents | 1,239 | 1,292 | ||
Total cash, cash equivalents, restricted cash and cash equivalents | 3,818 | 3,848 | $ 3,524 | $ 3,363 |
Total short-term investments | 3,671 | 3,480 | ||
Long-term investments | 249 | 162 | ||
Foreign deposits | 35 | |||
Brazil | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Deposited in brazilian federal government bonds | 2,452 | 2,283 | ||
Cash in bank accounts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 1,218 | 1,458 | ||
Cash in bank accounts | Argentina | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 390 | 309 | ||
Cash in bank accounts | Mexico | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 155 | 91 | ||
Cash in bank accounts | Chile | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 36 | 42 | ||
Cash in bank accounts | Uruguay | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 1 | ||
Money market | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 955 | 639 | ||
Restricted cash and cash equivalents | 12 | 7 | ||
Money market | Uruguay | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 3 | 2 | ||
Time deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 185 | 367 | ||
Time deposits | Mexico | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 278 | 314 | ||
Time deposits | Chile | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 48 | 54 | ||
Time deposits | Uruguay | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 4 | 1 | ||
U.S. government debt securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 221 | 60 | ||
Foreign government debt securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 0 | 32 | ||
Foreign government debt securities | Brazil | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 114 | ||
Foreign government debt securities | Uruguay | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 1 | 2 | ||
Securitization transactions | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 312 | 355 | ||
U.S. government debt securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 853 | 1,009 | ||
Foreign government debt securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 2,745 | 2,451 | ||
Long-term investments | 54 | 56 | ||
Foreign government debt securities | Guarantee of line of credit | Brazil | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 6 | 6 | ||
Foreign government debt securities | Guarantee of line of credit | Uruguay | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 5 | |||
Time deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 35 | 15 | ||
Securitization transactions | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Long-term investments | 23 | 23 | ||
Corporate debt securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total short-term investments | 38 | 5 | ||
Long-term investments | 113 | 25 | ||
Equity securities held at cost | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Long-term investments | $ 59 | $ 58 |
LOANS RECEIVABLE, NET - Schedule of Loans Receivable, Net (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans receivable | $ 4,448 | $ 3,778 | ||
Allowance for doubtful accounts | (1,243) | (1,084) | $ (1,141) | $ (1,104) |
Loans receivable, net | 3,205 | 2,694 | ||
On-line merchant | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans receivable | 445 | 429 | ||
Allowance for doubtful accounts | (123) | (119) | (124) | (120) |
Loans receivable, net | 322 | 310 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans receivable | 2,014 | 1,808 | ||
Allowance for doubtful accounts | (660) | (592) | (639) | (614) |
Loans receivable, net | 1,354 | 1,216 | ||
In-store merchant | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans receivable | 450 | 332 | ||
Allowance for doubtful accounts | (166) | (137) | $ (141) | $ (145) |
Loans receivable, net | 284 | 195 | ||
Credit cards | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans receivable | 1,539 | 1,209 | ||
Allowance for doubtful accounts | (294) | (236) | ||
Loans receivable, net | $ 1,245 | $ 973 |
LOANS RECEIVABLE, NET - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Receivables [Abstract] | |||
Allowance for doubtful accounts | $ 1,260 | $ 1,102 | |
Unused agreed loan commitment | 17 | 18 | |
Unused agreed loan commitment | 1,407 | $ 934 | |
Expected credit losses | $ 1 | $ 4 | |
Percentage of loans receivable portfolio | 2.20% | 2.80% |
LOANS RECEIVABLE, NET - Schedule of Credit Quality Analysis of Loans Receivables (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 4,448 | $ 3,778 |
1-14 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 131 | 99 |
15-30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 128 | 92 |
31-60 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 151 | 114 |
61-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 136 | 103 |
91-120 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 105 | 111 |
121-150 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 114 | 97 |
151-180 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 106 | 82 |
181-210 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 104 | 76 |
211-240 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 91 | 74 |
241-270 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 76 | 69 |
271-300 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 71 | 59 |
301-330 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 65 | 74 |
331-360 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 64 | 66 |
Total past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,342 | 1,116 |
To become due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 3,106 | $ 2,662 |
LOANS RECEIVABLE, NET - Summary of Allowance for Uncollectible Accounts Activity (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 1,084 | $ 1,104 |
Net charged to Net Income | 371 | 240 |
Currency translation adjustments | (14) | 30 |
Write-offs | (198) | (233) |
Balance at end of period | 1,243 | 1,141 |
On-line merchant | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 119 | 120 |
Net charged to Net Income | 31 | 28 |
Currency translation adjustments | (3) | 4 |
Write-offs | (24) | (28) |
Balance at end of period | 123 | 124 |
Consumer | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 592 | 614 |
Net charged to Net Income | 178 | 126 |
Currency translation adjustments | (2) | 18 |
Write-offs | (108) | (119) |
Balance at end of period | 660 | 639 |
In-store merchant | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 137 | 145 |
