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]

Financial Performance - Total Payment Volume (TPV) reached $8 billion, representing a 53% year-over-year (YoY) increase and a 5% quarter-over-quarter (QoQ) increase; in constant currency, TPV would have increased by 72% YoY [12]. - Revenue for Q1'25 was $217 million, up 18% YoY and 6% QoQ; in constant currency, revenue growth was 72% YoY [17]. - Adjusted EBITDA was $58 million, reflecting a 57% YoY increase and a 2% QoQ increase, with an Adjusted EBITDA to Gross Profit ratio of 68% [18]. - Net income grew to $47 million, a 163% YoY increase and a 57% QoQ increase, driven by positive non-cash effects related to Argentine bond investments [18]. - Free cash flow (FCF) reached $40 million, up 200% YoY and 22% QoQ, with a cash conversion ratio of 85% [20]. - Revenue for Q1'25 was $216.8 million, an 18% increase compared to $184.4 million in Q1'24 [76]. - Gross profit for Q1'25 amounted to $84.9 million, reflecting a 35% growth from $63.0 million in Q1'24 [76]. - Adjusted EBITDA for Q1'25 was $57.9 million, compared to $36.8 million in Q1'24, indicating significant operational improvement [74]. - Adjusted net income for Q1'25 was $50.9 million, up from $20.7 million in Q1'24 [75]. - Revenue from Latin America in Q1'25 was $162.9 million, a 30% increase from $125.4 million in Q1'24 [65]. - The company reported a gross profit margin of 39.2% in Q1'25, compared to 34.2% in Q1'24 [66]. Operational Efficiency - Automation and AI investments improved operational efficiency, leading to better conversion rates and reduced processing times [14]. - TPV retention rate was 144%, indicating strong merchant base defensibility [13]. - Significant growth in remittances at 184% YoY, driven by successful commercial efforts [30]. - Cross-border transactions accounted for 53% of total TPV in Q1'25, up from 46% in Q1'24 [64]. - The top 10 merchants contributed 60% of total revenue in Q1'25, with a Net Revenue Retention (NRR) rate of 113% [68]. Market Expansion - The company launched operations in two new markets in Africa, enhancing its geographic footprint [22]. - The company reaffirmed its full-year guidance, indicating confidence in long-term value creation [58]. Working Capital - Working capital changes showed a positive shift with a $39 million increase in Q1'25, reversing a negative trend from previous quarters [79].

Core Insights - dLocal achieved record highs in key financial and operational metrics for Q1 2025, including Total Payment Volume (TPV), revenue, and gross profit [2][6][8] Financial Performance - Total Payment Volume (TPV) reached US$8.1 billion, representing a 53% year-over-year increase and a 5% quarter-over-quarter increase [2][6][8] - Revenue for the quarter was US$216.8 million, up 18% year-over-year and 6% quarter-over-quarter [2][6][8] - Gross profit was US$84.9 million, a 35% increase compared to Q1 2024 [2][6][8] - Adjusted EBITDA was US$57.9 million, reflecting a 57% year-over-year increase [2][10][12] - Net income for Q1 2025 was US$46.7 million, a significant increase of 163% compared to Q1 2024 [10][12][14] Operational Efficiency - Adjusted EBITDA margin improved to 27%, up from 20% in Q1 2024 [10][12] - Free cash flow for the quarter was US$39.7 million, a 200% increase year-over-year [10][12] - The company maintained a strong cash position with US$511.5 million in cash and cash equivalents as of March 31, 2025 [10][12][15] Strategic Execution - The management team effectively leveraged existing merchant relationships and established new partnerships, contributing to the strong financial performance [5][10] - The company focused on expanding its license portfolios through its legal and regulatory teams [5][10] Market Position - dLocal operates in over 40 countries across Africa, Asia, and Latin America, connecting global enterprise merchants with emerging market consumers [19][20]

Company Overview - DLocal (DLO) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.12, reflecting a +71.4% change, and revenues of $210.62 million, up 14.2% from the previous year [3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on May 14, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2][3]. - The consensus EPS estimate has been revised down by 7.41% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for DLocal matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. - DLocal currently holds a Zacks Rank of 3 (Hold), suggesting that it may not be a strong candidate for an earnings beat [11][16]. Historical Performance - In the last reported quarter, DLocal met the expected EPS of $0.15, resulting in no surprise, and has beaten consensus EPS estimates in two out of the last four quarters [12][13]. Industry Context - Another player in the financial transaction services industry, Ryvyl (RVYL), is expected to report a loss of $0.27 per share, with revenues projected at $15.54 million, down 7.3% year-over-year [17]. - Ryvyl's consensus EPS estimate has been revised down by 94.7% over the last 30 days, but it currently has an Earnings ESP of 7.41%, indicating a likelihood of beating the consensus EPS estimate [18].

