DLO DLocal Ltd

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2024

Commission File Number: 001-40451

DLocal Limited

(Exact name of registrant as specified in its charter)

Dr. Luis Bonavita 1294

Montevideo

Uruguay 11300

+1 (424) 392-7437

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

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TABLE OF CONTENTS

EXHIBIT

99.1		Press release dated November, 13 2024 - DLocal Limited Reports 2024 Second Quarter Results
99.2		DLocal Limited Unaudited Consolidated Condensed Interim Financial Statements as of September 30, 2024 and for the nine-month and three-month periods ended September 30, 2024 and 2023
99.3		Quaterly Report 2024 - dLocal Reports 2024 Third Quarter Financial Results
99.4		dLocal Q3 2024 Earnings Presentation

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	DLocal Limited
	By:	/s/ Mark Ortiz
	Name:	Mark Ortiz
	Title:	Chief Financial Officer

 

Date: November, 13 2024

 

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dLocal Reports 2024 Third Quarter Financial Results

 

Third Quarter 2024

Robust TPV growth, up 41% YoY and 8% QoQ, driven by strong performance across various verticals and countries

Record gross profit reaching $78M in the quarter, with net take rate stable at 1.2% since Q1 2024

Operating leverage expansion for the 2nd consecutive quarter, with Adjusted EBITDA over gross profit margin reaching 67% in Q3 2024 (+6 p.p. QoQ)

 

dLocal reports in US dollars and in accordance with IFRS as issued by the IASB

 

Montevideo, Uruguay, November 13, 2024 — DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology - first payments platform today announced its financial results for the third quarter ended September 30, 2024.

We are encouraged by how we see the business evolving. After a soft first quarter, we see ourselves consistently gaining momentum. Despite a tough 2023 comparison, we have once again returned to delivering a quarter of record results in Total Payment Volume and Gross Profit. Our margins, cash position, and cash conversion have all improved quarter after quarter throughout 2024. A year that started off admittedly weak, has gained positive momentum.

We continue to deliver significant growth, with TPV re-accelerating to over 40% year-over-year, driven by our continued ability to expand our share of wallet of our existing global merchant base, and onboard new merchants. Our performance this quarter was strong across diverse verticals, countries and products, notably:

Our pipeline remains robust, including both growth opportunities with existing merchants as well as new merchants. During the period, we successfully integrated major players, including MoneyGram, one of the largest global providers of money transfer and payment services, and other significant remittance companies to serve them across countries in Latam, Africa and Asia. We also continued to ramp up volumes with one of the main Asian commerce players, expanding the regions in which we serve them, and have now gone live in Brazil with one of the largest global Fintech companies, out of Asia.

Moving on to profitability, this quarter’s results showcase the resilience of our business model. We reached record gross profit of $78 million with net take rate stable at 1.2% since Q1 2024. This is a consequence of our differentiated value proposition, continuous pursuit of cost efficiencies, and the real value in solving complexities across emerging markets for our global merchants, which grants pricing power and differentiates from more commoditized payments offerings in the developed world. We achieve those results despite weakness in most emerging market currencies.

Our Adjusted EBITDA reached $52 million, despite continued investments in our engineering team, back-office capabilities and our license portfolio, all crucial for our long-term success. Although Adjusted EBITDA was down year-over-year, this represents the second consecutive quarter of increased operational leverage, with adjusted EBITDA over gross profit margin now at 67%. This demonstrates the operational leverage inherent in our business model, general philosophy of expense control and disciplined investment to deliver our long-term growth ambitions.

Cash generation, another strength of our financial model, was also solid. During the past 3 months we had net cash from operating activities, excluding merchant funds, less CAPEX amounting to $26 million, a cash conversion of practically 100% of Net Income.

On that note, our guidance remains unchanged in light of our Q3 2024 results and what we have seen through Q4. However, it is important to reinforce that Q4 results are heavily weighted towards the next 3-4 weeks, given the expected seasonal lift in commerce volumes and Black Friday.

In terms of technology and product development deployments during the quarter, we have launched our Smart Requests functionality, boosting our transaction performance, thereby improving conversion rate. We have also continued to develop increasingly advanced real-time cost calculation models to optimise processing costs, which also contributed to our gross profit achievement and stable net take rate.

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A third area of innovation has been our launch of new and promising alternative payment methods (APM), with the successful deployment of integrations with Nupay in Brazil for global merchants.

Finally, we launched a new product to our suite of offerings, a stand alone Payment Orchestration option, which allows merchants to retain our Smart Routing, fraud detection, and unified reporting, while obtaining their own licenses and contracting directly with processors in each market. Although this model may result in a lower net take rate net of acquiring costs, it enhances our ability to capture share of wallet with relevant clients, and continues to add value to merchants through our single API connection and product functionalities, while delivering optimized conversion and cost results.

These improvements to our platform, as well as the development of new solutions, serve to deepen our competitive advantages in our markets, enhance the stickiness of our products, and potentially bring future revenue streams - all important pillars to our long-term growth opportunities.

As a reminder, dLocal is a young and dynamic company, less than eight years old, and yet, during this period, it has delivered extraordinary growth. We have expanded our roster of sophisticated enterprise merchants, increased our share of wallet with them, and built operations across the most relevant emerging markets globally, adding products, new APMs and licenses over these years.

Our growth underscores our success in serving and supporting these most demanding digital merchants with tailored solutions that meet their evolving needs. We navigate the highly complex and changing payment landscape and regulatory environments across emerging markets with one of the most complete emerging market processing ecosystems. The comprehensiveness of our One dLocal solution allows our merchants to add new markets and payment methods at a marginal incremental implementation cost, providing cost-efficient and speedy geographic expansion. This value supports the resilience of our business, despite operating in the volatile global south.

Secular trends also favour us. We have a huge and growing TAM underpinned by shifts towards payment digitalization, the growing importance of emerging and frontier markets, and surging demand for cross-border and instant payment methods. Industry forecasts predict the retail cross-border payments market will reach $65 trillion by 20301, and we are well-positioned to be capturing a reasonable portion of the growth in this immense addressable market. Our ability to innovate and capitalize on these trends, coupled with our financial model characterized by operational leverage and high cash conversion, will fuel long-term value creation for our shareholders and merchants. We are just beginning to realize the compounding nature of this strategy, and we remain steadfast in our mission to deliver on this promise, in all the relevant geographies that our merchants present needs.

Thank you to those who have shown us continued support and confidence. We look forward to updating you on our progress in the coming quarters.

 

Third quarter 2024 Financial Highlights

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The following table summarizes our key performance metrics:

 

	Three months ended 30 of September			Nine months ended 30 of September
	2024	2023	% change	2024	2023	% change
Key Performance metrics	(In millions of US$ except for %)
TPV	6,516	4,618	41%	17,861	12,566	42%
Revenue	185.8	163.9	13%	541.5	462.3	17%
Gross Profit	78.2	74.5	5%	211.0	207.1	2%
Gross Profit margin	42%	45%	-3p.p	39%	45%	-6p.p
Adjusted EBITDA	52.4	55.6	-6%	131.8	153.1	-14%
Adjusted EBITDA margin	28%	34%	-6p.p	24%	33%	-9p.p
Adjusted EBITDA/Gross Profit	67%	75%	-8p.p	62%	74%	-11p.p
Profit	26.8	40.4	-34%	90.8	120.6	-25%
Profit margin	14%	25%	-10p.p	17%	26%	-9p.p

 

 

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Third quarter 2024 Business Highlights

 

 

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The tables below present the breakdown of dLocal’s TPV by product and type of flow:

 

In millions of US$ except for %	Three months ended 30 of September				Nine months ended 30 of September
	2024	% share	2023	% share	2024	% share	2023	% share
Pay-ins	4,632	71%	3,429	74%	12,561	70%	9,122	73%
Pay-outs	1,884	29%	1,189	26%	5,300	30%	3,444	27%
Total TPV	6,516	100%	4,618	100%	17,861	100%	12,566	100%

 

 

In millions of US$ except for %	Three months ended 30 of September				Nine months ended 30 of September
	2024	% share	2023	% share	2024	% share	2023	% share
Cross-border	3,035	47%	2,256	49%	8,163	46%	6,435	51%
Local-to-local	3,480	53%	2,362	51%	9,699	54%	6,131	49%
Total TPV	6,516	100%	4,618	100%	17,861	100%	12,566	100%

 

 

 

The tables below present the breakdown of dLocal’s revenue by geography:

 

In millions of US$ except for %	Three months ended 30 of September				Nine months ended 30 of September
	2024	% share	2023	% share	2024	% share	2023	% share
Latin America	145.2	78%	136.0	83%	409.3	76%	361.2	78%
Brazil	32.9	18%	44.7	27%	118.3	22%	108.8	24%
Argentina	26.0	14%	23.9	15%	60.3	11%	64.6	14%
Mexico	38.9	21%	30.2	18%	108.8	20%	81.3	18%
Chile	13.0	7%	12.4	8%	37.7	7%	40.8	9%
Other LatAm	34.3	18%	24.8	15%	84.3	16%	65.7	14%
Africa & Asia	40.6	22%	27.9	17%	132.2	24%	101.2	22%
Nigeria	2.1	1%	8.3	5%	10.4	2%	55.6	12%
Egypt	18.6	10%	10.1	6%	72.6	13%	18.3	4%
Other Africa & Asia	19.9	11%	9.4	6%	49.2	9%	27.3	6%
Total Revenue	185.8	100%	163.9	100%	541.5	100%	462.3	100%

 

 

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The tables below present the breakdown of dLocal’s gross profit by geography:

 

 

In millions of US$ except for %	Three months ended 30 of September				Nine months ended 30 of September
	2024	% share	2023	% share	2024	% share	2023	% share
Latin America	55.6	71%	59.4	80%	157.7	75%	174.0	84%
Brazil	15.4	20%	22.7	30%	52.5	25%	53.3	26%
Argentina	6.7	9%	13.1	18%	19.5	9%	44.8	22%
Mexico	12.8	16%	7.9	11%	31.6	15%	25.4	12%
Chile	8.2	10%	6.9	9%	23.9	11%	24.9	12%
Other LatAm	12.5	16%	8.9	12%	30.2	14%	25.6	12%
Africa & Asia	22.6	29%	15.1	20%	53.2	25%	33.2	16%
Nigeria	1.7	2%	1.7	2%	4.2	2%	4.3	2%
Egypt	12.3	16%	9.6	13%	32.4	15%	16.6	8%
Other Africa & Asia	8.5	11%	3.7	5%	16.6	8%	12.2	6%
Total Gross Profit	78.2	100%	74.5	100%	211.0	100%	207.1	100%

 

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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 changes in fair value of financial assets and derivative instruments carried at fair value through profit or loss, impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges, secondary offering expenses, and inflation adjustment. dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues.

