Dlocal Ltd Q4 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Thomas Bauch - SMBC Nikko Securities America, Inc., Research Division - Analyst : Thanks for taking the call and for all the added disclosure provided this quarter. I appreciate your comment on the gross margin and that you're not necessarily managing this business to gross margin, but the absolute gross profit dollars growth. Using the -- some of the earlier commentary you made that the margins in the first quarter should be somewhat in the same range for the rest of the year. We're still seeing a pretty sizable deceleration in absolute gross profit dollars growth in 2023. I mean, is there something in 2023 that is going to be the headwind? And thinking about the longer term, are there variables that we should think about that would either accelerate this growth beyond where it's implying in 2023 or something that's headwind in 2023 that we're not necessarily maybe catching?

Question: Andrew Thomas Bauch - SMBC Nikko Securities America, Inc., Research Division - Analyst : No, I appreciate that. I think just everybody is trying to -- if you're saying you're managing the business to absolute gross profit dollars growth, we're trying to think about it in the same way. Thinking about the conversations you're having with incremental logos, it's nice to see some additional big names with Meta and Salesforce. I mean how much more big names are out there or marquee logos that you may or may not be in discussions with in the months and quarters ahead? And how can you talk and characterize their ambitions in emerging markets as particularly as we get out of this current macro situation?

Question: Kaio Penso Da Prato - UBS Investment Bank, Research Division - Analyst : So on other side here, I have a question related to the guidance for 2023. When you look to your guidance for adjusted EBITDA and revenues, we see that the bottom of the guidance of EBITDA could imply an EBITDA margin of 31% for 2023. The bottom of the guidance, which would be way below the adjusted EBITDA that you reported for 2022 around 6 percentage points below. I just wonder if you could please share with us the dynamic behind that, what should be the drivers for that? Just trying to understand if this could be much more related to cost and gross profit margin contraction that I think you already mentioned in this call? Or this is much more related to a potential increase in expenses? And what should be the driver for that?

Question: Kaio Penso Da Prato - UBS Investment Bank, Research Division - Analyst : Okay. Just a quick follow-up here in terms of expenses. If you take a look on your D&A expenses, even excluding the one-off related to the internal review, we saw a huge increase on a quarter-over-quarter basis. So just would like to understand what happened here this quarter? And also if this should be the same level that we could expect, specifically on the D&A for the following quarters? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 05, 2023 / 12:00PM, DLO.OQ - Q4 2022 Dlocal Ltd Earnings Call