DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a
technology - first payments platform today announced its financial
results for the second quarter ended June 30, 2023.“We delivered
another quarter of outstanding results, with double-digit growth
across all parameters, compared to last year as well as the
previous quarter. Our performance demonstrates the distinctive
advantages of our business, from our cutting-edge technology and
broad and well-diversified geographic reach to our excellent sales
execution and vast market opportunity. We scale focused on
long-term profitable growth, and on our unwavering commitment to
our customers: building the best payments ecosystem across emerging
markets based on our One dLocal model, simplifying complexities for
the merchants we serve.
Our merchants recognize the value we add to
their business, propelling our growth alongside theirs. During the
quarter we experienced strong traction with our platform solution,
in particular from marketplaces. Local-to-local volume also
increased significantly, reflecting the success and robustness of
this solution. Geographically, we witnessed strong growth in
Brazil. This high growth in a large and competitive geography such
as Brazil underscores the quality of our solution as we continue to
gain market share. Brazil is our first market back in 2016 and
still presents attractive growth opportunities. Africa and Asia
also grew strongly, and we are excited to see certain smaller
markets growing at triple-digit rates.
We are very proud of our half year results and
we reaffirm our guidance for the year of revenue between US$620 and
US$640 million and Adjusted EBITDA between US$200 and US$220
million. We are clearly trading towards the higher end of that
guidance in terms of revenue, but prefer to take a conservative
approach given the macro environment. Specific changes of
circumstances such as the devaluation of the Nigerian Naira affect
our revenue number, but not our gross profit. The annual guidance
we have provided accounts for close to 50% year-on-year growth at
best in class margins. This would be a great outcome for our 2023
results and testament to the resilience and well-diversified
business we are building. We reiterate our mid-term guidance of
25%-35% gross profit CAGR and Adjusted EBITDA over gross profit
>75%, which are best in class metrics.
In other news, we are delighted to welcome Pedro
Arnt as co-CEO. dLocal has a huge opportunity ahead and I am
excited about joining forces with Pedro to steer dLocal's next
chapter together. The entire dLocal team, and me personally, remain
dedicated to scaling the business further, fortifying our position
as the emerging markets payments leader, and delivering lasting
value for our merchants, consumers, partners and shareholders,”
said Sebastian Kanovich, co-CEO of dLocal.
Second quarter 2023 Financial Highlights
- Total Payment Volume (“TPV”)
reached a record US$4.4 billion in the second quarter, up 80%
year-over-year compared to US$2.4 billion in the second quarter of
2022 and up 22% compared to US$3.6 billion in the first quarter of
2023.
- Revenues amounted to US$161.1
million, up 59% year-over-year compared to US$101.2 million in the
second quarter of 2022 and up 17% compared to US$137.3 million in
the first quarter of 2023.
- Gross profit was US$70.8 million in
the second quarter of 2023, up 43% year-over-year compared to
US$49.6 million in the second quarter of 2022 and up 14% compared
to US$61.8 million in the first quarter of 2023.
- Gross profit margin was 44% in this
quarter, compared to 49% in the second quarter of 2022 and 45% in
the first quarter of 2023. Gross profit margin was positively
impacted by changes in merchant mix, particularly in Brazil. This
was offset by a higher share of pay-ins and local-to-local volume
and lower share of revenues in Argentina.
- Gross profit over TPV remained
almost unchanged quarter-over-quarter, slightly decreasing from
1.7% in the first quarter of 2023 to 1.6% in the second quarter of
2023 and decreasing from 2.0% in the second quarter of 2022 mainly
due to business mix.
- Adjusted EBITDA was US$52.0 million
in the second quarter of 2023, up 36% year-over-year compared to
US$38.2 million in the second quarter of 2022 and up 14% compared
to US$45.5 million in the first quarter of 2023.
- Adjusted EBITDA margin was 32% in
the second quarter of 2023, compared to 38% in the second quarter
of 2022 and 33% in the first quarter of 2023. EBITDA margin varied
in line with gross profit margin.
- Adjusted EBITDA over gross profit
remained best in class at 74% in the second quarter of 2023,
compared to 74% in the first quarter of 2023 and compared to 77% a
year ago.
- Net financial income was US$7.5
million, up from US$1.4 million in the first quarter of 2023 and
US$0.3 million in the second quarter of 2022. These results were
driven by an increase in the funds held in interest bearing
accounts and money markets partially offset by the financial cost
of hedges across the markets.
