Question-and-Answer SessionGreat. And I think this is now your third Communacopia, at least at dLocal. So maybe we start there, right? What's been the maybe biggest surprise challenge in a couple of years at dLocal now?Pedro ArntCEO & Director Yes. I think it's my second because I've been here for 2 years. But -- so at the peril, I'll give you a positive one and a not so positive one. I think that's more balanced. On surprises that perhaps I underestimated when joining the company, we still inhabit a highly ...

Question-and-Answer SessionGreat. And I think this is now your third Communacopia, at least at dLocal. So maybe we start there, right? What's been the maybe biggest surprise challenge in a couple of years at dLocal now?Pedro ArntCEO & Director Yes. I think it's my second because I've been here for 2 years. But -- so at the peril, I'll give you a positive one and a not so positive one. I think that's more balanced. On surprises that perhaps I underestimated when joining the company, we still inhabit a highly ...

Western Union has partnered with dLocal, a cross-border payment platform, to provide digital payment options on its online platforms in Latin American markets. The move is expected to align with “local habits and preferences”, offering customers in regions such as Chile, Mexico, Peru, Panama, Argentina, and Brazil a “more agile and modern” payment experience. The agreement incorporates locally relevant payment methods, including cards and bank transfers, into Western Union's digital channels. It is expe ...

Summary of DLocal 2025 Conference Call Company Overview - **Company**: DLocal (NasdaqGS:DLO) - **Industry**: Cross-border payments, particularly in emerging markets Key Points Industry Dynamics - The cross-border payment space is highly fragmented with many sub-scale companies, leading to a declining take rate reality [1] - Emerging markets have a complex and varied payment ecosystem, differing significantly from developed markets [2][3] - Regulatory frameworks and tax regimes vary widely across different markets, adding to the complexity [2] Market Performance - DLocal experienced strong execution in Q2, with significant rebounds in Brazil and Mexico after a weak second half of 2024 [5] - Non-LATAM markets (Africa, Middle East, Asia) now represent nearly 25% of DLocal's business and are growing faster than LATAM [5] - The company anticipates a five to ten-year Total Addressable Market (TAM) in Africa and the Middle East [5] Growth Opportunities - DLocal aims to help global merchants navigate the complexities of emerging market payments, which supports sustainable high growth [11] - The average number of countries served for top merchants increased from 8 to 11, and payment methods from mid-30s to low 40s over the last 18 months [11] - The company has only 715 active merchants, indicating significant potential for growth as they can add thousands more [12] Merchant Concentration - The top 10 merchants account for 60% of revenue, but only half of them were in the top 10 cohort in 2023, indicating diversification [14] - DLocal processes only about 20% of payments for its existing merchant base in Latin America, suggesting room for growth [15] Take Rate and Profitability - There is an inverse relationship between volume growth and take rates due to volume discounts [18] - TPV growth has consistently offset take rate compression, leading to accelerated gross profit dollar growth [18] - The company focuses on gross profit dollar growth rather than take rates as an input for financial modeling [19] Operational Improvements - DLocal has made significant investments in operations, product, technology, and compliance, improving internal controls and operational robustness [21][23] - The company is pursuing licenses in multiple jurisdictions, including the UK, EU, and the U.S., indicating confidence in its operations [22] Future Investments and Margins - DLocal's business model is asset-light and cash flow positive, with potential for high EBITDA margins [24] - The company sees opportunities to leverage AI to reduce costs in manual processes, aiming to return to 75% EBITDA margins [25] Competitive Landscape - The fragmented market may invite competition, but DLocal believes that scale can provide pricing benefits to clients, potentially crowding out smaller competitors [26] - Take rates are expected to decline over the next 24 months but will stabilize at a higher level than developed world payment service providers [27] Regional Insights - Brazil's growth is attributed to stabilization with a previously large merchant and a pickup in installment payments [31] - Argentina's outlook is uncertain due to recent political changes and currency devaluation, but demand for cross-border trade remains strong [32][33] - Opportunities are seen in Africa and the Middle East, while Egypt is identified as a potential weak spot [34] Stablecoin and Product Development - DLocal views stablecoins as an opportunity for on-ramps and off-ramps in local currency transactions [35][36] - The company is piloting new products, including credit solutions and point-of-sale systems, to enhance its service offerings [41][43] Conclusion - DLocal is positioned for growth in a complex and fragmented market, with a focus on operational improvements, product diversification, and leveraging emerging market opportunities. The company remains optimistic about its future despite inherent market volatility [45][46]

Money transfer company Western Union (NYSE:WU) and payments platform dLocal (NASDAQ:DLO) announced on Tuesday a strategic alliance to enable digital payment methods on the former's online platforms in Latin America. The agreement incorporates alternative and locally relevant payment methods—such as ...

MONTEVIDEO, Uruguay, Sept. 05, 2025 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”), (NASDAQ:DLO) a technology-first payments platform, today announced the closing of a previously announced secondary offering of 17,250,000 Class A common shares (including 2,250,000 Class A common shares pursuant to the full exercise of the underwriters’ option) by an entity associated with General Atlantic at a price to the public of $12.75 per share. The Company is not selling any Class A common shares in the offering and wi ...

