Core Viewpoint - DLocal (DLO) shows a promising earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about DLocal's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, DLocal is projected to earn $0.15 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 16% over the last 30 days, with no negative revisions [6]. - For the full year, the expected earnings per share is $0.62, representing a year-over-year increase of 21.57%, with three estimates moving higher recently and no negative revisions [7]. Zacks Rank - DLocal currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - DLocal's stock has gained 13.9% over the past four weeks, driven by solid estimate revisions, suggesting that its earnings growth prospects may lead to further stock price increases [9].

Core Viewpoint - DLocal (DLO) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for DLocal's earnings per share (EPS) for the fiscal year ending December 2025 is projected at $0.62, reflecting a 21.6% increase from the previous year [8]. - Over the past three months, the consensus estimate for DLocal has risen by 9.9%, indicating a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks rating system classifies stocks based on earnings estimate revisions, with DLocal's upgrade positioning it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns [10]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Impact of Institutional Investors - Changes in earnings estimates significantly influence institutional investors' valuation models, leading to buying or selling actions that affect stock prices [4]. - The correlation between earnings estimate revisions and stock price movements underscores the importance of tracking these revisions for investment decisions [6].

Group 1: dLocal Ltd (NASDAQ:DLO) - dLocal Ltd is currently one of the best-performing stocks on Wall Street, with a recent increase of 13.4% to a trading price of $11.59 [1] - The company's first-quarter earnings and revenue exceeded estimates, leading to a price-target increase from Susquehanna from $16 to $18 [1] - dLocal has reclaimed its year-to-date breakeven level and is up 17% over the last 12 months [1] Group 2: LendingClub Corp (NYSE:LC) - LendingClub Corp is down 4% to a trading price of $10.66 and has seen a decline of 34% year-to-date [1] - Despite a nearly 10% increase in May, the stock's rally has been halted at its 80-day moving average [1] Group 3: Robinhood Markets Inc (NASDAQ:HOOD) - Robinhood Markets Inc is down 2.8% to a trading price of $59.68, having recently attempted to reach its four-year high of $66.91 [2] - The stock has achieved a 60% gain year-to-date, with support at its 200-day moving average [2] Group 4: Affirm Holdings Inc (NASDAQ:AFRM) - Affirm Holdings Inc is down 6.8% to a trading price of $52.68 and has declined 13% year-to-date [3] - The stock faced resistance at its 126-day moving average but remains up 63% over the last 12 months [3] Group 5: Market Sentiment and Short Selling - dLocal Ltd shows significant contrarian potential, with five out of seven brokerages covering the stock maintaining "hold" ratings [3] - Nearly 15% of dLocal's total available float is sold short, indicating potential for upward movement [3]

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Core Viewpoint - DLocal reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.07 per share a year ago, representing a 25% earnings surprise [1][2] Financial Performance - The company achieved revenues of $216.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.92%, and up from $184.43 million year-over-year [2] - Over the last four quarters, DLocal has exceeded consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance and Outlook - DLocal shares have declined approximately 12.5% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $227.42 million, and for the current fiscal year, it is $0.55 on revenues of $952.81 million [7] - The estimate revisions trend for DLocal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which DLocal belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The total payment volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase [6][17] - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19] - Gross profit also reached a record level of $85 million, up 35% year-over-year or nearly 60% in constant currency [20] - Net income for the quarter was $47 million, representing a 57% quarter-over-quarter increase and a 163% year-over-year increase [25] - Free cash flow amounted to $40 million, up from $33 million in the previous quarter, indicating a 22% increase [26] Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion for the first time [17] - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18] - The pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while the payouts business grew 12% quarter-over-quarter and 61% year-over-year [18] Market Data and Key Metrics Changes - The company experienced strong growth in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [6][7] - Geographic diversification contributed to sustained growth momentum, even amid challenges in specific markets [20] Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and service quality [5][10] - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [10][11] - The company aims to expand its licensed portfolio to navigate complex regulatory environments, adding three new registrations in the first quarter [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets, driven by demographic and technological shifts [31][32] - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [33] - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [34] Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [27][28] - The company plans to return 30% of free cash flow to shareholders annually, with the first dividend payable in 2026 [28] Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [36][39] Question: Operating Expenses and Take Rates - Operating expenses grew 3% in the quarter, with management noting a focus on responsible spending [46][48] - The decline in take rates was attributed to a mix shift away from a high take rate merchant in the advertising sector [49][50] Question: Performance in Other LATAM Markets - Strong performance in Other LATAM was driven by TPV growth in frontier markets, particularly in Chile [53][56] Question: Brazil's Revenue and Gross Profit Dynamics - Brazil's revenue and gross profit faced challenges due to a repricing from a major merchant and migration to a lower take rate product [62][65] Question: Capital Allocation and M&A Strategy - The company is exploring M&A opportunities to enhance its capabilities and is confident in its asset-light business model [87][70] Question: Trends in April and May - Management noted that trends in April and May have remained within expectations, with no significant signs of slowdown [93][94]

