Slide 1: 2Q 2021 Earnings Presentation
2Q 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: dLocal at a Glance
at a Glance We enable global merchants to connect seamlessly with billions of emerging market consumers One dLocal Enterprise-focused Global 30 One API emerging countries1 Selected customers One platform | One contract 2Q21 Highlights 319% $59M 186% 44% TPV YoY growth Revenue Revenue YoY growth Adj.
Slide 4: Our Best Quarter Ever
Our Best Quarter Ever SCALE GROWTH RETENTION PROFITABILITY $59M 186% 196% 44% 2Q21 Revenue Revenue YoY growth NRR Adj. EBITDA Margin1 $40M 124% 186% 44% 1Q 21 Revenue Revenue YoY growth NRR Adj. EBITDA Margin1 $104M 88% 159% 40% 2020 Revenue Revenue YoY growth NRR2 Adj. EBITDA Margin1 Note: Results
Slide 5: What Problems Are We Addressing?
What Problems Are We Addressing? Multiple local payment methods Poor conversion and Complex and changing with rising fragmentation high fraud regulatory and tax frameworks Local payment methods represent We deliver higher conversion rates and Constant assessment of tax and 83%1 of total e-commerce e
Slide 6: One Platform | One API | One Contract
One Platform | One API | One Contract Local credit Local acquirer cards Merchant Pay-ins Alternative Smart Payment Withholding FX payment Bank fund routing processing tax collection Management methods settlement Bank Non-financial deposits institutions Bank Local bank Pay-outs deposits Merchant User
Slide 7: Strong Industry Tailwinds Support Our Growth
Strong Industry Tailwinds Support Our Growth Aspirational middle Global merchants Highly complex and Increasing Continued rise of class in emerging increasingly doing evolving local globalization of the digital economy markets continues to business in selected regulatory and tax commerce expand EM e
Slide 8: Large and Fast-Growing Addressable Market for dLocal
Large and Fast-Growing Addressable Market for dLocal TPV ($BN) 2.1 ~$1.2TN 27%+ 1.5 CAGR2 from Addressable TPV1 2020 to 2024E 0.9 ($0.4TN pay-ins, $0.8TN pay-outs) Total e-commerce volume in the 30 countries that we serve (excluding China) FY2020 1Q21 2Q21 Source: AMI 1 Estimation for 2020, includes
Slide 9: Vectors of Future Growth
Vectors of Future Growth Commercial Efforts Products Geographies Organic Account Enhance Develop new Enhance Enter new New clients growth management portfolio solutions presence countries Improved our NRR1 to 196% in 2Q21 from Enhanced pay-in & pay-out capabilities Added Vietnam, Malaysia, and Guate
Slide 10: Vectors | Commercial Efforts
Vectors | Commercial Efforts EXISTING MERCHANTS EXPANSION Illustrative NRR Components Breakdown1 Payment methods per Countries per merchant NRR (%) Organic Products per merchant growth of Share of merchant existing wallet Global ride hailing Global e-commerce merchants service provider platform No c
Slide 11: Vectors | Products
Vectors | Products Enhanced our pay-in solution Improved our fraud and data capabilities FlexibleScheduler: dynamic fund transfer management New machine learning models for gaming and retail TaxManager: enhanced tax handling by payment method DeviceID New integrations in existing markets for card pr
Slide 12: Vectors | Geographies
Vectors | Geographies 2016 2017 2018 2019 2020 1H21 12
Slide 13: Powering Diverse High-Growth Verticals
Powering Diverse High-Growth Verticals Retail Streaming Ride Hailing Financial Advertising SaaS Travel E-Learning Gaming institutions 2Q21 TPV of $1.5B (319% YoY growth) Strong growth across all verticals, even as economies return post-Covid Continued growth in verticals such as ride hailing, travel
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 15: Second Quarter 2021 Performance Highlights
Second Quarter 2021 Performance Highlights TPV ($M) 97% 319% 5Y CAGR YoY $2,065 $1,456 $1,288 $926 $757 $572 $348 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 Growth YoY 60% 17% 65% 90% 139% 319% 15
Slide 16: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights Revenue ($M) 88% 186% YoY YoY $104 $59 $55 $40 $35 $31 $21 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 Note: Audited results for the years ended December 31, 2020 and December 31,2019. Unaudited results for the quarters ended June 30, 2020; September 30, 2020; Decembe
Slide 17: Second Quarter 2021 Financial Highlights (Cont'd)
Second Quarter 2021 Financial Highlights (Cont’d) Adj. EBITDA1 ($M) and Adj. EBITDA Margin (%) 109% 213% YoY YoY 41% 44% 44% 40% 40% 39% 36% $41.9 $25.9 $20.1 $17.8 $12.5 $13.7 $8.3 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 Note: Audited results for the years ended December 31, 2020 and December 31,2019. U
Slide 18: Existing and New Merchants Driving Growth
Existing and New Merchants Driving Growth Highlights Revenue Composition Both existing merchants and new merchants have shown 186% strong growth in 1H2021 YoY $19 $59 NRR components include: 196% NRR $20 ▪ Organic growth of existing merchants in emerging $21 markets 2Q20 Existing New 2Q21 ▪ Increase
Slide 19: Consistently Improving Merchant Engagement
Consistently Improving Merchant Engagement Avg. # of Countries per Merchant Avg. # of Payment Methods per Merchant 62 53 7 6 6 44 5 35 4 29 2018 2019 2020 1Q21 2Q21 2018 2019 2020 1Q21 2Q21 Note: Yearly figures consider merchants that during that year surpassed for the US$6 million TPV threshold. Qu
Slide 20: Investment Highlights
Investment Highlights We power a massive and expanding Emerging Markets ecosystem We are directly integrated with some of the biggest online merchants in the world, driving very strong net revenue retention and strong cohort performance We have built a scalable, single API technology infrastructure
Slide 21: Thank you!
d-local Thank you!
Slide 22: Appendix
APPENDIX
Slide 23: Financial Highlights
Financial Highlights 2Q21 Adjusted EBITDA Bridge ($M) $18.9 $1.3 $3.4 $25.9 $2.1 $0.1 1 2Q21 Operating Profit D&A Stock-Based Compensation Impariment Gain / Losses Other Adjustments 2Q21 Adjusted EBITDA (IFRS) on Financial Assets (IFRS) 1Q21 Adjusted EBITDA Bridge ($M) $18.8 $0.5 $0.6 $0.1 ( $2.1 )
Slide 24: Reconciliation of Adjusted EBITDA to Profit
Reconciliation of Adjusted EBITDA to Profit $ in thousands Three-month period ended June 30, Six-month period ended June 30, 2021 2020 2021 2020 Profit for the period 17,708 7,411 34,635 7,964 Income tax expense 1,596 481 2,975 1,299 Other operating (gain)/loss - (12) (2,896) 71 Depreciation and amo
Slide 25: Our Global Reach with Focus on Emerging Markets
Our Global Reach with Focus on Emerging Markets 600+ Local payment methods 30 Countries 1 Local payment methods Local credit Local debit Internationa APMs2 Cash Countries where we are able to process pay-ins and pay-outs card card l cards payments 25 1 Includes 5 new markets where we have recently m