 

Although Adjusted EBITDA and Adjusted EBITDA Margin may be commonly viewed as non-IFRS measures in other contexts, pursuant to IFRS 8, (“Operating Segments”), Adjusted EBITDA and Adjusted EBITDA Margin are treated by dLocal as IFRS measures based on the manner in which dLocal utilizes these measures. Nevertheless, dLocal’s Adjusted EBITDA and Adjusted EBITDA Margin 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 and Adjusted EBITDA Margin 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.

 

The table below presents a reconciliation of dLocal’s Adjusted EBITDA to net income:

 

 

$ in thousands	Three months ended 30 of September		Nine months ended 30 of September
	2024	2023	2024	2023
Profit for the period	26,811	40,364	90,768	120,605
Income tax expense	2,286	8,897	19,460	21,952
Depreciation and amortization	4,438	3,237	12,289	8,621
Finance income and costs, net	10,085	(1,548)	(18,259)	(10,398)
Share-based payment non-cash charges	6,204	3,322	17,441	7,072
Other operating loss¹	578	-	3,950	-
Impairment loss / (gain) on financial assets	8	(2,508)	(93)	(2,478)
Inflation adjustment	1,954	3,817	6,263	6,497
Other non-recurring costs	-	-	-	1,229
Adjusted EBITDA	52,364	55,581	131,819	153,100

 

Note: ¹The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal.

 

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Special note regarding Adjusted Net Income

 

Adjusted Net Income is a non-IFRS financial measure. As used by dLocal, Adjusted Net Income is defined as the profit for the period (net income) excluding impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges, and other operating (gain)/loss, in line with our Adjusted EBITDA calculation (see detailed methodology for Adjusted EBITDA on page 13). It further excludes the accounting non-cash charges related to the fair value gain from the Argentine dollar-linked bonds, the exchange difference loss from the intercompany loan denominated in USD that we granted to our Argentine subsidiary to purchase the bonds, and the hedging cost associated with the Argentina treasury notes. In addition, it excludes the inflation adjustment based on IFRS rules for hyperinflationary economies. We believe Adjusted Net Income is a useful measure for understanding our results of operations while excluding certain non-cash effects such as currency devaluation, inflation, and hedging costs. Our calculation for Adjusted Net Income may differ from similarly-titled measures presented by other companies and should not be considered in isolation or as a replacement for our measure of profit for the period as presented in accordance with IFRS.

 

The table below presents a reconciliation of dLocal’s Adjusted net income:

 

$ in thousands	Three months ended 30 of September		Nine months ended 30 of September
	2024	2023	2024	2023
Net income as reported	26,811	40,364	90,768	120,605
Inflation adjustment	1,954	3,817	6,263	6,497
Loan - exchange difference	7,710	27,351	20,270	29,166
Argentina Treasury Notes Hedging Costs	4,272	-	4,272	-
Fair value (loss) / gains of financial assets at FVTPL	95	(24,232)	(33,494)	(27,886)
Impairment loss / (gain) on financial assets	8	(2,508)	(93)	(2,478)
Share-based payment non-cash charges	6,204	3,322	17,441	7,072
Other operating (gain)/loss	578	-	3,950	-
Other non-recurring costs	-	-	-	1,229
Tax effect on adjustments	(4,227)	1,092	411	448
Adjusted net income	43,405	49,206	109,788	134,653

 

Unaudited quarterly results.

 

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Earnings per share

 

We calculate basic earnings per share by dividing the profit attributable to owners of the group by the weighted average number of common shares issued and outstanding during the three-month and nine-month periods ended September 30, 2024 and 2023.

 

Our diluted earnings per share is calculated by dividing the profit attributable to owners of the group of dLocal by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued on conversion of all dilutive potential common shares into common shares.

 

The following table presents the information used as a basis for the calculation of our earnings per share:

 

	Three months ended 30 of September		Nine months ended 30 of September
	2024	2023	2024	2023
Profit attributable to common shareholders (USD)	26,782,000	40,308,000	90,734,000	120,449,000
Weighted average number of common shares	282,212,297	289,411,641	291,582,333	292,058,528
Adjustments for calculation of diluted earnings per share	14,108,758	16,620,498	15,154,672	16,509,161
Weighted average number of common shares for calculating diluted earnings per share	296,321,055	306,032,139	306,737,005	308,567,689
Basic earnings per share	0.09	0.14	0.31	0.41
Diluted earnings per share	0.09	0.13	0.30	0.39

 

This press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The quarterly financial information in this press release has not been audited, whereas the annual results for the year ended December 31, 2023 are audited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Conference call and webcast

dLocal’s management team will host a conference call and audio webcast on November 13, 2024 at 6:00 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.

 

 

 

About dLocal

dLocal 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.

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Definition of selected operational metrics

“API” means application programming interface, which is a general term for programming techniques that are available for software developers when they integrate with a particular service or application. In the payments industry, APIs are usually provided by any party participating in the money flow (such as payment gateways, processors, and service providers) to facilitate the money transfer process.

 

“Cross-border” means a payment transaction whereby dLocal is collecting in one currency and settling into a different currency and/or in a different geography.

 

“Local payment methods” refers to any payment method that is processed in the country where the end user of the merchant sending or receiving payments is located, which include credit and debit cards, cash payments, bank transfers, mobile money, and digital wallets.

 

“Local-to-local” means a payment transaction whereby dLocal is collecting and settling in the same currency.

 

“Net Revenue Retention Rate” or “NRR” is a U.S. dollar-based measure of retention and growth of dLocal’s merchants. NRR is calculated for a period or year by dividing the Current Period/Year Revenue by the Prior Period/Year Revenue. The Prior Period/Year Revenue is the revenue billed by us to all our customers in the prior period. The Current Period/Year Revenue is the revenue billed by us in the current period to the same customers included in the Prior Period/Year Revenue. Current Period/Year Revenue includes revenues from any upselling and cross-selling across products, geographies, and payment methods to such merchant customers, and is net of any contractions or attrition, in respect of such merchant customers, and excludes revenue from new customers on-boarded in the preceding twelve months. As most of dLocal revenues come from existing merchants, the NRR rate is a key metric used by management, and we believe it is useful for investors in order to assess our retention of existing customers and growth in revenues from our existing customer base.

 

“Pay-in” means a payment transaction whereby dLocal’s merchant customers receive payment from their customers.

 

“Pay-out” means a payment transaction whereby dLocal disburses money in local currency to the business partners or customers of dLocal’s merchant customers.

 

“Revenue from New Merchants” means the revenue billed by us to merchant customers that we did not bill revenues in the same quarter (or period) of the prior year.

 

“Revenue from Existing Merchants” means the revenue billed by us in the last twelve months to the merchant customers that we billed revenue in the same quarter (or period) of the prior year.

 

“TPV” dLocal presents total payment volume, or TPV, which is an operating metric of the aggregate value of all payments successfully processed through dLocal’s payments platform. Because revenue depends significantly on the total value of transactions processed through the dLocal platform, management believes that TPV is an indicator of the success of dLocal’s global merchants, the satisfaction of their end users, and the scale and growth of dLocal’s business.

Rounding: We have made rounding adjustments to some of the figures included in this interim report. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

 

 

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Forward-looking statements

This 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, gross profit, Adjusted EBITDA, and Adjusted EBITDA over gross profit margin. 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 and Adjusted EBITDA over gross profit, which are forward-looking non-IFRS measures, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.

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dLocal Limited

Certain financial information

Consolidated Condensed Interim Statements of Comprehensive Income for the three-month and nine-month periods ended September 30, 2024 and 2023

(In thousands of U.S. dollars, except per share amounts)

	Three months ended 30 of September		Nine months ended 30 of September
	2024	2023	2024	2023
Continuing operations
Revenues	185,774	163,921	541,483	462,346
Cost of services	(107,594)	(89,378)	(330,521)	(255,206)
Gross profit	78,180	74,543	210,962	207,140
Technology and development expenses	(6,930)	(3,696)	(18,803)	(8,626)
Sales and marketing expenses	(6,892)	(4,447)	(16,028)	(12,410)
General and administrative expenses	(22,636)	(17,378)	(74,042)	(49,926)
Impairment (loss)/gain on financial assets	(8)	2,508	93	2,478
Other operating (loss)/gain	(578)	-	(3,950)	-
Operating profit	41,136	51,530	98,232	138,656
Finance income	7,335	44,449	54,839	70,315
Finance costs	(17,420)	(42,901)	(36,580)	(59,917)
Inflation adjustment	(1,954)	(3,817)	(6,263)	(6,497)
Other results	(12,039)	(2,269)	11,996	3,901
Profit before income tax	29,097	49,261	110,228	142,557
Income tax expense	(2,286)	(8,897)	(19,460)	(21,952)
Profit for the period	26,811	40,364	90,768	120,605
Profit attributable to:
Owners of the Group	26,782	40,308	90,734	120,449
Non-controlling interest	29	56	34	156
Profit for the period	26,811	40,364	90,768	120,605
Earnings per share (in USD)
Basic Earnings per share	0.09	0.14	0.31	0.41
Diluted Earnings per share	0.09	0.13	0.30	0.39
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange difference on translation on foreign operations	(498)	(1,822)	(6,771)	1,341
Other comprehensive income for the period, net of tax	(498)	(1,822)	(6,771)	1,341
Total comprehensive income for the period, net of tax	26,313	38,542	83,997	121,946
Total comprehensive income for the period
Owners of the Group	26,301	38,487	83,979	121,792
Non-controlling interest	12	55	18	154
Total comprehensive income for the period	26,313	38,542	83,997	121,946

