DLocal (DLO) investor relations material

Business performance and growth

• TPV grew over 90% year-on-year, driven by broad-based growth across verticals and markets, with large global merchants increasing their business share.

• Even excluding the largest merchant, TPV growth remained in the high 60s year-on-year, indicating diversified expansion.

• Average merchant wallet share is around 10%, with significant room to increase as merchants localize payments.

• Top 10 merchant concentration remains, but the composition changes as new merchants rapidly scale, reflecting underlying diversification.

• The addressable market remains early-stage, with secular tailwinds from payment localization and payment sovereignty trends in emerging markets.

Competitive positioning and market strategy

• Breadth of market and payment method coverage, including local options like Pix, PicPay, and Mercado Pago, is a key differentiator.

• Focus remains on Global South markets due to regulatory complexity and the need for local expertise, rather than expanding into developed markets.

• Similar payment ecosystem challenges across LatAm, Africa, Middle East, and Asia allow for efficient playbook transfer.

• Expansion in Asia is now a strategic priority, with increased investment and ambition for growth.

Take rates, verticals, and geographic mix

• Take rates are declining industry-wide, with volume growth offsetting margin compression.

• Volume discounts for large merchants and FX volatility contribute to take rate movement, but gross profit growth remains strong.

• Lower take rate verticals like ride hailing, e-commerce, and remittance have driven recent growth, while higher take rate verticals like advertising and travel offer future potential.

• Geographic mix impacts take rates, with mature markets like Mexico having lower margins and newer markets in Africa and the Middle East offering higher take rates.