Dlocal Limited · NASDAQ:DLO
Dlocal — Q1 2023 Earnings Presentation
27 slides from Dlocal's earnings presentation, May 18, 2023
Slide 1: Earnings Presentation Q1 2023
Earnings Q1 2023 Presentation
Slide 2: Presenters
Sebastián Kanovich Jacobo Singer Diego Cabrera Canay Maria Oldham Chief Executive Officer President, COO Chief Financial Officer VP of Corp. Development, IR
Slide 3: Safe Harbor
This presentation may contain forward-looking statements. Safe These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, Harbor uncertainties and other factors that may cause dLoca
Slide 4: Building the best financial infrastructure for emerging markets
We are building the best financial infrastructure for emerging markets Cairo, Egypt. 4
Slide 5: Strong performance in 1Q23; reporting record financial results
Strong performance in 1Q23; reporting record financial results Total Processed Volume Revenue Gross Profit Adjusted EBITDA1 $3.6B $137M $62M $45M +70% YoY | +8% QoQ +57% YoY | +16% QoQ +42% YoY | +12% QoQ +38% YoY | +13% QoQ Note: 1 dLocal has only one operating segment. Although Adjusted EBITDA may b
Slide 6: Adjusted EBITDA over gross profit >70% while investing in the future
Consistently delivering Adjusted EBITDA over gross profit >70% while investing in the future Adjusted EBITDA over gross profit (%) 6
Slide 7: Top merchants well-diversified and cross-selling strategy
Top 10 merchants well-diversified across industries; including 2 new Successful cross-selling strategy entrants Average # of countries per top 10 merchants Top 10 merchant revenue1 ($M) and concentration (%) 10 countries # of top 10 merchants with presence in Africa and Asia 10 out of 10 # of top 10
Slide 8: Localizing payments in 40 countries across emerging markets
Localizing payments in 40 countries across emerging markets 8
Slide 9: Nigeria's great opportunity: unlocking complex markets
As of 1Q23, Net take rate is Nigeria’s great 6 out the largely in line with other top 10 opportunity: merchants (in terms of revenue) markets in which we operate unlocking operate with us in Nigeria complex markets for Global merchants benefit from our global our integration with non-traditional paym
Slide 10: Tremendous growth in Africa and Asia, continued Latam growth
Tremendous growth in Africa and …while continuously growing our Asia mainly driven by Nigeria… Latam business Africa & Asia revenue Latin America revenue ($M) ($M) 6% QoQ 53% QoQ 27% YoY 297% YoY % share of % share of total 11% 22% 28% total 89% 78% 72% revenue revenue 10
Slide 11: Growing our global team while maintaining a lean culture
We continue to grow our global team whilst maintaining a lean culture Most of the hires for the period were for tech-related roles and sales & marketing FTE evolution (#) FTE by function (%) AFRICA & ASIA Technology 41% 763 173 Corporate central functions 20% +77% YoY Sales & AMERICAS Marketing 20%
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Sustained growth rates in Pay-ins and Pay-outs
Sustained growth rates in Pay-ins and Pay-outs Pay-ins1 TPV evolution ($B) Pay-outs1 TPV evolution ($B) 7% QoQ 11% QoQ 52% YoY 133% YoY % share 78% 77% 75% 71% 70% % share 22% 23% 25% 29% 30% 13 Note: 1”Pay-in” means a payment transaction whereby dLocal’s merchant customers receive payment from thei
Slide 14: Continuous TPV expansion across services
Continuous TPV expansion across services Cross-border1 TPV evolution ($B) Local-to-Local1 TPV evolution ($B) 12% QoQ 4% QoQ 51% YoY 101% YoY % share 62% 61% 56% 53% 55% % share 38% 39% 44% 47% 45% 14 Note: 1“Cross-border” means a payment transaction whereby dLocal is collecting in one currency and s