 

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dLocal Limited

Certain financial information

Consolidated Condensed Interim Statements of Financial Position as of September 30, 2024 and December 31, 2023

(In thousands of U.S. dollars)

	30 of September, 2024	31 of December, 2023
ASSETS
Current Assets
Cash and cash equivalents	560,532	536,160
Financial assets at fair value through profit or loss	112,247	102,677
Trade and other receivables	405,917	363,374
Derivative financial instruments	591	2,040
Other assets	12,235	11,782
Total Current Assets	1,091,522	1,016,033
Non-Current Assets
Financial assets at fair value through profit or loss	-	1,710
Trade and other receivables	1,787	-
Deferred tax assets	3,277	2,217
Property, plant and equipment	3,308	2,917
Right-of-use assets	3,939	3,689
Intangible assets	61,983	57,887
Other assets	5,343	-
Total Non-Current Assets	79,637	68,420
TOTAL ASSETS	1,171,159	1,084,453
LIABILITIES
Current Liabilities
Trade and other payables	669,608	602,493
Lease liabilities	1,127	626
Tax liabilities	17,525	20,800
Derivative financial instruments	4,579	948
Financial liabilities	16,775	-
Provisions	278	362
Total Current Liabilities	709,892	625,229
Non-Current Liabilities
Deferred tax liabilities	1,276	753
Lease liabilities	2,985	3,331
Total Non-Current Liabilities	4,261	4,084
TOTAL LIABILITIES	714,153	629,313
EQUITY
Share Capital	570	591
Share Premium	182,946	173,001
Treasury Shares	(200,980)	(99,936)
Capital Reserve	30,564	21,575
Other Reserves	(14,749)	(9,808)
Retained earnings	458,528	369,608
Total Equity Attributable to owners of the Group	456,879	455,031
Non-controlling interest	127	109
TOTAL EQUITY	457,006	455,140

 

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dLocal Limited

Certain interim financial information

Consolidated Condensed Interim Statements of Cash flows for the three-month and nine-month periods ended September 30, 2024 and 2023

(In thousands of U.S. dollars)

	Three months ended 30 of September		Nine months ended 30 of September
	2024	2023	2024	2023
Cash flows from operating activities
Profit before income tax	29,097	49,261	110,228	142,557
Adjustments:
Interest (Income) from financial instruments	(7,430)	(20,217)	(21,345)	(42,429)
Interest charges for lease liabilities	44	373	131	468
Other finance expense	1,220	1,918	3,020	3,120
Finance expense related to derivative financial instruments	7,765	12,647	20,089	22,516
Net exchange differences	12,705	28,438	18,873	32,520
Fair value gain on financial assets at fair value through profit or loss	95	(24,232)	(33,494)	(27,886)
Amortization of Intangible assets	4,033	2,897	11,147	7,565
Depreciation of Property, plant and equipment and Right-of-use asset	405	219	1,142	626
Disposal of Right-of-use asset	79	121	90	430
Share-based payment expense, net of forfeitures	6,204	3,322	17,441	7,072
Other operating loss	578	-	3,950	-
Net Impairment loss/(gain) on financial assets	8	(2,508)	(93)	(2,478)
Inflation adjustment	515	-	(11,359)	-
	55,318	52,239	119,820	144,081
Changes in working capital
Increase in Trade and other receivables	48,999	(12,706)	(53,159)	(72,092)
Decrease in Other assets	(1,204)	19,592	1,299	31,749
Increase in Trade and other payables	(49,489)	(48,174)	63,743	141,965
Increase/(Decrease) in Tax Liabilities	(7,099)	(1,035)	651	(4,376)
Decrease in Provisions	2	(279)	(84)	(836)
Cash from operating activities	46,527	9,637	132,271	240,491
Income tax paid	(6,956)	(1,663)	(23,923)	(8,479)
Net cash from operating activities	39,571	7,974	108,347	232,012
Cash flows from investing activities
Acquisitions of Property, plant and equipment	(52)	(329)	(1,278)	(986)
Additions of Intangible assets	(5,379)	(4,358)	(15,243)	(12,503)
Acquisition of financial assets at FVPL	(9,775)	(53,531)	(106,616)	(101,670)
Net collections of financial assets at FVPL	9,796	(3,757)	108,097	(2,234)
Interest collected from financial instruments	7,430	20,454	21,345	42,429
Net cash used in investing activities	2,020	(41,521)	6,305	(74,964)
Cash flows from financing activities
Repurchase of shares	(19,316)	-	(101,067)	(97,929)
Share-options exercise	1,403	-	1,495	153
Interest payments on lease liability	(44)	(373)	(131)	(468)
Principal payments on lease liability	(371)	(512)	(440)	(788)
Finance expense paid related to derivative financial instruments	(3,970)	(9,466)	(15,009)	(20,803)
Net proceeds from financial liabilities	16,775	-	16,775	-
Interest payments on financial liabilities	(648)	-	(648)	-
Other finance expense paid	(724)	(1,915)	(1,123)	(3,120)
Net cash used in financing activities	(6,895)	(12,266)	(100,148)	(122,955)
Net increase in cash flow	34,696	(45,813)	14,505	34,093
Cash and cash equivalents at the beginning of the period	531,620	549,386	536,160	468,092
Net (decrease)/increase in cash flow	34,696	(45,813)	14,505	34,093
Effects of exchange rate changes on cash and cash equivalents	(5,784)	(5,408)	9,868	(4,020)
Cash and cash equivalents at the end of the period	560,532	498,165	560,532	498,165

 

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Investor Relations Contact:

investor@dlocal.com

 

Media Contact:

media@dlocal.com

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Exhibit 99.2

 

 

 

DLocal Limited

Unaudited Consolidated Condensed Interim Financial Statements as of September 30, 2024 and for the nine-month and three-month periods ended September 30, 2024 and 2023

 

 

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DLocal Limited

Unaudited Consolidated Condensed Interim Statements of Comprehensive Income

For the nine-month and three-month periods ended September 30, 2024 and 2023

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

 

				Nine months ended				Three months ended
		Notes		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Continuing operations
Revenues		6		541,483		462,346		185,774		163,921
Cost of services		6		(330,521)		(255,206)		(107,594)		(89,378)
Gross profit				210,962		207,140		78,180		74,543
Technology and development expenses		7		(18,803)		(8,626)		(6,930)		(3,696)
Sales and marketing expenses		8		(16,028)		(12,410)		(6,892)		(4,447)
General and administrative expenses		8		(74,042)		(49,926)		(22,636)		(17,378)
Impairment reversal on financial assets		17		93		2,478		(8)		2,508
Other operating losses				(3,950)		—		(578)		—
Operating profit				98,232		138,656		41,136		51,530
Finance income		11		54,839		70,315		7,335		44,449
Finance costs		11		(36,580)		(59,917)		(17,420)		(42,901)
Inflation adjustment		11		(6,263)		(6,497)		(1,954)		(3,817)
Other results				11,996		3,901		(12,039)		(2,269)
Profit before income tax				110,228		142,557		29,097		49,261
Income tax expense		12		(19,460)		(21,952)		(2,286)		(8,897)
Profit for the period				90,768		120,605		26,811		40,364
Profit attributable to:
Owners of the Group				90,734		120,449		26,782		40,308
Non-controlling interest				34		156		29		56
Profit for the period				90,768		120,605		26,811		40,364
Earnings per share
Basic Earnings per share		14		0.31		0.41		0.09		0.14
Diluted Earnings per share		14		0.30		0.39		0.09		0.13
Other comprehensive Income
Items that may be reclassified to profit or loss:
Exchange difference on translation on foreign operations				(6,771)		1,341		(498)		(1,822)
Other comprehensive income for the period, net of tax				(6,771)		1,341		(498)		(1,822)
Total comprehensive income for the period				83,997		121,946		26,313		38,542
Total comprehensive income for the period is attributable to:
Owners of the Group				83,979		121,792		26,301		38,487
Non-controlling interest				18		154		12		55
Total comprehensive income for the period				83,997		121,946		26,313		38,542

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

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DLocal Limited

Unaudited Consolidated Condensed Interim Statements of Financial Position

As of September 30, 2024 and December 31, 2023

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

 

		Notes		September 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents		15		560,532		536,160
Financial assets at fair value through profit or loss		16		112,247		102,677
Trade and other receivables		17		405,917		363,374
Derivative financial instruments		22		591		2,040
Other assets		18		12,235		11,782
Total Current Assets				1,091,522		1,016,033
Non-Current Assets
Financial assets at fair value through profit or loss		16		—		1,710
Trade and other receivables		17		1,787		—
Deferred tax assets				3,277		2,217
Property, plant and equipment				3,308		2,917
Right-of-use assets				3,939		3,689
Intangible assets		19		61,983		57,887
Other assets		18		5,343		—
Total Non-Current Assets				79,637		68,420
TOTAL ASSETS				1,171,159		1,084,453
LIABILITIES
Current Liabilities
Trade and other payables		20		669,608		602,493
Lease liabilities				1,127		626
Tax liabilities		21		17,525		20,800
Derivative financial instruments		22		4,579		948
Financial liabilities		23		16,775		—
Provisions		24		278		362
Total Current Liabilities				709,892		625,229
Non-Current Liabilities
Deferred tax liabilities				1,276		753
Lease liabilities				2,985		3,331
Total Non-Current Liabilities				4,261		4,084
TOTAL LIABILITIES				714,153		629,313
EQUITY		14
Share Capital				570		591
Share Premium				182,946		173,001
Treasury Shares				(200,980)		(99,936)
Capital Reserve				30,564		21,575
Other Reserves				(14,749)		(9,808)
Retained earnings				458,528		369,608
Total Equity Attributable to owners of the Group				456,879		455,031
Non-controlling interest				127		109
TOTAL EQUITY				457,006		455,140
TOTAL LIABILITIES AND EQUITY				1,171,159		1,084,453

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statement.

