Slide 1: Earnings 4th Quarter & Full Year Presentation 2022
Earnings 4th Quarter & Full Year Presentation 2022
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 Bangkok, Thailand . 4
Slide 5: Without dLocal vs with dLocal: one stop shop in emerging markets
Without dLocal: complex, With dLocal: one stop shop in multiple connections emerging markets Global merchants Global merchants PSP Acquiring PSP Acquiring PSP Acquiring PSP Acquiring PSP Acquiring Multiple solutions 900+ payment Improved ISSUING acceptance and One API, methods PSP Acquiring PSP Acqu
Slide 6: We partner with some of the largest global enterprises
Selected enterprises We partner with some of the largest global enterprises 600+ merchants and 200+ key accounts1 in 2022 6 Note: 1Total merchants exclude small and medium-sized businesses in our marketplace solution. Key accounts consider those merchants that have an Account Manager assigned.
Slide 7: Solving Salesforce's payment collection
Solving Salesforce's Splitting and settling payments, as well as payment accepting local payment methods, are some of the major challenges for global players that collection collect payments directly on their own platform. dLocal’s latest no-code solution solves the Creating tailor-made solutions at
Slide 8: Localized checkout to enhance merchants' payment experience
Localized checkout to dLocal allows clients such as Meta to deliver a enhance our smooth and frictionless payment experience in Africa by enabling dominant local payment merchants' methods outside of traditional international credit card payments, including mobile money, payment local cards, as well
Slide 9: We delivered another year of record results
We delivered another year of record results Total Processed Volume Revenue Gross Profit Adjusted EBITDA2 FY22 $10.6B $419M $202M $153M +75% YoY +72% YoY | NRR1 165% +55% YoY +54% YoY +126% +101% +83% +91% CAGR CAGR CAGR CAGR 4Q223 $3.3B $118M $55M $40M +78% YoY | +21% QoQ +55% YoY | +6% QoQ +42% YoY
Slide 10: Solving for the complex, fragmented payments ecosystem in EMs
Maximizing reach by accepting key local payment methods Non-credit card volume accounted for 67% of total TPV in 2022 Solving for the complex, fragmented 28% 41% payments 277 255 72% 59% ecosystem 188 Other payment methods include: in EMs 55 35 1 Bank Cash alike Debit Digital Local Mobile transfers
Slide 11: Industry-agnostic solutions operating across numerous verticals
Financial Industry-agnostic Commerce Services 20%1 of 2022 TPV 15% of 2022 TPV solutions operating across numerous Streaming Advertising verticals 13% of 2022 TPV 12% of 2022 TPV TPV growth during the year supported by a well diversified segment base and growth across all verticals On-demand Ride Hai
Slide 12: Diversifying revenues while growing our top merchants
Top 10 merchant revenue1 ($M) and concentration (%) Diversifying revenues while continuously growing our top merchants 1 Note: Top 10 merchants may vary from period to period. Top 10 merchants from quarter to quarter may differ from the Top 10 merchants for the full year. 12
Slide 13: Expanding our footprint in emerging markets across 40 countries
Further expanding our footprint in emerging markets with a coverage of 23 countries in Asia & Africa, and 17 countries in Latin America Localizing payments in 40 countries after adding Honduras in 4Q22 Panama Philippines DR Thailand Ivory Coast Nicaragua Argentina Colombia Indonesia Bolivia Ghana Vi
Slide 14: Africa and Asia revenue increased by 259% year-over-year
Africa and Asia revenue increased by 259% year-over-year in 2022 14
Slide 15: Africa & Asia revenue
Africa & Asia revenue ($M) 4% QoQ 259% YoY 423% YoY % share of total 8% 18% 6% 22% 22% revenue 15
Slide 16: Latin America continued to grow consistently
Latin America continued to grow consistently 16
Slide 17: Latin America revenue
Latin America revenue ($M) 6% QoQ 54% YoY 30% YoY % share of total 92% 82% 94% 78% 78% revenue 17
Slide 18: Latin America revenue by country
Latin America revenue by country ($M) 41% YoY 55% YoY 104% YoY 44% YoY 44% YoY % share of total 24% 20% 21% 19% 14% 16% 15% 13% 18% 15% revenue 18
Slide 19: We continue to grow our global team whilst 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 (%) 726 AFRICA & ASIA Technology 40% 159 Corporate central functions 21% +121% YoY Sales & AMERICAS Marketing 20%
Slide 20: Financial Highlights
