Slide 1: Earnings Presentation Q3 2024
Earnings Presentation Q3 2024
Slide 2: Presenters: Pedro Arnt, Mark Ortiz, Maria Oldham
EARNINGS PRESENTATION | Q3 2024 2 Pedro Arnt Mark Ortiz Maria Oldham Chief Executive Officer Chief Financial Officer SVP of Corporate Development, Strategy and Investor Relations
Slide 3: Safe Harbor
EARNINGS PRESENTATION | Q3 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, gross profit, Adjusted EBITDA and Adjuste
Slide 4: Unlocking the power of Emerging Markets
4 Unlocking the power of Emerging Markets Cape Town, South Africa
Slide 5: 3Q24 key highlights
EARNINGS PRESENTATION | Q3 2024 5 3Q24 key highlights Tech & other Growth Profitability developments TPV: +41% YoY and +8% QoQ growth, Gross profit: record level of $78M in the Continuous transaction performance driven by strong performance across quarter improvement with Smart Requests diverse vertic
Slide 6: Strong TPV growth, record-high gross profit and enhanced operational leverage
EARNINGS PRESENTATION | Q3 2024 6 Continuously strong TPV growth, record-high gross profit and enhanced operational leverage, while investing in tech for future growth Total Payment Volume Revenue Gross Profit Adjusted EBITDA1 $6.5B $186M $78M $52M +41% YoY | +8% QoQ +13% YoY | +8% QoQ +5%YoY | +12% Q
Slide 7: TPV growth across a well-diversified vertical base
EARNINGS PRESENTATION | Q3 2024 7 TPV growth across a Other² 16% well-diversified vertical Travel 7% base Remittances 82% Streaming 16% Remittances and financial Advertising 17% services increasing by over 80% SaaS 65% YoY; continuous growth from SaaS, on-demand delivery, On-demand 43% Delivery advert
Slide 8: Latin America and Africa & Asia revenue
8 LatAm: QoQ growth driven by Argentina Africa & Asia: QoQ increase was driven by and Other LatAm. YoY comparison volume growth in Egypt and Other Africa and supported by the growth in Mexico and Asia. YoY growth was supported by Other LatAm. continued growth in Egypt and South Africa. Latin America
Slide 9: Latin America and Africa & Asia gross profit
9 LatAm: QoQ increase driven primarily by Africa & Asia: QoQ and YoY increase was Mexico and Other LatAm. YoY comparison mostly driven by volume growth in Egypt and remains impacted by FX devaluation in South Africa. Argentina, and repricing and lower SoW with a top merchant in Brazil. Latin America
Slide 10: Increasing diversification and resilience; record gross profit
Consistently increasing diversification and delivering improved resilience; record gross 10 profit despite quarterly volatility in some markets, given the strength in others Gross profit QoQ Brazil -20% ● Loss in share of wallet in credit cards with a top commerce merchant 15m | -3.9m vs. LQ México +45
Slide 11: Building the global team to meet our long-term growth ambitions
11 Technology & Product Building the global team to meet our FTE by long-term growth ambitions function (%): 41% Focus on strategic growth areas: Technology & Product and Operations. Corporate central functions 1,024 +157 FTEs or 18% Employee Growth YoY 18% Sales & Marketing AFRICA & ASIA AMERICAS 1
Slide 12: Financial highlights
EARNINGS PRESENTATION | Q3 2024 12 Financial highlights
Slide 13: Sustained growth across Cross-border and Local-to-local flows
EARNINGS PRESENTATION | Q3 2024 13 Sustained growth across both Cross-border and Local-to-local flows; Cross-border performance QoQ accelerating each of last 3Qs Cross-border¹ TPV evolution ($B) Local-to-Local² TPV evolution ($B) +12 % QoQ +4 % QoQ +35 % YoY +47 % YoY % % 49% 44% 46% 45% 47% 51% 56%
Slide 14: Pay-ins and pay-outs TPV evolution
EARNINGS PRESENTATION | Q3 2024 14 YoY growth remains strong. Both business lines delivering high single digit sequential growth Pay-ins¹ TPV evolution ($B) Pay-outs² TPV evolution ($B) +8 % QoQ +7 % QoQ +35 % YoY +58 % YoY % % 74% 72% 69% 71% 71% 26% 28% 31% 29% 29% share share Note: 1”Pay-in” mean
Slide 15: Record gross profit with consistent QoQ compounding
EARNINGS PRESENTATION | Q3 2024 15 Record gross profit with consistent QoQ compounding over multiple quarters Revenue evolution ($M) Gross profit evolution ($M) +8 % QoQ +12 % QoQ +13 % YoY +5 % YoY
Slide 16: Sequential improvement in gross profit margin and flat net take rate
EARNINGS PRESENTATION | Q3 2024 16 Second quarter of sequential improvement in gross profit margin and flat net take rate, driven by differentiated value proposition, continuous pursuit of cost efficiencies, and the real value in solving complexities across EM Gross Profit margin (%) QoQ bridge Gross P
Slide 17: Operating leverage improvement for the second consecutive quarter