Net charged to Net Income | 60 | 29 |
Currency translation adjustments | (3) | 2 |
Write-offs | (28) | (35) |
Balance at end of period | 166 | 141 |
Credit cards | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 236 | 225 |
Net charged to Net Income | 102 | 57 |
Currency translation adjustments | (6) | 6 |
Write-offs | (38) | (51) |
Balance at end of period | $ 294 | $ 237 |
GOODWILL AND INTANGIBLE ASSETS - Composition of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 158 | $ 163 | $ 153 |
Total intangible assets | 55 | 53 | |
Accumulated amortization | (43) | (42) | |
Total intangible assets, net | 12 | 11 | |
Licenses and others | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 17 | 14 | |
Non-compete agreements | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 4 | 4 | |
Customer lists | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 12 | 12 | |
Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 12 | 12 | |
Hubs network | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 4 | 4 | |
Others | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 3 | 3 | |
Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives | $ 3 | $ 4 |
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Goodwill [Roll Forward] | ||
Balance, beginning of the period | $ 163 | $ 153 |
Effect of exchange rates changes | (5) | 10 |
Balance, end of the period | 158 | 163 |
Brazil | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 64 | 60 |
Effect of exchange rates changes | (2) | 4 |
Balance, end of the period | 62 | 64 |
Argentina | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 10 | 10 |
Effect of exchange rates changes | 0 | 0 |
Balance, end of the period | 10 | 10 |
Mexico | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 44 | 39 |
Effect of exchange rates changes | 1 | 5 |
Balance, end of the period | 45 | 44 |
Chile | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 37 | 37 |
Effect of exchange rates changes | (4) | 0 |
Balance, end of the period | 33 | 37 |
Colombia | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 6 | 5 |
Effect of exchange rates changes | 0 | 1 |
Balance, end of the period | 6 | 6 |
Other countries | ||
Goodwill [Roll Forward] | ||
Balance, beginning of the period | 2 | 2 |
Effect of exchange rates changes | 0 | 0 |
Balance, end of the period | $ 2 | $ 2 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Aggregate amortization expense for intangible assets | $ 1 | $ 2 |
GOODWILL AND INTANGIBLE ASSETS - Expected Intangible Asset Amortization Expense (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
For year to be ended December 31, 2024 | $ 2 |
For year to be ended December 31, 2025 | 2 |
For year to be ended December 31, 2026 | 2 |
For year to be ended December 31, 2027 | 1 |
Thereafter | 2 |
Total remaining amortization of intangible assets | $ 9 |
INTANGIBLE ASSETS AT FAIR VALUE (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
Unit
|
Dec. 31, 2023
USD ($)
Unit
|
|
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets at fair value | $ 40 | $ 24 |
Cost Basis Of Digital Assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment losses recognized | 21 | |
Bitcoin | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Cost basis | 6 | 6 |
Intangible assets at fair value | $ 29 | $ 17 |
Number of units held | Unit | 412.7 | 412.7 |
Ether | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Cost basis | $ 3 | $ 3 |
Intangible assets at fair value | $ 11 | $ 7 |
Number of units held | Unit | 3,041.6 | 3,041.6 |
SEGMENTS - Financial Performance of Company's Reporting Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | $ 4,333 | $ 4,409 | $ 3,927 | $ 3,585 | $ 3,186 | [1] | $ 15,107 | ||
Direct costs | (3,303) | (2,338) | |||||||
Direct contribution | 1,030 | 848 | |||||||
Operating expenses and indirect costs of net revenues and financial expenses | (502) | (430) | |||||||
Income from operations | 528 | 335 | 785 | 669 | 418 | [1] | 2,207 | ||
Other income (expenses): | |||||||||
Interest income and other financial gains | 25 | 40 | 38 | 34 | 23 | [1] | 135 | ||
Interest expense and other financial losses | (38) | (38) | (53) | (49) | (34) | [1] | (174) | ||
Foreign currency losses, net | (34) | (107) | (239) | (182) | (87) | [1] | (615) | ||
Net income before income tax expense and equity in earnings of unconsolidated entity | 481 | $ 230 | $ 531 | $ 472 | 320 | [1] | $ 1,553 | ||
Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | 3,186 | ||||||||
Operating Segments | Brazil | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | 2,571 | 1,639 | |||||||
Direct costs | (2,010) | (1,318) | |||||||
Direct contribution | 561 | 321 | |||||||
Operating Segments | Argentina | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | 615 | 787 | |||||||
Direct costs | (391) | (419) | |||||||
Direct contribution | 224 | 368 | |||||||
Operating Segments | Mexico | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | 971 | 610 | |||||||
Direct costs | (747) | (464) | |||||||
Direct contribution | 224 | 146 | |||||||
Operating Segments | Other Countries | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues and financial income | 176 | 150 | |||||||
Direct costs | (155) | (137) | |||||||
Direct contribution | $ 21 | $ 13 | |||||||
|
SEGMENTS - Consolidated Net Revenues by Similar Products and Services (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2023 |
||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | $ 4,333 | $ 4,409 | $ 3,927 | $ 3,585 | $ 3,186 | [1] | $ 15,107 | ||
Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 2,496 | 1,676 | |||||||
Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,837 | 1,510 | |||||||
Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 2,128 | 1,415 | |||||||
Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,057 | 961 | |||||||
Products Sales | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 368 | 261 | |||||||
Products Sales | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 10 | 13 | |||||||
Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 770 | 536 | |||||||
Operating Segments | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 3,186 | ||||||||
Operating Segments | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,676 | ||||||||
Operating Segments | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,510 | ||||||||
Operating Segments | Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,415 | ||||||||
