Slide 1: Q4 & FY 2021 Earnings Presentation
Q4 & FY 2021 Earnings Presentation NASDAQ: DLO
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements. These forward-looking statements convey DLocal’s current expectations or forecasts of future events. Forward-looking statements regarding DLocal involve known and unknown risks, uncertainties and other factors that may cause DLoca
Slide 3: 2021: A Record Year
2021: A Record Year SCALE GROWTH RETENTION PROFITABILITY $6.0B $244.1M 219% 41% FY21 TPV 193% YoY Growth REVENUES 134% YoY Growth NET RETENTION RATE ADJUSTED EBITDA MARGIN1 $1.9B $76.3M 198% 38% 4Q21 TPV 145% YoY Growth REVENUES 120% YoY Growth NET RETENTION RATE ADJUSTED EBITDA MARGIN1 1 dLocal has
Slide 4: Strong Growth With Continuous Opportunities to Grow with our Existing Merchants
Strong Growth With Continuous Opportunities to Grow with our Existing Merchants TPV ($M) Selected Merchants 193% YoY $6,049 $2,065 $1,288 2019 2020 2021 4
Slide 5: Powering Diverse High-Growth Verticals...
Powering Diverse High-Growth Verticals... Commerce Streaming Ride Hailing SaaS Advertising Financial Services Gaming SaaS Travel eLearning Ride Hailing On-demand Delivery Crypto 5
Slide 6: ...Across 35 Emerging Markets
...Across 35 Emerging Markets DR Thailand Vietnam El Salvador Argentina Colombia Indonesia Bolivia Ghana Panama Malaysia Guatemala Brazil Mexico Morocco Ecuador Bangladesh Egypt Philippines Q4 ADDITIONS Chile Uruguay India South Africa Cameroon Kenya Tanzania Uganda China Turkey Peru Paraguay Nigeri
Slide 7: High Growth Across All Regions
High Growth Across All Regions Revenue by Region – LatAm ($M) Revenue by Region – Asia & Africa ($M) 350 92% 89% 92% 11% 8% 8% 300 140% 30 86% YoY YoY $223 250 25 200 $21 20 150 15 $93 $11 100 10 50 $51 $4 5 0 0 2019 2020 2021 2019 2020 2021 % of Total Revenue % of Total Revenue 7
Slide 8: New Merchants Increasing Diversification
New Merchants Increasing Diversification # of Merchants Revenue Concentration (% Revenue) Total Core Top 10 Clients Other Merchants Merchants1 2019 190+ 90+ 27% 30% 36% 44% 2020 300+ 150+ 73% 70% 64% 56% 2021 400+ 240+ 2018 2019 2020 2021 Note: 1Core merchants consider merchants that during that yea
Slide 9: All Cohorts Driving Profitable Growth
All Cohorts Driving Profitable Growth TPV by Cohort1 ($M) 2021 Take Rate Performance by Cohort Each cohort is driving solid TPV growth 2021 average take rate of 4% (versus 5% in 2020) ’18 and ‘20 vintages experienced the highest YoY growth rates Minimal variation in each cohort’s take-rate during Co
Slide 10: Vectors of Future Growth
Vectors of Future Growth Commercial Efforts Products Enhance Develop new Organic Account New portfolio solutions growth management clients Geographies Inorganic Initiatives Enhance Enter new presence countries 10
Slide 11: Consistently Improving Merchant Engagement
Consistently Improving Merchant Engagement Avg. # of Countries per Merchant Avg. # of Payment Methods per Merchant 7 67 6 44 5 35 4 29 2018 2019 2020 2021 2018 2019 2020 2021 Note: Yearly figures consider merchants that during that year surpassed for the US$6M TPV threshold. 11
Slide 12: Ramping-up Our Existing and New Clients Pipeline
Ramping-up Our Existing and New Clients Pipeline # of Opportunities in our Sales Funnel Pricing proposal Pre-IPO (Mar-21) As of 2022 +3x EXISTING CLIENTS 60+ 190+ +2x NEW CLIENTS 350+ 640+ Go live Illustrative industries Ride Hailing Advertising Travel Streaming Gaming SaaS E-Learning Financial Cryp
Slide 13: Enhanced Product Portfolio
Enhanced Product Portfolio Enhanced our pay-in solution Enhanced our pay-out solution New cards and APMs integrations for processing Expanded Instant Payout offering in more countries redundancy, capability enhancements and global expansion Enhanced logics and automations to overcome local rail’s De
Slide 14: Broaden Product Portfolio
