DLocal (US:DLO)2025-05-14 22:02Financial Data and Key Metrics Changes - The total payment volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase [6][17] - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19] - Gross profit also reached a record level of $85 million, up 35% year-over-year or nearly 60% in constant currency [20] - Net income for the quarter was $47 million, representing a 57% quarter-over-quarter increase and a 163% year-over-year increase [25] - Free cash flow amounted to $40 million, up from $33 million in the previous quarter, indicating a 22% increase [26] Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion for the first time [17] - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18] - The pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while the payouts business grew 12% quarter-over-quarter and 61% year-over-year [18] Market Data and Key Metrics Changes - The company experienced strong growth in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [6][7] - Geographic diversification contributed to sustained growth momentum, even amid challenges in specific markets [20] Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and service quality [5][10] - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [10][11] - The company aims to expand its licensed portfolio to navigate complex regulatory environments, adding three new registrations in the first quarter [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets, driven by demographic and technological shifts [31][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 to shareholders annually, with the first dividend payable 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 [36][39] Question: Operating Expenses and Take Rates - Operating expenses grew 3% in the quarter, with management noting a focus on responsible spending [46][48] - The decline in take rates was attributed to a mix shift away from a high take rate merchant in the advertising sector [49][50] Question: Performance in Other LATAM Markets - Strong performance in Other LATAM was driven by TPV growth in frontier markets, particularly in Chile [53][56] Question: Brazil's Revenue and Gross Profit Dynamics - Brazil's revenue and gross profit faced challenges due to a repricing from a major merchant and migration to a lower take rate product [62][65] Question: Capital Allocation and M&A Strategy - The company is exploring M&A opportunities to enhance its capabilities and is confident in its asset-light business model [87][70] Question: Trends in April and May - Management noted that trends in April and May have remained within expectations, with no significant signs of slowdown [93][94]