Slide 1: Earnings Presentation 3rd Quarter 2022
Sebastián Kanovich Jacobo Singer Diego Cabrera Canay Maria Oldham Chief Executive Officer President, COO Chief Financial Officer VP of Corp. Development, IR Earnings Presentation 3rd Quarter 2022
Slide 2: 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 3: We are building the best financial infrastructure for emerging markets
We are building the best financial infrastructure for emerging markets. 3
Slide 4: 1 API, 5 solutions, 700+ local payment methods, 2B+ consumers
39 700+ One-stop-shop Countries Local payment methods in emerging markets 1 API 5 solutions 2 B+ Consumers unlocked 4
Slide 5: Continued delivery of record financial results
dLocal 3Q22 Results ▪ Continued delivery of record financial results Optimizing for gross profit and EBITDA dollars growth ADJUSTED NET REVENUE TPV REVENUE GROSS PROFIT EBITDA1 RETENTION RATE $2.7B $112M $54M $42M 152% +51% YoY +63% YoY +56% YoY +58% YoY +12% QoQ +11% QoQ +9% QoQ +9% QoQ Note: Unaudit
Slide 6: Africa and Asia delivering unparalleled growth
dLocal 3Q22 Results ▪ Revenue by region - Africa & Asia ($M) 312% YoY Africa and Asia 80% QoQ delivering $25 unparalleled growth, contributing to $14 22% of our revenues $6 % share 9% 13% 22% Note: Unaudited quarterly results 6
Slide 7: Continued solid growth in Latam while navigating changes in FX rules in Argentina
dLocal 3Q22 Results ▪ Revenue by region – Latam ($M) Revenue by region - LATAM ($M) excluding Argentina cross-border1 Continued solid 43% YoY 39% YoY growth 7% QoQ 0% QoQ in Latam while $88 navigating $87 changes in FX $63 $63 rules in Argentina % share 91% 87% 78% Note: Unaudited quarterly results
Slide 8: Further expanding our footprint in emerging markets
dLocal 3Q22 Results ▪ Further expanding our footprint in emerging markets Localizing payments in 39 countries after adding Nicaragua and Saudi Arabia in 3Q22 3Q22 additions 16 countries 13 countries 10 countries LATAM Africa Asia Note: Map is a representation of our coverage and may not be geographi
Slide 9: Growing our merchant base while consistently improving engagement
2Q22 Results ▪ dLocal 3Q22 Growing our merchant base while consistently Merchant engagement evolution2 improving engagement Average # of countries per merchant Average # of payment methods per merchant Total Merchants1 75 78 8 67 2020 300+ 7 67 6 44 2021 400+ 44 9M22 600+ (200+ key accounts) Note: U
Slide 10: Maximizing opportunities within our largest clients
dLocal 3Q22 Results ▪ Maximizing opportunities within our largest clients Continuous growth of our Top 10 merchant revenue and successful cross-selling strategy Top 10 merchant revenue ($M) and concentration (%) 3Q22 Top 10 merchants Average # of countries Top 10 merchants per merchant presence in A
Slide 11: We continue to grow our global team underpinned by a disciplined investment culture
dLocal 3Q22 Results ▪ We continue to grow our FTE by function (%) global team underpinned by a disciplined investment culture 20% 712 TOTAL FTE IN 3Q22 +34% YoY 40% AMERICAS FTE 21% 566 +23% YoY AFRICA & ASIA FTE 19% 146 +103% YoY Note: FTE includes employees and contractors. 11
Slide 12: TPV growth supported by a well diversified segment base
dLocal 3Q22 Results ▪ TPV growth supported by a well diversified segment base Continued growth across most verticals, particularly in commerce, on-demand delivery, travel, SaaS, advertising and financial services TPV evolution ($M) 3Q22 TPV breakdown by vertical (%) 51% YoY 12% QoQ $2,734 $2,433 $2,10
Slide 13: Revenue reached a new record high; supported by solid NRR of 152%
dLocal 3Q22 Results ▪ Revenue reached a new record high; supported by solid NRR of 152% Revenue evolution ($M) Revenue composition ($M) 63% YoY 11% QoQ 152% NRR1 $112 $101 $8 $112 $35 $87 $76 $69 $69 Note: Unaudited quarterly results 1 “NRR” means Net Revenue Retention rate, which is the U.S. dollar
Slide 14: Focused on growing gross profit and EBITDA dollars, while delivering profitable growth
dLocal 3Q22 Results ▪ Focused on growing gross profit and EBITDA dollars, while delivering profitable growth Gross profit evolution ($M) Adj. EBITDA1 ($M) and Adj. EBITDA margin (%) evolution 56% YoY 58% YoY 9% QoQ 9% QoQ $54 $50 $44 $42 $38 $39 $33 $34 $29 $26 Adj. EBITDA 38.3% 38.1% 37.6% 37.7% 37.2%
Slide 15: Strong balance sheet and continuous positive free cash flow generation
dLocal 3Q22 Results ▪ Our strong balance sheet and continuous positive free cash flow generation remain key competitive advantages Net income evolution ($M) Free cash flow1 evolution - own funds ($M) ▪ Strong net income to own cash $121 conversion2 of 107% in LTM 3Q22 $113 ▪ Robust cash position of $3
Slide 16: Summary 9M22
2Q22 Results ▪ dLocal 3Q22 Summary 9M22 Our top execution $7.3B SCALE TPV capabilities continue to 73% YoY deliver high growth coupled with profitability GROWTH Revenue $300M 79% YoY We are well positioned for CUSTOMER long-term growth NRR rate 166% RETENTION Adj. EBITDA PROFITABILITY 37% margin Note
Slide 17: Investment highlights
dLocal 3Q22 Results ▪ Investment highlights We power a massive and expanding emerging markets ecosystem accepting more than 700 local payment methods across 39 countries We are directly integrated to some of the world’s largest online merchants, driving very strong NRR and cohort performance We have
Slide 18: Thanks!
Thanks! d-local
Slide 19: Appendix
APPENDIX
Slide 20: Financial highlights
dLocal 3Q22 Results ▪ Financial highlights 3Q22 Adjusted EBITDA Bridge ($M) $2 $2 $0 $1 $42 $37 1 3Q21 Adjusted EBITDA Bridge ($M) $3 $0 $1 $1 $26 $22 2 Note: Adjusted EBITDA excludes one-off expenses and non-cash items. Unaudited quarterly results. 1 Other Adjustments for 3Q22 includes other operat
Slide 21: Reconciliation of Profit to Adjusted EBITDA
dLocal 3Q22 Results ▪ Reconciliation of Profit to Adjusted EBITDA $ in thousands Three-month period ended September 30, Nine-month period ended September 30, 2022 2021 2022 2021 Profit for the period 32,338 19,669 89,333 54,304 Income tax expense 2,287 2,558 7,651 5,533 Depreciation and amortization 2