Dlocal Limited · NASDAQ:DLO
Dlocal — Q3 2021 Earnings Presentation
27 slides from Dlocal's earnings presentation, Nov 16, 2021
Slide 1: 3Q 2021 Earnings Presentation
3Q 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: Our Highlights for the Quarter
Our Highlights for the Quarter TPV ($M) Revenue ($M) Adjusted EBITDA ($M)1 217% 123% 110% YoY YoY YoY $1,812 $69 $26 $13 $31 $572 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 Note: Unaudited quarterly results. 1 dLocal has only one operating segment. Although Adj. EBITDA may be commonly viewed as non-IFRS measures
Slide 4: Our Business Continues to Grow
Our Business Continues to Grow SCALE GROWTH RETENTION PROFITABILITY $69M 123% 185% 38% 3Q21 Revenue Revenue YoY growth NRR Adj. EBITDA Margin1 $59M 186% 196% 44% 2Q 21 Revenue Revenue YoY growth NRR Adj. EBITDA Margin1 $104M 88% 159% 40% 2020 Revenue Revenue YoY growth NRR2 Adj. EBITDA Margin1 Note:
Slide 5: What Problems Are We Addressing?
What Problems Are We Addressing? Multiple local payment methods Poor conversion and Complex and changing with rising fragmentation high fraud regulatory and tax frameworks Local payment methods represent a We deliver higher conversion rates and Constant assessment of tax and significant portion of t
Slide 6: Multiple Payment Methods Add Complexity to EM
Multiple Payment Methods Add Complexity to EM Merchants in Emerging Markets need agility and choice Emerging Markets Breakdown of E-Commerce Payment Methods (%) North America Breakdown of Asia-Pacific ME and Africa Latin America e-Commerce Payment Methods Digital/Mobile Wallet 60.2% 14% 19.8% Other
Slide 7: Large and Fast-Growing Addressable Market for dLocal
Large and Fast-Growing Addressable Market for dLocal TPV ($BN) 4.9 x2.4 ~$1.2TN 27%+ CAGR2 from Addressable TPV1 2020 to 2024E 2.1 ($0.4TN pay-ins; $0.8TN pay-outs) Total e-commerce volume in the countries that we serve (excluding China) 2020 3Q21 LTM Source: AMI. Excludes countries where we recentl
Slide 8: How Our Merchants Expand with Us
How Our Merchants Expand with Us Merchant Case Study – TPV Evolution Made Made Completed disbursem- Processing disbursem- Started Local-to- Integration process ents to Launched new Launched 3 new Merchant contacted ents to Local pay-ins volume in 9 within one month 130,000 market markets dLocal 3,00
Slide 9: Vectors of Future Growth
Vectors of Future Growth Commercial Efforts Products Organic Account New Enhance Develop new growth management clients portfolio solutions 185% NRR1 for 3Q21 vs. 159% for 2020 Enhanced pay-in & pay-out capabilities 3Q21 new clients rev. at $12M (vs. $9M for 2020) Geographies Inorganic Initiatives En
Slide 10: Existing Clients Drive Our Growth…
Commercial Efforts Existing Clients Drive Our Growth… From sale cycle No. of potential clients currently at each stage Illustrative industries 50+ Ride Hailing Streaming Financial institutions Pricing proposal 40+ Advertising Streaming SaaS E-Learning Agreement 30+ Travel Gaming Advertising Financia
Slide 11: …While New Clients Continue to Feed Our Industry-Agnostic Sales Funnel
Commercial Efforts …While New Clients Continue to Feed Our Industry-Agnostic Sales Funnel No. of potential clients Illustrative industries currently at each stage Initial communication Streaming Advertising Financial institutions 175+ Follow-up Retail Ride Hailing 160+ Pricing proposal SaaS Travel F
Slide 12: Comprehensive and Differentiated Suite of Solutions
Products Comprehensive and Differentiated Suite of Solutions Back-End Front-End Regulation / Compliance Refunds EMERGING MARKET USER GLOBAL MERCHANTS Tax collection Automated reminder from APMs Fraud Security Subscriptions Local Payments Smart Routing Settlement Installments Provider Merchant Report
Slide 13: Vectors | Geographies
