dLocal's surge in growth during the fiscal year 2023 discussed by CEO Pedro Arnt in the earnings report
In a recent earnings call, Pedro Arnt, the newly appointed sole CEO of dLocal, outlined the company's strategy for the coming year. The focus is on enhancing engagement with the largest global merchants, often referred to as Tier 0, by deepening partnerships and expanding payment solutions tailored to their needs.
This strategy aims to simplify complex emerging market transactions for these top-tier merchants, thereby scaling their global reach efficiently. By offering comprehensive cross-border payment services, dLocal hopes to drive growth and maintain its position as a key player in the global payments landscape.
Pedro Arnt's strategy for Tier 0 merchants in 2024 builds upon dLocal's existing approach, which involves focusing on large multinational merchants by providing a unified payments platform that integrates local payment methods across emerging markets. This approach reduces friction for merchants expanding into Latin America, Asia, Africa, and the Middle East, enabling Tier 0 merchants to scale digital commerce operations efficiently.
In the financial realm, dLocal's performance in 2023 was impressive. The company's full-year revenue grew by 55%, reaching $650 million. The total payment volume (TPV) increased by 67% YoY to reach $17.7 billion. Q4 2023 revenue was $188 million, representing a 59% YoY growth.
However, specific details about dLocal's strategy for the coming year, including investment priorities and EBITDA, were not disclosed in the earnings call. Similarly, no new information about dLocal's performance in Brazil, Mexico, Latin America, Nigeria, or other Africa and Asia was provided.
Notably, Nigeria became dLocal's third largest single-country market, with a 149% increase in revenue. Latin America overall saw a 43% growth in revenue for FY 2023, while dLocal's core markets, Brazil and Mexico, saw full-year revenue grow 89% and 72% YoY respectively. Cross-border payments accounted for $8.7 billion of the total TPV in 2023.
As we look towards 2024, dLocal projects TPV to grow 40-50% to reach $25bn-27bn. This ambitious growth target underscores the company's commitment to expanding its reach and deepening its engagement with Tier 0 merchants.
For more detailed information about Pedro Arnt's strategy for Tier 0 merchants in 2024, investors are advised to consult dLocal’s official investor relations releases or earnings transcripts directly.
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