Slide 1: Earnings Presentation 2nd Quarter 2022
Sebastián Kanovich Jacobo Singer Diego Cabrera Canay Chief Executive Officer President Chief Financial Officer Earnings Presentation 2nd Quarter 2022
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: We are building the best financial infrastructure for emerging markets
We are building the best financial infrastructure for emerging markets. 3
Slide 4: One-stop-shop in emerging markets: 1 API, 5 solutions
37 700+ One-stop-shop in Countries Local payment methods emerging markets 1API 5 solutions 2B+ Consumers unlocked 4
Slide 5: Continued strong financial performance in 2Q22
dLocal 2Q22 Results ▪ Continued strong financial SCALE GROWTH performance in 2Q22, despite TPV ($M) Revenue ($M) the hard comp in 2Q21 67% YoY 72% YoY CUSTOMER BASE GROWTH 16% QoQ 16% QoQ 157% NET REVENUE RETENTION RATE $2,433 $2,104 $101 $87 $1,456 PROFITABILITY $59 38% ADJUSTED EBITDA MARGIN1 Note:
Slide 6: We continue to expand our merchant base while monetizing existing clients
dLocal 2Q22 Results ▪ We continue to expand our merchant base while monetizing our existing clients More merchants using dLocal: reached 500+ merchants and ~200 key accounts1 in 1H22 Revenue concentration (%) Total # of countries per top 10 merchants 17 Avg. 9 4 Merchants Note: Unaudited quarterly r
Slide 7: Deepening our presence in Africa & Asia
dLocal 2Q22 Results ▪ Deepening our presence in Africa & Asia Presence in 22 countries (versus 16 in 2Q21) ▪ 3 countries are among our Top 10 (in terms of TPV/revenue) Successful land-and-expand strategy ▪ 9 out of Top 10 merchants (in terms of TPV) process with us in these regions with significant o
Slide 8: Sustainable and robust growth across all regions
dLocal 2Q22 Results ▪ Sustainable and robust growth across all regions with Africa and Asia representing 13% of our revenues Revenue by region - LATAM ($M) Revenue by region - Africa & Asia ($M) 63% YoY 155% YoY 13% QoQ 38% QoQ $88 $14 $78 $10 $54 $5 % share 91% 89% 87% Note: Unaudited quarterly res
Slide 9: We continue to invest in expanding our global team
dLocal 2Q22 Results ▪ We continue to invest in FTE evolution (#) expanding our global team AMERICAS TOTAL FTE IN 2Q22 514 FTE 632 +48% YoY +38% YoY AFRICA & ASIA 118 FTE +115% YoY Note: FTE includes employees and contractors. 9
Slide 10: Resilient business that continues to benefit from diversification
dLocal 2Q22 Results ▪ Resilient business that continues to benefit from diversification Continued growth of our TPV across most verticals, particularly in commerce, on-demand delivery, travel, SaaS and advertising TPV evolution ($M) 2Q22 TPV breakdown by vertical (%) 67% YoY 16% QoQ $2,433 $2,104 $2.4
Slide 11: Existing and new merchants driving growth
dLocal 2Q22 Results ▪ Existing and new merchants driving growth Revenue evolution ($M) Revenue composition ($M) 72% YoY 16% QoQ 157% NRR1 $101 $87 $9 $101 $33 $59 $59 Note: Unaudited quarterly results 1 “NRR” means Net Revenue Retention rate, which is the U.S. dollar-based measure of retention and g
Slide 12: Accelerated gross profit and EBITDA expansion, delivering profitable growth
dLocal 2Q22 Results ▪ Accelerated gross profit and EBITDA expansion, delivering profitable growth Gross profit evolution ($M) Adj. EBITDA1 ($M) and Adj. EBITDA margin (%) evolution 47% YoY 47% YoY 14% QoQ 16% QoQ $50 $38 $44 $33 $34 $26 Adj. EBITDA 44% 38% 38% margin Note: Unaudited quarterly results 1
Slide 13: We continue to execute with discipline, generating positive free cash flow
dLocal 2Q22 Results ▪ We continue to execute with discipline, generating positive free cash flow Free cash flow1 evolution ($M) ▪ Strong cash conversion2 of 168% in LTM $168 2Q22, or 103% excluding merchants’ funds ▪ Robust cash position of $454M as of June $99 30, 2022, or $270M excluding merchants’
Slide 14: Our top execution capabilities continue to deliver high growth profitably
dLocal 2Q22 Results ▪ Our top execution Summary 1H22 capabilities continue to deliver high growth in a profitable way We continue to invest prudently into the TPV growth big opportunity ahead of us SCALE (YoY) 91% We are well-positioned to fulfill our Revenue growth long-term vision GROWTH (YoY) 90% C
Slide 15: Investment highlights
dLocal 2Q22 Results ▪ Investment highlights We power a massive and expanding Emerging Markets ecosystem We are directly integrated with some of the world’s biggest online merchants in the world, driving very strong NRR and cohort performance We have built a scalable, single API technology infrastruc
Slide 16: Thanks!
Thanks! d-local
Slide 17: Appendix
APPENDIX
Slide 18: Financial highlights
dLocal 2Q22 Results ▪ Financial highlights 2Q22 Adjusted EBITDA Bridge ($M) $2 $1 $0 $1 $38 $35 1 2Q21 Adjusted EBITDA Bridge ($M) $3 $26 $2 $0 $19 $1 2 Note: Adjusted EBITDA excludes one-off expenses and non-cash items. Unaudited quarterly results. 1 Other Adjustments for 2Q22 includes other operat
Slide 19: Reconciliation of Profit to Adjusted EBITDA
dLocal 2Q22 Results ▪ Reconciliation of Profit to Adjusted EBITDA $ in thousands Three-month period ended June 30, Six-month period ended June 30, 2022 2021 2022 2021 Profit for the period 30,722 17,708 56,995 34,635 Income tax expense 4,151 1,596 5,364 2,975 Depreciation and amortization 1,857 1,344