Operating Segments | Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 961 | ||||||||
Operating Segments | Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 536 | ||||||||
Operating Segments | Brazil | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 2,571 | 1,639 | |||||||
Operating Segments | Brazil | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,563 | 907 | |||||||
Operating Segments | Brazil | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,008 | 732 | |||||||
Operating Segments | Brazil | Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1,313 | 762 | |||||||
Operating Segments | Brazil | Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 587 | 486 | |||||||
Operating Segments | Brazil | Products Sales | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 250 | 145 | |||||||
Operating Segments | Brazil | Products Sales | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 5 | 5 | |||||||
Operating Segments | Brazil | Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 416 | 241 | |||||||
Operating Segments | Argentina | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 615 | 787 | |||||||
Operating Segments | Argentina | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 200 | 273 | |||||||
Operating Segments | Argentina | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 415 | 514 | |||||||
Operating Segments | Argentina | Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 176 | 224 | |||||||
Operating Segments | Argentina | Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 295 | 353 | |||||||
Operating Segments | Argentina | Products Sales | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 24 | 49 | |||||||
Operating Segments | Argentina | Products Sales | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1 | 2 | |||||||
Operating Segments | Argentina | Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 119 | 159 | |||||||
Operating Segments | Mexico | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 971 | 610 | |||||||
Operating Segments | Mexico | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 613 | 398 | |||||||
Operating Segments | Mexico | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 358 | 212 | |||||||
Operating Segments | Mexico | Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 531 | 338 | |||||||
Operating Segments | Mexico | Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 123 | 75 | |||||||
Operating Segments | Mexico | Products Sales | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 82 | 60 | |||||||
Operating Segments | Mexico | Products Sales | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 3 | 2 | |||||||
Operating Segments | Mexico | Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 232 | 135 | |||||||
Operating Segments | Other Countries | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 176 | 150 | |||||||
Operating Segments | Other Countries | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 120 | 98 | |||||||
Operating Segments | Other Countries | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 56 | 52 | |||||||
Operating Segments | Other Countries | Services | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 108 | 91 | |||||||
Operating Segments | Other Countries | Services | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 52 | 47 | |||||||
Operating Segments | Other Countries | Products Sales | Commerce | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 12 | 7 | |||||||
Operating Segments | Other Countries | Products Sales | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | 1 | 4 | |||||||
Operating Segments | Other Countries | Credit Revenues | Fintech | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Net revenues and financial income | $ 3 | $ 1 | |||||||
|
SEGMENTS - Allocation of Property and Equipment Based on Geography (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 1,260 | $ 1,250 |
US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 2 | 2 |
Argentina | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 214 | 208 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 590 | 603 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 363 | 345 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 91 | 92 |
Total Other Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 1,258 | $ 1,248 |
SEGMENTS - Schedule of Operating Lease Right of Use Assets Based on Geography (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | $ 872 | $ 899 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 872 | 899 |
Operating Segments | US | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 3 | 0 |
Operating Segments | Argentina | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 46 | 51 |
Operating Segments | Brazil | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 381 | 396 |
Operating Segments | Mexico | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 376 | 380 |
Operating Segments | Other countries | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | 66 | 72 |
Operating Segments | All Other Countries | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating lease right-of-use assets | $ 869 | $ 899 |
SEGMENTS - Allocation of Goodwill and Intangible Assets Based on Geography (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Intangible assets at fair value | $ 40 | $ 24 |
Total goodwill and intangible assets | 210 | 198 |
US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Intangible assets at fair value | 40 | 24 |
Argentina | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 13 | 12 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 67 | 68 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 45 | 44 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 45 | 50 |
Total Other Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 170 | $ 174 |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer crypto-assets safeguarding assets | $ 71 | $ 34 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Customer crypto-assets safeguarding liabilities | $ 71 | $ 34 |
Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets from securitization transactions | 221 | 269 |
Securitization transactions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount due to third-party investors | 23 | 23 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 5,373 | 4,775 |
Long-term retention plan | 33 | 104 |
Derivative Instruments | 22 | 31 |
