dLocal Ltd Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>dLocal Ltd has submitted its 20-F annual report detailing its 2023 financial performance and the status of its global operations and financial instruments.</b>

AI Summary

dLocal Ltd (DLO) filed a Foreign Annual Report (20-F) with the SEC on March 19, 2024. dLocal Ltd filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing includes financial data for various subsidiaries and entities, such as dLocal Argentina S.A. and dLocal Ghana Limited. It details financial instruments including non-derivative and derivative financial instruments, and mentions currency risks related to USD, ILS, and EUR. The report covers a range of financial statement items, including cost of sales, marketing expenses, infrastructure expenses, and office expenses for the years 2021-2023. Key balance sheet items like trade and other payables, prepaid assets, and equity attributable to owners of the parent are also presented for the fiscal years 2022 and 2023.

Why It Matters

For investors and stakeholders tracking dLocal Ltd, this filing contains several important signals. This 20-F filing provides a comprehensive overview of dLocal's financial health and operational structure for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. The detailed breakdown of subsidiaries, financial instruments, and expenses offers insights into the company's risk exposure, particularly concerning currency fluctuations and its diverse international operations.

Risk Assessment

Risk Level: medium — dLocal Ltd shows moderate risk based on this filing. The company operates in multiple countries and deals with various currencies and financial instruments, indicating a medium level of risk due to potential currency fluctuations and regulatory complexities.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F to understand the company's exposure to currency volatility and operational risks in emerging markets.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 20-F report)
• 2024-03-19 — Filing Date (Date the 20-F report was filed)
• 2021-2023 — Reporting Period for Expenses (Years for which cost of sales, marketing, infrastructure, and office expenses are detailed)
• 2022-2023 — Reporting Period for Balance Sheet Items (Years for which trade payables, prepaid assets, and equity are detailed)

Key Players & Entities

• dLocal Ltd (company) — Filer of the 20-F report
• dLocal Argentina S.A. (company) — Subsidiary mentioned in the filing
• dLocal Ghana Limited (company) — Subsidiary mentioned in the filing
• United States Dollar (dollar_amount) — Currency mentioned in relation to risk
• Israeli New Shekel (dollar_amount) — Currency mentioned in relation to risk
• Euro (dollar_amount) — Currency mentioned in relation to risk

FAQ

Risk Factors

• Currency Risk [medium — financial]: The company is exposed to currency risks, particularly involving the United States Dollar, Israeli New Shekel, and Euro, as detailed in its financial statements.
• Subsidiary Operations [medium — operational]: The filing details operations and financial data for numerous subsidiaries across different countries, indicating operational complexity.

Key Dates

• 2024-03-19: Filing of 20-F Report — Official submission of the annual report for fiscal year 2023.

Glossary

20-F

An annual report required by the U.S. Securities and Exchange Commission (SEC) for foreign private issuers. (Provides a comprehensive overview of the company's business, financial condition, and management for the fiscal year.)

Key Financial Figures

• $0.002 — ed Class A common shares, par value US$0.002 per share DLO Nasdaq Global Select

Filing Documents

• dlo-20231231.htm (20-F) — 5736KB
• dlo-ex2_1.htm (EX-2.1) — 155KB
• dlo-ex12_1.htm (EX-12.1) — 15KB
• dlo-ex12_2.htm (EX-12.2) — 15KB
• dlo-ex13_1.htm (EX-13.1) — 8KB
• dlo-ex13_2.htm (EX-13.2) — 8KB
• dlo-ex15_1.htm (EX-15.1) — 6KB
• dlo-ex99_1.htm (EX-99.1) — 65KB
• img131761698_0.jpg (GRAPHIC) — 3KB
• img175954462_0.jpg (GRAPHIC) — 34KB
• img175954462_1.jpg (GRAPHIC) — 2KB
• img186480612_0.jpg (GRAPHIC) — 51KB
• img186480612_1.jpg (GRAPHIC) — 46KB
• img186480612_2.jpg (GRAPHIC) — 43KB
• img186480612_3.jpg (GRAPHIC) — 32KB
• img186480612_4.jpg (GRAPHIC) — 33KB
• img186480612_5.jpg (GRAPHIC) — 48KB
• img186480612_6.jpg (GRAPHIC) — 56KB
• img186480612_7.jpg (GRAPHIC) — 21KB
• img186480612_8.jpg (GRAPHIC) — 34KB
• img186480612_9.jpg (GRAPHIC) — 3KB
• 0000950170-24-033510.txt (&nbsp;) — 26407KB
• dlo-20231231.xsd (EX-101.SCH) — 3365KB
• dlo-20231231_htm.xml (XML) — 6190KB