- Effective income tax rate was 16%
in the second quarter of 2023 compared to 12% in the second quarter
of 2022 and 11% in the first quarter of 2023 driven by a higher
share of profits in local markets, as a result of higher
local-to-local volume and higher financial gains.
- Profit for the second quarter of
2023 was US$44.8 million, or US$0.15 per diluted share, up 46%
compared to a profit of US$30.7 million, or US$0.10 per diluted
share, for the second quarter of 2022 and up 26% compared to a
profit of US$35.5 million, or US$0.11 per diluted share for the
first quarter of 2023.
- As of June 30, 2023, dLocal had
US$549.4 million in cash and cash equivalents, including US$176.7
million of own funds and US$372.7 million of merchants’ funds. The
consolidated cash position increased by US$95.4 million from
US$454.0 million as of June 30, 2022. When compared to the US$517.9
million cash position as of March 31, 2023, it increased by US$31.5
million. During the second quarter of 2023, US$61.0 million of own
funds were used to buy back the company’s own shares completing the
US$100 million Share Buyback Program announced in December 2022. In
addition, during the quarter we invested US$48 million dollars of
our own funds in Argentine dollar-linked treasury bonds maturing in
2024.
The following table summarizes our key performance metrics:
| |
Three months ended 30 of June |
Six months ended 30 of June |
| |
2023 |
2022 |
% change |
2023 |
2022 |
% change |
|
Key Performance metrics |
(In millions of US$ except for %) |
|
TPV |
4,373 |
|
2,433 |
|
80% |
7,948 |
|
4,537 |
|
75% |
| Revenue |
161.1 |
|
101.2 |
|
59% |
298.4 |
|
188.6 |
|
58% |
| Gross Profit |
70.8 |
|
49.6 |
|
43% |
132.6 |
|
93.2 |
|
42% |
| Gross Profit margin |
44 |
% |
49 |
% |
-5p.p |
44 |
% |
49 |
% |
-5p.p |
| Adjusted EBITDA |
52.0 |
|
38.2 |
|
36% |
97.5 |
|
71.0 |
|
37% |
| Adjusted EBITDA margin |
32 |
% |
38 |
% |
-5p.p |
33 |
% |
38 |
% |
-5p.p |
| Adjusted EBITDA/Gross
Profit |
74 |
% |
77 |
% |
-3p.p |
74 |
% |
76 |
% |
-3p.p |
| Profit |
44.8 |
|
30.7 |
|
46% |
80.2 |
|
57.0 |
|
41% |
| Profit margin |
28 |
% |
30 |
% |
-3p.p |
27 |
% |
30 |
% |
-3p.p |
Second quarter 2023 Business Highlights
- During the second quarter of 2023,
pay-ins TPV increased by 70% year-over-year and 27%
quarter-over-quarter to US$3.2 billion, accounting for 73% of the
TPV.
- Pay-outs TPV increased by 114%
year-over-year and 10% quarter-over-quarter to US$1.2 billion,
accounting for the remaining 27% of the TPV.
- Cross-border TPV increased by 49%
year-over-year and 13% quarter-over-quarter to US$2.2 billion.
Cross-border volume accounted for 51% of the TPV in the second
quarter of 2023.
- Local-to-local TPV increased by
128% year-over-year and 33% quarter-over-quarter to US$2.2 billion.
Local-to-local volume accounted for 49% of the TPV in the second
quarter of 2023. The increase in local-to-local volume was mainly
driven by merchants from commerce, advertising and ride-hailing
verticals.
- Revenue increased across all
regions during the quarter. LatAm grew 45% compared to the second
quarter of 2022 and 29% quarter-over-quarter to US$126.9 million,
accounting for 79% of total revenue. In the second quarter of 2023,
we experienced very strong revenue growth in Brazil increasing 99%
year-over-year and 81% quarter-over-quarter. Recent growth has been
mainly led by merchants in the commerce, advertising and streaming
verticals.
- Africa and Asia revenue grew by
152% year-over-year and decreased 12% quarter-over-quarter to
US$34.3 million, accounting for the remaining 21% of total revenue,
compared to 13% in the second quarter of 2022. Revenues in the
second quarter of 2023 were impacted by the devaluation of the
Nigerian Naira. In mid June, the Nigerian government implemented a
free-floating policy for its local currency, the Nigerian Naira,
leading to the depreciation of the local currency. Nigeria revenues
increased by 353% year-over-year while decreasing by 24%
quarter-over-quarter. Excluding Nigeria, revenues increased by 52%
year-over-year and by 15% quarter-over-quarter in Africa and Asia
showing the strength of our geographic diversification and the
continued growth across Africa and Asia.