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DLocal Limited

Unaudited Consolidated Condensed Interim Statements of Changes in Equity

For the nine-month period ended September 30, 2024 and 2023

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

 

		Notes		Share Capital		Share Premium		Treasury shares		Capital Reserve		Other Reserves		Retained Earnings		Total		Non- controlling interest		Total equity
Balance as of January 1st, 2024				591		173,001		(99,936)		21,575		(9,808)		369,608		455,031		109		455,140
Comprehensive Income for the period
Profit for the period				—		—		—		—		—		90,734		90,734		34		90,768
Exchange difference on translation on foreign operations				—		—		—		—		(4,941)		(1,814)		(6,755)		(16)		(6,771)
Total Comprehensive Income for the period				—		—		—		—		(4,941)		88,920		83,979		18		83,997
Transactions with Group owners in their capacity as owners
Share-options exercise		14		2		9,945		—		(8,452)		—		—		1,495		—		1,495
Share-based payments net of forfeitures		9		—		—		—		17,441		—		—		17,441		—		17,441
Repurchase of shares		14		(23)		—		(101,044)		—		—		—		(101,067)		—		(101,067)
Transactions with Group owners in their capacity as owners				(21)		9,945		(101,044)		8,989		—		—		(82,131)		—		(82,131)
Balance as of September 30, 2024				570		182,946		(200,980)		30,564		(14,749)		458,528		456,879		127		457,006
Balance as of January 1st, 2023				592		166,328		(2,021)		16,185		(1,448)		219,993		399,629		(9)		399,620
Comprehensive Income for the period
Profit for the period				—		—		—		—		—		120,449		120,449		156		120,605
Exchange difference on translation on foreign operations				—		—		—		—		(379)		1,722		1,343		(2)		1,341
Total Comprehensive Income for the period				—		—		—		—		(379)		122,171		121,792		154		121,946
Transactions with Group owners in their capacity as owners
Share-options exercise		14		—		2,158		—		(2,005)		—		—		153		—		153
Forfeitures		14		—		—		—		—		—		—		—		—		—
Share-based payments		9		—		—		—		7,072		—		—		7,072		—		7,072
Repurchase of shares				(14)		—		(97,915)		—		—		—		(97,929)		—		(97,929)
Transactions with Group owners in their capacity as owners				(14)		2,158		(97,915)		5,067		—		—		(90,704)		—		(90,704)
Balance as of September 30, 2023				578		168,486		(99,936)		21,252		(1,827)		342,164		430,717		145		430,862

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

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DLocal Limited

Unaudited Consolidated Condensed Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2024 and 2023

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

 

				Nine months ended
		Notes		September 30, 2024		September 30, 2023
Cash flows from operating activities
Profit before income tax				110,228		142,557
Adjustments:
Interest (Income) from financial instruments		11		(21,345)		(42,429)
Interest charges for lease liabilities		11		131		468
Other finance expense				3,020		3,120
Finance expense related to derivative financial instruments				20,089		22,516
Net exchange differences				18,873		32,520
Fair value gain on financial assets at fair value through profit or loss		11		(33,494)		(27,886)
Amortization of Intangible assets		10		11,147		7,565
Depreciation of Property, plant and equipment and Right-of-use asset		10		1,142		1,056
Disposal of Right-of-use asset		10		90		—
Share-based payment expense, net of forfeitures		9		17,441		7,072
Other operating loss				3,950		—
Net Impairment (gain) on financial assets		17		(93)		(2,478)
Inflation adjustment				(11,359)		—
				119,820		144,081
Changes in working capital
Increase in Trade and other receivables		17		(53,159)		(72,092)
Decrease in Other assets		18		1,299		31,749
Increase in Trade and other payables		20		63,743		141,965
Increase/(Decrease) in Tax Liabilities		21		651		(4,376)
Decrease in Provisions		24		(84)		(836)
Cash from operating activities				132,271		240,491
Income tax paid				(23,923)		(8,479)
Net cash from operating activities				108,347		232,012
Cash flows from investing activities
Acquisitions of Property, plant and equipment				(1,278)		(986)
Additions of Intangible assets		19		(15,243)		(12,503)
Acquisition of financial assets at FVPL				(106,616)		(101,670)
Net collections of financial assets at FVPL				108,097		(2,234)
Interest collected from financial instruments				21,345		42,429
Net cash from/(used) in investing activities				6,305		(74,964)
Cash flows from financing activities
Repurchase of shares		14		(101,067)		(97,929)
Share-options exercise				1,495		153
Interest payments on lease liability				(131)		(468)
Principal payments on lease liability				(440)		(788)
Finance expense paid related to derivative financial instruments				(15,009)		(20,803)
Net proceeds from financial liabilities		23		16,775		—
Interest payments on financial liabilities		23		(648)		—
Other finance expense paid				(1,123)		(3,120)
Net cash used in financing activities				(100,148)		(122,955)
Net increase in cash flow				14,505		34,093
Cash and cash equivalents at the beginning of the period				536,160		468,092
Effects of exchange rate changes and inflation on cash and cash equivalents				9,868		(4,020)
Cash and cash equivalents at the end of the period				560,532		498,165

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

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DLocal Limited

Notes to Unaudited Consolidated Condensed Interim Financial Statements

At September 30, 2024

(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

 

 

1. General information and Significant Events during the period

 

1.1. General information

 

DLocal Limited (“dLocal” or the “Company”) was established on October 5, 2016 as a limited liability holding company in Malta (together with its subsidiaries as the “Group”.) On April 14, 2021 the Group was reorganized under dLocal and domiciled and incorporated in the Cayman Islands. The Company holds a controlling financial interest in the Group.

 

The Group processes payment transactions, enabling merchants located in developed economies (mainly United States, Europe and China) to receive payments (“pay-ins”) from customers in emerging markets and to facilitate payments (“pay-outs”) to customers in emerging markets. As of the date these Unaudited Consolidated Condensed Interim Financial Statements were issued, the Group continued to focus on its geographic expansion, increasing the total number of in-network countries.

 

The Group processes local payments in emerging markets through its network of acquirers and payments processors. Through its partnership with financial institutions, the Group expatriates/repatriates funds to/from developed economies where the merchant customers elect settlement in their preferred currency (mainly U.S. Dollar and Euro). These unaudited consolidated condensed interim financial statements include dLocal’s subsidiaries.

The Group is licensed and regulated in the EU as an Electronic Money Issuer, or EMI, and Payment Institution, or PI, and registered as a Money Service Business with the Financial Crimes Enforcement Network of the U.S. Department of the Treasury, or FinCEN, and operates and may be licensed, as applicable, in many countries in emerging markets, primarily in the Americas, Asia and Africa.

In addition, the Group is regulated under multiple laws focused on preventing money laundering, corruption, and the financing of terrorism, and remains fully compliant with the Fifth Anti-Money Laundering Directive (Directive (EU) 2018/843, “MLD5”). The regulatory framework governing these areas is dynamic, frequently evolving to address emerging risks and regulatory priorities. As part of this evolution, the EU has recently passed the Sixth Anti-Money Laundering Directive (Directive (EU) 2024/1640, “MLD6”), which sets out further requirements to strengthen transparency, reinforce financial intelligence capabilities, and enhance beneficial ownership regulations. MLD6 will soon be transposed into national laws across EU member states, adding additional compliance obligations for the Group and requiring ongoing adaptation to new regulatory standards.

 

1.2. Significant events during the period

a) Class action lawsuits

 

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On February 23 and February 28, 2023, respectively, we were named, along with several of our senior executives and/or directors, as defendants in certain putative class action lawsuits filed in the Supreme Court of the State of New York, New York County, asserting claims under Sections 11, 12, and 15 of the Securities Act of 1933, based in significant part on the short-seller report. These matters, Zappia et al. v. DLocal Limited et al., Index No. 151778/2023 (Sup. Ct. N.Y. Cty.), and Hunt et al. v. DLocal Limited et al., Index No. 651058/2023 (Sup. Ct. N.Y. Cty.), or the Zappia and Hunt Actions, allege, among other things, that the registration statement for our June 2021 initial public offering reflected certain material misstatements or omissions.

On March 3, 2023, plaintiffs in the two actions filed a stipulation and proposed order consolidating the cases and appointing putative lead counsel. The parties also agreed to a schedule for plaintiffs’ filing of an amended complaint and a subsequent briefing schedule for a motion to dismiss the amended complaint.

 

On May 12, 2023, plaintiffs in the Zappia and Hunt Actions jointly filed a consolidated amended complaint. On July 11, 2023, we filed a motion to dismiss the complaint. Plaintiffs filed their opposition brief on August 15, 2023, and we filed a reply in further support of our motion to dismiss on September 22, 2023. Our motion to dismiss is now fully briefed, and, on February 29, 2024, the court presided over oral argument on the motion. The court has not yet issued a decision on the motion, and no other proceedings are currently ongoing or scheduled.

