DLocal (US:DLO)2022-03-15 16:53Financial Data and Key Metrics Changes - In 2021, total processed volume (TPV) surpassed $6 billion, increasing by 193% year-over-year [10] - Revenues reached $244 million, a 134% increase over 2020 [11] - Adjusted EBITDA grew 136% year-over-year to $99 million, with an adjusted EBITDA margin of 41% [12][76] - Net revenue retention (NRR) reached an all-time high of 219% for the year and 198% for Q4 2021 [11][70] Business Line Data and Key Metrics Changes - Pay-ins TPV grew 190% year-over-year in Q4 2021, while pay-outs experienced fluctuations due to marketing campaigns [64] - Revenues from existing merchants accounted for 119% of the total revenue growth, while new merchants contributed 15% [69] - The number of merchants on the platform increased from over 300 in 2020 to over 400 in 2021, with significant growth in high-volume merchants [27] Market Data and Key Metrics Changes - Latin America accounted for 92% of total revenues in 2021, with a 140% year-over-year increase [23] - Revenues from Asia and Africa grew by 86% year-over-year, indicating strong growth potential in these regions [23][24] - The company expanded its geographical presence by adding nine countries in 2021, bringing the total to 35 [21] Company Strategy and Development Direction - The company remains focused on building infrastructure to connect emerging markets with global merchants [8] - A land-and-expand strategy is being employed to drive organic growth and cross-sell to existing clients [38] - The company plans to pursue selective inorganic opportunities to accelerate growth vectors [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2022, expecting continued strong growth despite potential external challenges [80] - The company does not foresee significant impacts from geopolitical factors, as it has limited exposure to affected regions [84] - Management anticipates maintaining a net revenue retention rate above 150% for 2022 [81][100] Other Important Information - The company has increased its workforce by 73% year-over-year, focusing on technology, product, and sales [60] - The average take rate decreased from 5% in 2020 to 4% in 2021, primarily due to changes in the business mix [67][35] - The company has launched new products and features, including Issuing as a Service and enhanced payment solutions [59][54] Q&A Session Summary Question: Impact of geopolitical scenario on business - Management indicated limited exposure to Ukraine and Russia, expecting no impact on 2022 results [84] Question: Details on the pipeline for 2022 - Management highlighted a strong pipeline for geographic expansion and new revenue, but did not provide specific revenue guidance for new clients [88] Question: Medium-term financial targets - Management plans to share insights at an upcoming Analyst Day but reiterated expectations for net retention and EBITDA margins [91] Question: Specific investments impacting margins - Investments will focus on technology, infrastructure, and expanding sales teams to support growth [93] Question: Expectations for pay-outs and marketing campaigns - Management remains bullish on pay-outs, expecting recovery and growth despite fluctuations [104] Question: FX impact on financials - FX movements are managed as a cost, with minimal impact on overall revenues [108] Question: Future revenue proportions from Asia and Africa - Management expects continued growth in Asia and Africa, but does not commit to specific revenue share targets [116]