EARNINGS PRESENTATION | Q3 2024 17 Operating leverage improvement for the second consecutive quarter, driven primarily by reignited growth and cost management Adjusted EBITDA1 evolution ($M) Operating Profit evolution ($M) +23 % QoQ +36 % QoQ -6 % YoY -20 % YoY Adj. EBITDA / 33.9% 26.2% 19.9% 24.9% 2
Slide 18: Adjusted EBITDA over gross profit margin increasing +6 p.p. QoQ
EARNINGS PRESENTATION | Q3 2024 18 Adjusted EBITDA over gross profit margin increasing +6 p.p. QoQ, driven by higher gross profit and balance between long-term profitability and efficient resource allocation Adjusted EBITDA1 over Gross Profit margin QoQ bridge (%) Note: 1dLocal has only one operating se
Slide 19: Solid net income; impacted by 2Q24 non-cash gains
EARNINGS PRESENTATION | Q3 2024 19 Solid net income; QoQ growth impacted mainly by 2Q24 non-cash mark to market gains from Argentine Bonds Net income evolution ($M) Net income bridge QoQ ($M) -42 % QoQ -34 % YoY Diluted EPS¹ 0.13 0.10 0.06 0.15 0.09 Note: 1Our diluted earnings per share is calculate
Slide 20: Strong earnings, despite technical accounting effects
EARNINGS PRESENTATION | Q3 2024 20 Strong earnings, despite technical accounting effects 3Q24 net income bridge ($M) Mainly losses from the re-measurement of primarily intercompany assets and liabilities held in currencies other than the functional currency of the group’s entities. Example: Argentin
Slide 21: FCF Own Funds $26M: Q3 cash conversion of ≈100% of net income
EARNINGS PRESENTATION | Q3 2024 21 FCF Own Funds $26M: Q3 cash conversion of ≈100% of net income Cash flow bridge ($M) Cash flow evolution by quarter In millions of US$ 1Q24 2Q24 3Q24 Net cash from operating activities 40 29 40 Merchant funds effect (21) (5) (8) Capex (6) (5) (5) Free Cash Flow Own Fu
Slide 22: Gracias | Thank you
Gracias | Thank you | | |תודה谢谢 | | ﺷﻛراObrigado | ありがとう
Slide 23: Investment Highlights
23 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 24: Appendix
24 Appendix
Slide 25: TPV
EARNINGS PRESENTATION | Q3 2024 25 TPV breakdown by type of product1 TPV In millions of US$ 3Q23 4Q23 1Q24 2Q24 3Q24 Pay-ins 3,429 3,701 3,657 4,273 4,632 As % of total 74% 72% 69% 71% 71% Pay-outs 1,189 1,410 1,653 1,763 1,884 As % of total 26% 28% 31% 29% 29% Total TPV 4,618 5,111 5,310 6,035 6,51
Slide 26: Revenue
Revenue EARNINGS PRESENTATION | Q3 2024 26 Revenue breakdown by geography In millions of US$ 3Q23 4Q23 1Q24 2Q24 3Q24 Brazil 44.7 50.2 43.1 42.3 32.9 Argentina 23.9 10.5 13.8 20.5 26.0 Mexico 30.2 35.6 34.0 35.8 38.9 Chile 12.4 14.9 12.4 12.3 13.0 Other LatAm 24.8 20.3 22.1 27.8 34.3 Latin America 1
Slide 27: Gross profit
Gross profit EARNINGS PRESENTATION | Q3 2024 27 Gross profit breakdown by geography In millions of US$ 3Q23 4Q23 1Q24 2Q24 3Q24 Brazil 22.7 25.5 17.9 19.2 15.4 Argentina 13.1 4.0 5.2 7.6 6.7 Mexico 7.9 9.3 9.9 8.8 12.8 Chile 6.9 9.1 7.5 8.3 8.2 Other LatAm 8.9 7.0 8.1 9.6 12.5 Latin America 59.4 54.7
Slide 28: Revenue: top merchant concentration and composition
Revenue EARNINGS PRESENTATION | Q3 2024 28 Top 10 merchant revenue1 ($M) and concentration (%) Revenue composition ($M) 110% NRR2 % Share of total 60% 68% 65% 62% 62% 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 29: Adjusted EBITDA bridge
EARNINGS PRESENTATION | Q3 2024 29 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 30.
Slide 30: Adjusted EBITDA
EARNINGS PRESENTATION | Q3 2024 30 Adjusted EBITDA Reconciliation of Profit to Adjusted EBITDA $ in thousands 3Q23 2Q24 3Q24 Profit for the period 40,364 46,239 26,811 Income tax expense 8,897 10,060 2,286 Depreciation and amortization 3,237 4,089 4,438 Note: Although Adjusted EBITDA and Adjusted EBIT
Slide 31: Adjusted Net Income
EARNINGS PRESENTATION | Q3 2024 31 Adjusted Net Income Reconciliation of Profit to Adjusted Net Income $ in thousands 3Q23 2Q24 3Q24 Net income as reported 40,364 46,239 26,811 Inflation adjustment 3,817 1,941 1,954 Loan - exchange difference 27,351 5,831 7,710 Note: Adjusted Net Income is a non-IFRS
Slide 32: Consolidated cash
Consolidated cash EARNINGS PRESENTATION | Q3 2024 32 Consolidated cash reconciliation ($M) Merchants funds 353 345 $65M of merchant $66M of Merchant funds to be transferred funds to be transferred to Own Funds to Own Funds Own funds 208 186 Note: 1 Capex includes Acquisition of Property, plant and e
Slide 33: Robust global network of trusted financial partners
EARNINGS PRESENTATION | Q3 2024 33 3Q24 Cross-border volumes by partner mix: 0.2% Robust global network of trusted financial partners In Q3 2024, we expatriated 84% of the Pay-ins Cross-border TPV through banks (global, continental or national partner banks)
Slide 34: IR Contact
IR Contact: investor@dlocal.com