 

We have also been named, along with several of our senior executives and/or directors, in a putative class action lawsuit filed in the U.S. District Court for the Eastern District of New York, asserting claims under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder. This lawsuit, captioned Laurenzi v. dLocal Ltd., et al., 1:23-cv-07501 (E.D.N.Y.) (Laurenzi Action), was initiated on October 6, 2023. On January 4, 2024, the Court appointed a Lead Plaintiff. On March 18, 2024, Lead Plaintiff filed an amended class action complaint. The amended complaint alleges misstatements and omissions in the registration statement for our June 2021 initial public offering and in various public filings and press releases during the period of June 2, 2021 through June 5, 2023. Pursuant to a schedule agreed upon with Lead Plaintiff’s counsel, we filed on April 30, 2024, a letter, as required by court rules, requesting a pre-motion conference regarding an anticipated motion to dismiss the Laurenzi Action in full. Lead Plaintiff responded to that letter on May 14, 2024. On June 10, 2024, the court held the requested preliminary conference and set a schedule for briefing on our motion to dismiss. We served our opening brief on August 9, 2024, Lead Plaintiff served an opposition on October 11, 2024 ,and we served our reply on November 8, 2024. The court has not yet indicated whether it will hear oral argument on our motion, and no other proceedings are currently ongoing or scheduled.

Due to the preliminary posture of the above-described lawsuits as of the date of issuance of these unaudited consolidated condensed interim financial statements, the Management and its legal advisors are unable to evaluate the likelihood of an adverse outcome or estimate a range of potential losses and no provision for contingencies have been recorded for the aforementioned matters. DLocal Limited intends to defend itself vigorously in these actions. As of the date of issuance of the Company’s unaudited interim financial statements there were no further updates in this regard.

 

Developments in Argentina
 

Argentina is subject to extensive foreign exchange regulations which were revised as recently as December 2023. We and our legal advisors consider our activities to be carried out in compliance with applicable laws and regulations, including compliance with foreign exchange market and tax regulations. As of the date of this unaudited interim report, no provision for contingencies has been recorded for the aforementioned matters.

 

 

 

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2. Presentation and preparation of the Consolidated Condensed Interim Financial Statements and significant accounting policies

 

2.1. Basis of preparation of consolidated condensed interim financial information

 

These Unaudited Consolidated Condensed Interim Financial Statements for the nine months ended September 30, 2024 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as issued by the International Accounting Standard Board.

 

These Unaudited Consolidated Condensed Interim Financial Statements do not include all the notes of the type normally included in an annual consolidated financial statement. Accordingly, this report should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2023 (the “Annual Financial Statements”).

 

The accounting policies and critical accounting estimates and judgments adopted, except for those explicitly indicated on these Unaudited Consolidated Condensed Interim Financial Statements, are consistent with those of the previous financial year and corresponding interim reporting period.

 

All amounts are presented in thousands of U.S. Dollars except share data or as otherwise indicated.

 

These Unaudited Consolidated Condensed Interim Financial Statements for the nine months ended September 30, 2024 were authorized for issuance by the dLocal’s Board of Directors on November 12, 2024.

 

2.2. Changes in accounting policies adopted by the Group

 

Treasury shares

 

As of June 30, 2024, the Group has adopted a voluntary change in the accounting policy regarding the classification of treasury shares to better reflect the Group’s equity structure. Previously, treasury shares were recognized under the share premium in the equity. As part of the new policy, and in connection with the repurchase of shares mentioned in note 14 c, the Group has decided to classify treasury shares separately in the equity position.

 

Treasury shares are recorded at cost, which includes the purchase price and any directly attributable costs of acquisition. The cost of treasury shares is presented as a deduction from equity, specifically within the “Treasury Shares” reserve. No gain or loss is recognized in the income statement on the purchase, sale, issue, or cancellation of the company’s own equity instruments.

 

2.3. New accounting pronouncements

 

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2023. The Company evaluated and, when necessary, applied for the first time the new standards and interpretations issued or modified by the IASB as demonstrated in the item 2.4, and did not identify any significant impacts thereof on the disclosure or reported amounts.

 

2.4. Impact of IFRS Accounting Standards issued but not yet applied by the Group

 

The following new standards, amendments to standards and interpretation of IFRS issued by the IASB were not adopted since they are not effective for the issuance of the interim condensed consolidated financial statements. The Company is assessing the impact of the standards and plans to adopt these new standards, amendments, and interpretation, if applicable, when they become effective.

 

IAS 21 - The effects of changes in Foreign Exchange Rates (effective on January 1, 2025)

In August 2023, the IASB amended IAS 21 to help entities to determine whether a currency is exchangeable into another currency, and which spot exchange rate to use when it is not. These new requirements will apply for annual

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reporting periods beginning on or after 1 January 2025. The Company is assessing the impact of adoption of this amendment.

 

IFRS 18 - Presentation and disclosure in financial statements (effective on January 1, 2027)

On 9 April 2024, the IASB issued a new standard IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

 

• the structure of the statement of profit or loss;

• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and

• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

 

IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its ‘operating profit or loss’.

 

IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information.

 

IFRS 9 – Financial Instruments and IFRS 07 Financial Instruments: Disclosure (effective on January 1, 2026)

 

On 30 May 2024, the IASB issued target amendments to IFRS 9 and IFRS 7. The amendments intend to:

 

• Clarify the period of recognition and derecognition of some financial assets and liabilities, with new exception for some financial liabilities settled through electronic cash transfer;

• Provides further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

• New disclosures for certain instruments with contractual terms that can change cash flows and equity instruments designated at FVTOCI.

 

IFRS 19 - Subsidiaries without Public Accountability: Disclosures (effective on January 1, 2027)

 

On 9 May 2024, the IASB has issued a new IFRS Accounting Standard for subsidiaries.

 

An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19’s reduced disclosure requirements balance the information needs of the users of eligible subsidiaries’ financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries.

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3. Accounting estimates and judgments

 

Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The accounting estimates and judgments adopted in these Unaudited Consolidated Condensed Interim Financial Statements are consistent with those of the previous financial year and the corresponding interim reporting period.

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4. Consolidation of subsidiaries

 

DLocal Limited, located in Cayman Islands, is the parent company of the Group and acts as a holding company for subsidiaries whose main activity is cross-border and local payments, enabling international merchants to access end customers in emerging markets. Its revenue comes from dividends receivable from subsidiaries and share of profit from subsidiary partnership.

There were no changes since December 31, 2023 in the accounting practices adopted for consolidation of the Company’s direct and indirect interests in its subsidiaries for the purposes of these unaudited interim condensed consolidated financial statements. The following entities were incorporated or acquired by the Group during the nine-month period ended September 30, 2024.

 

						% of equity interest held by Dlocal
Entity name		Country of incorporation		Principal activities		September 30, 2024
Shanghai Demerge Consulting Co. Ltd		China		Service provider		100%
Olmerix S.A.		Uruguay		Finance entity		100%
Dlocal Nicaragua S.A.		Nicaragua		Collection entity		100%
Dlocal Malaysia Sdn. Bhd.		Malaysia		Collection entity		100%
CRI Demerge Costa Rica SRL		Costa Rica		Collection entity		100%
Demerge Singapore PTE Ltd		Singapore		Collection entity		100%

 

The Group has determined that the acquisition or incorporation of these subsidiaries during 2024 do not constitute a business combination according to IFRS 3.

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5. Segment reporting

 

The Group operates as a single operating segment, “payment processing”. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”) who is the Group’s Executive Team represented by executive officers and directors holders of ordinary shares of the immediate parent of the Company. The Group has determined that its Executive Team is the chief operating decision maker as they determine the allocation of resources and assess performance.

The Executive Team evaluates the Group’s financial information and resources, and assesses the financial performance of these resources based on consolidated Revenue, Adjusted EBITDA and Adjusted EBITDA margin as further described below.

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

The Executive Team assesses the financial performance of the Group’s sole segment by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as the consolidated profit from operations before financing and taxation for the applicable reporting period before depreciation of PP&E, amortization of right-of-use assets and intangible assets. It also excludes adjustments applied to subsidiaries operating hyperinflationary environments, other operating losses, impairment gain/loss on financial assets, other non-recurring costs and share-based payment non-cash charges. The Group defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by Revenue.

The Group reconciles the segment’s performance measure to profit for the period as presented in the Consolidated Condensed Interim Statements of Comprehensive Income as follows:

 

			Nine months ended				Three months ended
		Note	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Profit for the period (i)			90,768		120,605		26,811		40,364
Income tax expense		12	19,460		21,952		2,286		8,897
Inflation adjustment		11	6,263		6,497		1,954		3,817
Finance income		11	(54,839)		(70,315)		(7,335)		(44,449)
Finance costs		11	36,580		59,917		17,420		42,901
Depreciation and amortization		10	12,289		8,621		4,438		3,237
Other operating (gain) / loss			3,950		—		578		—
Impairment loss / (gain) on financial assets		16	(93)		(2,478)		8		(2,508)
Other non-recurring costs (ii)		8	—		1,229		—		—
Share-based payment non-cash charges, net of forfeitures		9	17,441		7,072		6,204		3,322
Adjusted EBITDA			131,819		153,100		52,364		55,581
Revenues		6	541,483		462,346		185,774		163,921
Adjusted EBITDA			131,819		153,100		52,364		55,581
Adjusted EBITDA Margin			24.3%		33.1%		28.2%		33.9%

 

i) Includes a net gain related to the effective portion of the change in the spot rate of the hedged foreign currency risk. For further information refer to Note 22 Derivative financial instruments.

ii) For nine-month period ended September 30, 2023 other non-recurring costs related to an internal review of the allegations made by a short-seller report and class action expense, which includes fees from independent counsel, independent global expert services and forensic accounting advisory firm.

 

 

 

 

 

 

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The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the Unaudited Consolidated Condensed Statement of Comprehensive Income and Unaudited Consolidated Condensed Statement of Financial Position.

 

As required by IFRS 8 Operating Segments, below are presented applicable entity-wide disclosures related to dLocal’s revenues.

 

Revenue breakdown by region and country

 

The Group’s revenues arise from operations in many countries, where the merchants´ customers are based.

 

The following table presents the Group’s revenue by region and country where the payments from/to the merchant customers in certain regions represented at least 10% of Total Revenues amounted on the three-month and nine-month periods September 30, 2024 and 2023.