Customer crypto-assets safeguarding liabilities | 71 | 34 |
Total Liabilities | 126 | 169 |
Fair Value, Measurements, Recurring | USDC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 23 | 23 |
Customer crypto-assets safeguarding assets | 71 | 34 |
Fair Value, Measurements, Recurring | Intangible assets at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets at fair value | 40 | 24 |
Fair Value, Measurements, Recurring | Quoted Prices in active markets for identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 5,279 | 4,718 |
Long-term retention plan | 0 | 0 |
Derivative Instruments | 0 | 0 |
Customer crypto-assets safeguarding liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in active markets for identical Assets (Level 1) | USDC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 0 | 0 |
Customer crypto-assets safeguarding assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in active markets for identical Assets (Level 1) | Intangible assets at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets at fair value | 40 | 24 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 94 | 57 |
Long-term retention plan | 33 | 104 |
Derivative Instruments | 22 | 31 |
Customer crypto-assets safeguarding liabilities | 71 | 34 |
Total Liabilities | 126 | 169 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | USDC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 23 | 23 |
Customer crypto-assets safeguarding assets | 71 | 34 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Intangible assets at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 955 | 639 |
Restricted Cash and Cash Equivalents | 236 | 278 |
Fair Value, Measurements, Recurring | Money market | Quoted Prices in active markets for identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 955 | 639 |
Restricted Cash and Cash Equivalents | 236 | 278 |
Fair Value, Measurements, Recurring | Money market | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 221 | 60 |
Investments | 853 | 1,009 |
Fair Value, Measurements, Recurring | U.S. government debt securities | Quoted Prices in active markets for identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 221 | 60 |
Investments | 853 | 1,009 |
Fair Value, Measurements, Recurring | U.S. government debt securities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 32 |
Investments | 151 | 30 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Quoted Prices in active markets for identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 32 |
Investments | 151 | 30 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and Cash Equivalents | 1 | 116 |
Investments | 2,822 | 2,530 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Quoted Prices in active markets for identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and Cash Equivalents | 1 | 116 |
Investments | 2,822 | 2,530 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and Cash Equivalents | 0 | 0 |
Investments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Proceeds from sale of available for sale securitites | $ 3 | ||
Maximum gross realized gains | 1 | ||
Net Revenues And Financial Income | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Recognized gains in interest income and other financial gains | 69 | $ 49 | |
Interest Income And Other Financial Gains | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Recognized gains in interest income and other financial gains | 10 | $ 8 | |
Other Assets: | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cost | 151 | $ 30 | |
Amortization | 151 | 30 | |
Auction Rate Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments | 375 | 375 | |
Auction Rate Securities | Significant other observable inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments | $ 585 | $ 599 |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Debt Securities Classified as Available for Sale (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
One year or less | $ 38 | $ 5 |
One year to two years | 51 | 12 |
Two years to three years | 23 | 4 |
Three years to four years | 11 | 3 |
Four years to five years | 28 | 6 |
Other Assets: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available for sale investments | $ 151 | $ 30 |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Debt Securities Classified as Held to Maturity (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
One year or less | $ 3,820.0 | $ 3,668.0 |
One year to two years | 4.0 | 4.0 |
Two years to three years | 35.0 | 0.0 |
Three years to four years | 31.0 | 35.0 |
Four years to five years | 5.0 | 37.0 |
More than five years | 2.0 | 3.0 |
Total debt securities not classified as available for sale | $ 3,897.0 | $ 3,747.0 |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Fair Value of Financial Assets and Liabilities Measured at Amortized Cost (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Reported Value Measurement | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | $ 9,871 | $ 9,351 |
Reported Value Measurement | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 13,771 | 12,905 |
Reported Value Measurement | Accounts payable and accrued expenses | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 2,203 | 2,117 |
Reported Value Measurement | Funds payable to customers | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 5,059 | 4,475 |
Reported Value Measurement | Amounts payable due to credit and debit card transactions | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 1,352 | 1,092 |
Reported Value Measurement | Salaries and social security payable | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 498 | 441 |
Reported Value Measurement | Loans payable and other financial liabilities | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 4,342 | 4,495 |
Reported Value Measurement | Other liabilities | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 317 | 285 |
Reported Value Measurement | Cash and cash equivalents | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 1,403 | 1,825 |
Reported Value Measurement | Restricted cash and cash equivalents | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 1,002 | 898 |
Reported Value Measurement | Investments | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 35 | 15 |
Reported Value Measurement | Accounts receivables, net | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 170 | 156 |
Reported Value Measurement | Credit cards | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 3,962 | 3,632 |