- During the quarter, dLocal
continued delivering strong revenue growth both from existing and
from new customers. Revenue from Existing Merchants increased from
US$101.2 million in the second quarter of 2022 to US$149.9 million.
The net revenue retention rate, or NRR, in the second quarter of
2023 reached 148%.
- Revenue from New Merchants was
US$11.2 million in the second quarter of 2023.
The table below presents a breakdown of dLocal’s TPV by product
and type of flow:
|
In millions of US$ except for % |
Three months ended 30 of June |
Six months ended 30 of June |
| |
2023 |
% share |
2022 |
% share |
2023 |
% share |
2022 |
% share |
|
Pay-ins |
3,190 |
73 |
% |
1,881 |
77 |
% |
5,693 |
72 |
% |
3,525 |
78 |
% |
| Pay-outs |
1,184 |
27 |
% |
552 |
23 |
% |
2,255 |
28 |
% |
1,012 |
22 |
% |
| Total
TPV |
4,373 |
100 |
% |
2,433 |
100 |
% |
7,948 |
100 |
% |
4,537 |
100 |
% |
|
In millions of US$ except for % |
Three months ended 30 of June |
Six months ended 30 of June |
| |
2023 |
% share |
2022 |
% share |
2023 |
% share |
2022 |
% share |
|
Cross-border |
2,219 |
51 |
% |
1,487 |
61 |
% |
4,179 |
53 |
% |
2,788 |
61 |
% |
| Local-to-local |
2,154 |
49 |
% |
946 |
39 |
% |
3,769 |
47 |
% |
1,749 |
39 |
% |
| Total
TPV |
4,373 |
100 |
% |
2,433 |
100 |
% |
7,948 |
100 |
% |
4,537 |
100 |
% |
The table below presents a breakdown of dLocal’s revenue by
geography:
|
In thousands of US$ except for % |
Three months ended 30 of June |
Six months ended 30 of June |
| |
2023 |
% share |
2022 |
% share |
2023 |
% share |
2022 |
% share |
|
Latin America |
126.9 |
79 |
% |
87.6 |
87 |
% |
225.1 |
75 |
% |
165.2 |
88 |
% |
| Brazil |
41.2 |
26 |
% |
20.7 |
20 |
% |
64.0 |
21 |
% |
38.8 |
21 |
% |
| Argentina |
20.7 |
13 |
% |
23.2 |
23 |
% |
40.7 |
14 |
% |
44.2 |
23 |
% |
| Mexico |
28.3 |
18 |
% |
16.0 |
16 |
% |
51.0 |
17 |
% |
28.9 |
15 |
% |
| Chile |
14.2 |
9 |
% |
12.7 |
13 |
% |
28.4 |
10 |
% |
24.8 |
13 |
% |
| Other LatAm |
22.5 |
14 |
% |
15.0 |
15 |
% |
41.0 |
14 |
% |
28.4 |
15 |
% |
| |
|
|
|
|
|
|
|
|
| Africa &
Asia |
34.3 |
21 |
% |
13.6 |
13 |
% |
73.3 |
25 |
% |
23.5 |
12 |
% |
| Nigeria |
20.4 |
13 |
% |
4.5 |
4 |
% |
47.3 |
16 |
% |
6.1 |
3 |
% |
| Other Africa & Asia |
13.9 |
9 |
% |
9.1 |
9 |
% |
26.0 |
9 |
% |
17.3 |
9 |
% |
| |
|
|
|
|
|
|
|
|
| Total
Revenue |
161.1 |
100 |
% |
101.2 |
100 |
% |
298.4 |
100 |
% |
188.6 |
100 |
% |
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.
Adjusted EBITDA as used by dLocal is defined as
the profit from operations before financing and taxation for the
year or period, as applicable, before depreciation of property,
plant and equipment, amortization of right-of-use assets and
intangible assets, and further excluding the changes in fair value
of financial assets and derivative instruments carried at fair
value through profit or loss, impairment gains/(losses) on
financial assets, transaction costs, share-based payment non-cash
charges, secondary offering expenses, and inflation adjustment.
dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA
divided by consolidated revenues.