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
LatAm		409,328		361,159		145,220		136,044
Brazil		118,269		108,754		32,936		44,724
Mexico		108,798		81,254		38,927		30,245
Argentina		60,336		64,588		26,032		23,856
Chile		37,666		40,815		13,014		12,430
Other countries		84,259		65,748		34,310		24,789
Asia and Africa		132,155		101,187		40,554		27,877
Egypt		72,596		18,269		18,564		10,145
Nigeria		10,392		55,614		2,071		8,321
Other countries		49,167		27,304		19,919		9,411
Revenues		541,483		462,346		185,774		163,921

 

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Revenue with large customers

 

For the nine months ended September 30, 2024, the Group’s revenue from its top 10 merchants represented 62% of revenue (58% of revenue for the nine months ended September 30, 2023). For the nine months ended September 30, 2024 there are two customers (one customer for the nine months ended September 30, 2023) that on an individual level accounted for more than 10% of the total revenue.

 

Non current assets by country

 

 

The Company does not have any non-current assets located in the entity´s country of domicile.

Material non-current assets are the Intangible Assets described in Note 19: Intangible Assets.

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6. Revenues and Cost of Services

 

(a) Revenue and Gross profit description

 

dLocal derives revenue from processing payments for international merchants to enable them to operate in selected emerging markets.

 

The breakdown of revenue from contracts with customers per type of service is as follows:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Transaction revenues (i)		537,147		453,856		183,252		159,651
Other revenues (ii)		4,336		8,490		2,522		4,270
Revenues from payment processing		541,483		462,346		185,774		163,921
Cost of services		(330,521)		(255,206)		(107,594)		(89,378)
Gross profit		210,962		207,140		78,180		74,543

 

 

 

(b) Revenue recognized at a point in time and over time

 

Transaction revenues are recognized at a point in time when the payment transaction, or its reversal in the case of chargeback and refunds, is processed. Other revenues are recognized as revenue at a point in time when the respective performance obligation is satisfied. The Group did not recognize revenues over time for the nine months ended September 30, 2024 and 2023.

 

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(c) Cost of services

 

Cost of services are composed of the following:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Processing costs (i)		313,294		243,297		101,554		85,048
Hosting expenses (ii)		5,518		4,382		1,733		1,361
Salaries and wages (iii)		2,135		1,542		798		603
Amortization of intangible assets (iv)		9,574		5,985		3,509		2,366
Cost of services		330,521		255,206		107,594		89,378

 

 

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7. Technology and development expenses

 

Technology and development expenses are composed of the following:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Salaries and wages (i)		8,872		4,067		3,586		1,836
Software licenses (ii)		4,658		2,208		1,316		874
Infrastructure expenses (iii)		3,679		1,749		1,244		764
Information and technology security expenses (iv)		163		234		78		104
Other technology expenses		1,431		368		706		118
Total Technology and development expenses		18,803		8,626		6,930		3,696

 

 

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8. Sales and marketing expenses and General and administrative expenses

 

Sales and marketing expenses and General and administrative expenses are composed of the following:

 

		Nine months ended				Three months ended
Sales and marketing expenses		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Salaries and wages (i)		13,467		9,549		6,223		3,580
Marketing expenses (ii)		2,561		2,861		669		867
Total Sales and marketing expenses		16,028		12,410		6,892		4,447
General and administrative expenses		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Salaries and wages (i)		41,649		24,461		12,299		8,934
Third-party services (iii)		15,894		13,640		4,552		4,618
Office expenses		1,886		3,033		574		1,093
Travel and other operating expenses		11,898		6,156		4,282		1,862
Amortization and depreciation		2,715		2,636		929		871
Total General and administrative expenses		74,042		49,926		22,636		17,378

 

 

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9. Employee Benefits

 

Employee benefits is composed as follows:

 

		Nine months ended				Three months ended
Salaries, wages and contractor fees (i)		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Salaries, wages and contractor fees (i)		62,812		44,888		22,037		15,827
Share-based payments (ii)		17,441		7,072		6,204		3,322
Total employee benefits		80,253		51,960		28,241		19,149

 

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10. Amortization and Depreciation

 

Amortization and depreciation expenses are composed of the following:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Amortization of intangible assets		11,147		7,565		4,033		2,897
Amortization of Right-of-use asset		255		430		85		121
Depreciation of Property, plant & equipment		887		626		320		219
Total Amortization and Depreciation		12,289		8,621		4,438		3,237

 

For further information related to amortization of intangible assets refer to Note 19: Intangible Assets.

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11. Other Results

 

Other results is composed of the following categories:
 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest Income from Financial Instruments (i)		21,345		42,429		7,430		20,217
Fair value gains of financial assets at FVPL (i)		33,494		27,886		(95)		24,232
Finance income		54,839		70,315		7,335		44,449
		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Finance expense related to derivative financial instruments (ii)		(15,009)		(22,485)		(3,970)		(10,848)
Other finance expenses (iii)		(21,440)		(36,964)		(13,406)		(31,680)
Interest charges for lease liabilities (iv)		(131)		(468)		(44)		(373)
Finance costs		(36,580)		(59,917)		(17,420)		(42,901)
Inflation adjustment (v)		(6,263)		(6,497)		(1,954)		(3,817)
Other results		11,996		3,901		(12,039)		(2,269)

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12. Income Tax

 

Income tax expense is recognized based on management’s estimate of the weighted average effective annual income tax rate expected for the full financial year. The estimated average income tax rate used for the nine months ended September 30, 2024 is 17.7%, compared to 15.4% for the nine months ended September 30, 2023. The effective income tax rate increase is explained by an increase in the results of subsidiaries located in countries where the income tax rate is higher.

 

The income tax charge recognized in profit and losses is the following:

 

		Nine months ended				Three months ended
Current Income Tax		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Current Income Tax on profits for the period		(19,997)		(15,194)		(4,673)		(3,876)
Total Current Income Tax expense		(19,997)		(15,194)		(4,673)		(3,876)
Deferred Income Tax		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Increase in deferred income tax assets		1,060		952		1,364		505
(Increase)/Decrease in deferred income tax liabilities		(523)		(7,710)		1,023		(5,526)
Total Deferred Income Tax (expense)		537		(6,758)		2,387		(5,021)
Income Tax expense		(19,460)		(21,952)		(2,286)		(8,897)

 

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13. Share-based payments

 

 

During the nine months ended September 30, 2024, the Group granted new share options and restricted share units under the Amended and Restated 2020 Global Share Incentive Plan to executives and employees in return for their services, which represented changes in the composition of share options outstanding at the end of the period.

 

Set out below are summaries of restricted share units and share options granted under the plan:

 

		September 30, 2024				December 31, 2023
		Average				Average
		exercise price		Number of		exercise price		Number of
		(U.S. Dollars)		options and RSUs		(U.S. Dollars)		options and RSUs
At the beginning of the period		6.86		6,962,302		8.30		3,534,561
Granted during the period		3.57		997,273		5.53		4,340,239
Exercised during the period		0.23		(767,904)		2.25		(663,897)
Cancelled during the period		—		(4,158)		—		—
Forfeited during the period		9.05		(538,013)		14.06		(248,601)
At the end of the period		6.93		6,649,500		6.86		6,962,302
Vested and exercisable at the end of the period		9.11		1,339,374		7.03		704,006

 

No options expired during the periods covered by the above table.

 

As of September 30, 2024, the Group has 222,500 Performance Share Units (“PSUs”), 3,329,923 Restricted Stock Units (RSUs), and 3,097,077 Stock Options outstanding.

 

For the nine months period ended September 30, 2024, total compensation expense of the plans was USD 17,441 (September 30, 2023 - USD 7,072) as presented in Note 9 Employee Benefits.

 

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14. Capital management

 

(a) Share capital

 

At the date of this interim report, the total authorized share capital of the Group was USD 3,000,000, divided into 1,500,000,000 shares par value USD 0.002 each, of which:

• 1,000,000,000 shares are designated as Class A common shares; and

• 250,000,000 shares are designated as Class B common shares.

The remaining 250,000,000 authorized but unissued shares are presently undesignated and may be issued by our board of directors as common shares of any class or as shares with preferred, deferred or other special rights or restrictions.

 

The rights of the holders of Class A Common Shares and Class B Common Shares are identical, except with respect to voting, conversion and transfer restrictions applicable to the Class B Common Shares. Each Class A Common Share is entitled to one vote while Class B Common Shares are entitled to five votes each. Each Class B Common Share is convertible into one Class A Common Share automatically upon transfer, subject to certain exceptions. Holders of Class A Common Shares and Class B Common Shares vote together as a single class on all matters unless otherwise required by law.

 

Authorized shares, as well as issued and fully paid-up shares, are presented below:

 

		September 30, 2024				September 30, 2023
		Amount		USD		Amount		USD
Issued and Fully Paid Up Shares of USD 0.002 each
Class A Common Shares		151,121,672		302		155,503,714		310
Class B Common Shares		134,054,192		268		134,054,192		268
		285,175,864		570		289,557,906		578
Share Capital evolution
Share Capital as at January 1		295,991,665		591		296,029,870		592
i) Issue of common shares at USD 0.002		767,904		2		564,272		—	*
ii) Repurchase of shares		(11,583,705)		(23)		(7,036,236)		(14)
Share capital as of September 30, 2024		285,175,864		570		289,557,906		578

* Amounts are rounded to the nearest thousand and should not be interpreted as zero.

 

 

(b) Share Premium

 

For the nine months ended September 30, 2024 and 2023, dLocal issued 767,904 and 564,272 new Class A Common Shares receiving total proceeds of USD 1,495 and 153, respectively, related to the exercise of share-options.

 

(c) Treasury Shares

 

On May 13, 2024, the Board of Directors of Dlocal approved a share buyback program. The Company is authorized to purchase up to $200 million of its Class A common shares from May 15, 2024, to May 31, 2025.

