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dLocal Reports 2025 First Quarter Financial Results

1. DLocal achieved record TPV of $8.1 billion, up 53% YoY. 2. Revenue reached $216.8 million, increasing 18% year-over-year. 3. Adjusted EBITDA rose 57% to $57.9 million, with strong margins. 4. Net income surged 163% to $46.7 million, supported by improved operations. 5. Company showed strong cash flow; $511.5 million in cash and equivalents.

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Why Very Bullish?

DLocal's significant YoY growth in TPV and profits signals strong operational health, which historically leads to positive price movements. Previous earnings reports showing similar or lower growth rates resulted in declines for competitors.

How important is it?

The article provides substantial financial results that can directly influence market perceptions and investor decisions regarding DLO.

Why Short Term?

The immediate positive earnings report will likely attract investor attention quickly, impacting stock price shortly after the announcement and earnings call.

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May 14, 2025 16:05 ET  | Source: DLocal Limited Record highs across key financial and operational metrics.TPV milestone of US$8 billion, +53% YoY and +5% QoQ. In constant currency, TPV increased +72% YoY.Revenue and gross profit record highs of US$217 million and US$85 million. Continued geographic diversification.Adjusted EBITDA of US$58 million, with Adjusted EBITDA/Gross Profit at 68%, demonstrating our ability to scale efficiently.Strong cash flow, with free cash flow to net income conversion at 85%, reinforcing cash generating financial model. MONTEVIDEO, Uruguay, May 14, 2025 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform, today announced its financial results for the first quarter ended March 31, 2025. dLocal’s management team will host a conference call and audio webcast on May 14, 2025 at 5:00 p.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. “The first quarter of 2025 demonstrated strong execution across many of the levers of our strategic plan. Our commercial team effectively leveraged existing merchant relationships and established new partnerships. Financially, we executed our investment plan in a responsible and efficient manner. In addition, our operations and technology teams delivered improved effectiveness to our merchants, and our legal and regulatory teams focused on expanding our license portfolios,” said Pedro Arnt, CEO of dLocal. First quarter 2025 financial highlights dLocal reports in US dollars and in accordance with IFRS as issued by the IASB Total Payment Volume (“TPV”) reached a record US$8.1 billion in the first quarter, up 53% year-over-year compared to US$5.3 billion in the first quarter of 2024 and up 5% compared to US$7.7 billion in the fourth quarter of 2024. In constant currency, TPV growth for the period would have been 72% year-over-year.Revenues amounted to US$216.8 million, up 18% year-over-year compared to US$184.4 million in the first quarter of 2024 and up 6% compared to US$204.5 million in the fourth quarter of 2024. This quarter-over-quarter increase, above TPV growth, was driven by higher cross-border share in the mix, and partially offset by Mexico, given the commerce seasonality effect in the fourth quarter and partial volume loss with a large merchant. In constant currency, revenue growth for the period would have been 36% year-over-year.Gross profit was US$84.9 million in the first quarter of 2025, up 35% compared to US$63.0 million in the first quarter of 2024 and up 1% compared to US$83.7 million in the fourth quarter of 2024. The quarter-over-quarter comparison was primarily due to (i) Argentina, with gross profit following revenue trends, in addition to increasing advancement volumes (which have higher take rates) and wider FX spreads in Q1 2025 vs Q4 2024; and (ii) Other LatAm markets, with notable performance in Chile. These positive factors were partially offset by (i) Brazil, due to the migration to the Payment Orchestration model, which brings lower take rates, coupled with one-off incremental processing costs; and (ii) Mexico, as explained above. In addition, despite volume growth across various countries, Other Africa and Asia was adversely affected by increased processing costs in South Africa and Nigeria. In constant currency, gross profit growth for the period would have been 59% year-over-year.As a result, gross profit margin was 39% in this quarter, compared to 34% in the first quarter of 2024 and 41% in the fourth quarter of 2024.Gross profit over TPV was at 1.05% decreasing from 1.19% in the first quarter of 2024 and from 1.09% compared to the fourth quarter of 2024.Operating profit was US$45.8 million, up 70% compared to US$26.9 million in the first quarter of 2024 and up 8% compared to US$42.3 million in the fourth quarter of 2024. Operating expenses grew by 8% year-over-year, explained by the increase in headcount, as we continue to invest in our capabilities. On the sequential comparison, operating expenses decreased by 6% quarter-over-quarter, primarily attributed to a reduction in G&A and Technology & Development expenses, driven by the decrease in third-party services, travel expenses and timing of implementation of new initiatives. This decrease was partially offset by the growth in headcount and increase in Sales & Marketing expenses, driven by key commercial events.As a