Although Adjusted EBITDA and Adjusted EBITDA
Margin may be commonly viewed as non-IFRS measures in other
contexts, pursuant to IFRS 8, (“Operating Segments”), Adjusted
EBITDA and Adjusted EBITDA Margin are treated by dLocal as IFRS
measures based on the manner in which dLocal utilizes these
measures. Nevertheless, dLocal’s Adjusted EBITDA and Adjusted
EBITDA Margin metrics should not be viewed in isolation or as a
substitute for net income for the periods presented under IFRS.
dLocal also believes that its Adjusted EBITDA and Adjusted EBITDA
Margin metrics are useful metrics used by analysts and investors,
although these measures are not explicitly defined under IFRS.
Additionally, the way dLocal calculates operating segment’s
performance measures may be different from the calculations used by
other entities, including competitors, and therefore, dLocal’s
performance measures may not be comparable to those of other
entities
The table below presents a reconciliation of
dLocal’s Adjusted EBITDA and Adjusted EBITDA Margin to net
income:
|
In thousands of US$ |
Three months ended 30 of June |
Six months ended 30 of June |
|
|
2023 |
2022 |
2023 |
2022 |
|
Profit for the period |
44,791 |
|
30,722 |
|
80,241 |
|
56,995 |
|
| Income tax expense |
8,774 |
|
4,151 |
|
13,055 |
|
5,364 |
|
| Depreciation and
amortization |
2,869 |
|
1,857 |
|
5,384 |
|
3,580 |
|
| Finance income and costs,
net |
(7,459 |
) |
(253 |
) |
(8,850 |
) |
1,040 |
|
| Share-based payment non-cash
charges |
1,421 |
|
1,241 |
|
3,750 |
|
3,275 |
|
| Secondary offering
expenses¹ |
- |
|
- |
|
- |
|
89 |
|
| Impairment loss / (gain) on
financial assets |
(21 |
) |
(7 |
) |
30 |
|
(82 |
) |
| Inflation adjustment |
1,661 |
|
472 |
|
2,680 |
|
778 |
|
| Other non-recurring
costs² |
- |
|
- |
|
1,229 |
|
- |
|
| Adjusted
EBITDA |
52,036 |
|
38,183 |
|
97,519 |
|
71,039 |
|
Note: Although Adjusted EBITDA and Adjusted
EBITDA Margin may be commonly viewed as non-IFRS measures in other
contexts, pursuant to IFRS 8, Adjusted EBITDA and Adjusted EBITDA
Margin are treated by dLocal as IFRS measures based on the manner
in which dLocal utilizes these measures. Adjusted EBITDA as used by
dLocal is defined as the profit from operations before financing
and taxation for the year or period, as applicable, before
depreciation of property, plant and equipment, amortization of
right-of-use assets and intangible assets, and further excluding
the changes in fair value of financial assets and derivative
instruments carried at fair value through profit or loss,
impairment gains/(losses) on financial assets, transaction costs,
share-based payment non-cash charges, secondary offering expenses,
transaction expenses and inflation adjustment.1 Corresponds to
expenses assumed by dLocal in relation to secondary offerings of
its shares which occurred in 2021. 2 It includes non-recurring
costs related to an internal review of the allegations made by a
short-seller report, including fees from independent counsel,
independent global expert services and forensic accounting advisory
firm.
Earnings per share
We calculate basic earnings per share by
dividing the profit attributable to owners of the group by the
weighted average number of common shares issued and outstanding
during the three-months and six-month periods ended June 30, 2023
and 2022.
Our diluted earnings per share is calculated by
dividing the profit attributable to owners of the group of dLocal
by the weighted average number of common shares outstanding during
the period plus the weighted average number of common shares that
would be issued on conversion of all dilutive potential common
shares into common shares.
The following table presents the information
used as a basis for the calculation of our earnings per share:
| |
Three months ended 30 of June |
Six months ended 30 of June |
|
|
2023 |
2022 |
2023 |
2022 |
| Profit attributable to common
shareholders (in thousands of US$) |
44,697 |
30,572 |
80,141 |
56,864 |
| Weighted average number of
common shares |
291,700,873 |
295,393,168 |
293,403,907 |
295,219,928 |
| Adjustments for calculation of
diluted earnings per share |
16,160,368 |
17,599,775 |
16,358,508 |
17,619,241 |
| Weighted average number of
common shares for calculating diluted earnings per share |
307,861,241 |
312,992,943 |
309,762,415 |
312,839,169 |
| Basic earnings per share |
0.15 |
0.10 |
0.27 |
0.19 |
| Diluted earnings per
share |
0.15 |
0.10 |
0.26 |
0.18 |
This press release does not contain sufficient
information to constitute an interim financial report as defined in
International Accounting Standards 34, “Interim Financial
Reporting” nor a financial statement as defined by International
Accounting Standards 1 “Presentation of Financial Statements”. The
quarterly financial information in this press release has not been
audited.
