Q2 2024 Dlocal Ltd Earnings Call Transcript
Key Points
- DLocal Ltd (DLO) achieved a quarterly record of $6 billion in TPV during Q2 2024, representing a 38% year-on-year growth.
- The company continues to gain share of wallet from its global merchant base and add new merchants, indicating strong business momentum.
- DLocal Ltd (DLO) reported 11% quarter-on-quarter gross profit growth, showcasing stable sequential pricing and growing TPV.
- The company has maintained a high margin financial model with adjusted EBITDA to gross profit at 60%-plus.
- DLocal Ltd (DLO) has a strong liquidity position with $306 million, including $106 million of available cash for general corporate purposes.
- Year-over-year gross profit performance was flat, driven by a 13% decline in Latin America due to Argentine FX devaluation and repricing by the largest merchant in Brazil and Mexico.
- Despite healthy TPV growth, revenues declined by 7% quarter-over-quarter, impacted by currency devaluation in Nigeria and Egypt.
- Operating expenses reached $40 million for the quarter, an increase of 72% year-over-year, driven by investments in product development and IT capabilities.
- The company faces challenges in maintaining gross profit growth due to unfavorable events like repricing by its largest merchant and material currency devaluations in key markets.
- DLocal Ltd (DLO) has revised its TPV and gross profit expectations for 2024, indicating a cautious outlook due to lower probability of volume ramp-ups and weaker emerging market currency expectations.
Good day, and thank you for standing by, and welcome to dLocal's second-quarter 2024 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand it over to the company.
Good afternoon, everyone, and thank you for joining the second quarter of 2024 earnings call today. If you have not seen the earnings release, a copy is posted in the financials section of the Investor Relations website.
On the call today, you have Pedro Arnt, Chief Executive Officer; Mark Ortiz, Chief Financial Officer; Maria Oldham, SVP of Corporate Development, Strategy, and Investor Relations, and Mirele Aragao, Head of Investor Relations.
A slide presentation has been provided to the company in the prepared remarks. This event is being broadcast live via webcast and both the webcast and presentations may be accessed through dLocal's website at investor.dlocal.com. The recording will be available shortly after the event is concluded.
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