dLocal Limited, technology payment platform that connects global merchants to consumers in emerging markets, today announced its financial results for the second quarter of 2024, closed on June 30. The company highlighted robust growth, with a record total payment volume (TPV) of US$ 6 billion, representing an increase of almost 40% compared to the previous year
Despite a challenging comparison base, due to the 80% growth in the same period last year, dLocal has demonstrated its ongoing capacity for expansion. The company has increased its market share among global merchants and added new business verticals, as trade, delivery on demand, remittances, SaaS and trucks
Pedro Arnt, CEO of dLocal, commented on the results: “These numbers highlight our unique value proposition as a trusted partner for large companies in emerging markets. Our year-on-year growth reflects a combination of expansion and focus on reputable verticals, differentiating ourselves from competitors that focus on high-risk areas.”
The company kept its net absorption rates stable, despite challenges such as the price review of its largest trader, significant devaluations of currencies in Nigeria and Egypt, and the weakening of emerging market currencies. This performance resulted in an 11% increase in gross profit compared to the previous quarter
Operating expenses grew by only US$ 1 million sequentially, reflecting an adjustment in cash expenses to optimize gross profit. dLocal continues to invest in crucial areas, like engineering and back-office, while reviewing other expenses to ensure efficiency. As a result, the adjusted EBITDA reached US$ 43 million, with a free cash flow of US$ 35 million, a conversion rate of 77%
Although the company faces challenges, as a 13% drop in gross profit in Latin America due to the depreciation of the Argentine exchange rate and price revisions in Brazil and Mexico, the growth in Africa and Asia was significant, with a 79% increase compared to the previous year
dLocal remains optimistic about the future, with a promising total market, an attractive business model and a strong execution capability. The company also has a strong cash generation profile, with the share buyback during the quarter
We continue to thrive in emerging markets, offering effective solutions to our merchants. Our focus is on execution and long-term growth, mitigating short-term volatility and gaining new clients,"concluded Pedro Arnt