Conference call and webcast
dLocal’s management team will host a conference
call and audio webcast on August 16th, 2023 at 8:00 a.m. Eastern
Time. Please click here to pre-register for the conference call and
obtain your dial in number and passcode.
The live conference call can be accessed via
audio webcast at the investor relations section of dLocal’s
website, at https://investor.dlocal.com/. An archive of the webcast
will be available for a year following the conclusion of the
conference call. The investor presentation will also be filed on
EDGAR at www.sec.gov.
About dLocal
dLocal powers local payments in emerging
markets, connecting global enterprise merchants with billions of
emerging market consumers in more than 40 countries across APAC,
the Middle East, Latin America, and Africa. Through the “One
dLocal” platform (one direct API, one platform, and one contract),
global companies can accept payments, send pay-outs and settle
funds globally without the need to manage separate pay-in and
pay-out processors, set up numerous local entities, and integrate
multiple acquirers and payment methods in each
market.Definition of selected operational
metrics
“API” means application programming interface,
which is a general term for programming techniques that are
available for software developers when they integrate with a
particular service or application. In the payments industry, APIs
are usually provided by any party participating in the money flow
(such as payment gateways, processors, and service providers) to
facilitate the money transfer process.
“Cross-border” means a payment transaction
whereby dLocal is collecting in one currency and settling into a
different currency and/or in a different geography.
“Local payment methods” refers to any payment
method that is processed in the country where the end user of the
merchant sending or receiving payments is located, which include
credit and debit cards, cash payments, bank transfers, mobile
money, and digital wallets.
“Local-to-local” means a payment transaction
whereby dLocal is collecting and settling in the same currency.
“Net Revenue Retention Rate” or “NRR” is a U.S.
dollar-based measure of retention and growth of dLocal’s merchants.
NRR is calculated for a period or year by dividing the Current
Period/Year Revenue by the Prior Period/Year Revenue. The Prior
Period/Year Revenue is the revenue billed by us to all our
customers in the prior period. The Current Period/Year Revenue is
the revenue billed by us in the current period to the same
customers included in the Prior Period/Year Revenue. Current
Period/Year Revenue includes revenues from any upselling and
cross-selling across products, geographies, and payment methods to
such merchant customers, and is net of any contractions or
attrition, in respect of such merchant customers, and excludes
revenue from new customers on-boarded in the preceding twelve
months. As most of dLocal revenues come from existing merchants,
the NRR rate is a key metric used by management, and we believe it
is useful for investors in order to assess our retention of
existing customers and growth in revenues from our existing
customer base.
“Pay-in” means a payment transaction whereby
dLocal’s merchant customers receive payment from their
customers.
“Pay-out” means a payment transaction whereby
dLocal disburses money in local currency to the business partners
or customers of dLocal’s merchant customers.
“Revenue from New Merchants” means the revenue
billed by us to merchant customers that we did not bill revenues in
the same quarter (or period) of the prior year.
“Revenue from Existing Merchants” means the
revenue billed by us in the last twelve months to the merchant
customers that we billed revenue in the same quarter (or period) of
the prior year.
“TPV” dLocal presents total payment volume, or
TPV, which is an operating metric of the aggregate value of all
payments successfully processed through dLocal’s payments platform.
Because revenue depends significantly on the total value of
transactions processed through the dLocal platform, management
believes that TPV is an indicator of the success of dLocal’s global
merchants, the satisfaction of their end users, and the scale and
growth of dLocal’s business.
Forward-looking statements
This press release contains certain
forward-looking statements. These forward-looking statements convey
dLocal’s current expectations or forecasts of future events.
Forward-looking statements regarding dLocal involve known and
unknown risks, uncertainties and other factors that may cause
dLocal’s actual results, performance or achievements to be
materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. Certain of these risks and uncertainties are described
in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary
Statement Regarding Forward-Looking Statements” sections of
dLocal’s filings with the U.S. Securities and Exchange Commission.
