Slide 1: Earnings Q1 2024 Presentation
Earnings Q1 2024 Presentation
Slide 2: Presenters: Pedro Arnt, Mark Ortiz, Maria Oldham
Pedro Arnt Mark Ortiz Maria Oldham Chief Executive Officer Chief Financial Officer SVP - Corp. Development, and Investor Relations and Strategic Finance
Slide 3: Safe Harbor
EARNINGS PRESENTATION Q1 2024 Safe This presentation may contain forward-looking statements. These forward-looking statements convey dLocal’s current Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances Harbor exp
Slide 4: Unlocking the potential of Emerging Markets
Unlocking the potential of Emerging Markets Manila, Philippines. 4
Slide 5: Record-high TPV in Q1; profitability impacted by seasonality, pricing, mix
Record-high TPV in Q1; profitability was impacted by seasonality, top merchant pricing, business mix, and OPEX investments for future growth Total Payment Volume Revenue Gross Profit Adjusted EBITDA1 $5.3B $184M $63M $37M +49% YoY | +4% QoQ +34% YoY | -2% QoQ +2%YoY | -10% QoQ -19% YoY | -25% QoQ Note
Slide 6: Strong TPV performance across diverse verticals
Strong TPV performance $5.1B $5.3B Other2 4% Travel 7% across diverse verticals Remittances 94% Advertising 6% On-demand Commerce volume grew delivery 13% 3x YoY supported by the $3.6B SaaS 54% success of our platform Streaming 10% solution; QoQ we saw Ride-hailing 55% contraction in commerce driven
Slide 7: Revenue by region: Latin America and Africa & Asia
LatAm: QoQ comparison mostly Africa & Asia: we continue to affected by seasonality of the experience sound growth YoY and commerce vertical and top merchant QoQ pricing. YoY growth supported by our largest markets, Brazil and Mexico. Latin America revenue Africa & Asia revenue ($M) ($M) -5% QoQ +5%
Slide 8: Gross profit by region: Latin America and Africa & Asia
LatAm: QoQ decrease driven by Africa & Asia: strong YoY growth revenue decline. YoY comparison mainly supported by Egypt. QoQ heavily impacted by Argentina (+24% slowdown mostly driven by Nigerian YoY excluding Argentina). devaluation Latin America Gross Profit Africa & Asia Gross Profit ($M) ($M) -11
Slide 9: Detailed country gross profit contribution QoQ
Detailed country gross profit contribution QoQ Gross profit QoQ ● Seasonality of e-commerce and advertising vertical Brazil -30% ● Increase in lower take rate Payouts vs Payins in mix 18m | -8m vs. LQ ● Merchant tier attainment and pricing renegotiation México +7% ● Improved cost structure as we gain
Slide 10: Building the global team to meet long-term growth ambitions
Building the global team to meet Technology & Product our long-term growth ambitions. FTE by 38% Focus on areas of differentiation: function (%): technology, product, and local operations. Corporate central functions 951 +188 FTEs or 25% Employee Growth YoY 19% Sales & Marketing AFRICA & ASIA AMERIC
Slide 11: Financial Highlights
Financial Highlights 11
Slide 12: TPV evolution by pay-in, pay-out, cross-border, local-to-local
Pay-outs2 TPV evolution ($B) +17% QoQ Robust growth Pay-ins1 TPV evolution ($B) -1% QoQ rates YoY; QoQ +54% YoY +46% YoY pay-ins were negatively impacted by seasonality, payouts growing on early strength of newer remittance % share 70% 73% 74% 72% 69% % share 30% 27% 26% 28% 31% vertical Cross-borde
Slide 13: Revenue grew 34% YoY; gross profit impacted by business mix
YoY revenue grew 34%. QoQ decline mostly driven by seasonality. Gross profit impacted by business mix with higher payout volumes and pricing on a single merchant Revenue evolution ($M) Gross Profit evolution ($M) -2% QoQ -10% QoQ +34% YoY +2% YoY 13
Slide 14: Gross profit margin and net take rate compression
Gross profit margin and net take rate compression primarily impacted by single merchant pricing; and also by business mix with higher pay-outs volumes Gross Profit margin (%) QoQ bridge Gross Profit over TPV (%) QoQ bridge Increase in Increased Increase in Increased pay-outs Merchant proportion of Incr
Slide 15: QoQ impact on Adjusted EBITDA and Operating Profit
QoQ impact on Adjusted EBITDA and Operating Profit mainly driven by gross profit contraction and OPEX investments for sustainable future growth and long term cost leverage Adjusted EBITDA1 evolution ($M) Operating Profit evolution ($M) -25% QoQ -34% QoQ -19% YoY -32% YoY Adj. EBITDA / 33.1% 32.3% 33.9%
