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In addition, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA and Adjusted EBITDA over gross profit, which are forward-looking non-IFRS measures, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.dLocal Limited Certain financial information Consolidated Condensed Interim Statements of Comprehensive Income for the three-month and six-month periods ended June 30, 2024 and 2023 (In thousands of U.S.dollars, except per share amounts) Three months ended30 of JuneSix months ended30 of June 2024202320242023Continuing operations Revenues171,279161,138355,709298,425Cost of services(101,468)(90,378)(222,927)(165,828)Gross profit69,81170,760132,782132,597 Technology and development expenses(6,408)(2,640)(11,873)(4,930)Sales and marketing expenses(4,505)(3,106)(9,136)(7,963)General and administrative expenses(27,074)(17,268)(51,406)(32,548)Impairment (loss)/gain on financial assets(76)21101(30)Other operating (loss)/gain(1,553)-(3,372)-Operating profit30,19547,76757,09687,126Finance income29,24718,87847,50425,866Finance costs(1,202)(11,419)(19,160)(17,016)Inflation adjustment(1,941)(1,661)(4,309)(2,680)Other results26,1045,79824,0356,170Profit before income tax56,29953,56581,13193,296Income tax expense(10,060)(8,774)(17,174)(13,055)Profit for the period46,23944,79163,95780,241 Profit attributable to: Owners of the Group46,24444,69763,95280,141Non-controlling interest(5)945100Profit for the period46,23944,79163,95780,241 Earnings per share (in USD) Basic Earnings per share0.160.150.220.27Diluted Earnings per share0.150.150.210.26 Other comprehensive income Items that may be reclassified to profit or loss: Exchange difference on translation on foreign operations(5,604)1,675(6,273)3,163Other comprehensive income for the period, net of tax(5,604)1,675(6,273)3,163Total comprehensive income for the period, net of tax40,63546,46657,68483,404 Total comprehensive income for the period Owners of the Group40,64246,37157,67883,305Non-controlling interest(7)95699Total comprehensive income for the period40,63546,46657,68483,404 dLocal Limited Certain financial information Consolidated Condensed Interim Statements of Financial Position as of June 30, 2024 and December 31, 2023 (In thousands of U.S.dollars) 30 of June, 202431 of December, 2023ASSETS Current Assets Cash and cash equivalents531,620536,160Financial assets at fair value through profit or loss120,297102,677Trade and other receivables455,503363,374Derivative financial instruments6222,040Other assets10,87811,782Total Current Assets1,118,9201,016,033 Non-Current Assets Financial assets at fair value through profit or loss-1,710Trade and other receivables1,787-Deferred tax assets1,9132,217Property, plant and equipment3,5762,917Right-of-use assets3,5083,689Intangible assets60,63757,887Other Assets5,343-Total Non-Current Assets76,76468,420TOTAL ASSETS1,195,6841,084,453 LIABILITIES Current Liabilities Trade and other payables719,097602,493Lease liabilities782626Tax liabilities26,90720,800Derivative financial instruments815948Provisions276362Total Current Liabilities747,877625,229 Non-Current Liabilities Deferred tax liabilities2,299753Lease liabilities3,1063,331Total Non-Current Liabilities5,4054,084TOTAL LIABILITIES753,282629,313 EQUITY Share Capital574591Share Premium173,093173,001Treasury Shares(181,670)(99,936)Capital Reserve32,81221,575Other Reserves(14,829)(9,808)Retained earnings432,307369,608Total Equity Attributable to owners of the Group442,287455,031Non-controlling interest115109TOTAL EQUITY442,402455,140 dLocal Limited Certain interim financial information Consolidated Condensed Interim Statements of Cash flows for the three-month and six-month periods ended June 30, 2024 and 2023 (In thousands of U.S.dollars) Three months ended30 of JuneSix months ended30 of June 2024202320242023Cash flows from operating activities Profit before income tax56,29953,56581,13193,296Adjustments: Interest income from financial instruments(6,473)(15,313)(13,915)(22,212)Interest charges for lease liabilities44528795Other finance expense1,6737651,8001,202Finance expense related to derivative financial instruments2,4464,63412,3249,869Net exchange differences(1,469)3,5516,1684,082Fair value gain on financial assets at fair value through profit or loss(22,774)(3,565)(33,589)(3,654)Amortization of Intangible assets3,6902,4927,1144,668Depreciation of Property, plant and equipment and right-of-use410377737716Disposals of property, plant and equipment, intangible assets and right-of-use asset(62)-11-Share-based payment expense, net of forfeitures6,7761,42111,2373,750Other operating loss/(gain)1,553-3,372-Net Impairment loss/(gain) on financial assets76(21)(101)30Inflation adjustment(5,982)-(11,874)- 36,20747,95764,50291,842Changes in working capital Increase in Trade and other