Competition and Market Dynamics - The company operates in a highly competitive electronic payments market, facing substantial competition from larger firms with greater resources and established relationships with merchants [46]. - The company has a limited operating history since its inception in 2016, and its revenue growth rate is expected to slow as the business matures [51]. - The company may face pricing pressures from competitors who can offer lower prices through cross-subsidization, potentially impacting profit margins [47]. - The electronic payment industry is sensitive to economic conditions, with potential impacts from geopolitical tensions and inflation affecting consumer spending [115]. - The ongoing conflict between Russia and Ukraine has led to increased energy prices and inflation, which could further impact macroeconomic conditions globally [117]. Ownership and Control - As of December 31, 2024, holders of Class B common shares own 46.96% of outstanding shares and control 81.57% of voting rights, significantly influencing corporate decisions [41]. - The concentration of ownership among Class B shareholders may limit the ability of other shareholders to influence corporate matters [218]. - Class B shareholders have preemptive rights to acquire additional shares, which may impair the company's ability to raise funds [219]. - The dual class structure of common stock concentrates voting control, with Class B shares having five votes per share compared to one vote for Class A shares [227]. Regulatory and Compliance Risks - The company is subject to complex and evolving regulatory environments in the countries it operates, which could impact its ability to maintain necessary licenses and permissions [41]. - The company expects to expend significant resources to maintain compliance with evolving data protection laws, which could impose substantial costs and operational challenges [74]. - The company is licensed and regulated in multiple jurisdictions, including the EU as an Electronic Money Issuer and in the UK as a Payment Institution, with operations primarily in Latin America [80]. - The company may face reputational harm and legal liability due to challenges in managing artificial intelligence applications, which are increasingly integrated into its operations [75]. - The company is subject to stringent anti-corruption and anti-bribery laws, which impose liability for engaging in improper activities [141]. Financial Performance and Growth - The company is experiencing significant expansion and anticipates continued growth to address potential increases in its customer base and market opportunities [55]. - The top 10 customers accounted for 62% of the company's revenues in the year ended December 31, 2024, compared to 60% in 2023 and 50% in 2022 [66]. - The company’s future growth depends on its ability to attract and retain merchants, as well as to expand its product portfolio, including cryptocurrency processing [48]. - The company’s working capital needs may grow beyond its cash generation capabilities, leading to potential declines in cash reserves and slower growth [54]. Cybersecurity and Operational Risks - The company faces risks from cyberattacks and data breaches, which could materially affect its reputation and financial condition [68]. - The company experienced a cybersecurity breach in 2019, resulting in a loss of approximately US$ 516 thousand due to fraudulent cash withdrawals [71]. - The company has limited insurance coverage for cybersecurity risks, which may expose it to significant expenditures in the event of a major claim [78]. - The company relies heavily on third-party services, including Amazon Web Services, Google Cloud, and Microsoft Azure, for its operations, making it vulnerable to service disruptions [111]. Market and Economic Conditions - The company is exposed to currency risk from fluctuations in foreign exchange rates, particularly with currencies like the Argentine peso and Brazilian real, which have experienced significant devaluations [89]. - Political and economic instability in Brazil and Argentina poses risks to business operations, potentially affecting financial performance [192]. - The company faces challenges from inflationary pressures in Latin America, driven by supply shocks and currency depreciation, which may persist into early 2025 [196]. - The political environment in Latin America, Africa, and Asia significantly influences economic performance, with potential adverse effects on business operations [198]. Legal and Litigation Risks - Ongoing litigation and investigations could materially affect the company's financial position and results of operations, with potential reputational harm [167]. - The company may incur significant legal expenses related to cybersecurity attacks, which could negatively impact its financial condition [74]. - The company faces risks related to operational controls and procedures, which may fail or be circumvented, adversely affecting financial results [148]. Strategic Initiatives and Challenges - The company is expanding into new geographies and industry verticals, which may strain resources and introduce new challenges [58]. - The company is developing new payment solutions involving cryptocurrencies, which may expose it to additional regulatory risks and compliance challenges [86]. - The company may pursue strategic acquisitions, but there is no guarantee of finding suitable targets or completing acquisitions on acceptable terms [160]. - The success of acquisitions depends on accurate assumptions regarding valuation and integration; failure to integrate could lead to unforeseen costs and operational difficulties [161].

MONTEVIDEO, Uruguay, April 17, 2025 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ:DLO, "dLocal" or the "Company")), a technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets, intends to release financial results for its first fiscal quarter ended March 31, 2025 on May 14, 2025 after market close. The Company will host a conference call and video webcast on May 14, 2025 at 5:00 p.m. Eastern Time. Please click here to pre-register for the ...