DLocal Ltd (DLO) Q1 2025 Earnings Call Highlights: Record Growth in Revenue and Net Income

GuruFocus News

Thu, May 15, 2025, 12:19 AM 4 min read

• 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 borderline of 27%.

• Net Income: $47 million, 163% year-over-year growth, 57% quarter-over-quarter growth.

• Free Cash Flow: $40 million, 22% summation from the erstwhile quarter.

• Cash and Cash Equivalents: $512 million, up $86 cardinal from the erstwhile period.

• Adjusted EBITDA to Gross Profit Ratio: 68%, flimsy betterment from the erstwhile quarter.

• Net Retention Rate of TPV: 144%.

• Dividend Announcement: Extraordinary currency dividend of $0.525 per communal share, totaling $150 million.

• Warning! GuruFocus has detected 5 Warning Signs with DLO.

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• DLocal Ltd (NASDAQ:DLO) achieved grounds highs successful gross and gross profit, with gross reaching $217 cardinal and gross nett astatine $85 million.

• The company's Total Payment Volume (TPV) grew by 53% year-over-year, reaching $8 billion, with a 72% summation successful changeless currency.

• DLocal Ltd (NASDAQ:DLO) demonstrated beardown currency flow, with escaped currency travel to nett income conversion astatine 85%.

• The institution continues to grow its footprint successful emerging markets, with important maturation successful regions similar Chile, Pakistan, Nigeria, Turkey, and Brazil.

• Strategic investments successful exertion and operations are enhancing operational ratio and work quality, with advancements successful AI and automation driving improved lawsuit acquisition and compliance monitoring.

• DLocal Ltd (NASDAQ:DLO) experienced a diminution successful local-to-local TPV by 3% quarter-over-quarter, attributed to seasonality and partial nonaccomplishment of stock with a ample merchant successful Mexico.

• The institution faced accrued processing costs successful South Africa and Nigeria, impacting gross nett margins.

• Revenue successful Brazil declined owed to a migration to a outgo orchestration model, resulting successful little instrumentality rates.

• The advertizing assemblage showed weakness, impacting the nett instrumentality complaint by 4 ground points quarter-over-quarter.

• Despite ongoing investments, operational expenses are expected to summation passim the year, perchance impacting short-term profitability.

Q: Can you supply much details connected the maturation successful Argentina and the concern successful Mexico regarding measurement nonaccomplishment with a ample merchant? A: Pedro Arnt, CEO: Argentina's maturation appears sustainable, driven by accrued involvement from planetary merchants and alternate outgo methods. As superior controls ease, the marketplace is becoming much attractive. In Mexico, the measurement nonaccomplishment is owed to shifts successful stock of wallet among a fewer ample merchants. We expect to reignite maturation with amended execution, arsenic determination are nary structural issues preventing this.