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 155 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 156 A. Debt Securities 156 B. Warrants and Rights 156 C. Other Securities 156 D. American Depositary Shares 156 PART II ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 157 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 157 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 158 ITEM 16 [Reserved]. 159 A. Audit committee financial expert 159 B. Code of Ethics 159 C. Principal Accountant Fees and Services 159 D. Exemptions from the Listing Standards for Audit Committees 160 E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 161 F. Changes in Registrant's Certifying Accountant 161 G. Corporate Governance 161 H. Mine Safety Disclosure 169 2 I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 169 J. Insider Trading Policies 169 K. Cybersecurity 169 PART III ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 171 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 171 ITEM 19. EXHIBITS 171 3 PRE SENTATION OF FINANCIAL AND OTHER INFORMATION All references to "U.S. dollars," "dollars," "US$" or "$" are to the U.S. dollar. All references to "IFRS" are to IFRS Accounting Standards, as issued by the International Accounting Standards Board, or the "IASB".

Financial Statements

Financial Statements dLocal was incorporated on February 10, 2021, as a Cayman Islands exempted company with limited liability, duly registered with the Cayman Islands Registrar of Companies. Until the contribution of dLocal Malta shares to it on April 14, 2021, dLocal had not commenced operations and had only nominal assets and liabilities and no material contingent liabilities or commitments. Accordingly, our consolidated financial statements for periods prior to the Share Contribution have been omitted from this annual report. The issued share capital reflects that of dLocal as of December 31, 2023. In accordance with IFRS, the corporate reorganization and share contribution did not qualify as a business combination, and was treated as dLocal Malta's capital reorganization. See note 1 (General information, Reorganization and Significant Events of the year) to our consolidated financial statements. Unless otherwise noted, the consolidated financial information presented in this annual report as of December 31, 2023, and 2022 and for the years ended December 31, 2023, 2022, and 2021, relates to us and is derived from our audited consolidated financial statements as of December 31, 2023, and 2022, and for the years ended December 31, 2023, 2022, and 2021, which we refer to as our "Audited Consolidated Financial Statements". We prepare our Audited Consolidated Financial Statements in accordance with IFRS, as issued by the IASB. We have applied all IFRS issued by the IASB effective at the time of preparing our Audited Consolidated Financial Statements. Our Audited Consolidated Financial Statements have been audited by Price Waterhouse & Co. S.R.L., a member firm of the PricewaterhouseCoopers global network, an independent registered public accounting firm, whose report dated March 18, 2024, is also included in this annual report. This financial information should be read in conjunction with " Item 5. Operating and Financial Review and Prospects " and our conso

. Identity of Directors, Senior Management and Advisers

Item 1 . Identity of Directors, Senior Management and Advisers Not applicable.

. Offer Statistics and Expected Timetable

Item 2 . Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information A. [Reserved] B. Ca pitalization and indebtedness. Not applicable. C. Re asons for the offer and use of proceeds. Not applicable. D. Ris k factors. This section is intended to be a summary of more detailed discussions contained elsewhere in this annual report. The risks described below are not the only ones we face. Our business, results of operations or financial condition could be harmed if any of these risks materializes and, as a result, the trading price of our Class A common shares could decline. Summary of Risk Factors An investment in our Class A common shares is subject to a number of risks, including risks relating to our business and industry, risks related to the countries in which we operate and risks related to our Class A common shares. The following list summarizes some, but not all, of these risks. 9 Certain Risks Relating to Our Business and Industry If we cannot keep pace with rapid developments and change in our industry, including making the necessary investments to keep pace with such developments and change, the use of our services could decline, reducing our revenues. Substantial and increasingly intense competition may harm our business. We may not be able to successfully implement strategies to attract or retain merchants, expand our product portfolio or increase adoption of our payments processing platform, which would limit our growth. We have a limited operating history with financial results that may not be indicative of future performance, and our revenue growth rate is likely to slow down as our business matures. If we fail to manage our growth effectively, our business could be harmed. Potential merchant clients may be reluctant to switch to a new vendor or integrate with a new vendor, or integration may take longer than expected, which may adversely affect our growth. A decline in the quality of the services we offer could adversely affect our ability to attract and retain

View Full Filing

View this 20-F filing on SEC EDGAR