Reported Value Measurement | Loans receivable, net | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 3,205 | 2,694 |
Reported Value Measurement | Other assets | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 94 | 131 |
Estimate Of Fair Value Measurement | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 9,866 | 9,333 |
Estimate Of Fair Value Measurement | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 13,710 | 12,851 |
Estimate Of Fair Value Measurement | Accounts payable and accrued expenses | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 2,203 | 2,117 |
Estimate Of Fair Value Measurement | Funds payable to customers | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 5,059 | 4,475 |
Estimate Of Fair Value Measurement | Amounts payable due to credit and debit card transactions | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 1,352 | 1,092 |
Estimate Of Fair Value Measurement | Salaries and social security payable | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 498 | 441 |
Estimate Of Fair Value Measurement | Loans payable and other financial liabilities | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 4,281 | 4,441 |
Estimate Of Fair Value Measurement | Other liabilities | Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Liabilities | 317 | 285 |
Estimate Of Fair Value Measurement | Cash and cash equivalents | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 1,403 | 1,825 |
Estimate Of Fair Value Measurement | Restricted cash and cash equivalents | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 1,002 | 898 |
Estimate Of Fair Value Measurement | Investments | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 35 | 15 |
Estimate Of Fair Value Measurement | Accounts receivables, net | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 170 | 156 |
Estimate Of Fair Value Measurement | Credit cards | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 3,962 | 3,632 |
Estimate Of Fair Value Measurement | Loans receivable, net | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | 3,200 | 2,676 |
Estimate Of Fair Value Measurement | Other assets | Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | $ 94 | $ 131 |
COMMITMENTS AND CONTINGENCIES - Narrative (Details) |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Jan. 10, 2024
USD ($)
|
Apr. 08, 2022
USD ($)
|
Oct. 31, 2023
USD ($)
|
Mar. 31, 2024
USD ($)
supplier
item
|
Dec. 31, 2023
USD ($)
|
|
Loss Contingencies [Line Items] | |||||
Reserves for proceeding-related contingencies | $ 112,000,000 | ||||
Aggregate amount for legal actions for which no loss amount has been accrued | 198,000,000 | ||||
Estimated litigation liabilities | 0 | ||||
Loss accrued for reasonably possible legal actions | 2,000,000 | ||||
Amount under dispute | $ 48,000,000 | ||||
Number of purchase commitments entered | supplier | 2 | ||||
Air logistics services agreement term | 5 years | 10 years | 3 years | ||
Committed contract, minimum annual cost | $ 56,000,000 | $ 43,000,000 | $ 66,000,000 | ||
Cloud Platform Services | |||||
Loss Contingencies [Line Items] | |||||
Paid in relation to the contract | $ 461,000,000 | ||||
Fully Paid Off Between October 1, 2021 And September 30, 2026 | Cloud Platform Services | |||||
Loss Contingencies [Line Items] | |||||
Purchase commitment | 824,000,000 | ||||
Fully Paid Off Between September 17, 2021 And September 17, 2024 | Cloud Platform Services II | |||||
Loss Contingencies [Line Items] | |||||
Purchase commitment | 200,000,000 | ||||
Paid in relation to the contract | 80,000,000 | ||||
Brazilian Preliminary | |||||
Loss Contingencies [Line Items] | |||||
Provision for disputed amouts | 338,000,000 | ||||
Judicial deposits | 294,000,000 | ||||
Interest income | $ 82,000,000 | ||||
ICMS-DIFAL | Lawsuits Filed In 2021 | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits pending | item | 3,000,000 | ||||
Buyer Protection Program | |||||
Loss Contingencies [Line Items] | |||||
Provision for maximum potential exposure | $ 4,649,000,000 | $ 5,072,000,000 | |||
Product liability, contingency, recorded allowance | $ 9,000,000 | $ 8,000,000 |
LONG TERM RETENTION PROGRAM - Long Term Retention Program Accrued Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | $ 68 | $ 47 |
LTRP 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 0 | 2 |
LTRP 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 7 | 5 |
LTRP 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 7 | 6 |
LTRP 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 7 | 7 |
LTRP 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 12 | 13 |
LTRP 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 22 | 14 |
LTRP 2024 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | $ 13 | $ 0 |
LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES - Summary of Book Value of Loans Payable and Other Financial Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Loans from banks | $ 556 | $ 485 |
Bank overdrafts | 10 | 34 |
Secured lines of credit | 48 | 39 |
Deposit Certificates | 831 | 976 |
Commercial Notes | 6 | 7 |
Finance lease obligations | 36 | 35 |
Collateralized debt | 737 | 693 |
Other lines of credit | 16 | 10 |
Current loans payable and other financial liabilities | 2,246 | 2,292 |
Loans from banks | 56 | 72 |
Secured lines of credit | 14 | 17 |
Financial Bills | 28 | 8 |
Commercial Notes | 206 | 211 |
Finance lease liabilities | 92 | 96 |
Collateralized debt | 812 | 782 |
Other lines of credit | 1 | 2 |
Non Current loans payable and other financial liabilities | 2,224 | 2,203 |
2026 Sustainability Notes | ||
Debt Instrument [Line Items] | ||
Notes | 2 | 4 |
Notes | 389 | 389 |
2031 Notes | ||
Debt Instrument [Line Items] | ||
Notes | 4 | 9 |
Notes | $ 626 | $ 626 |
LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES - Summary of Loans Payable and Other Financial Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Bank overdrafts | $ 10 | $ 34 |
Finance lease liabilities | 128 | 131 |
Collateralized debt | 1,549 | 1,475 |
Other lines of credit | 17 | 12 |
Loans payable and other financial liabilities | $ 4,470 | 4,495 |
Loans From Banks, 8.52% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 8.52% | |
Loans from banks | $ 104 | 104 |
Loans From Banks, 5.90% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 5.90% | |
Loans from banks | $ 219 | 216 |
Loans From Banks, 9.13% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 9.13% | |
