DLO - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the DLocal Second Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please hand over to would now speaker conference to like I your the today, Ms.

of Soledad ahead. Head Investor Nager, Ms. Nager, please Relations. go

Soledad Nager

quarter and Thank morning welcome XXXX earnings to you. call. everyone DLocal's Good second

On our Executive the and Cabrera Officer; Kanovich, Financial Chief President; Chief Canay, our call our joined Singer, Officer. Sebastián I'm Diego today, by Jacobo

accessed webcast, after We through be presentation is being event prepared remarks. are This and at site providing a Web is available webcast live DLocal's slide and via investor.delocal.com. presentation may will the to be the accompany our replay concluded. both broadcast The event shortly

current me Before expectations future about conference let the are and presentation forward mentioned events. mention proceeding, DLocal's statements call included available in assumptions, that any currently based projections this in on or and information

in currently company projections assumptions, statements. believes view included reliance on our reasonable those in DLocal's differ to from are Relations conference the statements including forward-looking a described presentation for undue Actual sections available those may that you DLocal's this the on place Commission, call expectations variety the information, forward-looking reasons, are materially While Risk Exchange which DLocal's and of filings and results in Securities are in not Factors of Web within site. cautioned available those of Investor and discussed or

Now, conference to you. I the Thank turn will Seba. over

Sebastián Kanovich

today. us joining for Thanks everyone. Hello,

XXXX first public Second anniversary our marked a quarter as company.

going proven was for of have the the that new public DLocal. past we year, During chapter a just beginning

services XXX methods. XX and continue the making rest to the emerging in connect build markets countries financial our the best than of local infrastructure more We to world, offering payment to the available

an thank to for most our our this investors to a solution, team, competitors. A and XXXX including the big we've verticals, immense emerging scaling had quarter. entry our We merchants customers our of of inflation, business humble another our context, and into increase sustained diversity say the moving records our the comprehensive challenging X, has the you rising one-stop Slide rates convenience with on our global second solution On the of focused providing in during I'm their gives Our happy and and to markets. interest Despite products. supported reaching merchants macro customers opportunity remain and value our global and results, support. quarter growth strong barriers new by industry continue our quarter and shown shop results us of merchants across for for resilience continued geographies, that the

reached million our revenue, platform and billion volume total our the bring achieved ones. year. new to base to high and and by TPV revenue We last QX, robust process XX% in we've accelerated in merchants despite by $XXX existing and quarter monetize saw $X.X we from TPV Our revenue as increasing respectively, comparison growth the quarter-over-quarter. year-over-year, XX% XX% milestone continue and in Both

share to We in merchants. clients XXX% XXXX, a of NRR our as healthy continue our existing we wallet grew with retain with QX

by up delivering margin with at philosophy the to Adjusted XX%. stable for million. was XX XX% profitable quarter, And operate to consecutive continue of maintained year-over-year XX% growth. We EBITDA the EBITDA adjusted we and our disciplined, quarter-over-quarter fourth

accounts. revenue joining to grown we continue growth Our our X, see combined performance quarter our XXX us have of platform Slide more margin On merchants and XXX, currently than actively in a led of manage merchants key the platform. strong to plus Total has year-over-year XXX%. around rate to we EBITDA more

and commerce, in QX quarter-to-quarter. XX spread on-demand and share to including from XXXX delivery. merchants ride diverse add our quarter. across were existing merchants top our we ones, XX streaming, to Top quarter Besides in hailing, verticals, XX% As XXXX from that, new vary our this advertising, XX% second from decrease financial services XX continued merchants merchants top scale in revenue has

compared instance, are XX, our which our merchants three our commercial different shows there top XXXX, the strength and teams. among quarter second customer the For of diversification of the to value of

We chart on The success top our have successfully to with our continued taking merchants, new merchants bringing trust to them built XX shows the geographies. more right countries. in our

second our and in maximum process of As quarter terms per merchant XX per with top with XX on the the in four merchants revenue countries payments being us countries countries XXXX, average merchant. of minimum nine

keep existing will XX believe scaling gaining our new most relevant to now of in opportunity we services I over focused low continue still and geographies, customers. to hand on share is remain our an offer wallet, laser countries we it immense Jacobo. existing Therefore, client see we adding base we across we As monetizing our and customers. which our