Slide 15: Record revenue of $137M in 1Q23 and 147% NRR
Another quarter of revenue growth, reaching a record of $137M in 1Q23 and a strong 147% NRR Revenue evolution ($M) Revenue composition ($M) 16% QoQ 147% NRR1 57% YoY Note: 1“NRR” means Net Revenue Retention rate, which is the U.S. dollar-based measure of retention and growth of our merchants. We cal
Slide 16: Continued maximizing gross profit dollar growth
Continued maximizing Gross Profit ($M) evolution gross profit dollar growth 12% QoQ 42% YoY Gross Profit over TPV (%) 2.1% 2.0% 2.0% 1.7% 1.7% 16
Slide 17: Gross margin impacted by high growth in expansion market
Gross margin impacted by high growth in expansion market Gross margin excluding Nigeria > 50% Gross Profit margin (%) evolution Gross Profit margin (%) QoQ bridge Excluding Nigeria +0.3% +0.3% +1.0% 54% Pay-out Cross-border TPV share share +2p.p -3.2% +1p.p QoQ QoQ Net effect of country mix 1 17
Slide 18: Strong Adjusted EBITDA and net income growth
Strong Adjusted EBITDA and net income growth Adj. EBITDA1 ($M) and Adj. EBITDA margin (%) evolution Net income evolution ($M) 13% QoQ 83% QoQ 38% YoY 35% YoY Adj. EBITDA Margin 38% 38% 37% 34% 33% Note: 1dLocal has only one operating segment. Although Adjusted EBITDA and Adjusted EBITDA Margin may b
Slide 19: Increased cash position while executing share buyback program
Increased our robust cash position while executing on our share buyback program Cash reconciliation ($M) +$50M Cash conversion >100% +$87M Robust cash position as of March 31, 2023 ($233M of own funds $14M of restricted cash and $285M of merchant funds), in released to own funds, as follows: additio
Slide 20: Investor Day 2023
d-local INVESTOR DAY 2023 JUNE8 | 8:30AM-12:30PM | NEW YORK
Slide 21: Highlights
Highlights We power a massive and expanding emerging markets ecosystem accepting more than 900 local payment methods across 40 countries We are directly integrated with some of the world’s largest online merchants, driving very strong NRR and cohort performance We have built a scalable, single API t
Slide 22: Thanks
Thanks d-local
Slide 23: Appendix
APPENDIX
Slide 24: TPV
TPV TPV breakdown by type of product1 In millions of US$ 1Q22 2Q22 3Q22 4Q22 1Q23 LTM1Q22 LTM1Q23 Pay-ins 1,644 1,881 2,046 2,334 2,503 5,236 8,764 As % of total 78% 77% 75% 71% 70% 72% 73% Pay-outs 460 552 687 962 1,072 1,991 3,273 As % of total 22% 23% 25% 29% 30% 28% 27% Total TPV 2,104 2,433 2,7
Slide 25: Revenue
Revenue Revenue breakdown by geography In millions of US$ 1Q22 2Q22 3Q22 4Q22 1Q23 LTM1Q22 LTM1Q23 Brazil 18.1 20.7 21.8 23.4 22.8 68.4 88.8 Argentina 21.1 23.2 19.1 14.2 20.0 61.0 76.5 Mexico 12.9 16.0 16.6 22.4 22.7 40.4 77.8 Chile 12.1 12.7 13.7 13.9 14.2 44.4 54.6 Other Latam 13.4 15.0 16.0 18.9
Slide 26: Adjusted EBITDA
Adjusted EBITDA 1Q23 Adjusted EBITDA Bridge ($M) Note: Adjusted EBITDA excludes one-off expenses and non-cash items. 1 Other non-recurring costs include costs related to an internal review of the allegations made by a short-seller report, including fees from independent counsel, independent global e
Slide 27: Adjusted EBITDA reconciliation
Adjusted EBITDA Reconciliation of Profit to Adjusted EBITDA $ in thousands Three months ended 31 of March 2023 2022 Profit for the period 35,450 26,273 Income tax expense 4,281 1,213 Depreciation and amortization 2,515 1,723 Finance income and costs, net (1,391) 1,293 Share-based payment non-cash char