Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation NASDAQ: DLO
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLoca
Slide 3: Strong start to the year 2022
Strong start to the year 2022 SCALE GROWTH RETENTION TPV ($M) REVENUE ($M) 190% 127% 117% NET REVENUE YoY YoY RETENTION RATE 1Q22 $2,104 $87 PROFITABILITY Results $926 $40 38% ADJUSTED 1Q21 1Q22 1Q21 1Q22 EBITDA MARGIN1 Note: Unaudited quarterly results 1 dLocal has only one operating segment. Altho
Slide 4: Disciplined profitable growth with LTM Adjusted EBITDA of $114M
We continue to deliver disciplined profitable growth with LTM Adjusted EBITDA of $114M Adjusted EBITDA1 ($M) and Adjusted EBITDA margin (%) evolution 118% 84% YoY YoY $114 $33 $18 $52 1Q21 1Q22 LTM 1Q21 LTM 1Q22 Note: 1 dLocal has only one operating segment. Although Adjusted EBITDA and Adjusted EBI
Slide 5: High growth across well diversified verticals
High growth across well diversified verticals 2Q22 TPV breakdown by vertical (%) YoY TPV by vertical (x) SaaS Other Gaming Streaming Entertainment >1.7x Financial Services Consumption > 5x $2.1B Commerce eLearning TPV Mobility > 2x Advertising On-demand Delivery Services > 1.8x Travel Ride Hailing 5
Slide 6: We continue to expand our footprint in emerging markets
We continue to expand our footprint in emerging markets LATAM EMEA APAC 37 COUNTRIES AS OF 1Q22 Argentina • Bolivia • Brazil • Chile Cameroon • Egypt • Ghana • Bangladesh • China • India • • Colombia • Costa Rica • Ivory Coast • Kenya • Morocco • Indonesia • Malaysia • Pakistan • Dominican Republic
Slide 7: All regions experiencing solid growth
All regions experiencing solid growth Asia and Africa contributing 11% to revenues Revenue by region – LatAm ($M) Revenue by region – Asia & Africa ($M) 116% 127% 100 YoY YoY 90 14 80 $78 12 70 $10 10 60 8 50 40 $36 6 30 $4 4 20 2 10 0 0 1Q21 1Q22 1Q21 1Q22 Note: Unaudited quarterly results 7
Slide 8: Committed to growing our business outside LatAm in emerging markets
Committed to growing our business outside LatAm in emerging markets 460+ FTE +46% YoY AMERICAS Jacobo Singer 100+ FTE 562 President +104% APACYoY EMEA & APAC TOTAL FTE 1Q22 +54% YoY Note: Map is a representation of our coverage and may not be geographically accurate. 8
Slide 9: Successful land-and-expand strategy across emerging markets
Successful land-and-expand strategy across emerging markets AMERICAS Nigeria AMERICAS India # of merchants # of merchants (1st years vs. 1Q22) (1st years vs. 1Q22) Selected examples of merchant 2020 = 5+ 2018 = 5+ growth in Asia & Africa 1Q22 = 10+ 1Q22 = 55+ 10+ NEW SIGNIFICANT MERCHANTS ONBOARDED
Slide 10: More than doubled TPV and revenue in 1Q22
More than doubled TPV and revenue in 1Q22 TPV evolution ($M) Revenue evolution ($M) 127% 117% YoY YoY 13% 15% QoQ QoQ $87 $2,104 $76 $1,812 $1,856 $69 $1,456 $59 $926 $40 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Note: Unaudited quarterly results 10
Slide 11: Existing and new merchants driving growth
Existing and new merchants driving growth Revenue composition ($M) 190% $11 $87 $36 NRR1 $40 1Q21 Existing New 1Q22 Merchants Merchants EXISTING MERCHANT REVENUE $19 NEW MERCHANT REVENUE EVOLUTION ($M) $77 EVOLUTION ($M) $69 $57 $12 $11 $33 $40 $8 $7 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 12: Continuous expansion in gross profit and EBITDA
Continuous expansion in gross profit and EBITDA Gross profit evolution ($M) Adj. EBITDA1 ($M) and Adj. EBITDA margin (%) evolution 44% 38% 38% 87% 84% YoY YoY 12% 13% QoQ QoQ $44 $39 $33 $29 $23 $18 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22 Note: Unaudited quarterly results 1 dLocal has only one operating segme
Slide 13: Investment highlights
Investment highlights We power a massive and expanding Emerging Markets ecosystem We are directly integrated with some of the world’s biggest online merchants in the world, driving very strong NRR and cohort performance We have built a scalable, single API technology infrastructure that makes the co
Slide 14: Thank you!
d-local Thank you!
Slide 15: Appendix
APPENDIX 15
Slide 16: What problems are we addressing?
What problems are we addressing? Complex and changing regulatory Multiple local payment methods Poor conversion and high fraud and tax frameworks with rising fragmentation 16 16
Slide 17: Financial highlights
Financial highlights 1Q22 Adjusted EBITDA Bridge ($M) $2 $2 $0 $0 $33 $29 1Q22 Operating Profit D&A Stock-Based Compensation Impariment Gain / Losses Other Adjustments 1 1Q22 Adjusted EBITDA (IFRS) on Financial Assets (IFRS) 1Q21 Adjusted EBITDA Bridge ($M) $19 $1 $1 $0 $18 -$2 1Q21 Operating Profit
Slide 18: Reconciliation of Profit to Adjusted EBITDA
Reconciliation of Profit to Adjusted EBITDA $ in thousands Three-month period ended March 31, 2022 2021 Profit for the period 26,273 16,927 Income tax expense 1,213 1,379 Other operating (gain)/loss - (2,896) Depreciation and amortization 1,723 515 Secondary offering expenses1 89 705 Transaction cos