receivables(69,322)(50,312)(102,158)(59,386)Decrease/(increase) in Other assets(716)(1,597)2,50312,157Increase in Trade and other payables67,268148,761113,232190,139Decrease in Tax Liabilities8,870(2,279)7,750(3,341)Decrease/(increase) in Provisions(90)(252)(86)(557)Cash from operating activities42,218142,27885,743230,854Income tax paid(13,409)(2,774)(16,967)(6,816)Net cash from operating activities28,808139,50468,776224,038 Cash flows from investing activities Acquisitions of Property, plant and equipment(440)(608)(1,226)(657)Additions of Intangible assets(4,842)(4,339)(9,864)(8,145)Acquisitions of financial assets at FVTPL(96,841)(48,139)(96,841)(48,139)Net collections/acquisitions of financial assets at FVPL98,54447898,3011,523Interest collected from financial instruments6,47315,15513,91521,975Net cash used in investing activities2,894(37,453)4,285(33,443) Cash flows from financing activities Repurchase of shares(81,751)(61,011)(81,751)(97,929)Share-options exercise928492153Interest payments on lease liability(44)(52)(87)(95)Principal payments on lease liability26(146)(69)(276)Finance expense paid related to derivative financial instruments(888)(9,184)(11,039)(11,337)Other finance expense paid(272)(768)(399)(1,205)Net cash (used in) / provided by financing activities(82,837)(71,077)(93,253)(110,689)Net increase in cash flow(51,135)30,975(20,192)79,906 Cash and cash equivalents at the beginning of the period572,357517,892536,160468,092Net increase in cash flow(51,135)30,975(20,192)79,906Effects of exchange rate changes on cash and cash equivalents10,39851915,6521,388Cash and cash equivalents at the end of the period531,620549,386531,620549,386 Investor Relations Contact: investor@dlocal.com Media Contact: media@dlocal.
The table below presents a reconciliation of dLocal’s Adjusted EBITDA and Adjusted EBITDA Margin to net income: $ in thousands Three months ended 30 of June Six months ended 30 of June 2024 2023 2024 2023 Profit for the period 46,239 44,791 63,957 80,241 Income tax expense 10,060 8,774 17,174 13,055 Depreciation and amortization 4,089 2,869 7,851 5,384 Finance income and costs, net1 (28,045) (7,459) (28,344) (8,850) Share-based payment non-cash charges 6,776 1,421 11,237 3,750 Other operating loss21,553-3,372-Impairment loss / (gain) on financial assets76(21)(101)30Inflation adjustment1,9411,6614,3092,680Other non-recurring costs---1,229Adjusted EBITDA42,68952,03679,45597,519 Note: 1In Q2 2024, the Finance income and costs, net line was impacted by the non-cash mark to market effect related to Argentine bonds investments in the amount of US$22.8 million.2In Q2 2024, the company wrote-off certain amounts related to merchants/processors off-boarded by dLocal.
The tables below present a breakdown of dLocal’s TPV by product and type of flow: In millions of US$ except for %Three months ended 30 of JuneSix months ended 30 of June 2024% share2023% share2024% share2023% sharePay-ins4,27371%3,19073%7,93070%5,69372%Pay-outs1,76329%1,18427%3,41630%2,25528%Total TPV6,035100%4,373100%11,346100%7,948100% In millions of US$ except for %Three months ended 30 of JuneSix months ended 30 of June 2024% share2023% share2024% share2023% shareCross-border2,70145%2,21951%5,12745%4,17953%Local-to-local3,33455%2,15449%6,21955%3,76947%Total TPV6,035100%4,373100%11,346100%7,948100% The tables below present a breakdown of dLocal’s revenue by geography: In millions of US$ except for %Three months ended 30 of JuneSix months ended 30 of June 2024% share2023% share2024% share2023% shareLatin America138.781%126.979%264.174%225.175%Brazil42.325%41.226%85.324%64.021%Argentina20.512%20.713%34.310%40.714%Mexico35.821%28.318%69.920%51.017%Chile12.37%14.29%24.77%28.410%Other LatAm27.816%22.514%49.914%41.014% Africa & Asia32.619%34.321%91.626%73.325%Nigeria1.11%20.413%8.32%47.316%Egypt15.09%4.73%54.015%8.13%Other Africa & Asia16.510%9.26%29.28%17.96% Total Revenue171.3100%161.1100%355.7100%298.4100% The tables below present a breakdown of dLocal’s gross profit by geography: In millions of US$ except for %Three months ended 30 of JuneSix months ended 30 of June 2024% share2023% share2024% share2023% shareLatin America53.577%61.787%102.177%114.586%Brazil19.228%19.628%37.128%30.623%Argentina7.611%13.819%12.810%31.624%Mexico8.813%10.615%18.714%17.513%Chile8.312%8.913%15.712%18.014%Other LatAm9.614%8.712%17.713%16.813% Africa & Asia16.323%9.113%30.723%18.114%Nigeria2.03%0.20%2.52%2.62%Egypt9.814%4.26%20.115%6.95%Other Africa & Asia4.57%4.77%8.16%8.56% Total Gross Profit69.8100%70.8100%132.8100%132.6100% Special note regarding Adjusted EBITDA and Adjusted EBITDA Margin dLocal has only one operating segment.dLocal measures its operating segment’s performance by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin, and uses these metrics to make decisions about allocating resources.