Core Insights - DLocal's stock price fell nearly 8% following the announcement of a secondary offering of shares by a major shareholder, contrasting with the S&P 500 index, which rose almost 1% on the same day [1][2]. Group 1: Secondary Offering Details - A major shareholder associated with General Atlantic is offering 15 million shares of DLocal's Class A common stock at a price of $12.75 each, which is significantly lower than the previous closing price [2]. - The underwriting syndicate for this offering includes JPMorgan Chase, Goldman Sachs, and Morgan Stanley, who have a 30-day option to purchase an additional 2.25 million shares [4]. Group 2: Market Reaction and Investor Sentiment - The sale of shares at a discount typically raises concerns among investors, but it does not necessarily reflect a loss of confidence in the company, as there are various reasons for such actions that may relate more to the seller's circumstances than the investment itself [5].

Group 1 - dLocal Limited announced a secondary offering of 15,000,000 Class A common shares at a price of $12.75 per share, with no proceeds going to the company [1] - The offering is expected to close on September 5, 2025, subject to customary closing conditions [1] - Underwriters have a 30-day option to purchase an additional 2,250,000 Class A common shares from the Selling Shareholder at the public offering price [1] Group 2 - The offering is being managed by an underwriting group led by J.P. Morgan, Goldman Sachs & Co. LLC, and Morgan Stanley, with BTG Pactual and Citigroup as joint bookrunners [2] - dLocal has filed an automatically effective shelf registration statement with the SEC for the offering [3] Group 3 - dLocal operates a technology-first payments platform that connects global enterprise merchants with consumers in over 40 emerging market countries across Africa, Asia, and Latin America [5] - The "One dLocal" platform allows global companies to manage payments, pay-outs, and fund settlements without needing multiple local entities or payment processors [5]

Core Viewpoint - dLocal Limited has initiated a secondary offering of 15,000,000 Class A common shares, with no proceeds going to the company itself [1] Group 1: Offering Details - The offering is led by an entity associated with General Atlantic, and dLocal will not sell any shares in this offering [1] - The Selling Shareholder plans to provide underwriters with a 30-day option to purchase an additional 2,250,000 Class A common shares at the public offering price [2] - The underwriting group includes J.P. Morgan, Goldman Sachs & Co. LLC, and Morgan Stanley as global coordinators and joint bookrunners, along with BTG Pactual and Citigroup as joint bookrunners [2] Group 2: Regulatory Information - dLocal has filed an automatically effective shelf registration statement with the SEC for this offering [3] - Interested investors are encouraged to read the prospectus and related documents filed with the SEC for comprehensive information [3] Group 3: Company Overview - dLocal operates a technology-first payments platform that facilitates local payments in emerging markets, connecting global merchants with consumers in over 40 countries across Africa, Asia, and Latin America [5] - The "One dLocal" platform allows global companies to manage payments, payouts, and fund settlements without needing multiple local entities or payment processors [5]

Core Viewpoint - DLocal Limited has experienced a significant surge in its stock price following a strong earnings report, indicating a potential shift in market sentiment towards the company's growth prospects and operational efficiency [2][12]. Financial Performance - Total Payment Volume (TPV) reached a record $9.2 billion, reflecting a 53% year-over-year increase and a 14% sequential growth, marking the third consecutive quarter of over 50% growth [2]. - Revenue for the quarter was $256.5 million, exceeding estimates of $229.7 million, representing a 50% year-over-year growth and an 18% increase from the previous quarter, with constant currency revenue growth at 63% [3]. - Adjusted EBITDA was $70.1 million, surpassing expectations of $55.8 million, up 64% from the previous year, with margins steady at over 27% [4]. - Free cash flow increased by 156% year-over-year to $48 million, demonstrating strong cash generation even amid ongoing investments [4]. - Operating expenses grew only 9% year-over-year, significantly lower than revenue growth, indicating effective cost management and operational leverage [5]. Guidance and Market Sentiment - Management raised full-year guidance, now projecting revenue of approximately $1.01 billion and adjusted EBITDA of $274 million, reinforcing confidence in sustained growth momentum [7]. - The company has improved its communication and execution under CEO Pedro Arnt, which has positively influenced investor perception [8]. Growth Drivers and Competitive Positioning - DLocal's growth is supported by three structural tailwinds: a large addressable market in underpenetrated digital payments, increased share-of-wallet with existing merchants, and early-stage adoption by new clients [9]. - The company differentiates itself by innovating local payment infrastructure in emerging markets, serving global companies in regions with low digital penetration while maintaining high margins [10]. Analyst Attention and Stock Outlook - Following the strong quarterly results, HSBC upgraded DLocal's stock from Hold to Buy, raising its price target from $11.50 to $15, citing cost discipline and improved capital efficiency as key factors [11]. - The recent stock rally of 43% raises questions about whether the optimism has already been priced in or if further revaluation is possible for this payments leader [13].