Financial Data and Key Metrics Changes - The total payment volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase [7][17] - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19] - Gross profit reached $85 million, up 35% year-over-year or nearly 60% on a constant currency basis [20] - Net income for the quarter was $47 million, up 57% quarter-over-quarter and 163% year-over-year [24] - Free cash flow amounted to $40 million, representing a 22% increase from the previous quarter [25] Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion [17] - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18] - The pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while the payouts business grew 12% quarter-over-quarter and 61% year-over-year [18] Market Data and Key Metrics Changes - Strong growth was noted in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [8] - The company experienced robust growth across multiple verticals, including remittances, commerce, financial services, and streaming [8] Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and service quality [6][12] - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [11][12] - The company aims to expand its licensed portfolio to navigate complex regulatory environments [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets despite short-term macroeconomic headwinds [30][31] - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [32] - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [33] Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [26][27] - The company plans to return 30% of free cash flow as annual dividends starting in 2026 [27] Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [38] Question: Operating Expenses - Operating expenses grew 3% in the quarter, with management indicating a focus on responsible expense management [45][48] Question: Performance in Other LATAM - Strong performance in Other LATAM was attributed to improved take rates and volume growth in frontier markets, particularly in Chile [56] Question: Brazil's Revenue and Gross Profit - Management noted that Brazil is beginning to stabilize, with volume growth expected to improve as execution enhances [64] Question: Competition and Market Dynamics - Management acknowledged that share losses in Mexico and Brazil could be attributed to competitive dynamics but expressed confidence in regaining market share through improved execution [78][82] Question: M&A Opportunities - The company is exploring M&A opportunities, particularly in acquiring subscale fintech companies that could complement its existing services [88] Question: Future Operating Expenses - Management expects operating expenses to increase in the coming quarters as investments ramp up, particularly in technology [92]

Financial Data and Key Metrics Changes - Total Payment Volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase, with a constant currency growth of 72% [6][17]. - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19]. - Gross profit reached $85 million, representing a 35% year-over-year increase or nearly 60% in constant currency [20]. - Net income for the quarter was $47 million, up 57% quarter-over-quarter and 163% year-over-year [25]. - Free cash flow amounted to $40 million, a 22% increase from the previous quarter [26]. Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion [17]. - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18]. - Pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while payouts business grew 12% quarter-over-quarter and 61% year-over-year [18]. Market Data and Key Metrics Changes - Strong growth was noted in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [7]. - The company experienced robust growth across multiple verticals, including remittances, commerce, financial services, and streaming [7]. Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and expand service offerings [6][11]. - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [10][11]. - The company aims to grow its licensed portfolio to navigate complex regulatory environments, adding three new registrations in the first quarter [13]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets despite short-term macroeconomic headwinds [30][32]. - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [33]. - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [34]. Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [27][28]. - The company plans to return 30% of free cash flow as annual dividends starting in 2026 [28]. Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [38]. Question: Take Rates in Argentina - The higher take rates in Argentina are considered sustainable due to the nature of the products offered, which include receivables discounting [42]. Question: Operating Expenses - Operating expenses are expected to increase in subsequent quarters, but management emphasized a focus on responsible spending [48][91]. Question: Brazil's Revenue and Gross Profit - Brazil's revenue and gross profit have been impacted by a repricing from a major merchant and a migration to a lower take rate product, but management sees potential for recovery [66][68]. Question: Competition and Market Dynamics - Management acknowledged that share losses in Mexico and Brazil could be attributed to competitive dynamics but expressed confidence in regaining market share through improved execution [78][83]. Question: M&A Opportunities - The company is actively exploring M&A opportunities, particularly in the fintech space, to enhance its capabilities and market position [88].

Financial Performance - Total Payment Volume (TPV) reached $8.1 billion, a 53% year-over-year increase and a 5% quarter-over-quarter increase[16] - Revenue was $217 million, up 18% year-over-year and 6% quarter-over-quarter[17] In constant currency, revenue increased 36% year-over-year[17,76] - Gross profit was $85 million, a 35% year-over-year increase and a 1% quarter-over-quarter increase[19] In constant currency, gross profit increased 59% year-over-year[17,76] - Adjusted EBITDA was $58 million, up 57% year-over-year and 2% quarter-over-quarter, with an Adjusted EBITDA/Gross Profit Ratio of 68%[18] - Net income was $47 million, up 163% year-over-year and 57% quarter-over-quarter[18] - Free cash flow (FCF) was $40 million, up 200% year-over-year and 22% quarter-over-quarter, with FCF to net income ratio at 85%[20] TPV Breakdown - Cross-border TPV reached $4 billion, up 76% year-over-year and 14% quarter-over-quarter[32,36] Cross-border TPV accounted for 53% of total TPV[31,63] - Local-to-local TPV increased 33% year-over-year but decreased 3% quarter-over-quarter[32] Local-to-local TPV accounted for 47% of total TPV[31,63] - Pay-ins TPV increased 49% year-over-year and 2% quarter-over-quarter[33] Pay-ins accounted for 67% of total TPV[33,62] - Pay-outs TPV increased 61% year-over-year and 12% quarter-over-quarter[33] Pay-outs accounted for 33% of total TPV[33,62] Regional Performance - Latin America revenue increased 30% year-over-year and 7% quarter-over-quarter[37] - Africa & Asia revenue decreased 9% year-over-year but increased 4% quarter-over-quarter[37]

Q1'25 Earnings Presentation Q1'25 ➔ 1 Forward-looking statements This presentation may contain forward-looking statements. These forward-looking statements convey dLocal's current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance involve known and unknown risks, uncertainties and other factors that may cause dLocal's actual results, performanc ...