Unless required by law, dLocal undertakes no obligation to publicly
update or revise any forward-looking statements to reflect
circumstances or events after the date hereof.dLocal
LimitedCertain financial
informationConsolidated Condensed Statements of
Comprehensive Income for the for the three-month and six-month
period ended June 30, 2023 and 2022(In thousands
of U.S. dollars, except per share amounts, unaudited)
| |
Three months ended 30 of June |
Six months ended 30 of June |
| |
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
|
Revenues |
161,138 |
|
101,180 |
|
298,425 |
|
188,633 |
|
| Cost of
services |
(90,378 |
) |
(51,541 |
) |
(165,828 |
) |
(95,440 |
) |
| Gross
profit |
70,760 |
|
49,639 |
|
132,597 |
|
93,193 |
|
| |
|
|
|
|
| Technology and development
expenses |
(2,640 |
) |
(1,643 |
) |
(4,930 |
) |
(3,049 |
) |
| Sales and marketing
expenses |
(3,106 |
) |
(3,128 |
) |
(7,963 |
) |
(5,972 |
) |
| General and administrative
expenses |
(17,268 |
) |
(9,095 |
) |
(32,548 |
) |
(19,389 |
) |
| Impairment (loss)/gain on
financial assets |
21 |
|
7 |
|
(30 |
) |
82 |
|
| Other
operating (loss)/gain |
- |
|
(688 |
) |
- |
|
(688 |
) |
| Operating
profit |
47,767 |
|
35,092 |
|
87,126 |
|
64,177 |
|
| Finance income |
18,878 |
|
5,530 |
|
25,866 |
|
5,536 |
|
| Finance costs |
(11,419 |
) |
(5,277 |
) |
(17,016 |
) |
(6,576 |
) |
| Inflation adjustment |
(1,661 |
) |
(472 |
) |
(2,680 |
) |
(778 |
) |
|
Other results |
5,798 |
|
(219 |
) |
6,170 |
|
(1,818 |
) |
| Profit before income
tax |
53,565 |
|
34,873 |
|
93,296 |
|
62,359 |
|
| Income
tax expense |
(8,774 |
) |
(4,151 |
) |
(13,055 |
) |
(5,364 |
) |
| Profit for the
period |
44,791 |
|
30,722 |
|
80,241 |
|
56,995 |
|
| |
|
|
|
|
| Profit attributable
to: |
|
|
|
|
| Owners of the Group |
44,697 |
|
30,572 |
|
80,141 |
|
56,864 |
|
| Non-controlling interest |
94 |
|
150 |
|
100 |
|
131 |
|
| Profit for the
period |
44,791 |
|
30,722 |
|
80,241 |
|
56,995 |
|
| |
|
|
|
|
| Earnings per share (in
USD) |
|
|
|
|
| Basic Earnings per share |
0.15 |
|
0.10 |
|
0.27 |
|
0.19 |
|
| Diluted Earnings per
share |
0.15 |
|
0.10 |
|
0.26 |
|
0.18 |
|
| |
|
|
|
|
| Other comprehensive
income |
|
|
|
|
| Items that may be reclassified
to profit or loss: |
|
|
|
|
| Exchange difference on
translation on foreign operations |
1,675 |
|
(1,245 |
) |
3,163 |
|
(83 |
) |
|
Other comprehensive income for the period |
1,675 |
|
(1,245 |
) |
3,163 |
|
(83 |
) |
| Total comprehensive
income for the period |
46,466 |
|
29,477 |
|
83,404 |
|
56,912 |
|
| |
|
|
|
|
| Total comprehensive
income for the period |
|
|
|
|
| Owners of the Group |
46,371 |
|
29,327 |
|
83,305 |
|
56,781 |
|
| Non-controlling interest |
95 |
|
150 |
|
99 |
|
131 |
|
| Total comprehensive
income for the period |
46,466 |
|
29,477 |
|
83,404 |
|
56,912 |
|
| |
|
|
|
|
|
|
|
|
dLocal LimitedCertain
interim financial informationConsolidated
Condensed Statements of Financial Position as of June 30, 2023 and
December 31, 2022(In thousands of U.S. dollars,
except per share amounts, unaudited)
| |
30 of June, 2023 |
31 of December, 2022 |
| ASSETS |
|
|
| Current
Assets |
|
|
|
Cash and cash equivalents |
549,386 |
|
468,092 |
|
| Financial assets at fair value
through profit or loss |
51,565 |
|
