2 EARNINGS PRESENTATION | Q4 2024 Pedro Arnt Chief Executive Officer Mark Ortiz Chief Financial Officer EARNINGS PRESENTATION | Q4 2024 3 Safe Harbor This presentation may contain forward-looking statements. These forward-looking statements convey dLocal's current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance involve known and unknown risk ...

Core Viewpoint - DLocal reported quarterly earnings of $0.15 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.14 per share a year ago [1]. Financial Performance - The company posted revenues of $204.49 million for the quarter ended December 2024, which was 1.56% below the Zacks Consensus Estimate, and an increase from $188.01 million year-over-year [2]. - DLocal has not surpassed consensus revenue estimates in the last four quarters [2]. Stock Performance - DLocal shares have increased approximately 24.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3]. - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $208.2 million, and for the current fiscal year, the estimate is $0.59 on revenues of $939.42 million [7]. - The estimate revisions trend for DLocal is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]. Industry Context - The Financial Transaction Services industry, to which DLocal belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8].

Core Insights - dLocal reported a Total Payment Volume (TPV) of $25.6 billion for the full year 2024, representing a 45% year-over-year increase, with revenue reaching $746 million, up 15% year-over-year [1][3][6] - The company achieved a Net Revenue Retention Rate of 113% and a Gross Profit of $295 million, which is a 6% increase year-over-year [1][3][6] - Adjusted EBITDA for the year was $189 million, reflecting a 7% decrease year-over-year, indicating some pressure on profitability despite revenue growth [1][3][6] Financial Performance - In Q4 2024, dLocal's TPV reached $7.7 billion, a 51% increase year-over-year and an 18% increase quarter-over-quarter [2][20] - Revenue for Q4 was $204 million, up 9% year-over-year and 10% quarter-over-quarter, driven by strong performance in Egypt and other emerging markets [2][20][29] - Gross Profit for Q4 was $84 million, a 20% increase year-over-year, with a gross profit margin of 41% [20][22][29] Market Dynamics - The company is focusing on expanding into newer, more attractive markets, which has contributed to the strong TPV growth [3][6][7] - dLocal's business model benefits from a large addressable market in emerging and frontier markets, where 85% of the world's population resides [7][18] - The company is experiencing a shift in payment mix and take rates, with a focus on higher take rate markets to offset compression [10][15][29] Operational Highlights - dLocal's investments in product development and operational capabilities are aimed at achieving greater scalability and efficiency [4][12][18] - The company added 9 licenses and registrations in 2024, including a significant license from the UK FCA, enhancing its competitive edge [12][18] - Cash generation remains strong, with $425.2 million in cash and cash equivalents as of December 31, 2024, despite a decrease from the previous year [24][29] Future Outlook - For 2025, dLocal expects TPV growth of 35% to 45% year-over-year, with revenue growth projected at 25% to 35% [14][18] - The company anticipates gross profit growth of 20% to 25% and Adjusted EBITDA growth between 20% and 30% year-over-year [14][18] - dLocal's strategy focuses on capturing the potential of digital payments in high-growth regions while driving operational efficiencies [18][19]

DLocal (DLO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of ...

Group 1 - DLocal (DLO) has reached a significant support level and shows potential as a good investment from a technical perspective, having recently broken through the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is a popular tool among traders as it provides insights into a stock's price over a shorter period and helps smooth out price fluctuations, with the ability to show trend reversal signals more effectively than longer-term moving averages [2] - DLO has moved 7% higher over the last four weeks and is currently rated as a Zacks Rank 2 (Buy), supported by positive earnings estimate revisions, with no earnings estimates lowered in the past two months and one estimate raised for the current fiscal year [3] Group 2 - Investors are encouraged to consider adding DLO to their watchlist due to the important technical indicator and the positive movement in earnings estimate revisions [4]

