Slide 1: Earnings Presentation Q4 2024
Earnings Presentation Q4 2024
Slide 2: Pedro Arnt, CEO and Mark Ortiz, CFO
EARNINGS PRESENTATION | Q4 2024 2 Pedro Arnt Mark Ortiz Chief Executive Officer Chief Financial Officer
Slide 3: Safe Harbor
EARNINGS PRESENTATION | Q4 2024 3 Safe Harbor This presentation may contain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA
Slide 4: Unlocking the power of Emerging Markets
4 Unlocking the power of Emerging Markets Cairo, Egypt
Slide 5: 5 pillars underpinning dLocal's investment thesis
EARNINGS PRESENTATION | Q4 2024 5 5 pillars underpinning dLocal's investment thesis 1 2 3 4 5 Massive Consistent high Attractive margin Strong cash Innovation addressable top line growth business generation pipeline market Untapped potential Proven track record Potential to deliver Strong cash Inves
Slide 6: 2024 highlights
EARNINGS PRESENTATION | Q4 2024 6 Record TPV of $26B, a strong 45% YoY growth 2024 highlights Mix continuing to shift to newer more attractive markets, while core markets rebounded from Q3 softness Serving more than 700 merchants across 40+ markets The year 2024 has Strengthened relationships with e
Slide 7: Technology & Product developments
EARNINGS PRESENTATION | Q4 2024 7 Technology & Product developments Launched 20 new payment methods for pay-ins and 7 for payouts, while adding ≈100 new partner integrations to ensure redundancy, cost efficiency, and unlock new payment features Launched and ramped up our new Payment Orchestration solu
Slide 8: Consistent TPV growth on a large base, while investing in tech
EARNINGS PRESENTATION | Q4 2024 8 Consistent TPV growth on a large base, while investing in tech for efficiencies, scalability, and future growth opportunities Total Payment Volume Revenue Gross Profit Adjusted EBITDA1 FY24 $25.6B $746M $295M $189M +45% YoY +15% YoY +6% YoY -7% YoY 4Q24 $7.7B $204M $
Slide 9: TPV growth across a well-diversified vertical base
EARNINGS PRESENTATION | Q4 2024 9 TPV growth across a Other² 3% well-diversified vertical Travel 3% base Remittances 99% Advertising 12% On-demand 39% Remittances nearly doubled YoY, Delivery driven by successful commercial Streaming 21% efforts; continuous growth from SaaS 66% SaaS, commerce, ride-h
Slide 10: Latin America and Africa & Asia Revenue
10 LatAm: YoY comparison supported by the Africa & Asia: YoY performance supported by growth in Argentina, Mexico and Other continued growth in Egypt and ramp-up of our LatAm. commerce merchants in South Africa. Latin America Revenue Africa & Asia Revenue ($M) ($M) $562M FY24 $184M FY24 +14% YoY +17
Slide 11: Latin America and Africa & Asia Gross Profit
11 LatAm: YoY comparison impacted by FX Africa & Asia: YoY increase was mostly driven devaluation in Argentina and repricing with by volume growth in Egypt and South Africa, a top merchant in Brazil, partially offset by and positive performance of Other Africa & Mexico and Other LatAm. Asia markets.
Slide 12: Continuous geographic diversification to newer more attractive markets
Continuous geographic diversification to newer more attractive markets leading to record 12 levels in consolidated revenues and gross profit, despite softness in core markets Gross profit QoQ Argentina +37% ● Positive performance in multiple verticals, including commerce, ride-hailing and SaaS 9m | +2.