Jacobo Singer

as a Thanks, own geographies my us America strengthen an Africa emerging their we ago, Seba. I important make to Cape all to the you will single including near diversifying that Town the in more achieve about are our months decided share growing fast a further We join strategic Africa that markets, future. our objectives. our I'm and a partner and make outside for South a for multiple Latin footprint remains plans. delighted business to base today expansion business merchants building access markets large Asia. future, merchants geographical why believe infrastructure and look we integration priority. API believe And growth Besides, our that's few to Growing across for from our in the key single

one country we today Africa, near in similar two today Africa. in in In Morocco presence future. XX in outside in service to this XX back after. started on opening region prospect a we a make focused Asia, nine with the adding have organically. countries new Also available We we they ago in XXXX, which journey Turkey, of growing our in followed And grow years are as today, countries merchants operate XX year and of we compared a are We America countries. out we XX in Latin and with our countries

already Africa three Asia in presence with from and countries is countries these among relevant TPV Our being top our countries and XX of terms in revenue.

our new where bringing add we our merchants to but to presence existing. able been new by deepen countries selling to countries, also only and operate currently cross the have not in We

X are of continue us out already processing top of instance, and terms For scaling. to in these TPV see with merchants opportunities our regions, in XX we significant

adding Asia. mode. improves last connections merchant-valued multiple we are our complex in and infrastructure establishing continue quarter, new the is During methods and we to network, infrastructure and local enhance and our in new Africa than countries payment turn network XX Adding These creating. more

products opportunities our across explore to continue improve to markets. selective We inorganic key network scale, and

continue Dollar geographies. revenue growth across increased to strong in all by LATAM Slide year-over-year to we million. to X, on $XX see revenue Moving XX%

once expansion a quarter-over-quarter. to the again revenues Our and year-over-year strong efforts Asia solid outpace result digit our yield continue in Latin as in Africa XX% XXX% LATAM, or increasing growth outside America by triple

$XX revenues having Asia were million the and of $XX first Africa year. in the accumulated Our million during from months quarter the six

full As and million. our comparison, we and our Africa million for Africa a from for $XX $XX rate business of and Asia XXXX, revenues in are the our revenues Asia were year around with QX run pleased

see continue see XX% continue Our relationship expect Latin revenues to to share a markets Latin us in we merchants America. to and to we Asia, originally initiating total through time cross with of increased merchants as the America. Africa of in and Besides, gradual to sell relationship us that to we started the Africa increase then expanding over Asia and with and

XXXX, had to At continue responding global we the to of by end We year-over-year. our opportunities XXX we invest QX by expanding or increasing face. in team, XX% the FTEs incremental XXX employees

XXXX, by as Americas locally the the hiring outside June year-over-year. to XXX expanded of FTEs we of significantly Americas has by outside focus faster, headcount X.Xx reaching grow Our on the end increasing

of all team, roles, and we the XX% represent to products, review in highlights. grew focus and areas the our our team. now sales Diego particular and those tech expansion our tech year, and product including FTE. will around Tech-related financial operations with continue of During marketing and on outside

Diego Canay

Thanks, Jacobo.

Slide begin XX. Let's with

XX% to quarter growth see compared the increasing continue during QX XXXX. by TPV our first and the to reached TPV $X.X of quarter. strong XX% billion In We year-over-year XXXX,

As growing diversification. business Seba from a have highlighted, fast resilient to and benefit that continues we

business you outlook any dependent of not right, in As on is see chart our vertical. can the and the performance the industry single on pie model

and like vertical more than most for delivery, both advertising. I during from and experienced is the XX in QX merchants verticals, particularly than have in performance accounting attributable different also in that we of to of and growth Software-as-a-Service travel, XXXX. TPV more balanced our well our have merchants continued the quarter. would commerce, growth one every in our is to across and verticals, We pay-outs growth highlight pay-ins XX% on-demand no single with TPV The portfolio

quarter-after-quarter. TPV For have pay-ins, increase in seen steady a we

year-over-year. pay-ins XXXX, QX in Specifically have doubled

quarter-over-quarter. We mid continue our digit pay-outs digit single to Year-over-year, with experienced improvement see double pay-outs volumes growth. in growth

volume than certain of the second in As average that big ran that higher last came we quarter from merchants campaigns year, period. in marketing that saw