1,295 |
|
| Trade and other
receivables |
299,802 |
|
240,446 |
|
| Derivative financial
instruments |
1,200 |
|
1,206 |
|
| Other assets |
44,632 |
|
56,789 |
|
| Total Current
Assets |
946,585 |
|
767,828 |
|
| |
|
|
| Non-Current
Assets |
|
|
| Deferred tax assets |
809 |
|
362 |
|
| Property, plant and
equipment |
2,780 |
|
2,734 |
|
| Right-of-use assets |
3,694 |
|
3,934 |
|
| Intangible assets |
54,920 |
|
51,443 |
|
|
Total Non-Current Assets |
62,203 |
|
58,473 |
|
| TOTAL
ASSETS |
1,008,788 |
|
826,301 |
|
| |
|
|
|
LIABILITIES |
|
|
| Current
Liabilities |
|
|
| Trade and other payables |
598,013 |
|
407,874 |
|
| Lease liabilities |
675 |
|
686 |
|
| Tax liabilities |
12,856 |
|
11,695 |
|
| Derivative financial
instruments |
838 |
|
544 |
|
| Provisions |
916 |
|
1,473 |
|
| Total Current
Liabilities |
613,298 |
|
422,272 |
|
| |
|
|
| Non-Current
Liabilities |
|
|
| Deferred tax liabilities |
3,200 |
|
1,016 |
|
| Lease liabilities |
3,292 |
|
3,393 |
|
|
Total Non-Current Liabilities |
6,492 |
|
4,409 |
|
| TOTAL
LIABILITIES |
619,790 |
|
426,681 |
|
| |
|
|
| EQUITY |
|
|
| Share Capital |
578 |
|
592 |
|
| Share Premium |
68,550 |
|
164,307 |
|
| Capital Reserve |
17,930 |
|
16,185 |
|
| Other Reserves |
(6 |
) |
(1,448 |
) |
| Retained earnings |
301,856 |
|
219,993 |
|
| Total Equity
Attributable to owners of the Group |
388,908 |
|
399,629 |
|
|
Non-controlling interest |
90 |
|
(9 |
) |
| TOTAL
EQUITY |
388,998 |
|
399,620 |
|
| |
|
|
|
|
dLocal
LimitedCertain interim financial
informationConsolidated Condensed Statements of
Cash flows for three-month and six-month period ended June 30, 2023
and 2022(In thousands of U.S. dollars, except per
share amounts, unaudited)
| |
Three months ended 30 of June |
Six months ended 30 of June |
|
|
2023 |
2022 |
2023 |
2022 |
| Cash flows from
operating activities |
|
|
|
|
|
Profit before income tax |
53,565 |
|
34,873 |
|
93,296 |
|
62,359 |
|
| Adjustments: |
|
|
|
|
|
Interest income from financial instruments |
(15,313 |
) |
(5,530 |
) |
(22,212 |
) |
(5,536 |
) |
|
Interest charges for lease liabilities |
52 |
|
15 |
|
95 |
|
178 |
|
|
Other finance expense |
765 |
|
967 |
|
1,202 |
|
937 |
|
|
Finance expense related to derivative financial instruments |
4,634 |
|
3,607 |
|
9,869 |
|
4,773 |
|
|
Net exchange differences |
3,551 |
|
(5,836 |
) |
4,082 |
|
(4,346 |
) |
|
Fair value loss on financial assets at fair value through profit or
loss |
(3,565 |
) |
- |
|
(3,654 |
) |
- |
|
|
Amortization of Intangible assets |
2,492 |
|
1,594 |
|
4,668 |
|
3,016 |
|
|
Depreciation of Property, plant and equipment |
212 |
|
153 |
|
407 |
|
341 |
|
|
Amortization of Right-of-use asset |
165 |
|
110 |
|
309 |
|
223 |
|
|
Revenue reduction related to prepaid assets |
- |
|
53 |
|
- |
|
211 |
|
|
Share-based payment expense, net of forfeitures |
1,421 |
|
1,241 |
|
3,750 |
|
3,275 |
|
|
Other operating loss/(gain) |
- |
|
(18 |
) |
- |
|
(18 |
) |
|
Net Impairment loss/(gain) on financial assets |
(21 |
) |
(7 |
) |
30 |
|
(82 |
) |
| |
47,958 |
|
31,222 |
|
91,842 |
|
65,331 |
|
| Changes in working
capital |
|
|
|
|
|
Increase in Trade and other receivables |
(50,312 |
) |
21,458 |
|
(59,386 |
) |
(4,742 |
) |
|
Decrease/(increase) in Other assets |
(1,597 |
) |
(552 |
