DLocal (US:DLO)2025-05-14 20:32Financial 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].