Broaden Product Portfolio Improved our fraud and data capabilities Launched Issuing-as-a-Service Defense Suite launched Enable merchants to issue prepaid virtual or physical cards, with spend and payment controls and account management Improved fraud prevention capabilities through: - New Machine Le
Slide 15: Our Ability to Hire Professionals with Diverse Backgrounds Worldwide is a Key Competitive Advantage
Our Ability to Hire Professionals with Diverse Backgrounds Worldwide is a Key Competitive Advantage FTE Evolution (#) 535 FTE in 2021 (+73% YoY) We continue to invest in hiring top talent for Tech & Product and S&M to our We have a wide talent pool team We hire anywhere in the world 61% YoY As of 20
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS 16
Slide 17: TPV Almost Tripled in 2021
TPV Almost Tripled in 2021 TPV ($M) 193% 145% YoY YoY $6,049 $1,856 $2,065 $757 $1,288 2019 2020 2021 4Q20 4Q21 Continued growth of our TPV across most verticals, particularly in ride hailing, streaming, advertising, SaaS, on-demand delivery and commerce 17
Slide 18: Strong and Steady Growth in Pay-Ins; Short-term Fluctuations in Pay-Outs
Strong and Steady Growth in Pay-Ins; Short-term Fluctuations in Pay-Outs Pay-Ins and Pay-Outs TPV ($M) 242% 190% YoY YoY $4,131 Pay-ins TPV $1,209 2020 2021 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 124% 64% YoY YoY $1,917 Pay-outs TPV $856 2020 2021 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 18
Slide 19: Triple-Digit-Growth in Revenue
Triple-Digit-Growth in Revenue Revenue ($M) 134% 120% YoY YoY $244 $76 $104 $35 $55 2019 2020 2021 4Q20 4Q21 Note: Audited results for the years ended December 31, 2021, December 31, 2020, and December 31, 2019. 19
Slide 20: Existing and New Merchants Driving Growth
Existing and New Merchants Driving Growth Revenue Composition ($M) 219% NRR1 198% NRR1 $8 $76 $16 $244 $124 $34 $104 $35 2020 Existing New 2021 4Q20 Existing New 4Q21 Merchants Merchants Merchants Merchants Existing Merchants: Revenues from merchants that we already processed in the same period of t
Slide 21: Gross Profit Continues to Grow at Sound Rates
Gross Profit Continues to Grow at Sound Rates Gross Profit ($M) 117% 88% YoY YoY $130 $39 $21 $60 $36 2019 2020 2021 4Q20 4Q21 Note: Audited results for the years ended December 31, 2021, December 31, 2020, and December 31, 2019. 21
Slide 22: Maintained Strong Margins Amid Continue Investing in Growth
Maintained Strong Margins Amid Continue Investing in Growth Adjusted EBITDA1 ($M) and Adjusted EBITDA Margin (%) 36% 40% 41% 39% 38% 136% 112% YoY YoY $99 $29 $42 $14 $20 2019 2020 2021 4Q20 4Q21 Note: Note: Audited results for the years ended December 31, 2021, December 31, 2020, and December 31, 2
Slide 23: Closing Remarks
CLOSING REMARKS 23
Slide 24: Investment Highlights
Investment Highlights We power a massive and expanding Emerging Markets ecosystem We are directly integrated with some of the biggest online merchants in the world, driving very strong net revenue retention and strong cohort performance We have built a scalable, single API technology infrastructure
Slide 25: Thank you!
d-local Thank you!
Slide 26: Appendix
APPENDIX 26
Slide 27: What Problems are we Addressing?
What Problems are we Addressing? Complex and changing regulatory Multiple local payment methods Poor conversion and high fraud and tax frameworks with rising fragmentation 27 27
Slide 28: Financial Highlights
Financial Highlights 4Q21 Adjusted EBITDA Bridge ($M) $25 $2 $0 $1 $29 $2 4Q21 Operating Profit D&A Stock-Based Compensation Impariment Gain / Losses Other Adjustments 1 4Q21 Adjusted EBITDA (IFRS) on Financial Assets (IFRS) 3Q21 Adjusted EBITDA Bridge ($M) $3 $0 $1 $26 $22 $1 3Q21 Operating Profit
Slide 29: Reconciliation of Adjusted EBITDA to Profit
Reconciliation of Adjusted EBITDA to Profit $ in thousands Three-month period ended December 31, Twelve-month period ended December 31, 2021 2020 2021 2020 Profit for the period 23,549 11,601 77,853 28,187 Income tax expense 2,114 1,000 7,647 3,231 Other operating (gain)/loss - 65 (2,896) 2,896 Depr