DLocal -dLocal Reports 2024 Fourth Quarter Financial Results

Core Insights - dLocal reported a Total Payment Volume (TPV) of $25.6 billion for the full year 2024, representing a 45% year-over-year increase, with revenue reaching$ 746 million, up 15% year-over-year [1][3][6] - The company achieved a Net Revenue Retention Rate of 113% and a Gross Profit of $295 million, which is a 6% increase year-over-year [1][3][6] - Adjusted EBITDA for the year was$ 189 million, reflecting a 7% decrease year-over-year, indicating some pressure on profitability despite revenue growth [1][3][6] Financial Performance - In Q4 2024, dLocal's TPV reached $7.7 billion, a 51% increase year-over-year and an 18% increase quarter-over-quarter [2][20] - Revenue for Q4 was$ 204 million, up 9% year-over-year and 10% quarter-over-quarter, driven by strong performance in Egypt and other emerging markets [2][20][29] - Gross Profit for Q4 was $84 million, a 20% increase year-over-year, with a gross profit margin of 41% [20][22][29] Market Dynamics - The company is focusing on expanding into newer, more attractive markets, which has contributed to the strong TPV growth [3][6][7] - dLocal's business model benefits from a large addressable market in emerging and frontier markets, where 85% of the world's population resides [7][18] - The company is experiencing a shift in payment mix and take rates, with a focus on higher take rate markets to offset compression [10][15][29] Operational Highlights - dLocal's investments in product development and operational capabilities are aimed at achieving greater scalability and efficiency [4][12][18] - The company added 9 licenses and registrations in 2024, including a significant license from the UK FCA, enhancing its competitive edge [12][18] - Cash generation remains strong, with$ 425.2 million in cash and cash equivalents as of December 31, 2024, despite a decrease from the previous year [24][29] Future Outlook - For 2025, dLocal expects TPV growth of 35% to 45% year-over-year, with revenue growth projected at 25% to 35% [14][18] - The company anticipates gross profit growth of 20% to 25% and Adjusted EBITDA growth between 20% and 30% year-over-year [14][18] - dLocal's strategy focuses on capturing the potential of digital payments in high-growth regions while driving operational efficiencies [18][19]