Slide 16: Adjusted EBITDA over gross profit margin contraction
QoQ Adjusted EBITDA over gross profit margin contraction driven by investments in the company infrastructure to sustain long-term growth and deliver future operating leverage: focus on technology, product and local operations teams Adjusted EBITDA1 over Gross Profit margin QoQ bridge (%) Note: 1dLocal
Slide 17: Net income decline driven by gross profit contraction and higher OPEX
Net income decline primarily driven by gross profit contraction, and higher OPEX Net income evolution ($M) Net income bridge QoQ ($M) -38% QoQ -50% YoY 2 3 4 5 Diluted 0.11 0.15 0.13 0.10 0.06 EPS1 Note: 1Our diluted earnings per share is calculated by dividing the profit attributable to owners of the
Slide 18: Balance sheet position remains robust
Balance sheet position remains robust; with own funds cash conversion > 100% in LTM and 69% in 1Q24 Consolidated cash reconciliation ($M) Robust own liquidity of $320M, +$36M including $212M own cash + $108M short-term investments. In addition, we have $86M within merchants funds pending to be trans
Slide 19: Highlights
Highlights We power a massive and expanding emerging markets ecosystem accepting more than 900 local payment methods across 40+ countries We are directly integrated with some of the world’s largest online merchants, driving very strong NRR and cohort performance We have built a scalable, single API
Slide 20: Thanks
Thanks d-local
Slide 21: Appendix
APPENDIX
Slide 22: TPV breakdown by product and flow
TPV breakdown by type of product1 TPV In millions of US$ 1Q23 2Q23 3Q23 4Q23 1Q24 Pay-ins 2,503 3,190 3,429 3,701 3,657 As % of total 70% 73% 74% 72% 69% Pay-outs 1,072 1,184 1,189 1,410 1,653 As % of total 30% 27% 26% 28% 31% Total TPV 3,574 4,373 4,618 5,111 5,310 TPV breakdown by type of flow2 In
Slide 23: Revenue breakdown by geography
Revenue Revenue breakdown by geography In millions of US$ 1Q23 2Q23 3Q23 4Q23 1Q24 Brazil 22.8 41.2 44.7 50.2 43.1 Argentina 20.0 20.7 23.9 10.5 13.8 Mexico 22.7 28.3 30.2 35.6 34.0 Chile 14.2 14.2 12.4 14.9 12.4 Other LatAm 18.5 22.5 24.8 20.3 22.1 Latin America 98.2 126.9 136.0 131.5 125.4 Nigeria
Slide 24: Gross profit breakdown by geography
Gross profit Gross profit breakdown by geography In millions of US$ 1Q23 2Q23 3Q23 4Q23 1Q24 Brazil 11.0 19.6 22.7 25.5 17.9 Argentina 17.8 13.8 13.1 4.0 5.2 Mexico 6.9 10.6 7.9 9.3 9.9 Chile 9.1 8.9 6.9 9.1 7.5 Other LatAm 8.0 8.7 8.9 7.0 8.1 Latin America 52.8 61.7 59.4 54.7 48.6 Nigeria 2.4 0.2 1.7
Slide 25: Revenue: top merchant concentration and composition
Revenue Top 10 merchant revenue1($M) and concentration (%) Revenue composition ($M) 129% NRR2 % Share of total 58% 59% 60% 68% 65% revenue Note: 1Top 10 merchants may vary from period to period. 2“NRR” means Net Revenue Retention rate, which is the U.S. dollar-based measure of retention and growth o
Slide 26: Adjusted EBITDA bridge
Adjusted Adjusted EBITDA bridge ($M) EBITDA Note: Adjusted EBITDA excludes one-off expenses and non-cash items. Unaudited quarterly results. See detailed methodology for Adjusted EBITDA in slide 29. 26
Slide 27: Reconciliation of Profit to Adjusted EBITDA
Adjusted Reconciliation of Profit to Adjusted EBITDA EBITDA $ in thousands 1Q23 4Q23 1Q24 Profit for the period 35,450 28,481 17,718 Income tax expense 4,281 7,476 7,114 Depreciation and amortization 2,515 3,604 3,762 Finance income and costs, net (1,391) (996) (299) Share-based payment non-cash charg
Slide 28: Reconciliation of Profit to Adjusted Net Income
Adjusted Reconciliation of Profit to Adjusted Net Income Net $ in thousands 1Q23 4Q23 1Q24 Net income as reported 35,450 28,481 17,718 Income Inflation adjustment 1,019 6,040 2,368 Loan - exchange difference - 51,858 6,729 Fair value (loss) / gains of financial assets at FVTPL (bonds) (89) (50,754) (10
Slide 29: Robust global network of trusted financial partners
1Q24 cross-border expatriation Robust global volumes by partner mix: network of trusted 0.2% financial partners 4% 4% 7% In Q1 2024, we expatriated close to 80% of the pay-ins cross-border TPV through banks (global, continental or national partner banks) 79% 29