Core Viewpoint - dLocal is positioned as a vital player for global merchants aiming to penetrate emerging markets, connecting them to over 2 billion users through a diverse range of local payment methods [1][2] Group 1: Business Growth and Performance - dLocal's shares are currently 81% below their all-time highs, yet the company has experienced a 600% increase in sales since its IPO in 2021, indicating a stronger business foundation [2][3] - The company has expanded its service from 8 countries with 80 payment methods in 2016 to 40 countries with over 900 payment options today, although this rapid growth has impacted its margins [5] - dLocal's free cash flow (FCF) margin stands at 21%, demonstrating financial stability despite the challenges of growth [6] Group 2: Market Potential - dLocal targets countries in Latin America, Africa, and the Asia-Pacific region, which are projected to grow their urban GDP 3.5 times faster than developed markets through 2040 [7] - By 2028, these emerging markets are expected to generate over $3.7 trillion in digital payments annually, presenting a long-term growth opportunity for dLocal [8] Group 3: Leadership and Strategic Moves - The appointment of CEO Pedro Arnt, who previously served as CFO at MercadoLibre, is seen as a positive development, suggesting confidence in dLocal's potential [10][12] - Arnt's experience in transforming MercadoLibre into a leading e-commerce platform positions him well to guide dLocal through its growth phase [12] Group 4: Financial Strategies - Despite its growth-focused strategy, dLocal has initiated share buybacks, utilizing a $100 million plan in 2022 and half of a $200 million plan in the following year, reducing its share count by 2% annually [14] - The company's net take rate has remained stable over the last three quarters, indicating a potential stabilization of margins, with the stock trading at 27 times FCF, slightly below the S&P 500 average [15]

MONTEVIDEO, Uruguay, Feb. 20, 2025 (GLOBE NEWSWIRE) -- dLocal Limited (NASDAQ:DLO), a leading technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets deems the allegations made in a recent short-seller report to be inaccurate and misleading, and made by interested parties who profit from the Company's stock price falling. Any suggestion that the Company failed to properly investigate identical or similar allegations in the past is ina ...

Group 1 - dLocal Limited plans to release its financial results for the fourth fiscal quarter ended December 31, 2024 on February 27, 2025 after market close [1] - A conference call and video webcast will be hosted on February 27, 2025 at 5:00 p.m. Eastern Time [1] - The conference call can be accessed via audio webcast on the company's investor relations website, with an archive available for one year [2] Group 2 - dLocal operates a technology-first payments platform that connects global enterprise merchants with billions of consumers in emerging markets across APAC, the Middle East, Latin America, and Africa [3] - The "One dLocal" concept allows global companies to manage payments, pay-outs, and fund settlements through a single direct API, platform, and contract, eliminating the need for multiple local entities and payment processors [3]

Core Insights - Investors in the Financial Transaction Services sector may consider Fiserv (FI) and DLocal (DLO) as potential investment opportunities [1] - Fiserv currently holds a Zacks Rank of 2 (Buy), while DLocal has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for Fiserv [3] Valuation Metrics - Fiserv has a forward P/E ratio of 20.44, compared to DLocal's forward P/E of 20.61, suggesting a slightly better valuation for Fiserv [5] - The PEG ratio for Fiserv is 1.37, indicating a favorable growth outlook, while DLocal's PEG ratio stands at 2.81, suggesting it may be overvalued relative to its growth [5] - Fiserv's P/B ratio is 4.19, which is lower than DLocal's P/B ratio of 7.61, further supporting Fiserv's position as a more attractive value option [6] Value Grades - Fiserv has a Value grade of B, while DLocal has a Value grade of C, indicating that Fiserv is perceived as a better value investment based on various financial metrics [6]

Group 1: SoundHound AI - SoundHound AI's stock has increased over 400% this year, positioning it as a strong candidate for growth in 2025 [2] - Management projects 2025 revenue to be between $155 million and $175 million, indicating a potential doubling from the projected 2024 revenue of $82 million to $85 million [3] - The company aims to achieve adjusted EBITDA profitability by the end of 2025, marking a significant milestone for a tech company [3] - SoundHound's products are being adopted across various industries, highlighting the scalability of its automation solutions [4] - The stock is currently trading at 46 times sales, necessitating consistent performance to maintain its high valuation [5] Group 2: dLocal - dLocal is a fintech company that provides payment processing solutions in emerging markets, serving clients like Spotify, Amazon, and Shopify [6] - The new CEO, Pedro Arnt, is expected to drive the company to new heights following his successful tenure at MercadoLibre [7] - In Q3, dLocal's total payment volume rose 41% year over year to $6.5 billion, with revenue increasing by 13% to $186 million [8] - The stock trades at 24 times forward earnings, indicating a lack of excessive hype, but potential for growth if the company can revitalize its business [8] Group 3: UiPath - UiPath specializes in robotic process automation (RPA) software, but its stock has suffered due to market perceptions regarding generative AI [9] - Despite a 40% decline in stock value in 2024, UiPath's annual recurring revenue (ARR) grew 17% year over year to $1.61 billion in Q3 [11] - The stock is currently valued at around 6 times sales, presenting a potentially attractive investment opportunity if the company can achieve profitability [12][14] - Management forecasts a 14% ARR growth in Q4, with non-GAAP operating income expected to double from Q3 to Q4, suggesting a positive outlook for 2025 [15]