Revenue local surpassing solid time showing and relative of in grown Regarding growth in Slide over and year-over-year border our year-over-year, $XXX local both a the the XX% threshold XXXX. contribution reached the a quarter past has record, first million quarters, remained first the having volumes, new also three cross stable XX% quarter-over-quarter. for to and XX. quarter the

started are Revenue for in period existing of us revenues, both X.X% in over that from existing second XXXX, during above last of seen revenues already driven merchants on processing in take revenues and revenue by the year. the a are and year. from merchants. merchants we our strong the that our by merchants TPV, delivering X.X% pay-ins revenues Zooming change are revenues new the or driven stable revenue the business continued with mix the last from increased contribution are as same those merchants quarter-over-quarter was that that quarter, rate, Our period same those And slightly by of after with mainly quarter in were year-over-year. new driven operating growth us

revenue quarter During XX% from the year-over-year existing growth, $XX XXXX, of came the million or XX% merchants. second of

from that merchants the period QX of Our more than same quarter-to-quarter, XXXX, continues we in million achieved doubling million year. grow from existing revenue the $XX in reaching last to $XX

of for second last Our the the quarter year. net XXX%. of total net revenue period revenue revenue calculate existing retention as XXXX same of the was We over from merchants the retention revenue

revenue and presentations, have tougher this in comparison we therefore, growth. an last commented XXXX As quarter, TPV started And terms the in represented in to of year. we second all-time with previous high quarter earnings of

full the north million $X same XX% continue XXXX XXX%. first period This $XX of and remaining compares the $XX recorded from retention expect to net to merchants. year million The of or For revenue we in quarter XXXX. new year-over-year growth came revenue the XXXX, of in the million

potential the six of our have period, from are believe around to quarters an As indication typically three merchants a revenues we new our of customers. just new merchants initial that

XX, Slide past increasing to our XXXX, by a to Moving scale in quarters, $XX while XX% profit million the largest to QX quarter-over-quarter experiencing in up gross the we were year-over-year, expansion four QX QX XXXX. XX% during in pretty with or compared in Gross to XXXX the XXXX. of second and margin $X at the half solid XX%, million margin seen levels line came

cost was change mainly driven of of TPV, quarter-over-quarter Our ago. revenue processing represented as our a have a X.X% stable versus mix, increased to year relative our by X% quarter costs, contribution. a the business for XXXX The compared in increase pay-ins processing which higher and QX

quarter-over-quarter past EBITDA, of increasing a followed compared highest trend second it the quarter XX% QX by same $X adjusted million was XX% to our to profit, experiencing million the on increasing the for growth by $XX XXXX. or strong year-over-year quarters, gross It the four and as in XXXX. Moving

margin in half and XXXX XXXX. in in second QX adjusted line our the margin XX%, Our was of EBITDA with

remain our senior they long-term quarter, expect and to the XX%. our adjusted to team look EBITDA strategy year growth. investing, operating excluding as more For in margin one-time non-cash full with If harvesting items, north for we the our members, at in grown and have year-over-year we that XXXX, line expenses continue XX% we expanded infrastructure sustainable building we to keep of other see and

professional we also In travel and addition, went company. to third things party normal. back services a events becoming increased public our as And marketing part of we in-person as increased

than the Before handing stronger to closing are the Seba and me ever. balance say our cash call remarks, back for generation let our sheet

XXX% the have million to for acquisition free flow $XX continuously and $XXX XXXX positive excluding of compared with million in XXX% PrimeiroPay month million XXXX, or in delivered solid cash year last a months when XX the generating cash period, merchants. We funds from last $XX the XX full excluding in the conversion

$XXX comprises position million, As is of $XXX million million which funds the a a we floor yours. result, June $XXX of as own XX, of and XXXX, robust Seba, merchant have cash of funds.