result, Adjusted EBITDA was US$57.9 million, up 57% compared to US$36.8 million in the first quarter of 2024 and up 2% compared to US$56.9 million in the fourth quarter of 2024.Adjusted EBITDA margin was 27%, compared to the 20% recorded in the first quarter of 2024 and 28% in the fourth quarter of 2024. Adjusted EBITDA over gross profit of 68% increased compared to 58% in the first quarter of 2024 and slightly increased compared to 68% in the fourth quarter of 2024, marking the fourth consecutive quarter of improvement.Net financial result was US$7.0 million gain, compared to a net finance gain of US$0.2 million in the first quarter of 2024 and a net finance loss of US$1.1 million in the fourth quarter of 2024, as explained in the Net Income section.Our effective income tax rate decreased to 10% from 27% last quarter (or 16% when excluding the tax settlement, as mentioned in the fourth quarter earnings release), as result of higher cross-border share of pre-tax income and a lower pre-tax income in Brazil given the higher costs, as explained previously.Net income for the first quarter of 2025 was US$46.7 million, or US$0.15 per diluted share, up 163% compared to a profit of US$17.7 million, or US$0.06 per diluted share, for the first quarter of 2024 and up 57% compared to a profit of US$29.7 million, or US$0.10 per diluted share for the fourth quarter of 2024. During the current period, net income was mostly affected by the positive non-cash mark to market effect related to our Argentine bond investments and lower finance costs.Free cash flow for the first quarter of 2025 amounted to US$39.7 million, up 200% year-over-year compared to US$13.2 million in the first quarter of 2024 and up 22% compared to US$32.5 million in the fourth quarter of 2024. The variation quarter-over-quarter is primarily explained by improved operational results, partially offset by normal variability in corporate working capital and higher income tax paid and capex.As of March 31, 2025, dLocal had US$511.5 million in cash and cash equivalents, which includes US$355.9 million of Corporate cash and cash equivalents. The Corporate cash and cash equivalents increased by US$58.0 million from US$298.0 million as of March 31, 2024, despite the US$100 million in shares repurchased throughout 2024. When compared to the US$317.8 million Corporate cash and cash equivalents position as of December 31, 2024, it increased by US$38.1 million quarter-over-quarter. The following table summarizes our key performance metrics:  Three months ended March 31 2025 2024 % changeKey Performance metrics(In millions of US$ except for %)TPV8,107 5,310 53%Revenue216.8 184.4 18%Gross Profit84.9 63.0 35%Gross Profit margin39% 34% 5p.pAdjusted EBITDA57.9 36.8 57%Adjusted EBITDA margin27% 20% 7p.pAdjusted EBITDA/Gross Profit68% 58% 10p.pProfit46.7 17.7 163%Profit margin22% 10% 12p.p       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 finance income and costs, impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges,other operating gain/loss,other non-recurring costs, and inflation adjustment. dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues. dLocal defines Adjusted EBITDA to Gross Profit Ratio as Adjusted EBITDA divided by Gross Profit. Although Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio may be commonly viewed as non-IFRS measures in other contexts, pursuant to IFRS 8, (“Operating Segments”), Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio are treated by dLocal as IFRS measures based on the manner in which dLocal utilizes these measures. Nevertheless, dLocal’s Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio 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, Adjusted EBITDA Margin and Adjusted EBITDA to Gross Profit Ratio 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. Finally, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment. The table below presents a reconciliation of dLocal’s Adjusted EBITDA to net income: $ in thousandsThree months ended March 31 2025 2024Profit for the period46,667 17,718Income tax expense5,262 7,114Depreciation and amortization5,062 3,762Finance income and costs, net(6,969) (299)Share-based payment non-cash charges6,020 4,461Other operating loss¹422 1,819Impairment loss / (gain) on financial assets386 (177)Inflation adjustment885 2,368Other non-recurring costs²123 -Adjusted EBITDA57,858 36,766     Note: 1 The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. 2 Other non-recurring costs consist of costs not directly associated with the Company’s core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2025. dLocal LimitedCertain financial informationConsolidated Condensed Interim Statements of Comprehensive Income for the three-month period ended March 31, 2025 and 2024(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)   Three months ended March 31 2025 2024Continuing operations   Revenues216,759 184,430Cost of services(131,880) (121,459)Gross profit84,879 62,971    Technology and development expenses(6,767) (5,465)Sales and marketing expenses(7,135) (4,631)General and administrative expenses(24,324) (24,332)Impairment (loss)/gain on financial assets(386) 177Other operating (loss)/gain(422) (1,819)Operating profit45,845 26,901Finance income12,228 18,257Finance costs(5,259) (17,958)Inflation adjustment(885) (2,368)Other results6,084 (2,069)Profit before income tax51,929 24,832Income tax expense(5,262) (7,114)Profit for the period46,667 17,718    Profit attributable