Geographies Vectors | Geographies Argentina Colombia Indonesia Bolivia Ghana Panama DR Thailand Brazil Mexico Morocco Ecuador Bangladesh Egypt Philippines Vietnam El Salvador Chile Uruguay India South Africa Cameroon Kenya Malaysia China Turkey Peru Paraguay Nigeria Costa Rica Senegal Guatemala 2016
Slide 14: Powering Diverse High-Growth Verticals
Powering Diverse High-Growth Verticals Retail Streaming Ride Hailing Financial Advertising SaaS Travel E-Learning Gaming institutions 3Q21 TPV of $1.8B (217% YoY growth) Continued growth of our enterprise merchants across most verticals, particularly in ride hailing, streaming, advertising, SAAS and
Slide 15: Our People Are Our Competitive Advantage
Our People Are Our Competitive Advantage Function Location Asia EMEA 5% 7% Techonology General & & Product Administrative 40% 1 41% Americas 88% Operations Sales & Marketing 5% 14% 30+ nationalities 532 532 TOTAL FTE (#) 427 365 310 260 FTE 3Q20 4Q20 1Q21 2Q21 3Q21 Note: 1 The total engineers or tec
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 17: Third Quarter 2021 Performance Highlights
Third Quarter 2021 Performance Highlights TPV ($M) Revenue ($M) 217% 123% YoY YoY $1,812 $69 $1,456 $59 $40 $926 $35 $757 $31 $572 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Growth YoY Growth YoY 65% 90% 139% 319% 217% 96% 94% 124% 186% 123% Note: Unaudited quarterly results. 17
Slide 18: Third Quarter 2021 Financial Highlights
Third Quarter 2021 Financial Highlights Adj. EBITDA1 ($M) and Adj. EBITDA Margin (%) 109% 110% YoY YoY 44% 44% 40% 41% 39% 38% 36% $26 $26 $18 $13 $14 $42 $20 2019 2020 3Q20 4Q20 1Q21 2Q21 3Q21 Note: Audited results for the years ended December 31, 2020 and December 31,2019. Unaudited results for th
Slide 19: Understanding the Drivers of Revenue Growth
Understanding the Drivers of Revenue Growth Existing Merchants Quarterly Revenue Evolution ($M) New Merchants Quarterly Revenue Evolution ($M) Revenues, in the quarter, from merchants that we already Revenues, in the quarter, from merchants processed in the same quarter of the previous year onboarde
Slide 20: Existing and New Merchants Driving Growth
Existing and New Merchants Driving Growth Highlights Revenue Composition Both existing merchants and new merchants have shown consistent growth in 3Q21 even after a solid second quarter 123% YoY Net Revenue Retention Rate1 of $12 $69 185% NRR $26 185% in 3Q21 vs. 159% in 2020 $31 NRR Components Brea
Slide 21: 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 22: Thank you!
d-local Thank you!
Slide 23: Appendix
APPENDIX
Slide 24: One Platform | One API | One Contract
Products One Platform | One API | One Contract Local credit Local acquirer cards Pay-ins Alternative Merchant Smart Payment Withholding FX payment Bank fund routing processing tax collection Management methods settlement Bank Non-financial deposits institutions Pay-outs Bank Local bank deposits Merc
Slide 25: Consistently Improving Merchant Engagement
Consistently Improving Merchant Engagement Avg. # of Countries per Merchant Avg. # of Payment Methods per Merchant 69 7 6 44 5 35 29 4 2018 2019 2020 YTD2021 2018 2019 2020 YTD2021 Note: Yearly figures consider merchants that during that year surpassed for the US$6 million TPV threshold. YTD figures
Slide 26: Financial Highlights
Financial Highlights 3Q21 Adjusted EBITDA Bridge ($M) $22 $3 $0 $1 $26 $1 1 3Q21 Operating Profit D&A Stock-Based Compensation Impariment Gain / Losses Other Adjustments 3Q21 Adjusted EBITDA (IFRS) on Financial Assets (IFRS) 2Q21 Adjusted EBITDA Bridge ($M) $3 $26 $19 $1 $2 $0 2Q21 Operating Profit
Slide 27: Reconciliation of Adjusted EBITDA to Profit
Reconciliation of Adjusted EBITDA to Profit $ in thousands Three-month period ended September 30, Nine-month period ended September 30, 2021 2020 2021 2020 Profit for the period 19,669 8,622 54,304 16,586 Income tax expense 2,558 932 5,533 2,231 Other operating (gain)/loss - 2,760 (2,896) 2,831 Depr