Sebastián Kanovich

saying the and their excited solutions Thanks, rest the are we that achieve by very like to financial XXXX expanding of foresee help infrastructure merchants about our Diego. continue would provide them for our opportunities to across we tailored markets I growth plans. conclude that emerging to for

by As highlighted, business has I supported shown of the our growth diversification previously and our sustained business. resilience

been XX% first XX%. XXXX, to and keep the NRR year-over-year, in high increasing an profitable with and EBITDA and our We able XXX% have strong way, of margin growth TPV of XX% half rate revenue with by in a a respectively, of delivering adjusted

do cash for of markets, Our XXXX that not payment leading top we at plus placed amid give be generation position reiterate XXXX. execution in net challenging confidence level uncertain as of our anticipate expect strong are we the to XX%. we north online rate and the and retention capabilities change consolidate the of We business combined to with us global in Thus, our choice full emerging a solution year for environment. our well to our expectations be overall expectation EBITDA margin in our XXXX our for our XXX

reiterate discipline execute It all to here us. will the for questions. opportunity of a turn now it getting listening. We started. with back to you I'll Thank massive just into operator up being was we're We to the continue it pleasure today. for open ahead

Operator

[Operator Instructions].

of Our Kupferberg of will first come Jason question from Bank America.

is Your open. line

Jason Kupferberg

both first both metrics, guidance Thanks, and comfortably margins. up the guys. ahead year the EBITDA pick through on full just of target wanted year. commentary morning. trending to Obviously, half I around your some you're on of adjusted Good of that NRR

out we wondering And should being if some that? given in half? just uncertainty meaningful the margin of NRR if what would So you. expect are moderation second and Thank you some drive macro in both so, conservative, Or the there? just

Sebastián Kanovich

start. morning. Please Thanks to I'll free the feel for Jason, good question. Diego, complement.

the expectation stayed the very So right that's We XX% for margin. year. topic to on year full from this insist we've on consistent our beginning think XXX% and the EBITDA on the of thing plus of do. We

We are very our in we've what seen on bullish business.

consistent it's proud of posted. we to in the expectations We we've past. we But just are said with right stay and to quarter the do what on thing the very continue think the

Jason Kupferberg

Okay.

nothing half? So out would in we be the second that you should obvious call wary of

Sebastián Kanovich

might We've geographies. that future. of part term, happy the and short-term that. having history, what massive. are are very to we're are the we find our very the for won't share we better is the in us We've in building of and for being today any comfortable flexibility we are expectations change it's what and never products. this we is company is we long And never ahead never presenting long hiccup QX a been run had the a of on on So consistent with which and you least, and we in believe one we We that building better of do. We've more want our customer very opportunity the had proud and We to discuss. more saying never had at

We so. and to very are we continue consistent be to want

of We are extremely the quarter just we proud posted.

the extremely we massive. and of are proud believe We are the opportunity we us of business is building, ahead

Jason Kupferberg

That makes sense.

obviously of and bit you maybe services business Just a vertical, pretty in like your if up in was parts among for the thinking wondering the of of just can example. which growth? a the benefit I'm of from bunch lagged terms quarter. your TPV financial maybe about was talk balanced to in the you quarter little on parts strength TPV But well verticals, diversification. a seemed It follow continue

Sebastián Kanovich

past shared a to are basket the balanced in free we that the industries things feel Jason, we've to different of very it We've seen complement, used than economy. slower in Internet like growing Diego, be. but, streaming

losers. SaaS. always not the the news probably can that the that's that are the ads market. cycles information means very think winners I travel, get expect in But would there's on-demand past. wider you winners diversified and and you through one like delivery, that's The fact this and been we are We've on

are as ones And continued environment. in of a we we micro this said we've past that And again, grown very the have that the diversified are the that our the hedge. well in side. streaming some are has fact slower work on But still macro to

that we grow them on our geographies to drive believe customers ability value and still So products. much be will to dependent ability new to our bring to very our and

Jason Kupferberg

for you the Thank Okay. color.

Sebastián Kanovich

I appreciate Jason. it,

Operator

question. our moment please for One you. next Thank

question Neha from next HSBC. come Agarwala Our of will

Your line is open.

