DLocal (DLO)2025-05-14 22:00Financial Data and Key Metrics Changes - Total Payment Volume (TPV) reached 217 million, up 18% year-over-year and 36% in constant currency [19]. - Gross profit reached 47 million, up 57% quarter-over-quarter and 163% year-over-year [25]. - Free cash flow amounted to 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].