Financial Highlights
Slide 21: Surpassed $10.5B TPV in 2022, and $3.3B in Q4
Surpassed $10.5B TPV in 2022, and $3.3B in Q4 TPV evolution ($B) 75% YoY 21% QoQ 78% YoY % cross-border share1 65% 58% % cross-border share1 63% 62% 61% 56% 53% 21 Note: Unaudited quarterly results. 1“Cross-border” means a payment transaction whereby dLocal is collecting in one currency and settling
Slide 22: Sustained growth in Pay-ins; accelerated Pay-outs growth in Q4
Sustained growth rates in Pay-ins; accelerated growth rate of Pay-outs in Q4 Pay-ins and Pay-outs TPV evolution ($B) 14% QoQ 91% YoY 65% YoY Pay-ins % share 68% 75% 76% 78% 77% 75% 71% 40% QoQ Pay-outs 39% YoY 119% YoY 22 Note: Unaudited quarterly results % share 32% 25% 24% 22% 23% 25% 29%
Slide 23: Another quarter of revenue growth, record $419M in 2022
Another quarter of revenue growth, reaching a record in 2022 of $419M Revenue evolution ($M) 72% YoY 6% QoQ 55% YoY 23 Note: Unaudited quarterly results
Slide 24: High NRR, with existing merchants driving revenue growth
High NRR, with existing merchants driving more than 80% of revenue growth Revenue composition ($M) FY Q41 165% 146% NRR1 NRR1 Note: 1Unaudited quarterly results 2 “NRR” means Net Revenue Retention rate, which is the U.S. dollar-based measure of retention and growth of our merchants. We calculate the
Slide 25: Continued profitable growth, over $200M gross profit in 2022
Continued profitable growth, reaching over $200M gross profit in 2022 Gross Profit ($M) and Gross Profit margin (%) evolution 55% YoY 2% QoQ 42% YoY Gross Profit Margin 58% 53% 48% Gross Profit Margin 51% 50% 49% 48% 47% 25 Note: Unaudited quarterly results
Slide 26: Strong EBITDA growth of 54% in 2022
Strong EBITDA growth of 54% in 2022, whilst continuing to invest for the future Adj. EBITDA1 ($M) and Adj. EBITDA margin (%) evolution 54% YoY -3% QoQ 39% YoY Adjusted EBITDA Margin 40% 41% 37% Adj. EBITDA Margin 38% 38% 38% 37% 34% Note: Unaudited quarterly results 1 26 dLocal has only one operatin
Slide 27: Solid net income growth and robust cash position
Solid net income growth and robust cash position, supporting business growth Net income evolution ($M) Cash reconciliation ($M)2 one-offs recorded in 4Q221 Note: 1During Q4 2022 we incurred $2M related to an internal review of the allegations made by a short-seller report, including fees from indepe
Slide 28: Q1 2023 Expectations and FY 2023 Outlook
Q1 2023 Expectations FY 2023 Outlook $3.5-3.6B TPV1 $620-640M REVENUE2 Implied NRR 140%-150% $135-138M REVENUE1 $200-220M ADJUSTED EBITDA2 $57-59M GROSS PROFIT1 Note: 1We do not intend to provide such preliminary numbers in future quarters and this should not be understood as a new practice by the C
Slide 29: Highlights
Highlights We power a massive and expanding emerging markets ecosystem accepting more than 900 local payment methods across 40 countries We are directly integrated with some of the world’s largest online merchants, driving very strong NRR and cohort performance We have built a scalable, single API t
Slide 30: Thanks
Thanks d-local
Slide 31: Appendix
APPENDIX
Slide 32: TPV
TPV TPV breakdown by type of product1 US$ million 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 Pay-ins 539 931 1,244 1,417 4,131 1,644 1,881 2,046 2,334 7,905 As % of total 58% 64% 69% 76% 68% 78% 77% 75% 71% 75% Pay-outs 387 525 567 439 1,918 460 552 687 962 2,661 As % of total 42% 36% 31% 24%
Slide 33: Revenue
Revenue Revenue breakdown by geography US$ million 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 Brazil 9.3 16.5 17.7 16.1 59.7 18.1 20.7 21.8 23.4 84.0 Argentina 10.3 11.2 13.6 15.1 50.2 21.1 23.2 19.1 14.2 77.6 Mexico 5.9 7.6 8.7 11.1 33.4 12.9 16.0 16.6 22.4 68.0 Chile 4.3 9.1 12.0 11.1 36.5
Slide 34: Adjusted EBITDA
Adjusted EBITDA 4Q22 Adjusted EBITDA Bridge ($M) FY2022 Adjusted EBITDA Bridge ($M) Note: Adjusted EBITDA excludes one-off expenses and non-cash items. Unaudited quarterly results. 1 During 2022, the Company utilized FTX Trading Ltd. (“FTX”) banking services for the repatriation of funds from one co
Slide 35: Adjusted EBITDA
Adjusted EBITDA Reconciliation of Profit to Adjusted EBITDA US$ thousand Three-month period ended December 31, Twelve-month period ended December 31, 2022 2021 2022 2021 Profit for the period 19,364 23,549 108,697 77,853 Income tax expense 3,935 2,114 11,586 7,647 Depreciation and amortization 2,457 1