Neha Agarwala

we Hi, your full for you've the XX%. XX% the on Seba pretty the above stable half, year. is at my bit team. and margin, been a for taking first for Thank EBITDA Could questions. guidance you But take

we year, margin? Where So shed expect if are of half higher a which the investments going investments second from? that? in some these should specifically, to could lead in the come can compression on EBITDA light the to More you

Sebastián Kanovich

your for thanks do question. take it? to you Neha, Sure. want Diego,

Diego Canay

quarter-over-quarter. quarters, Hi, as are in a increase basis for you to you to the we see invest We saw have write year. for margin us. point makes actually past XX%, Neha. our board, four and the sense don't XX% EBITDA trends, change plus but significant around accelerate want the We doing? across So in flexibility it always consistent been whenever growth XX has very adjusted any Sure. How have full the

you going So don't full forward. we still the year. any trends the change want, see guidance significant for But is XX if in plus

Neha Agarwala

XX% XX%, year, is you might be adjusted. come So around XX%. around the full possible at it that could for It

Diego Canay

are any not to plus, different right trends, Sorry, plus. to We guiding XX change any have flexibility. to that XX so we is don't we number the or want XX% have value but Neha, in significant

Neha Agarwala

half, lead investments mindful to no decline? the margin which second specific to should should necessarily But in of that we are for Okay. the be there

Diego Canay

we our different very investments, nothing Nothing have to been focused on but very or and our been the main the of focus past technology sales team months. what team. what have few our expansion doing, we to are Those doing our in different

Neha Agarwala

Okay.

up. been of revenues, we bit what have on than the gross cost I gradually higher, around as question give services? again related pickup to you led inching It is might a now have It higher Anything some color Another to cost change us the the of has marginally services. Could XX% a this of higher a to expected. why in mix that was quarter?

Diego Canay

So basis don't teams minor. we percentages. focus focus we our And which basically, dollars. that we the points, absolute in incentivize quarter-over-quarter We consider change very Remember X is in in dollars. absolute

see two you in the gross increase the $X.X million the $X in quarter, previous quarters. to million profit If compared was quarter-over-quarter actually in

So time. that in X values, four has changes the happen time points the Things will very to we quarters. highest growth -- in of basis I from absolute gross a profit like that in higher are pleased the grown past think quarter,

that We gross gross down. more an of at many we countries countries, countries, any or of in But profit. optimization. XX XXX optimal ready modify slightly do continuously merchants processes and to level launch have we in mind profit or launched, When start Also, get keep smaller those we cost merchants or to launched up or that countries. typically after we're may changes we the the

gross in the had in may absolute things quarter. And change we're growth cost. little the So bit or those talking highest about values, only profit it's in X past again, the year. smart we points basis a But the

Neha Agarwala

around should reasonable a sounds and But gross lot. to there. profit No for XX% it Okay. reason be margin fluctuate

Sebastián Kanovich

Yes, Seba here.

rationale it's continue I for that. explain important to think behind the So to really And rate. take optimize not our percentage we

dollar on are We years for business many based a building the amount.

want the is are higher company ourselves opportunity We've amount the take the happily the hold lower that. team. going to We and are any rate. right ahead We that's building We -- dollar shared think shared We for term. given do us way with threshold. bulk to massive, these shouldn't a of objectives trade margin don't we believe a long to of

and been margins, go contributes our our that the them and infrastructure at dollar us so something have do our and We level. Every more that's profitable case. to to customers platform get a always has use in

amount mentioned we that a in a the So relatively and to business We not you while it have of gross the on in past, ours. numbers building the been want goal profit internal margin the optimizing that's build for because we an dollar are that's dormant. stable right think way not bigger of

Neha Agarwala

thing you. Chile, check to in Seba. I the Do on Last Understood, wanted came the up. is any have issue litigation we there? Thank that update

Sebastián Kanovich

Visa and significant Mastercard, have on So, any don't Neha, we updates.

to valued everyone get to and ours. are up both Mastercard partners Visa Just of speed,

the for sure contribute all-in that and making are we transparency ecosystem. to We

Visa been we in their are Chile, to for in resolution we the far, of a start still future. that feel that this. of are final be for part great we and we see partners in yet comfortable both to ecosystem, very to So the ours. school are Mastercard intend and But healthy a case continue We've and of

Neha Agarwala

Seba you, Thank and Diego and everyone.

Sebastián Kanovich

Neha. Thanks,

Operator

Thank moment you. one our question. please next And again for

will Ygor Azevedo Our from of come next GS. question

open. is line Your

Tito Labarta

Hi. This is Tito. hear Can you me?

Sebastián Kanovich

Yes, Tito.

