dLocal's Cross-Border Approach Discussed: Chief Financial Officer Mark Ortiz on Q3 2024 Financial Results
dLocal Capitalizes on Emerging Market Opportunities, Reporting Strong Q3 2024 Results
In a recent discussion, dLocal's CFO, Mark Ortiz, outlined the company's strategy for moving forward, focusing on capitalizing on the emerging market opportunity. This strategy seems to be paying off, as dLocal reported strong growth in Q3 2024.
The company's growth was sustained by strong rises in Egypt, Mexico, and other African and Asian markets. Remittances were a major contributor to this growth, with an 82% volume growth. Cross-border volumes also played a significant role, as dLocal surpassed $3bn for the first time in Q3 2024.
dLocal's gross profit in Q3 2024 was $78m, a 5% year-over-year increase, resulting in a profit margin of 42%. The company's adjusted EBITDA fell 6% year-over-year to $52m, but the company continued to grow its operating leverage for a second consecutive quarter and maintained profits despite investments in staff and operations.
The Q3 2024 results met with a positive response from investors, driving an increase in dLocal's share price. This positive response can be attributed to the company's unrivaled geographic reach across 40 emerging markets, its cross-border payment dominance, and its technology-driven efficiencies.
dLocal's expansive geographic presence in emerging markets, cross-border transaction expertise, and technology-enabled efficiency have allowed the company to drive TPV growth. Financial services and remittances were significant drivers of this growth, with 82% volume growth in remittances and 58% growth in pay-outs volume.
dLocal has obtained various licenses in Nigeria, Ecuador, and Uganda to expand its operations. The company plans to deepen market penetration, broaden its cross-border offerings, and leverage AI automation to sustain and accelerate growth.
This multifaceted approach allows dLocal to capitalize on the significant total addressable market in emerging markets' digital payments, a sector featuring high growth potential due to ongoing e-commerce expansion and cross-border remittance growth trends.
In summary, dLocal's strong TPV growth is driven by its expansive geographic reach, cross-border transaction expertise, and technology-enabled efficiency. The company reported record revenues of $186m in Q3 2024, a 13% year-over-year increase, and record profits of $78m, representing a 5% year-over-year increase and a profit margin of 42%. The company's executives, including CFO Mark Ortiz, are active on LinkedIn.
- The unrivaled geographic reach of dLocal across 40 emerging markets, its dominance in cross-border payments, and its technology-driven efficiencies have been key factors in the strong growth of the company's business in finance.
- dLocal's focus on capitalizing on opportunities in emerging markets, enabled by technology, has led to significant growth in areas such as financial services and remittances, as demonstrated by a 82% volume growth in remittances and 58% growth in pay-outs volume reported in Q3 2024.