Slide 13: Building the global team to meet our long-term growth ambitions
13 Technology & Product Building the global team to meet our FTE by long-term growth ambitions function (%): 40% Focus on strategic growth areas: Technology & Product and Operations. Corporate central functions 1,095 +194 FTEs or 22% Employee Growth YoY 19% Sales & Marketing AFRICA & ASIA AMERICAS 1
Slide 14: Financial highlights
EARNINGS PRESENTATION | Q4 2024 14 Financial highlights
Slide 15: Growth in cross-border and local-to-local flows
EARNINGS PRESENTATION | Q4 2024 15 Consistent and healthy growth in cross-border and local-to-local flows, confirming the success of our offerings Cross-border¹ TPV evolution ($B) Local-to-Local² TPV evolution ($B) +23 % QoQ +14 % QoQ +67 % YoY +38 % YoY % % 44% 46% 45% 47% 48% 56% 54% 55% 53% 52% sha
Slide 16: Pay-ins and pay-outs TPV growth
EARNINGS PRESENTATION | Q4 2024 16 Both business lines delivering consistent YoY and QoQ growth, with strong performance across various countries Pay-ins¹ TPV evolution ($B) Pay-outs² TPV evolution ($B) +15 % QoQ +26 % QoQ +44 % YoY +68 % YoY % % 72% 69% 71% 71% 69% 28% 31% 29% 29% 31% share share N
Slide 17: Revenue and gross profit reaching record levels
EARNINGS PRESENTATION | Q4 2024 17 Revenue and gross profit reaching record levels with growth on tough comps from previous year Revenue evolution ($M) Gross profit evolution ($M) +10 % QoQ +7 % QoQ +9 % YoY +20 % YoY
Slide 18: Net take rate and QoQ bridge
EARNINGS PRESENTATION | Q4 2024 18 Net take rate reflecting market dynamic of higher volumes driving lower take rates, increase in payouts share, and depreciation of EM currencies; offset by cost efficiencies and growth in higher take rate markets Gross Profit over TPV (%) QoQ bridge Increase in Incre
Slide 19: Resuming strategic investments in core areas
EARNINGS PRESENTATION | Q4 2024 19 Resuming strategic investments in core areas to drive efficiency and future growth, while maintaining our lean and disciplined structure Adjusted EBITDA1 evolution ($M) Operating Profit evolution ($M) +9 % QoQ +3 % QoQ +16 % YoY +3 % YoY Adj. EBITDA / 26.2% 19.9% 24
Slide 20: Adjusted EBITDA over gross profit margin QoQ bridge
EARNINGS PRESENTATION | Q4 2024 20 Third consecutive quarter of improvement in Adjusted EBITDA over gross profit margin, despite continued investment in our support functions and marketing expenses Adjusted EBITDA1 over Gross Profit margin QoQ bridge (%) Note: 1dLocal has only one operating segment. A
Slide 21: Solid net income and QoQ bridge
EARNINGS PRESENTATION | Q4 2024 21 Solid net income; QoQ comparison explained by positive non-cash mark to market effect related to Argentine bonds and lower finance costs, partially offset by higher taxes Net income evolution ($M) Net income bridge QoQ ($M) +11 % QoQ +4 % YoY Diluted EPS¹ 0.10 0.06
Slide 22: FCF Own Funds cash conversion and working capital
EARNINGS PRESENTATION | Q4 2024 22 FCF Own Funds1 cash conversion of ≈109% of net income; total working capital mainly affected by changes in merchant working capital FCF Own Funds Evolution by Quarter Working Capital Own Funds Buildup $ in millions 2Q24 3Q24 4Q24 $ in millions 2Q24 3Q24 4Q24 Cash fl
Slide 23: Full year 2025 outlook
EARNINGS PRESENTATION | Q4 2024 23 Full year 2025 outlook 2024 2025 Guidance Key considerations • Strategic focus on becoming a scale leader, prioritizing not losing contracts on price, especially in larger markets TPV $25.6B 35% - 45% YoY • Increased share of wallet and ramp-up of Tier 0 merchants
Slide 24: Thank you
Gracias | Thank you | | |תודה谢谢 | | ﺷﻛراObrigado | ありがとう
Slide 25: Investment Highlights
25 Investment Highlights We power a market leading massive and expanding emerging markets ecosystem accepting more than 900 local payment methods across 40+ countries We are directly integrated with some of the world’s largest online merchants, driving very strong NRR and cohort performance We have
Slide 26: Appendix
26 Appendix
Slide 27: TPV
EARNINGS PRESENTATION | Q4 2024 27 TPV breakdown by type of product1 TPV In millions of US$ 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Pay-ins 3,701 3,657 4,273 4,632 5,340 12,823 17,902 As % of total 72% 69% 71% 71% 69% 73% 70% Pay-outs 1,410 1,653 1,763 1,884 2,373 4,855 7,673 As % of total 28% 31% 29% 29
Slide 28: Revenue
Revenue EARNINGS PRESENTATION | Q4 2024 28 Revenue breakdown by geography In millions of US$ 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Brazil 50.2 43.1 42.3 32.9 33.7 159.0 152.0 Argentina 10.5 13.8 20.5 26.0 25.1 75.1 85.5 Mexico 35.6 34.0 35.8 38.9 40.5 116.8 149.2 Chile 14.9 12.4 12.3 13.0 13.5 55.7 51.