Tito Labarta

taking Labarta Tito call the and questions. couple questions. of Thanks my Hi, for Seba, Goldman. from Diego. A Hi.

color terms color much First, much Just that? any you talked different alternative how is a methods payment say, And the methods between of in give that were context on of Any question said to think get that payment can between, pay-out, lot payment are have you're I local? give also you terms how to then like you in is can can border pay-in, stable, local give pay-outs pay-ins. and like on growing you some after. of cards, on any kind -- how you cross a color I the evolving if versus separate message, mix in and

Sebastián Kanovich

take you do Diego, to want it?

Diego Canay

Yes, sure.

been mixes Tito. very So have stable,

payouts said. quarter-over-quarter, past the stable. of that in again, local quarters business. to I pay-ins would the one-third the very two Local consistent so very, of the total to what roughly been pay-ins single and close past three digits is roughly high I just say. for quarters, have So is three-quarters Both remains to mid grew And to

terms any part in of mixes? other your there was question of sorry, And

Tito Labarta

card? payment methods credit then And versus alternative

Diego Canay

business close let say, the roughly is but and pay-ins. of of also, credit one-third XX% Yes, to cards me

Tito Labarta

Is very this driven Thanks, Africa countries? don't bit question if Asia growth to the and of Asia saw color Should I continue growth your as Okay. and outpace the average I LATAM? Africa, can go Perfect. by And we're and second it's versus slide different know my [indiscernible] a to it correctly. nine countries And any the give that in strong growth on I And to economics on in terms Asia think you're to if to those margins, you you margins merchant, Diego. expect per is and Africa in there. we unit seeing in Thank around earlier? between LATAM? Is grow upside Africa? little you. maybe a there Asia

Sebastián Kanovich

we question. on in but the a you you seconds the of mind the got for second Would lost We the and APAC, part lost a few repeating? on of trends of we've the Tito, half Africa question. second

Tito Labarta

problem. no Sure, Sorry.

take is like can Asia I Africa Just and up upside know any if rates, countries? margins Latin America, or you don't between those in scale give there and like economics unit you as

Sebastián Kanovich

really the where live Jacobo, healthy sure right one are way we are continues It some the the Tito, in I'll business to of, That's complement. and are our the But it's years. fast. unit we APAC We the to things margin. for in optimized countries to of. When Feel that start. of are the some are new not Africa are a the XXX%. free geography, fact proudest LATAM with right in we was one for customers and geographies both we seven proud make bets, want our them in launch bringing It's we're newer, extremely not growing something having and in quarter, bringing for. what are definitely million markets optimizing a we we APAC in strategic we of we and and Africa are $XX economics. at optimized we've been of grow

So purpose. there's should on on why run, be while on and unit less optimized short no they term, different we the economics the obviously, reason the are long fundamental

the that's bit a more paying paying are We are on on side willingly going to the We downstream. little then stage. from the more more the our thing cost to we the ability scale short probably we the have term to we the on ability of us do conditions mature right think than getting a that be know build gives build, partners infrastructure. And better we

Tito Labarta

we to if Thanks. And first That's continue from Great. terms those like Asia outpace in and should should the part that? I anything revenues on expect you the Latin know percent or target what America? to a come helpful. growth, have of Africa of don't then countries just for

Sebastián Kanovich

Jacobo, take it? to do you want

Jacobo Singer

Sure. Tito, for Jacobo your question. Thanks here.

continue So Africa LATAM. to Asia outpacing we and expect

number and revenues captured, Just Asia compared And to remark Latin to in that XX% a little bit quarter-over-quarter. America. we XX% also of grown and Africa have XXX% Africa year-over-year year-over-year grew in Asia,

we are pursuing target. we to and So of growth question, positive opportunities relation not this geography. excited to company. In the super a particular are to we have bring all second with part are and the on your them pursuing But merchants Africa the and Asia we representing within our the

Tito Labarta

up And for maybe Jacobo, color. that follow Thanks, Great. on quick just that. one

that Latin it more of competitive Just In there, versus than competitive environment see Is America? do and to think about you competitors? in terms terms things opportunity in fit of you the more opportunities? where

Jacobo Singer

But basically, So on value-added a our it's most that, while service. API the a expanding value Tito, each represents region for the important it of into geographies, having particular. is merchants single part

the So in we to the to these merchants international regard facilitating geographies. same see trends opportunities to come and

of most of merchants into the and good having So for the platform. integrated the value us environment, landscape it's competitive having

