dLocal Results Presentation Deck slide image

dLocal Results Presentation Deck

Adjusted net income would have been $49M excluding accounting non-cash items, mostly related to the Argentine bonds, and IFRS inflation adjustment Reconciliation from 3Q23 reported net income to adjusted net income ($M)¹ 40 3 Net income Share-based 3Q23, as payment reported non-cash charges -3 Impairment Inflation loss/ (gain) adjustment on financial assets -24 Fair value (loss) / gains of financial assets at FVTPL 27 -| 1 49 +8% QOQ +41% YOY Exchange Income tax Adjusted net difference - adjustments income 3Q23 intercompany loan in USD d. Note: ¹Adjusted Net Income is a non-IFRS financial measure. As used by dLocal Adjusted net income is defined as the profit for the period (net income) excluding impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges, secondary offering expenses, and other operating (gain)/loss, in line with our Adjusted EBITDA calculation (see detailed methodology for Adjusted EBITDA in page 9). It further excludes the accounting non-cash charges related to the fair value gain from the Argentine dollar-linked bonds and the exchange difference loss from the intercompany loan denominated in USD that we granted to our Argentine subsidiary to purchase the bonds. In addition, it excludes the inflation adjustment based on IFRS rules for hyperinflationary economies. We believe Adjusted Net Income 18 is a useful measure for understanding our results for operations while excluding for certain non-cash effects such as currency devaluation and inflation. Our calculation for Adjusted Net Income may differ from similarly-titled measures presented by other companies and should not be considered in isolation or as a replacement for our measure of profit for the period as presented in accordance with IFRS. See detailed methodology for Adjusted Net Income in appendix.
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