In This Article:
-
TPV (Total Payment Volume): $8.1 billion, 53% year-over-year growth, 5% quarter-over-quarter growth.
-
Revenue: $217 million, 18% year-over-year growth, 6% quarter-over-quarter growth.
-
Gross Profit: $85 million, 35% year-over-year growth, 1% quarter-over-quarter growth.
-
Adjusted EBITDA: $58 million, 57% year-over-year growth, 2% quarter-over-quarter growth, with a margin of 27%.
-
Net Income: $47 million, 163% year-over-year growth, 57% quarter-over-quarter growth.
-
Free Cash Flow: $40 million, 22% increase from the previous quarter.
-
Cash and Cash Equivalents: $512 million, up $86 million from the previous period.
-
Adjusted EBITDA to Gross Profit Ratio: 68%, slight improvement from the previous quarter.
-
Net Retention Rate of TPV: 144%.
-
Dividend Announcement: Extraordinary cash dividend of $0.525 per common share, totaling $150 million.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
DLocal Ltd (NASDAQ:DLO) achieved record highs in revenue and gross profit, with revenue reaching $217 million and gross profit at $85 million.
-
The company's Total Payment Volume (TPV) grew by 53% year-over-year, reaching $8 billion, with a 72% increase in constant currency.
-
DLocal Ltd (NASDAQ:DLO) demonstrated strong cash flow, with free cash flow to net income conversion at 85%.
-
The company continues to expand its footprint in emerging markets, with significant growth in regions like Chile, Pakistan, Nigeria, Turkey, and Brazil.
-
Strategic investments in technology and operations are enhancing operational efficiency and service quality, with advancements in AI and automation driving improved customer experience and compliance monitoring.
Negative Points
-
DLocal Ltd (NASDAQ:DLO) experienced a decline in local-to-local TPV by 3% quarter-over-quarter, attributed to seasonality and partial loss of share with a large merchant in Mexico.
-
The company faced increased processing costs in South Africa and Nigeria, impacting gross profit margins.
-
Revenue in Brazil declined due to a migration to a payment orchestration model, resulting in lower take rates.
-
The advertising sector showed weakness, impacting the net take rate by 4 basis points quarter-over-quarter.
-
Despite ongoing investments, operational expenses are expected to increase throughout the year, potentially impacting short-term profitability.
Q & A Highlights
Q: Can you provide more details on the growth in Argentina and the situation in Mexico regarding volume loss with a large merchant? A: Pedro Arnt, CEO: Argentina's growth appears sustainable, driven by increased interest from global merchants and alternative payment methods. As capital controls ease, the market is becoming more attractive. In Mexico, the volume loss is due to shifts in share of wallet among a few large merchants. We expect to reignite growth with better execution, as there are no structural issues preventing this.