Sebastián Kanovich

on And, to just complement Tito, that.

some very DLocal. in Some markets and in started Africa we much look APAC geographies like when LATAM did

fragmentation. see You

demand to and merchants for need into You clear these see go the the clear markets.

didn't have is opportunity has struggling, clearly obviously an us. that that businesses and thing are happened other that's The that business healthy for models

the a be current prove than So and have but that are on offering differentiate. And and able as engineers than on be used by not business ever a the to sorry a fact going the profitably differentiated only LATAM in the are market but are and less to covering for to we right like redundant, way we to in, so APAC that be one think past. saying, businesses we step where invested in doing -- resources building to investing they Jacobo continue are the environment available Africa more was even in will step

Tito Labarta

That's Seba, you, Thank great. good Okay, color. Jacobo.

Operator

our moment Instructions]. [Operator One you. for question. Thank next please

Our SMBC Andrew Inc. Nikko Bauch from next come question of will Americas

Your is line open.

Andrew Bauch

for questions. guys. my Hi, taking Thanks

to been your has growth visibility Just know ambitions of of business get a your within partners. around of with somewhat one your wanted merchant modeling of have challenges level the really merchant I base the by sense the today. you dictated this being

so they're of platform greater revenue more levels each through reach the on And within over, time? today pushing what as you giving there kind these of plan what shifted these over be is on different merchants, you that visibility could they scale of

Sebastián Kanovich

for have Years we are emerging thanks than do essentially we have question. we to merchants of And strategic partner would because than have we become discussing strategy. we only be used whole before. a America. visibility we country, Andrew, And more we have the points back, more one used further the yes, for Latin America, our to the discuss market then touch and whole Latin now

So us. definitely for that's beneficial

any who to continue to we have indexed the to have dependencies depend growth, and a we nature by as going good the We merchant. not and merchants are will our and by as any be are are company. we that are the on their But continue case. that's that's not and and don't of to reality don't Our as we our business merchants, concentration, industry is

and in to markets local a those being the healthy for in keep of track companies continue to ever, markets. continue than they position. priority pipeline. very that importance We of We see It's be more emerging a our understand global

of we so plan, turned merchants' that drives One things our we've really of where to visibility Keep have can lot the on is to our accordingly. want be our worked on making hard going merchants We the sure go. in we strategy. us want plan a product mind

information are. off So the the can more better we we have

Andrew Bauch

investors us and to the the about can then there? give previous local. of And you. effort? update Thanks. local in in value community seeing remind some efforts of And you're Thank it. Got just around you Could you to regards that we've provide your an on that what proposition talked quarters,

Sebastián Kanovich

Sure.

we merchant a is biggest same. very always local they from is to through The locally process in So to or locally local in market. difference The border. only want payments internationally the them Many call of local We wants payment local us complementary and our itself service business methods the cross is models. funds to currency. what receive both receive in the use if merchants

sell So to to ask settle them. they us locally. some ask us funds and or other then they'll And repatriate geography, in will those expatriate to it selected countries, in

sure margin. them. For us. make decide can us. We to our want to We to want businesses we go we sure good merchants. from agnostic. important contribute decide with to don't have partner And don't us, local our do for border. We make them operate. merchants for not are no that us. a whatever we want many that both with for solution a them to solution important holistic Both are years, we and a to they both for matter We then are one to way a business graduate work and local business, what to believe have to way have cross They they to strategically That's

Andrew Bauch

Got clear. it, you. Thank very

Operator

I the no the closing I am for back remarks. now to would Sebastián queue. further Kanovich conference in like turn seeing questions to

Sebastián Kanovich

Sure.

for to I today. everyone participating thank So want

of quarter reached our overall of extremely are we've We second our just XX% with progress Africa outside business. Asia influencing posted diversifying the revenues. LATAM proud great and We've we've business and made of the in

our So available. as we EBITDA we of margin a very for metrics And always, of the to important XXX% expectation want that's reiterate full north year. both and north be be We of NRR are XX%, to to think milestone.

to any feel free questions point. at So any ask

available are today, It you. here very We to much was being great for your time. thanks and

Operator

This concludes for all you call. Thank today's conference participating.

now Have may disconnect. pleasant a day. You

DLocal Limited (DLO) 23 Aug 222022 Q2 Earnings call transcript