) |
12,157 |
|
(693 |
) |
|
Increase in Trade and other payables |
148,761 |
|
(11,200 |
) |
190,139 |
|
58,416 |
|
|
Decrease in Tax Liabilities |
(2,279 |
) |
(4,521 |
) |
(3,341 |
) |
(4,721 |
) |
|
(Decrease) / Increase in Provisions |
(252 |
) |
(186 |
) |
(557 |
) |
(137 |
) |
| Cash from operating
activities |
142,279 |
|
36,221 |
|
230,854 |
|
113,454 |
|
|
Income tax paid |
(2,774 |
) |
(2,605 |
) |
(6,816 |
) |
(3,928 |
) |
| Net cash from
operating activities |
139,505 |
|
33,616 |
|
224,038 |
|
109,526 |
|
| |
|
|
|
|
| Cash flows from
investing activities |
|
|
|
|
|
Acquisition of Property, plant and equipment |
(608 |
) |
(494 |
) |
(657 |
) |
(574 |
) |
|
Additions of Intangible assets |
(4,339 |
) |
(2,217 |
) |
(8,145 |
) |
(4,726 |
) |
|
Acquisitions of financial asset at FVTPL |
(48,139 |
) |
- |
|
(48,139 |
) |
- |
|
|
Net collections of/investments in financial assets at FVTPL |
478 |
|
(900 |
) |
1,523 |
|
(282 |
) |
|
Interest collected from financial instruments |
15,155 |
|
5,530 |
|
21,975 |
|
5,536 |
|
| Net cash provided by /
(used in) investing activities |
(37,453 |
) |
1,919 |
|
(33,443 |
) |
(46 |
) |
| |
|
|
|
|
| Cash flows from
financing activities |
|
|
|
|
|
Repurchase of shares |
(61,011 |
) |
- |
|
(97,929 |
) |
- |
|
|
Share-options exercise |
84 |
|
548 |
|
153 |
|
906 |
|
|
Proceeds from borrowings |
- |
|
14,656 |
|
- |
|
14,656 |
|
|
Repayment of borrowings |
- |
|
(5,364 |
) |
- |
|
(5,364 |
) |
|
Interest payments on lease liability |
(52 |
) |
(15 |
) |
(95 |
) |
(178 |
) |
|
Principal payments on lease liability |
(146 |
) |
(55 |
) |
(276 |
) |
(147 |
) |
|
Finance expense paid related to derivative financial
instruments |
(9,184 |
) |
- |
|
(11,337 |
) |
- |
|
|
Other finance expense paid |
(768 |
) |
(1,142 |
) |
(1,205 |
) |
(1,179 |
) |
|
Net cash (used in) / provided by financing
activities |
(71,077 |
) |
8,628 |
|
(110,689 |
) |
8,694 |
|
| Net increase in cash
flow |
30,975 |
|
44,163 |
|
79,906 |
|
118,174 |
|
| |
|
|
|
|
| Cash and cash
equivalents at the beginning of the period |
517,892 |
|
410,064 |
|
468,092 |
|
336,197 |
|
| Net increase in cash flow |
30,975 |
|
44,163 |
|
79,906 |
|
118,174 |
|
| Effects of exchange rate
changes on cash and cash equivalents |
519 |
|
(242 |
) |
1,388 |
|
(386 |
) |
| Cash and cash
equivalents at the end of the period |
549,386 |
|
453,985 |
|
549,386 |
|
453,985 |
|
dLocal was incorporated on February 10, 2021, as
a Cayman Islands exempted company with limited liability, duly
registered with the Cayman Islands Registrar of Companies. The
contribution of dLocal Group Limited (a limited liability company
incorporated in Malta, the former holding entity or “dLocal Malta”)
shares to dLocal was finalized as of April 14, 2021. Until the
contribution of dLocal Malta shares to it, dLocal had not commenced
operations, consequently the historical information previous to
that date presented herein corresponds to dLocal Malta, our
predecessor. This reorganization was done, among other reasons, to
facilitate the initial public offering of the Group. dLocal had no
prior assets, holdings or operations.
Investor Relations
Contact:investor@dlocal.com
Media
Contact:marketing@dlocal.com
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