DLocal (DLO) Goldman Sachs Communicopia + Technology Conference 2025 summary

Market landscape and industry trends

• Cross-border payments remain highly fragmented, with many sub-scale players due to the fintech boom pre-2022, leading to declining take rates and potential for industry consolidation benefiting incumbents.

• Emerging market payment ecosystems are complex, with diverse payment methods, regulatory frameworks, and tax regimes varying by country and even within jurisdictions.

• Global commercial shifts, such as tariffs, have redirected Asian merchant focus from the US/EU to emerging markets, boosting business in these regions.

• Market volatility is inherent in emerging markets, but increased scale and diversification are reducing exposure to individual market shocks.

• Africa, the Middle East, and Asia are growing faster than LATAM, now representing nearly a quarter of business and offering significant long-term opportunities.

Business performance and growth drivers

• Strong Q2 performance driven by rebounds in Brazil and Mexico, with growth distributed across multiple merchants and geographies.

• Diversification into non-LATAM markets is accelerating, reducing dependency on single markets and increasing take rates.

• Key growth vectors include expanding markets/payment methods for existing merchants, increasing share of wallet, onboarding new merchants, and launching new products.

• Top 10 merchants consistently account for 60% of revenue, but the composition changes, indicating growing merchant diversification.

• Share of wallet remains low, especially in Africa and Asia, providing significant room for organic growth.

Financial model and operational strategy

• Business is asset-light, high-margin, and cash flow positive, with significant operational leverage.

• Take rates are expected to decline due to volume discounts, but TPV growth is outpacing compression, supporting strong gross profit and EBITDA growth.

• AI deployment is expected to further reduce costs, especially in compliance and back-office operations, potentially restoring or exceeding historical EBITDA margins.

• Ongoing investments in operations, product, technology, and compliance have strengthened the foundation for future growth.

• Pursuing additional licenses globally, including in the US, reflects confidence in internal controls and compliance.