DLocal Limited (NASDAQ:DLO) Q4 2021 Results Conference Call March 15, 2022 8:30 AM ET Company Participants Soledad Nager - Head, Investor Relations Sebastian Kanovich - Chief Executive Officer Sumita Pandit - Chief Operating Officer Diego Cabrera - Chief Financial Officer Conference Call Participants Kaio Prato - UBS Andrew Bauch - SMBC Neha Agarwala - HSBC Operator Hello. Thank you for standing by, and welcome to the dLocal Fourth Quarter 2021 Results Conference Call. At this time, all participants are in ...

DLocal Limited (NASDAQ:DLO) Q3 2021 Results Conference Call November 16, 2021 4:30 PM ET Company Participants Sumita Pandit - COO Sebastián Kanovich - CEO Diego Cabrera Canay - CFO Conference Call Participants Jorge Kuri - Morgan Stanley Jason Kupferberg - Bank of America Neha Agarwala - HSBC Tito Labarta - Goldman Sachs Domingos Falavina - JP Morgan Operator Thank you for standing by, and welcome to DLocal Limited Reports Third Quarter 2021 Financial Results Conference Call. At this time, all participants ...

Financial Data and Key Metrics Changes - Total Processed Volume (TPV) grew 319% year-over-year, reaching $1.5 billion in Q2 2021, marking the first time surpassing $1 billion in a single quarter [7][20] - Revenue in Q2 2021 increased to $59 million, representing 186% year-over-year growth and 46% quarter-over-quarter growth [8][33] - Adjusted EBITDA grew to $25.9 million, reflecting 213% year-over-year growth and maintaining a stable adjusted EBITDA margin of 44% [34][36] Business Line Data and Key Metrics Changes - The company onboarded over 10 new merchants in Q2 2021, with revenues from new clients reaching $19 million compared to $1 million in Q2 2020 [26][36] - The net revenue retention rate improved to 196% in Q2 2021, up from 186% in Q1 2021 [8][25] Market Data and Key Metrics Changes - The addressable e-commerce market in the countries served is estimated at $1.2 trillion, with $0.4 trillion in pay-ins expected to grow at a 27% annual growth rate [20] - The company processed $2.4 billion in TPV in the first half of 2021, which is 15% more than the total processed in the full year of 2020 [20] Company Strategy and Development Direction - The company focuses on three primary growth vectors: commercial efforts, product expansion, and geographic expansion [21][22] - The strategy includes enhancing product offerings and expanding into new markets, with recent additions of Vietnam, Malaysia, and Guatemala [22][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth trajectory, emphasizing the importance of adapting to changing consumer behaviors and market dynamics [9][12] - The company anticipates continued investment in growth, which may lead to a decrease in margins in the coming quarters [12][34] Other Important Information - The company has embraced a hybrid work model, allowing employees to work from various locations, which has been beneficial for its global operations [10] - The company launched an issuance-as-a-service product, which is expected to complement its existing offerings and create new revenue streams [17][60] Q&A Session Summary Question: What type of new merchants contributed to the $19 million growth? - Management clarified that the $19 million figure includes revenues from any new clients onboarded in the last 12 months, emphasizing the importance of ongoing value addition to retain and grow these relationships [42][43] Question: Is the net revenue retention rate expected to trend higher? - Management indicated that while the current rate is impressive, they expect it to stabilize around 150% to 160% in the medium term as cohorts mature [50][54] Question: How significant was the PrimeiroPay acquisition on current revenues? - Management confirmed that the revenues and TPV figures include contributions from PrimeiroPay, but the impact is not significant enough to alter overall performance metrics [56][57] Question: What is the outlook for margins in the coming quarters? - Management expects some margin compression due to ongoing investments in growth and the nature of contracts with large merchants, which may lead to lower pricing tiers as volumes increase [66][68] Question: How is the competitive landscape evolving? - Management acknowledged the competitive nature of the payments industry but expressed confidence in their unique positioning and advantages in emerging markets [72]