The Group operates as a single operating segment, “payment processing”. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”) who is the Group’s Executive Officer (“Executive Team”) represented by executive officers and directors holders of ordinary shares of the immediate parent of the Company. The Group has determined that its Executive Team is the chief operating decision maker as they determine the allocation of resources and assess performance.

The Executive Team evaluates the Group’s financial information and resources, and assess the financial performance of these resources based on consolidated Revenues, Adjusted EBITDA and Adjusted EBITDA margin as further described below.

The Executive Team assesses the financial performance of the Group’s sole segment by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as the consolidated profit from operations before financing and taxation for the applicable reporting period before depreciation of PP&E, amortization of right-of-use assets and intangible assets. It also excludes adjustments applied to subsidiaries operating in hyperinflationary environments, other operating gain/loss, impairment gain/loss on financial assets, secondary offering expenses, transaction costs, other non-recurring costs and share-based payment non-cash charges. The Group defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated Revenues.

The Group reconciles its Adjusted EBITDA and Adjusted EBITDA Margin to profit for the year as presented in the Consolidated Statement of Comprehensive Income as follows:


	Note	December 31, 2023			December 31, 2022			December 31, 2021
Profit for the year (i)			149,086			108,697			77,853
Income tax expense	12		29,428			11,586			7,647
Inflation adjustment	11		12,537			1,037			334
Finance income	11		(128,228	)		(18,078	)		(2,540	)
Finance costs	11		116,834			24,668			544
Other operating loss / (gain)			—			697			(2,896	)
Impairment (gain) / loss on financial assets (ii)	16, 17		(3,136	)		5,534			33
Depreciation and amortization	10		12,225			8,147			4,747
Secondary offering expenses (iii)			—			89			5,158
Transaction costs (iv)			—			—			687
Other non-recurring costs (v)	8		1,663			2,014			—
Share-based payment non-cash charges, net of forfeitures	13		11,922			8,684			7,590
Adjusted EBITDA			202,331			153,075			99,157

Revenues	6		650,351			418,925			244,120
Adjusted EBITDA			202,331			153,075			99,157
Adjusted EBITDA Margin			31.1	%		36.5	%		40.6	%
Profit Margin			22.9	%		25.9	%		31.9	%

(i)

Includes a net gain of USD 17,433 related to the effective portion of foreign currency hedge, which has been presented on a net basis against a foreign exchange loss of USD 17,656 (together with a net foreign exchange loss of USD 223 included in Cost of Services). For further information refer to Notes 6(c)i, Note 11 (ii) and Note 24 Derivative financial instruments.

(ii)

USD 3,454 corresponds to a recovery on deposits in FTX Trading Ltd. as compared to a provision of USD 5,576 in 2022 for expected loss of amounts on deposit in FTX Trading Ltd. (see note 17.ii).

(iii)

Corresponds to expenses incurred by dLocal in relation to a secondary offering of its shares occurred in 2021.

(iv)

Corresponds to costs related to the acquisition of PrimeiroPay in 2021.

The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the consolidated statement of income and of comprehensive income and consolidated balance sheet. Disaggregated information is only reviewed at the revenue level with no corresponding detail at any margin or profitability levels.

As required by IFRS 8: Operating Segments, below are presented applicable entity-wide disclosures related to dLocal’s revenues.

The Group derives its revenues from operations across 40 countries where its merchant customers operate.

The following table presents the Group’s revenue by region where the payments from/to the merchant customers in certain regions represented at least 10% of Total Revenues during the preceding four quarters:


	2023		YoY%			2022		YoY%			2021
LatAm		492,681		42.7	%		345,360		54.5	%		223,602
Brazil		158,997		89.2	%		84,025		40.8	%		59,698
Argentina		75,128		-3.2	%		77,577		54.6	%		50,165
Mexico		116,835		71.8	%		68,000		103.7	%		33,376
Chile		55,666		6.1	%		52,464		43.7	%		36,497
Other countries		86,055		36.0	%		63,294		44.3	%		43,866
Non-LatAm		157,670		114.3	%		73,565		258.5	%		20,518
Nigeria		83,969		148.4	%		33,805		1762.5	%		1,815
Other countries		73,701		85.4	%		39,760		112.6	%		18,703
Total		650,351		55.2	%		418,925		71.6	%		244,120

During the year ended December 31, 2023 and 2022 the Group served more than 600 merchants.

During the year ended December 31, 2023, the Group’s revenue from its top 10 merchants represented 60% of its total revenue (50% and 56% of revenue in the years ended December 31, 2022 and 2021, respectively). In 2023 one single merchant customer (none in 2022 and one in 2021) individually accounted for more than 10% of the Group’s total revenue.

The Company does not have any non-current assets located in the Cayman Islands.

Material non-current assets are the Intangible Assets described in Note 20 to these Consolidated Financial Statements and are located in Malta.