Loans from banks | $ 62 | 50 |
Loans From Banks, 12.99% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 12.99% | |
Loans from banks | $ 4 | 0 |
Bank Overdrafts, -% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 0.00% | |
Bank overdrafts | $ 0 | 13 |
Bank Overdrafts, -% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 0.00% | |
Bank overdrafts | $ 4 | 20 |
Bank Overdrafts, -% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 0.00% | |
Bank overdrafts | $ 6 | 1 |
Secured Lines Of Credit, 76.18% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 76.18% | |
Secured lines of credit | $ 36 | 29 |
Secured Lines Of Credit, 10.32% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 10.32% | |
Secured lines of credit | $ 26 | 27 |
Financial Bills, CDI+0.95-1.40% | ||
Debt Instrument [Line Items] | ||
Financial Bills | 28 | 8 |
Deposit Certificates, 98% to 120% of CDI | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 739 | 703 |
Deposit Certificates, 10.07% - 14.20% | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 52 | 77 |
Deposit Certificates, 105.00% to 105.50% of CDI | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 40 | 196 |
Commercial Notes, DI+0.88% | ||
Debt Instrument [Line Items] | ||
Commercial Notes | 72 | 78 |
Commercial Notes, IPCA+6.41% | ||
Debt Instrument [Line Items] | ||
Commercial Notes | $ 140 | 140 |
2026 Sustainability Notes | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 2.375% | |
Senior Notes | $ 391 | 393 |
2031 Notes | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 3.125% | |
Senior Notes | $ 630 | 635 |
Minimum | Deposit Certificates, 10.07% - 14.20% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 10.07% | |
Maximum | Deposit Certificates, 10.07% - 14.20% | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 14.20% | |
TJLP | Loans From Banks, TJLP + 0.80% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
Loans from banks | $ 9 | 9 |
TJLP | Loans From Banks, TJLP+ 2.20% to 3.5% | ||
Debt Instrument [Line Items] | ||
Loans from banks | $ 164 | 178 |
TJLP | Minimum | Loans From Banks, TJLP+ 2.20% to 3.5% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
TJLP | Maximum | Loans From Banks, TJLP+ 2.20% to 3.5% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
CDI | Loans From Banks, CDI + 0.81% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.81% | |
Loans from banks | $ 50 | $ 0 |
CDI | Minimum | Financial Bills, CDI+0.95-1.40% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.95% | |
CDI | Minimum | Deposit Certificates, 98% to 120% of CDI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 98.00% | |
CDI | Minimum | Deposit Certificates, 105.00% to 105.50% of CDI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 105.00% | |
CDI | Maximum | Financial Bills, CDI+0.95-1.40% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.40% | |
CDI | Maximum | Deposit Certificates, 98% to 120% of CDI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 120.00% | |
CDI | Maximum | Deposit Certificates, 105.00% to 105.50% of CDI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 105.50% | |
DI | Commercial Notes, DI+0.88% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.88% | |
IPCA | Commercial Notes, IPCA+6.41% | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 6.41% |
LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES - Narrative (Details) |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 13, 2023
USD ($)
shares
|
Sep. 19, 2023 |
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2022
USD ($)
|
Jan. 14, 2021
USD ($)
|
Aug. 31, 2018
USD ($)
|
Aug. 24, 2018 |
|
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing under the facility | $ 0 | ||||||||
Subsidiaries | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||
2.375% Sustainability Notes due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible senior notes, interest rate | 2.375% | ||||||||
Face amount | $ 400,000,000 | ||||||||
Total amount paid | $ 66,000,000 | ||||||||
2031 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible senior notes, interest rate | 3.125% | ||||||||
Face amount | $ 700,000,000 | ||||||||
Repurchased principal amount | 70,000,000 | ||||||||
2026 Sustainability Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchased principal amount | 9,000,000 | ||||||||
Sustainability Notes Due 2026 And 2031 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest accrued | $ 1,000,000 | ||||||||
Initial Issuance - 2028 Convertible Senior Notes | Convertible Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible senior notes, interest rate | 2.00% | ||||||||
2028 Notes | Convertible Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible senior notes, interest rate | 2.00% | ||||||||
Face amount | $ 880,000,000 | ||||||||
Conversion ratio | 0.0022952 | ||||||||
Amortization of debt issuance costs | $ 2,000,000 | ||||||||
2028 Notes | Convertible Senior Notes | Notes Converted Into Non Cash Transactions | |||||||||
Debt Instrument [Line Items] | |||||||||
Total principal amount | $ 439,000,000 | ||||||||
2028 Notes | Convertible Senior Notes | Notes Converted Into Non Cash Transactions | Common Stock, $0.001 par value per share | |||||||||
Debt Instrument [Line Items] | |||||||||
Converted shares (in shares) | shares | 1,007,597 |
SECURITIZATION TRANSACTIONS - Collateralized Debt (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Collateralized debt | $ 1,549 | $ 1,475 |
Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 201 | |
Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 17 | |
Olimpia Fundo de Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 104 | |
Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 185 | |
Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 208 | |
Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 105 | |
Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 42 | |
Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 21 | |
Mercado Crédito Consumo XXI | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 1 | |
Mercado Crédito Consumo XXII | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 3 | |
Mercado Crédito Consumo XXIII | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 3 | |
Mercado Crédito Consumo XXIV | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 8 | |
Mercado Crédito Consumo XXV | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 9 | |
