v3.24.1
Revenues and Cost of Services (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure of Revenues and Cost of Services [Line Items]  
Breakdown of Revenue From Contracts With Customers Per Type of Service

The breakdown of revenue from contracts with customers per type of service is as follows:

 

 

2023

 

 

2022

 

 

2021

 

Transaction revenues (i)

 

 

637,053

 

 

 

415,444

 

 

 

241,814

 

Other revenues (ii)

 

 

13,298

 

 

 

3,481

 

 

 

2,306

 

Revenues from payment processing (iii)

 

 

650,351

 

 

 

418,925

 

 

 

244,120

 

Cost of services

 

 

(373,492

)

 

 

(216,758

)

 

 

(113,677

)

Gross profit

 

 

276,859

 

 

 

202,167

 

 

 

130,443

 

 

(i)
Transaction revenues are comprised of processing fees, foreign exchange fee, installment fee, chargebacks, refunds fee, and other transactional fees. These fees are recognized as revenue at a point in time when a payment transaction, or its reversal in the case of chargeback and refunds, has been processed.
(ii)
Other revenues are mainly comprised of minor fees, such as initial setup fees, maintenance fees, minimum monthly fees, and small transfer fees.
(iii)
During the year ended December 31, 2022 revenues included an amortization charge of USD 567 and USD 200 during the year ended December 31, 2021, related to prepaid assets. There is no amortization charge for the year ended December 31, 2023.
Summary of Cost of Services

Cost of services are comprised of the following:

 

 

2023

 

 

2022

 

 

2021

 

Processing costs (i)

 

 

356,295

 

 

 

206,223

 

 

 

107,276

 

Hosting expenses (ii)

 

 

6,235

 

 

 

4,331

 

 

 

3,351

 

Salaries and wages (iii)

 

 

2,252

 

 

 

1,411

 

 

 

706

 

Amortization of intangible assets (iv)

 

 

8,710

 

 

 

4,793

 

 

 

2,344

 

Total

 

 

373,492

 

 

 

216,758

 

 

 

113,677

 

 

(i)
Includes fees financial institutions (e.g., banks, local acquirers or payment methods) charge the Group, typically as percentage of the transaction value, but in certain cases, as a fixed fee in the case of pay-outs in relation to payment processing, cash advances, and installment payments. Such fees vary by financial institution and typically depend on the settlement period contracted with such institution, the payment method used and the type of product (e.g., pay-in or a pay-out). These fees also include conversion and expatriation or repatriation costs charged by banks and brokers. During the year ended December 31, 2023 such fees include USD 223 as a result of a net gain on the effective portion of the hedge of USD 17,433 , which offset foreign exchange losses from the hedged items of USD 17,656 in relation to processed volume between the processing date and date of expatriation or repatriation of the applicable funds (foreign exchange losses of USD 273 and USD 2,100 in 2022 and 2021, respectively).
(ii)
Expenses related to hosting services for the Group’ s payment platform.
(iii)
Consist of salaries and wages of the operations department directly involved in the day-to-day operations. For further detail refer to Note 9: Employee Benefits.
(iv)
Represents the amortization of capitalized internally generated software (i.e., d.Local’ s payment platform). For further detail refer to Note 20: Intangible Assets.