 

As of September 30, 2024 the Company has repurchased 11,583,705 shares at an average price of USD 8.72 per share, amounting to a total consideration of USD 101,067. The repurchased shares are held as treasury shares and are accounted for at cost.

 

 

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(d) Capital reserve

 

The Capital reserve corresponds to reserves related to the share-based plans, as described in Note 13: Share-based payments and warrants to the Annual Financial Statements for the year ended December 31, 2023. As of September 30, 2024, the shared-based payments represent a total of USD 8,989 which is comprised of USD 17,441 related to share-based expenses and USD 8,452 related to exercise and vesting share-based plan.

 

(e) Other Reserves

 

The reserves for the Group relate to cumulative translation adjustment representing differences on conversion of assets and liabilities at the reporting date.

 

 

 

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(e) Earnings per share

 

 

Basic earnings per share is calculated by dividing net income for the period attributed to the owners of the parent by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing net income attributable to owners of DLO by the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be issued on conversion of all dilutive potential shares into shares by applying the treasury stock method. The shares in the share-based plan are the only shares with potential dilutive effect.

The following table presents the calculation of net income applicable to the owners of the parent and basic and diluted EPS for the nine and three months period ended of September 30:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Profit attributable to common shareholders (U.S. Dollars)		90,734,000		120,449,000		26,782,000		40,308,000
Weighted average number of common shares		291,582,333		292,058,528		282,212,297		289,411,641
Adjustments for calculation of diluted earnings per share(1)		15,154,672		16,509,161		14,108,758		16,620,498
Weighted average number of common shares for calculating diluted earnings per share		306,737,005		308,567,689		296,321,055		306,032,139
Basic earnings per share		0.31		0.41		0.09		0.14
Diluted earnings per share		0.30		0.39		0.09		0.13

 

 

1 For the nine months ended September 30, 2024, the adjustment corresponds to the dilutive effect of i) 8,161,828 average shares related to share-based payment warrants described in Note 13: Share-based payments and warrants to the Annual Financial Statements for the year ended December 31, 2023; and ii) 6,992,844average shares related to share-based payment plans with employees (14,644,675 and 1,864,486 respectively for the nine months ended September 30, 2023). For the three months ended September 30, 2024, the adjustment corresponds to the dilutive effect of i) 7,805,921 average shares related to share-based payment warrants; and ii) 6,302,837 average shares related to share-based payment plans with employees (14,699,513 and 1,920,985 respectively for the three months ended September 30, 2023).

 

 

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15. Cash and cash equivalents

 

Cash and cash equivalents breakdown is presented below:

 

		September 30, 2024		December 31, 2023
Own Balances		207,993		222,808
Merchant Clients Funds		352,539		313,352
		560,532		536,160

 

As of September 30, 2024, USD 560,532 (USD 536,160 on December 31, 2023) represents cash on hand, demand deposits with financial institutions and other short-term liquid financial instruments.

 

Own Balances correspond to cash and cash equivalents of the Group while Merchant Clients Funds correspond to freely available funds collected from the merchants’ customers, that can be invested in secure, liquid low-risk assets until they are transferred to the merchants in accordance with the agreed conditions with them or transferred to Own Funds accounts for the portion that corresponds to the Group fees. As of September 30, 2024 , Merchant Clients Funds includes USD 65,361 pending to be transferred to Own Funds accounts (USD 59,900 as of December 31, 2023).

 

 

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16. Financial assets at fair value through profit or loss

 

Financial assets at fair value through profit or loss include the following:

 

Instrument		Reference		Maturity date		Interest rate (%)		Linked with		September 30, 2024		December 31, 2023
Argentina Treasury Bonds		TV24	(i)	Apr-24		0.40%		Dollar linked		—		94,667
Argentina Treasury Bonds		TDG24	(i)	Aug-24		0%/3.25%		U.S. Dollar/CER index*		—		8,059
Argentina Treasury Bonds		TDE25		Jan-25		0%/3.25%		U.S. Dollar/CER index*		2,099		1,661
Argentina Treasury Bonds		TV25		Mar-25		0.50%		Dollar linked		9,397		—
Argentina Treasury Bonds		TZV25		Jun-25		—		Dollar linked		62,017		—
Argentina Treasury Notes		S31E5	(ii)(iii)	Jan-25		5.50%		—		28,239		—
Argentina Treasury Notes		S29G5		Aug-25		3.88%		—		4,995		—
Argentina Treasury Notes		S30J5		Jun-25		3.90%		—		4,997		—
Argentina Treasury Notes		S31L5		Jul-25		3.98%		—		504		—
										112,247		104,387

*Stabilization Reference Coefficient adjusted by inflation

 

(i) According to the respective maturity date, the bond TV24 and TDG24 was fully settled during April and August, 2024.

 

(ii) The Company has elected to use the Fair Value option for measuring Treasury Notes, designating these investments as measured at FVTPL.

 

(iii) As of September 30, 2024 the Group held a total of nominal value USD 8,848 as security for the borrowings detailed in Note 24, and for certain derivative transactions in Argentina for a nominal Value of USD 6,530.

 

Information about the Group’s impact on profit or loss of bonds is discussed in Note 11: Other Results

 

 

All of the Group’s listed bonds and notes investments are listed on the Argentinian Stock Exchange (Bolsas y Mercados Argentinos - BYMA). For the investments classified as FVPL, the impact of a 10% increase in the Argentinian Index at the reporting date on profit or loss would have been an increase of USD 11,225 after tax. An equal change in the opposite direction would have decreased profit or loss by USD 11,225 after tax.

 

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17. Trade and other receivables

 

Trade and Other Receivables of the Group are composed of the following:

 

		September 30, 2024		December 31, 2023
Current
Trade receivables		350,490		319,921
Loss allowance		(42)		(459)
Trade receivables net		350,448		319,462
Advances and other receivables		55,469		43,912
Total Current Trade and Other Receivables		405,917		363,374

 

		September 30, 2024		December 31, 2023
Non current
Advances and other receivables		1,787		—
Total Non Current Trade and Other Receivables		1,787		—

 

 

Trade Receivables represent uncollateralized gross amounts due from acquirers, processors, merchants and preferred suppliers for services performed that will be collected in less than one year, so they are classified as current. No financial assets are past due. All Trade and other receivables have been assigned in “normal” credit risk rating which applies to financial assets for which a significant increase in credit risk has not occurred since initial recognition.

 

Loss allowance and impairment losses

 

The following table presents the evolution of the loss allowance:

 

		2024		2023
Opening book value as at January 1		(459)		(280)
Decrease in loss allowance for trade receivables		—		(29)
Reversal of write-off		417		139
Total as at September 30		(42)		(170)
Net impairment gain/(loss) on financial assets		93		(31)

 

Initial recognition and subsequent measurement the Group applies the simplified approach to determine expected credit losses on trade receivables.

 

To measure the expected credit losses, trade and other receivables have been grouped based on shared credit risk characteristics and the days past due (only 0-30 past due bucket as of September 30, 2024 and December 31, 2023 because there are no other material buckets of the outstanding receivables).

 

The expected loss rates are based on the payment profiles of debtors over a period of 48 months before year end and the corresponding historical credit losses experienced within this period. The historical loss rate is adjusted to reflect current and forward-looking information on credit risk ratings of the countries in which the Group sells its services which affects the ability of the debtors to settle the receivables. On that basis, the average expected credit loss rate of the 0-30 past due bucket was determined at 0.1% for the nine months ended September 30, 2024 (0.1% in the nine months ended September 30, 2023).

 

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18. Other Assets

 

Other assets are composed of the following:

 

Current		September 30, 2024		December 31, 2023
Money held in escrow and guarantees due to: (i)		10,257		11,635
-Banks requirements		6,156		3,000
-Processors and other requirements		3,978		5,072
-Credit card requirements		123		3,563
Rental guarantees		226		147
Other financial asset measure as FVTPL (ii)		1,752		—
Total current Other Assets		12,235		11,782
Non Current
Other financial asset measure as FVTPL (ii)		5,343		—
Total Non Current Other Assets		5,343		—

 

 

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19. Intangible Assets

 

Intangible assets of the Group correspond to acquired software, capitalized expenses related to internally generated software and acquired merchant agreements, and are stated at cost less accumulated amortization.

 

		2024						2023
		Internally generated software		Acquired and other intangible assets		Total		Internally generated software		Acquired and other intangible assets		Total
Cost		40,446		39,901		80,347		23,752		39,335		63,087
Accumulated amortization		(16,683)		(5,777)		(22,460)		(7,972)		(3,672)		(11,644)
Opening book value as at January 1		23,763		34,124		57,887		15,780		35,663		51,443
Additions (i)		14,130		1,113		15,243		12,341		162		12,503
Amortization of the period		(9,574)		(1,573)		(11,147)		(5,985)		(1,580)		(7,565)
Total as at September 30		28,319		33,664		61,983		22,136		34,245		56,381
Cost		54,576		41,014		95,590		36,093		39,497		75,590
Accumulated amortization		(26,257)		(7,350)		(33,607)		(13,957)		(5,252)		(19,209)

 

(i) The additions of the nine months ended September 30, 2024 include USD 14,130 related to capitalized salaries and wages (USD 12,341 as of September 30, 2023).

 

		As of September 30, 2024		As of December 31, 2023
Cost		95,590		80,347
Accumulated amortization		(33,607)		(22,460)
Net book amount		61,983		57,887

 

As of September 30, 2024 , and December 31, 2023 no indicator of impairment related to intangible assets existed, so the Group did not perform an impairment test.

 

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20. Trade and other payables

 

Trade and Other Payables are composed of the following:

 

		September 30, 2024		December 31, 2023
Trade Payables		636,455		572,394
Accrued Liabilities		11,134		10,192
Other Payables		22,019		19,907
Total Trade and other payables		669,608		602,493

 

Trade and other payables are classified as current liabilities as the payment is due within one year or less. Moreover, the carrying amounts are considered to be the same as fair values, due to their short – term nature.