Mercado Crédito Consumo XXVI | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 8 | |
Mercado Crédito Consumo XXVII | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 9 | |
Mercado Crédito Consumo XXVIII | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 12 | |
Mercado Crédito Consumo XXIX | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 12 | |
Mercado Crédito Consumo XXX | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 11 | |
Mercado Crédito Consumo XXXI | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 15 | |
Mercado Crédito XIX | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 5 | |
Mercado Crédito XX | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 6 | |
Mercado Credito XXI | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 5 | |
Fideicomiso de administración y fuente de pago CIB/3756 | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 253 | |
Fideicomiso de administración y fuente de pago CIB/3369 | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 31 | |
Fideicomiso de administración y fuente de pago CIB/3369 | ||
Debt Instrument [Line Items] | ||
Collateralized debt | $ 275 | |
CDI | Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
CDI | Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
CDI | Olimpia Fundo de Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
CDI | Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.35% | |
CDI | Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.60% | |
CDI | Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.80% | |
CDI | Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.40% | |
CDI | Seller Fundo De Investimento Em Direitos Creditórios | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.60% | |
BADLAR Rate | Mercado Crédito Consumo XXI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXII | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXIII | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXIV | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXV | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXVI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXVIII | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXIX | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXX | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito Consumo XXXI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito XIX | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Crédito XX | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Mercado Credito XXI | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 80.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 80.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXIII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 80.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXIV | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXV | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXVI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXVII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXVIII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXIX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 75.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 75.00% | |
BADLAR Rate | Minimum | Mercado Crédito Consumo XXXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 45.00% | |
BADLAR Rate | Minimum | Mercado Crédito XIX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Crédito XX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 100.00% | |
BADLAR Rate | Minimum | Mercado Credito XXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 45.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 120.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 120.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXIII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 120.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXIV | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 140.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXV | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 150.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXVI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 160.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXVII | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Effective interest rate | 180.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXVIII | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 190.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXIX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 155.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 155.00% | |
BADLAR Rate | Maximum | Mercado Crédito Consumo XXXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 125.00% | |
BADLAR Rate | Maximum | Mercado Crédito XIX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 140.00% | |
BADLAR Rate | Maximum | Mercado Crédito XX | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 170.00% | |
BADLAR Rate | Maximum | Mercado Credito XXI | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 125.00% | |
Diario Oficial | Fideicomiso de administración y fuente de pago CIB/3756 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 2.35% | |
Diario Oficial | Fideicomiso de administración y fuente de pago CIB/3369 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 7.00% | |
Diario Oficial | Fideicomiso de administración y fuente de pago CIB/3369 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 3.00% |
SECURITIZATION TRANSACTIONS - Assets and Liabilities of the Trust (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 1,239 | $ 1,292 |
Credit card receivables and other means of payments, net | 3,962 | 3,632 |
Loans receivable, net | 3,119 | 2,629 |
Total current assets | 15,505 | 14,294 |
Long-term investments | 249 | 162 |
Loans receivable, net | 86 | 65 |
Total non-current assets | 3,557 | 3,352 |
Total assets | 19,062 | 17,646 |
Loans payable and other financial liabilities | 2,246 | 2,292 |
Other liabilities | 290 | 200 |
Total current liabilities | 12,256 | 11,297 |
Loans payable and other financial liabilities | 2,224 | 2,203 |
Total non-current liabilities | 3,416 | 3,278 |
Total liabilities | 15,672 | 14,575 |
Trust Created In Brazil | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 312 | 355 |
Credit card receivables and other means of payments, net | 89 | 105 |
Loans receivable, net | 1,309 | 1,198 |
Total current assets | 1,710 | 1,658 |
Long-term investments | 23 | 23 |
Loans receivable, net | 37 | 27 |
