The following is a summary of the DLocal Limited (DLO) Q1 2024 Earnings Call Transcript:
Financial Performance:
DLocal reported Q1 TPV of $5.3 billion, growing by almost 50% year-on-year due to increases in various sectors like e-commerce and software as services.
Revenues grew by 30% year-on-year but gross profit remained stagnant, leading to a decrease in adjusted EBITDA.
Due to high merchant concentration, renegotiating fees with one of DLocal's largest merchants adversely affected revenue growth.
Q1 net income totaled $18 million, falling by 50% YoY, and operating expenses reached $36 million due to investments in team growth and capabilities.
The company yielded a free cash flow of $12 million, resulting in a net income to free cash flow conversion of 69% for the quarter.
DLocal has a robust liquidity position, holding $320 million.
Business Progress:
Development across multiple verticals affirms DLocal's competitive position and consistent share of wallet gains.
Infrastructure investments to meet global remittance partners and marketplace merchants' needs are yielding results.
DLocal has earned licenses in strategic markets like Argentina, Ecuador, Egypt, Dominican Republic, and Kenya.
The company board authorized a $200 million share buyback program, showcasing faith in DLocal's future prospects.
Although achieving 2024 objectives, DLocal predicts being at the lower end of their projected ranges.
DLocal plans to maintain its investments in team growth, improve efficiencies, and onboard more merchants for business diversification.
The Company is also considering potential M&A for boosting growth.
More details: DLocal IR
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