dLocal 2023-06 Investor Day - CEO

Chairman of dLocal, early investor from 2015. I want to tell you a little bit how I got involved in this. I was in Punta del Este in Uruguay pretending to have some good holidays, and all of a sudden a common friend introduced me to Andres and Sergio, and they started talking about the idea of creating a company to work in emerging markets. I was so impressed when I met them because they found a problem, and this is a way to start a business: they found a problem and they found a solution. The problem was that people in emerging markets want to buy, want to have access to buy online, and it's the worst thing that could happen: someone wants to sell, the other one wants to buy, and the transaction doesn't happen because of lack of infrastructure. When I saw that, and I saw the idea, and I saw fundamentally the entrepreneurs, this is what immediately I jumped into, because of them, because they are terrific entrepreneurs with great ideas and willing to work very hard. This is how personally I joined the company, investing and acting and even becoming a chairman. After eight years of working hard with a lot of passion, we are here. We made the company public. We started with one country, and this is also important to say: when the company started in Uruguay, and Uruguay has 4 million people, so if you want to make money out of 4 million people, I wish you luck, that is difficult. But that is adversity. So when you have adversity, you have that universe, you have to think out of the box and you have to go global. This is exactly what dLocal did: not relying on the Uruguay market, relying on global. We started with Brazil and we followed with different countries: Argentina, Paraguay, Uruguay, and now we have 40 countries. What we do here, what dLocal does for merchants, is improving the conversion rate, so we make the transaction happen. We improve the conversion rate, and this is what we understand because we are from emerging markets, and there is a lot of similarities with Nigeria, with Brazil, and because we understand, we managed to find the solution. I cannot be more proud of what we accomplished so far. Another thing that I want to point out is that we are processing 12 billion, 15 billion is nothing. We are scratching the surface. There is a trillion to process. You will see here the potential of dLocal. So when they talk about saturation, we are maybe one percent of what we can do here. So our view is five, ten years. We are not concerned about one quarter, two quarters. I would like also to take the opportunity to welcome Sergio Fourcade, who is the founder but also decided to come as an executive. It will be extremely helpful for the company. He worked with Seva, with Sebastian, for the last 10 years, and I think that would be a great addition to the executive people. So now I want to call Martin, Martina Solari from GA. GA was an early investor, and we were so lucky to find a partner like GA. It was a dream of a partner. We work together.