Slide 29: Gross profit
Gross profit EARNINGS PRESENTATION | Q4 2024 29 Gross Profit breakdown by geography In millions of US$ 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Brazil 25.5 17.9 19.2 15.4 14.8 78.8 67.3 Argentina 4.0 5.2 7.6 6.7 9.2 48.7 28.7 Mexico 9.3 9.9 8.8 12.8 10.9 34.7 42.5 Chile 9.1 7.5 8.3 8.2 9.2 34.0 33.1 Other L
Slide 30: Revenue
Revenue EARNINGS PRESENTATION | Q4 2024 30 Top 10 merchant revenue1 ($M) and concentration (%) Revenue composition ($M) 106% NRR2 % Share of total 68% 65% 62% 62% 63% revenue Note: 1Top 10 merchants may vary from period to period. 2“NRR” means Net Revenue Retention rate, which is the U.S. dollar-bas
Slide 31: Adjusted EBITDA
EARNINGS PRESENTATION | Q4 2024 31 Adjusted EBITDA bridge ($M) Adjusted EBITDA Note: Adjusted EBITDA excludes one-off expenses and non-cash items. Unaudited quarterly results. See detailed methodology for Adjusted EBITDA in slide 32.
Slide 32: Adjusted EBITDA
EARNINGS PRESENTATION | Q4 2024 32 Adjusted EBITDA Reconciliation of Profit to Adjusted EBITDA $ in thousands 4Q23 3Q24 4Q24 Profit for the period 28,481 26,811 29,701 Income tax expense 7,476 2,286 11,090 Depreciation and amortization 3,604 4,438 4,888 Note: Although Adjusted EBITDA and Adjusted EBIT
Slide 33: Adjusted Net Income
EARNINGS PRESENTATION | Q4 2024 33 Adjusted Net Income Reconciliation of Profit to Adjusted Net Income Note: Adjusted Net Income is a non-IFRS financial measure. As used by dLocal, Adjusted Net Income is defined as the profit for the period (net income) $ in thousands 4Q23 3Q24 4Q24 excluding impairment
Slide 34: Constant currency
EARNINGS PRESENTATION | Q4 2024 34 Constant currency Reconciliation of TPV and Revenue constant currency measures to reported results Note: Constant currency revenue is a non-IFRS As reported Constant currency measures financial measure. Constant currency measures are prepared and presented to elimin
Slide 35: Cohort evolution
Cohort evolution EARNINGS PRESENTATION | Q4 2024 35 TPV by Cohort1 ($M) Note: 1 Each cohort is comprised by all of the merchants that began processing TPV in each period, regardless of volume of TPV processed. As cohorts prior to 2018 are not illustrated, the sum of the TPV of the different cohorts
Slide 36: IR Contact
IR Contact: investor@dlocal.com