Total non-current assets | 60 | 50 |
Total assets | 1,770 | 1,708 |
Loans payable and other financial liabilities | 737 | 693 |
Other liabilities | 1 | 1 |
Total current liabilities | 738 | 694 |
Loans payable and other financial liabilities | 812 | 782 |
Total non-current liabilities | 812 | 782 |
Total liabilities | $ 1,550 | $ 1,476 |
LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 872 | $ 899 |
Operating lease liabilities | 816 | 838 |
Property and equipment, at cost | 190 | 183 |
Accumulated depreciation | (60) | (50) |
Property and equipment, net | 130 | 133 |
Loans payable and other financial liabilities | $ 128 | $ 131 |
LEASES - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Weighted average remaining lease term, Operating leases | 7 years | 8 years |
Weighted average remaining lease term, Finance leases | 3 years | 3 years |
Weighted average discount rate, Operating leases | 9.00% | 9.00% |
Weighted average discount rate, Finance leases | 38.00% | 34.00% |
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Operating lease cost | $ 48 | $ 42 |
Depreciation of property and equipment | 10 | 5 |
Interest on lease liabilities | 4 | 2 |
Total finance lease cost | $ 14 | $ 7 |
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Leases | ||
One year or less | $ 189 | |
One year to two years | 175 | |
Two years to three years | 143 | |
Three years to four years | 128 | |
Four years to five years | 119 | |
Thereafter | 368 | |
Total lease payments | 1,122 | |
Less imputed interest | (306) | |
Total | 816 | $ 838 |
Finance Leases | ||
One year or less | 52 | |
One year to two years | 47 | |
Two years to three years | 39 | |
Three years to four years | 21 | |
Four years to five years | 6 | |
Thereafter | 0 | |
Total lease payments | 165 | |
Less imputed interest | (37) | |
Finance lease liabilities | $ 128 | $ 131 |
DERIVATIVE INSTRUMENTS - Summary of Notional Amounts (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Designated as hedging instrument | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 95 | $ 91 |
Designated as hedging instrument | Cross currency swap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 229 | 244 |
Not designated as hedging instrument | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4 | 16 |
Not designated as hedging instrument | Interest rate swap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 230 | $ 245 |
DERIVATIVE INSTRUMENTS - Summary of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | $ (2) | $ (7) | $ (10) | $ (5) |
Cross currency swap contracts designated as fair value hedge | Other current assets | Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 1 | 1 | ||
Cross currency swap contracts designated as fair value hedge | Other current liabilities | Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 0 | 4 | ||
Interest rate swap contracts | Other non-current assets | Not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 22 | 22 | ||
Interest rate swap contracts | Other current liabilities | Not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 7 | 7 | ||
Interest rate swap contracts | Other non-current liabilities | Not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 12 | 10 | ||
Cross currency swap contracts designated as net investment hedge | Other current liabilities | Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 2 | 6 | ||
Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | (1) | (4) | $ (5) | $ (2) |
Foreign exchange contracts | Other current liabilities | Designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | 1 | 3 | ||
Foreign exchange contracts | Other current liabilities | Not designated as hedging instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative | $ 0 | $ 1 |
DERIVATIVE INSTRUMENTS - Effect of Derivative Contracts on Comprehensive Income (Details) - Designated as hedging instrument - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Beginning Balance | $ (7) | $ (5) |
Amount of gain recognized in other comprehensive loss | 2 | (7) |
Amount of loss reclassified from accumulated other comprehensive loss | 3 | 2 |
End Balance | (2) | (10) |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Beginning Balance | (4) | (2) |
Amount of gain recognized in other comprehensive loss | 2 | (4) |
Amount of loss reclassified from accumulated other comprehensive loss | 1 | 1 |
End Balance | (1) | (5) |
Interest swap contracts designated as cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Beginning Balance | (2) | |
Amount of gain recognized in other comprehensive loss | 2 | |
Amount of loss reclassified from accumulated other comprehensive loss | (1) | |
End Balance | (1) | |
Cross currency swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Beginning Balance | (3) | (1) |
Amount of gain recognized in other comprehensive loss | 0 | (5) |
Amount of loss reclassified from accumulated other comprehensive loss | 2 | 2 |
End Balance | $ (1) | $ (4) |
DERIVATIVE INSTRUMENTS - Narrative (Details) - Fair Value Hedging - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Loans Payable And Other Financial Liabilities Current | |||
Derivatives, Fair Value [Line Items] | |||
Carrying amount of the hedged item | $ 219 | $ 216 | |
Fair value hedge relationships less than | 1 | $ 1 | |
Designated as hedging instrument | Interest Expense | |||
Derivatives, Fair Value [Line Items] | |||
Effect of fair value relationships | $ 4 | $ 5 |
DERIVATIVE INSTRUMENTS - Effect of Derivative Contracts Not Designated as Hedging Instruments on Income Statement (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Foreign exchange contracts not designated as hedging instruments recognized in Foreign currency losses, net | $ 0 | $ (6) |
Interest rate contracts not designated as hedging instruments recognized in Interest expense and other financial losses | (2) | 2 |
Effect of derivative contracts not designated as hedging instruments | $ (2) | $ (4) |
SHARE REPURCHASE PROGRAM (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Feb. 21, 2023 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Foreign currency loss | $ 9 | $ 117 | |
February 2023 Stock Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Aggregate consideration amount of repurchase program | $ 900 | ||
August 30, 2020 Board Authorized Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Foreign currency loss | $ 56 |
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