 

Trade Payables correspond to liabilities with Merchants, either related to payin transactions processed or payout transactions to be processed at their request. Accrued Liabilities mainly correspond to obligations with legal and tax advisors, and auditors. Other Payables mainly correspond to obligations related to processors costs and the acquisitions of office goods and services necessary for the ordinary course of the business.

 

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21. Tax Liabilities

 

The tax liabilities breakdown is as follows:

 

		September 30, 2024		December 31, 2023
Income tax payable		16,354		20,280
Other tax liabilities (i)		1,171		520
Total Tax Liabilities		17,525		20,800

 

(i) Mainly related to digital services withholding VAT.

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22. Derivative financial instruments

 

Derivative financial instruments: forward agreements

 

The Group’s operations are in various foreign currencies and consequently are exposed to foreign currency risk. As a consequence, the Group uses derivative instruments, delivery and non-delivery currency forward contracts and future contracts, to reduce the volatility of earnings and cash flows, caused by the exchange rate variation in which dLocal is exposed on the conversion of local currency into the settlement currency (usually US dollars). All outstanding derivatives are recognized in the Group’s consolidated balance sheets at fair value and the impacts are recognized on profit or loss, as shown on the tables below.

 

The Group uses foreign exchange forward contracts to manage some of its transaction exposures. The spot element of foreign exchange forward contracts is designated as hedging instruments in fair value hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from one to 12 months.

 

In USD thousand		Type Contract		Outstanding notional amount as of September 30, 2024		Outstanding balance as of September 30, 2024 - Derivative financial assets / (liabilities)		Outstanding notional amount as of December 31, 2023		Outstanding balance as of December 31, 2023 - Derivative financial assets / (liabilities)
Assets
Buy EUR
US Dollar		Futures Contract		47,189		271		29,114		480
Buy USD
Mexican Peso		Futures Contract		10,089		40		—		—
Indian Rupee		Non-delivery forwards		2,798		1		—		—
Argentine Peso		Non-delivery forwards		—		—		3,400		7
Egyptian Pound		Non-delivery forwards		—		—		20,865		1,479
Sell USD
Southafrican Rand		Forward		—		—		(2,345)		12
Southafrican Rand		Futures Contract		(7,630)		73		—		—
Argentine Peso		Futures Contract		(1,000)		206		—		—
Peruvian Sol		Non-delivery forwards		—		—		(1,252)		62
Total						591				2,040
Liabilities
Buy EUR
Moroccan Dirham		Forward		774		(3)		1,490		(51)
Buy USD
Chilean Peso		Forward		13,635		(79)		—		—
United Arab Emirates Dirham		Forward		133		(0)		—		—
Southafrican Rand		Forward		14,875		(438)		8,128		(230)
Saudi Riyal		Forward		6,760		(18)		—		—
Moroccan Dirham		Forward		4,600		(49)		6,263		(240)
Southafrican Rand		Futures Contract		35,986		(1,202)		—		—
Argentine Peso		Futures Contract		4,000		(198)		—		—
Brazilian Reais		Non-delivery forwards		—		—		3,715		(30)
Chilean Peso		Non-delivery forwards		—		—		19,874		(174)
Uruguayan Peso		Non-delivery forwards		—		—		2,552		(48)
Indian Rupee		Non-delivery forwards		—		—		2,397		(7)
Peruvian Sol		Non-delivery forwards		—		—		1,200		(67)
Vietnamese Dong		Non-delivery forwards		4,312		(33)		4,054		(32)
Argentine Peso		Non-delivery forwards		26,265		(2,321)		—		—
Egyptian Pound		Non-delivery forwards		9,214		(228)		—		—
Sell EUR
Moroccan Dirham		Forward		(779)		(2)		(3,274)		(28)
US Dollar		Non-delivery forwards		(27,916)		(3)		(6,323)		(40)
Sell USD
Indian Rupee		Non-delivery forwards		(2,314)		(6)		(950)		(1)
Total						(4,579)				(948)

 

 

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				Nine months ended				Three months ended
				September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net gain/(loss) on foreign currency forwards recognized in ‘Costs of Services’				7,204		5,897		(1,860)		280
Net loss on foreign currency forwards recognized in ‘Finance Costs’				(15,009)		(22,485)		(3,970)		(10,848)

 

 

(i) Classification of derivatives

 

 

Derivatives are financial instruments entered into only for economic hedging purposes and not contracted as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting purposes and are accounted for at fair value through profit or loss. The full fair value of hedging derivatives is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, otherwise they are classified as a current asset or liability. Derivatives held for trading are classified as a current asset or liability.

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23. Financial liabilities

The financial liabilities breakdown is as follows:

 

		September 30, 2024		December 31, 2023
Borrowings (i)		8,366		—
Bank overdraft (ii)		8,409		—
Total Finance Liability		16,775		—

(i) As of September 30, 2024, dLocal entered into borrowing agreements in Argentinean Pesos (AR$) with a financial institution in Argentina. The borrowing is agreed on a daily basis and pays an annual interest rate with reference to BADLAR (average interest rate in Argentinian pesos published by the Central Bank of Argentina). The interest expense for the three-month period ended September 30, 2024 amounts USD 648 thousands recognized in other finance expenses (note 11). In addition, Argentina Treasury Notes S31E5 for a nominal value of USD 8,848 were held as security of this borrowing. See note 16 for additional information.

(ii) As of September 30, 2024, dLocal has an overdraft balance with a financial institution in Uruguayan Pesos (UYU) in Uruguay. This overdraft facility is short term liability with an interest rate of 11.0% annual.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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24. Provisions

 

(a) Current or potential proceedings for labor provisions

 

Provisions for labor contractors are related to current or potential proceedings where the management understands, based on the Group’s legal advisors’ assessment, that it is more likely than not that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

 

(b) Movements in current or potential proceedings

 

Movements in current or potential proceedings are set out below:

 

		2024		2023
Carrying amount as at January 1		362		1,473
Reversal		(92)		(871)
Interest charges		8		35
Total carrying amount at September 30		278		637

 

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25. Related parties

 

 

(a) Related Parties Transactions

 

In June 2023, Dlocal Argentina S.A. entered into a loan agreement with Dlocall Group for a total amount of USD 100,000, with the maturity date extended by two months to August 2024. In August 2024, Dlocal Argentina partially repaid the intra-group loan by transferring approximately USD 69,100 worth of Argentine government bonds, as detailed in note 1.2 (b) and note 16, to the subsidiary in Malta. Since both subsidiaries are fully consolidated, the outstanding balances have been eliminated. The primary impact on the consolidated financial statements relates to foreign exchange losses incurred by Dlocal Argentina S.A. For further detail refer to Note 11: Other Results.

 

(b) Key Management compensation

 

The compensation of the Executive Team during the period can be analyzed as follows:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Short-term employee benefits – Salaries and wages		2,349		1,580		851		601
Long-term employee benefits – Share-based payment		11,334		3,393		3,676		1,946
		13,682		4,973		4,526		2,547

 

(c) Transactions with other related parties

 

The following transactions occurred with related parties:

 

		Nine months ended				Three months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Transactions with merchants – Revenues		270		1,309		11		266
Transactions with preferred suppliers (Collection agents) – Costs		—		(35)		—		(25)

 

(d) Outstanding balances arising from transactions with other related parties

 

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

 

		September 30, 2024		December 31, 2023
Transactions with merchants – trade receivables		—		406
Transactions with merchants – trade payables		—		—
Transactions with preferred suppliers (Collection agents) – trade payables		—		(19)

 

Outstanding balances are unsecured and are repayable in cash.

 

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26. Fair value hierarchy

 

The following tables show financial instruments recognized at fair value for the period ended September 30, 2024 and December 31, 2023, analyzed between those whose fair value is based on:

 

• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

 

• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

 

• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based upon observable market data.

 

The table also includes financial instruments measured at amortized cost. The Group understands that the book value of such instruments approximates their fair value.

September 30, 2024		FVPL		Amortized cost		Total		Level 1		Level 2
Assets
Financial Assets at Fair Value through Profit or Loss		112,247		—		112,247		112,247		—
Other Assets		7,095		10,483		17,578		—		7,095
Trade and Other Receivables		—		407,704		407,704		—		—
Derivative financial instruments		591		—		591		—		591
Cash and Cash Equivalents		—		560,532		560,532		—		—
		119,933		978,719		1,098,652		112,247		7,686

 

December 31, 2023		FVPL		Amortized cost		Total		Level 1		Level 2
Assets
Financial Assets at Fair Value through Profit or Loss		104,387		—		104,387		104,387		—
Other Assets		—		11,782		11,782		—		—
Trade and Other Receivables		—		363,374		363,374		—		—
Derivative financial instruments (1)		2,040		—		2,040		—		2,040
Cash and Cash Equivalents		—		536,160		536,160		—		—
		106,427		911,316		1,017,743		104,387		2,040

 

September 30, 2024		FVPL		Amortized cost		Total		Level 1		Level 2
Liabilities
Trade and Other Payables		—		(669,608)		(669,608)		—		—
Lease liabilities		—		(4,112)		(4,112)		—		—
Financial liabilities		—		(16,775)		(16,775)		—		—
Derivative financial instruments		(4,579)		—		(4,579)		—		(4,579)
		(4,579)		(690,495)		(695,074)		—		(4,579)

 

December 31, 2023		FVPL		Amortized cost		Total		Level 1		Level 2
Liabilities
Trade and Other Payables		—		(602,493)		(602,493)		—		—
Lease liabilities		—		(3,957)		(3,957)		—		—
Derivative financial instruments		(948)		—		(948)		—		(948)
		(948)		(606,450)		(607,398)		—		(948)

 

 

There were no changes of items between level 2 and level 3, acquisitions, disposals nor gains or losses recognized in profit for the period related to level 3 instruments. Consequently, for the periods ended September 30, 2024 and December 31, 2023, the Group did not recognized any financial assets under level 3.

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