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Rose Celine Investments 🌹 @realroseceline on x 8002 followers
Created: 2025-05-22 17:30:29 UTC
My thoughts on $DLO ceo Pedro Arnt’s recent interview:
Record Revenue and Reaccelerating Growth
dLocal posted $217M in revenue, up XX% and XX% in constant currency, its fastest growth since Q1 2024, driven by strength in Latin America and frontier markets.
Payments Volume Continues to Surge
Total payment volume hit $8.1B, up 53%, as dLocal scaled with global merchants in commerce, remittances, SaaS, and on demand services.
Cross Border Volumes Hit New Highs
Cross border TPV grew XX% YoY to over $4B, now XX% of the total which is outpacing local to local volume for a second straight quarter.
Local to Local Still Growing, But Losing Share
While local to local TPV rose 33%, the stronger momentum in cross border signals a long term business model shift.
Pay-Outs Outpace Pay-Ins
Pay ins rose 49%, led by streaming, commerce, and delivery, but pay-outs grew even faster at 61%, powered by remittances and financial services.
Broad Based Sector Growth With Some Weak Spots
Remittances grew 184%, delivery 71%, commerce 67%, SaaS 59%, while travel and advertising dipped slightly.
Profitability Keeps Climbing
Adjusted EBITDA rose XX% YoY with a XX% margin, up X points from Q1 2024, driven by operating leverage and higher margin segments.
Net Income More Than Doubles
Net profit reached $47M, boosted by lower finance costs and a mark to market gain on Argentine bonds.
Revenue Becomes Less Concentrated
Top XX merchants accounted for XX% of revenue, down from XX% a year ago, showing better customer diversification.
Take Rates Under Pressure, But Explained
Overall take rate dropped from XXXX% to 2.67%, and net take rate fell to 1.05%, impacted by weak ad volumes and temporary Brazil costs.
Mix and FX Help Defend Margins
Higher cross border and frontier market mix offset take rate pressure, with FX fee capture boosting margins despite lower rates.
Frontier Markets Are a Competitive Advantage
In fragmented, underbanked markets, $DLO thrives with local rails, cash options, and deep integration, building strong local moats.
LatAm Recovery Mixed, Asia & Africa Volatile
Argentina grew 104%, Brazil shrank XX% due to a business model shift, while Asia and Africa remained volatile due to FX headwinds.
Remittances Reinforce Moat and Flywheel
Remittances offer scale, better FX capture, and higher margins despite lower take rates, strengthening $DLO moat.
Processing Costs Are Temporary Headwinds
Brazil costs hit margins, but management sees them as non recurring and expects further cost reduction through scale.
Scaling Lowers Unit Costs Over Time
As TPV rises, per-transaction processing costs continue to fall, especially in fragmented, high-volume frontier markets.
Winning Share from Credit Cards, Not Competitors
$DLO gains share as merchants switch from international cards to local methods with better conversion, a structural, not zero sum, shift.
Growth Powered by Digital Adoption Curves
Much of the growth is net new: consumers upgrading to digital services for the first time in the Global South. Adoption is accelerating.
Stablecoins Could Be a Future Growth Lever
dLocal is both an on and off ramp for stablecoins and is already piloting stablecoin settlement to improve speed and working capital.
Why Stablecoins Are Gaining Traction Now
With reduced volatility and more trusted providers, stablecoins are becoming viable tools for SMB treasuries and cross,border transactions.
Macro Uncertainty Balanced by New Demand
Cautious consumers may impact volumes, but Chinese merchants are expanding across the Global South, opening up new opportunities.
China Doubles Down on Emerging Markets
As Western access tightens, Chinese merchants are increasing focus on LatAm, MENA, and Africa, benefiting $DLO network.
Compounding Growth is the Strategy
Four quarters of consistent growth, cash generation, and EBITDA expansion show dLocal’s model of long term compounding is working.
Here’s the link tot he interview:
XXXXX engagements
Related Topics $81b surge developing economies united states latin $217m celine $dlo