to:   Owners of the Group46,630 17,708Non-controlling interest37 10Profit for the period46,667 17,718    Earnings per share (in USD)   Basic Earnings per share0.16 0.06Diluted Earnings per share0.15 0.06    Other comprehensive income   Items that may be reclassified to profit or loss:   Exchange difference on translation on foreign operations3,526 (669)Other comprehensive income for the period, net of tax3,526 (669)Total comprehensive income for the period, net of tax50,193 17,049    Total comprehensive income for the period   Owners of the Group50,174 17,036Non-controlling interest19 13Total comprehensive income for the period50,193 17,049     dLocal LimitedCertain financial informationConsolidated Condensed Interim Statements of Financial Position as of March 31, 2025 and December 31, 2024(All amounts in thousands of U.S. dollars)       March 31, 2025 December 31, 2024ASSETS    Current Assets    Cash and cash equivalents 511,506 425,172Financial assets at fair value through profit or loss 125,487 129,319Trade and other receivables 477,349 496,713Derivative financial instruments 463 2,874Other assets 28,001 18,805Total Current Assets 1,142,806 1,072,883     Non-Current Assets    Trade and other receivables 15,518 18,044Deferred tax assets 5,468 5,367Property, plant and equipment 4,007 3,377Right-of-use assets 3,852 3,645Intangible assets 65,301 63,318Other assets 4,695 4,695Total Non-Current Assets 98,841 98,446TOTAL ASSETS 1,241,647 1,171,329     LIABILITIES    Current Liabilities    Trade and other payables 614,133 597,787Lease liabilities 1,107 1,137Tax liabilities 20,631 21,515Derivative financial instruments 1,098 6,227Financial liabilities 54,248 50,455Provisions 543 500Total Current Liabilities 691,760 677,621     Non-Current Liabilities    Deferred tax liabilities 1,862 1,858Lease liabilities 2,825 2,863Total Non-Current Liabilities 4,687 4,721TOTAL LIABILITIES 696,447 682,342     EQUITY    Share Capital 570 570Share Premium 187,671 186,769Treasury Shares (200,980) (200,980)Capital Reserve 38,556 33,438Other Reserves (17,390) (20,934)Retained earnings 536,654 490,024Total Equity Attributable to owners of the Group 545,081 488,887Non-controlling interest 119 100TOTAL EQUITY 545,200 488,987TOTAL EQUITY AND LIABILITIES 1,241,647 1,171,329      dLocal LimitedCertain interim financial informationConsolidated Statements of Cash flows for the three-month period ended March 31, 2025 and 2024(All amounts in thousands of U.S. dollars)   Three months ended March 31 2025 2024Cash flows from operating activities   Profit before income tax51,929 24,832Adjustments:   Interest Income from financial instruments(5,106) (7,442)Interest charges for lease liabilities41 43Other interests charges883 127Finance expense related to derivative financial instruments414 9,878Net exchange differences4,142 7,637Fair value loss/(gain) on financial assets at FVPL(7,343) (10,815)Amortization of Intangible assets4,584 3,424Depreciation and disposals of PP&E and right-of-use703 400Share-based payment expense, net of forfeitures6,020 4,461Other operating gain422 1,819Net Impairment loss/(gain) on financial assets386 (177)Inflation adjustment and other financial results6,083 (5,892) 63,158 28,295Changes in working capital   Increase in Trade and other receivables21,082 (32,836)Decrease / (Increase) in Other assets1,025 3,219Increase / (Decrease) in Trade and Other payables16,346 45,964Increase / (Decrease) in Tax Liabilities965 (1,120)Increase / (Decrease) in Provisions43 4Cash (used) / generated from operating activities102,619 43,526Income tax paid(7,208) (3,558)Net cash (used) / generated from operating activities95,411 39,968    Cash flows from investing activities   Acquisitions of Property, plant and equipment(945) (786)Additions of Intangible assets(6,567) (5,022)Acquisition of financial assets at FVPL(41,374) -Collections of financial assets at FVPL47,416 (243)Interest collected from financial instruments5,106 7,442Payments for investments in other assets at FVPL(10,000) -Net cash (used in) / generated investing activities(6,364) 1,391    Cash flows from financing activities   Interest payments on lease liability(41) (43)Principal payments on lease liability(663) (95)Finance expense paid related to derivative financial instruments(3,132) (10,151)Net proceeds from financial liabilities5,790 -Interest payments on financial liabilities(2,166) -Other finance expense paid(714) (127)Net cash used in by financing activities(926) (10,416)Net increase in cash flow88,121 30,943    Cash and cash equivalents at the beginning of the period425,172 536,160Net (decrease)/increase in cash flow88,121 30,943Effects of exchange rate changes on inflation and cash and cash equivalents(1,787) 5,254Cash and cash equivalents at the end of the period511,506 572,357     About dLocaldLocal powers local payments in emerging markets, connecting global enterprise merchants with billions of emerging market consumers in more than 40 countries across Africa, Asia, and Latin America. 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. Forward-looking statementsThis press release contains certain 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 are based on current management expectations and 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. In addition, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment. Investor Relations Contact:investor@dlocal.com Media Contact:media@dlocal.com

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