Dlocal Limited ( (DLO) ) has released its Q4 earnings. Here is a breakdown of the information Dlocal Limited presented to its investors.
DLocal Limited, a technology-first payments platform, operates in the digital payments industry, connecting global merchants with consumers in emerging markets across Africa, Asia, and Latin America. The company reported strong financial results for the fourth quarter and full year of 2024, highlighting a total payment volume (TPV) of $25.6 billion, a 45% increase year-over-year, and revenue of $746 million, up 15% from the previous year. Despite a 7% decrease in adjusted EBITDA for the year, the fourth quarter saw a 16% increase in adjusted EBITDA to $57 million, reflecting improved profitability.
DLocal’s performance was driven by significant growth in newer markets, with a record TPV of $7.7 billion in the fourth quarter, marking a 51% increase year-over-year. The company’s gross profit also reached a record $84 million for the quarter, up 20% from the previous year. The growth was supported by strong performances in regions such as Argentina, Egypt, and other parts of Latin America and Africa, despite challenges like currency devaluation in Nigeria.
The company continued to invest in product development and operational capabilities, adding nine licenses and registrations, including a UK FCA license, to enhance its competitive edge. DLocal’s strategy focuses on expanding its market presence in high-growth regions, driving operational efficiencies, and maintaining strong cash generation, which provides flexibility for potential mergers and acquisitions.
Looking ahead, DLocal expects continued momentum in 2025, with projected TPV growth of 35% to 45% and revenue growth of 25% to 35%. The company aims to offset potential net take rate compression by expanding into higher take rate markets and introducing new revenue streams. Despite the inherent volatility of emerging markets, DLocal remains confident in its long-term growth potential, emphasizing disciplined execution and market leadership.