DLocal (US:DLO)2022-05-18 17:04Financial Data and Key Metrics Changes - The company reported a record Q1 2022 with total processed volume (TPV) surpassing $2 billion for the first time, increasing by 127% year-over-year [8][29] - Revenue reached $87 million, representing a 117% increase compared to Q1 2021 [9][31] - Adjusted EBITDA grew 84% year-over-year to $33 million, with a margin of 38% [9][39] - Net revenue retention (NRR) was strong at 190% for Q1 2022 [9][35] Business Line Data and Key Metrics Changes - The company operates across more than 10 different verticals, with no single vertical accounting for more than 20% of TPV [12] - Consumption vertical saw the highest growth, increasing by over 5 times year-over-year, driven by on-demand delivery and commerce [15] - Mobility increased by more than 2 times year-over-year, while entertainment and services grew by over 1.5 times [15] Market Data and Key Metrics Changes - Revenue in Latin America increased by 116% year-over-year to $78 million, while revenues from Africa and Asia also grew by 127% year-over-year, representing 11% of total revenues [20] - Revenues from Asia and Africa were $10 million in Q1 2022, compared to $21 million for the full year 2021 [21] Company Strategy and Development Direction - The company aims to expand its business outside Latin America, adding countries like Ivory Coast and Rwanda to its infrastructure network [17] - The focus is on building a global footprint and diversifying geographic presence, particularly in Africa and Asia [22] - The company is committed to investing in technology and infrastructure to support long-term growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite global economic challenges, including high inflation and geopolitical tensions [7][9] - The company expects to maintain a net revenue retention rate above 150% for the full year 2022 [42] - Management emphasized the importance of disciplined growth and the ability to expand margins over the medium term [43] Other Important Information - The company added over 50 new payment methods in Asia and Africa during the quarter [24] - The workforce increased by 54% year-over-year, reaching 562 employees [23] Q&A Session Summary Question: Can you share some color on TPV mix dynamics this quarter? - Management indicated that both payins and payouts are experiencing healthy growth, with payins tripling year-over-year [46][50] Question: Regarding the EBITDA margins and investments in technology? - Management confirmed that they are heavily investing in technology and do not shy away from expenses in this area [49][50] Question: On the net revenue retention rate and its expected decline? - Management expects NRR to be closer to 150% in Q2 due to tougher comparisons from the previous year [53][58] Question: How do you see the health of your merchants amid global challenges? - Management noted that the company's diversified business model provides a strong hedge against downturns in specific verticals [54][56] Question: Can you clarify on revenue concentration among top merchants? - The concentration among the top 10 merchants has decreased from 62% to 52% [74] Question: What drove the financial losses this quarter? - Financial losses were attributed to currency appreciation in emerging markets, leading to accounting losses on U.S. dollar holdings [84][86] Question: Can you detail the new initiative called dLocal Go? - dLocal Go targets SMBs, aiming to facilitate easier onboarding and navigation for smaller merchants [90][92] Question: What types of capabilities are being considered for M&A? - The company is looking for M&A opportunities that are additive to its existing capabilities and can accelerate growth [95][98]