Thank you, thank you everyone for joining us for dLocal's first Investor Day. It's a very special moment for the company, and I'm grateful for the invitation to invite me to say a few words. My life is in Latin America. I was born and raised in Latin America. I was an entrepreneur and I've been an investor in Latin America. GA has been in Latin America for 20 years, and we've invested seven, eight billion dollars in America over that period. And if you look at our returns in Latin America over those 20 years, they're among the strongest we've had globally. And many of our investors come to us and say, 'How do you do it? Because Latin America is not a fertile ground for successful investing in the private equity space. There are very few funds that have actually made money in Latin America.' As I reflect on 20 years of work, we've managed to do well because we tackle what Eduardo called 'big problems.' So there are many things that don't work in Latin America. Those of you that live in New York know that renting an apartment in New York is hard. It's ten times harder in Sao Paulo because there are all fake listings, no MLS, no prices governed, no FICO scores, so you have to prepay six months of rent. So if you create a platform that allows that to happen seamlessly, you create a lot of value for your customers and you can capture a lot of value for you. Buying a used car is difficult in the U.S., it's impossible in Mexico. You think you're buying a car, it's not actually a car. If you create a platform like OLX that does that seamlessly, you can capture a lot of value. Retail investing: if you rely just on four banks in Brazil, that's hard because they charge you a lot for limited assortment. But if you create a platform that's open, those of you that know XP, that's also been one of our great investments. We've been investors in XP for 12 years now. We invested in XP when they had 200,000 customers, now it has 4 million customers. It's changed the way Brazilians invest. I think dLocal is one such story. Cross-border payments into emerging markets are horrendous. If you're a merchant trying to sell to Uruguay, Paraguay, Bolivia, Brazil, Argentina, not to mention Nigeria, it's impossible. It's very, very hard. Acceptance rates: you have to deny 20 to 30% of the people that are trying to buy from you. If you're a business that has 95% gross margin, that's a lot of profits that go away. So if you create a solution that allows you to safely accept more customer demand, you create a lot of value for your merchants, you create a lot of value for the end customers who are able to buy something that otherwise is more difficult to buy without an international credit card, and you can capture a lot of value. That, in a nutshell, is what dLocal is trying to do at scale across the globe. When we invest in an opportunity, we look at three driving criteria. This is across the globe and it's also true for dLocal. First, we're trying to find opportunities that companies are going after very large markets. Cross-border payments is a trillion-dollar opportunity and it's growing. dLocal's market share of one, one and a half percent, amazing. In the four years GA has been an investor in dLocal, the company has gone 10x. I hope it grows another 10x in the near future. I kind of say that as a particular statement, but there's a lot of high ceiling to grow. The market is as exciting as there is in terms of market size. The second criteria we look for is: does the company have a sustainable competitive advantage? The way I like to measure competitive advantage is that they have a gross margin, because if you're better than your competitors, you can charge a little more. We know dLocal has a relatively healthy take rate and relatively healthy gross margin. Because it's addressing a problem, the commercial they're willing to pay for it. Is that gross margin sustainable? As we know, every market gets more competitive over time. If you dissect the gross margin of dLocal in the more competitive markets versus the less competitive markets, obviously it's higher in the less competitive markets. So there is a trend of margin compression that, if you take a 10-year view, it's going to happen. As more and more markets become more competitive, it's inevitable. Against that is dLocal's ability to add more value through new services and new countries. One of the fundamental theses of the dLocal strategy that Sergio articulated so well is: having gone through lengthy customer acquisition processes, I will bring on a new merchant. It takes three to 18 months. I think with Amazon it was two years. It takes three months to two years to be certified by one of these merchants, because rightly so, they're concerned about suitability, data integrity, are we paying all the taxes, do we have the right licenses. So it takes a really long time for a merchant to get comfortable with letting us process, letting dLocal process their money. If they have to do that with different merchants in each of the 120 countries they sell to, if you're a global merchant, that's unmanageable complexity. The dLocal solution is one pipe, same standard of care. We solve all your problems across multiple, very complicated countries. We think we're only scratching the surface in our ability to cross-sell the one pipe to multiple countries. I can't remember the exact statistics, but average is 10 countries. It should be much higher. We'll go to many countries and we'll cross-sell more and more. That is a way to preserve your gross margin for longer, by being able to solve the same problem in different customers with the same pipe. The third angle, the third criteria we look at: does the team have the right go-forward capabilities? Is this the right team for the mission ahead? It's undeniable that the team that dLocal has today has built an amazing business, around 10x in four years, been very relatively capital efficient, and it's highly profitable. It's a team that's worked together for a long time. It's a team that's added outside talent to upgrade systems, controls, which are needed. That job is never done, there's always more to do. It's a team that's been tested by hard times. I think Mighty Waters made for a very horrible Christmas, and they're all Jews, but still Christmas time was horrible for a lot of us. It's been tested by some tough times and it's been tested by some tough geographies. Our entry into Africa is hard. You think Argentina is complicated? Get ready for Africa in the next three years. It's hard. Regulation is tougher, FX controls are harder. dLocal is going to have to adjust to that, and they've proven they have the stomach for Latin America. I say if you make it in Latin America, you can make it anywhere. So let's see if it applies to Africa. I've seen that young team grow as managers, and I'm very proud to have them as partners. I'm very grateful for the sleepless nights and the hard work. It's not easy. I'm committed to the story, and I think we're not even the second inning. I hope you stay with us for longer. Thank you very much.

Yeah, well, as you know, we have five or six K documents, so we cannot say much anything actually beyond that. What we can do is explain how we operate in Argentina. We accept payments from end users or companies for the largest market merchants in the world, names that you'll see in the presentation for your reference. Our average credit card transaction in the country is just six and a half dollars, so it's a massive services play. We expect the funds through various established and highly reputable banks, both local and international, following the Central Bank rules and also following different layers of compliance, both of the banks and of the regulators. It's not easy to move money around in these countries. I have a bank account here at Chase Bank. I send a wire and that's it. In this country, setting up a wire is much more complicated. You need to provide a lot of supporting documentation. Just to make it clear, I'm sorry, what was a report in the press: every wire that we send has customer transactions behind it and it has supporting documentation that sometimes we are required to provide, and we do according to the law. We have always operated within the regulatory framework, which has changed many times during the last few years, and we will continue to collaborate with the authorities whenever required. Again, we wanted to get this out of the way. This is not what we came here to discuss. We're going to discuss the huge opportunity that we have ahead of us. So let's get started.

Okay, sometimes people ask us if we are tackling a niche market. It's actually, if it's a business market, it's a huge niche. But we are riding on a secular trend. The same thing that Sergio just said, it's something that is huge and similar. There is a very big population in emerging markets. We all know that there is a big and growing very fast middle class: urban, young, connected. Those are people that want to consume the same type of services and buy the same type of goods that people here in New York or people in London or wherever in the world consume. They, many of them are educated. They are spending. They are getting higher education. They are learning online. They are learning the same way as my kids do, through YouTube or through Coursera or these different platforms. They are well trained, and more and more they are working as freelancers for international companies, selling their services, be it programming, graphic design, or even driving a ride-sharing car, and you need to get paid. So we're thinking about a massive population that is growing at 10 times the growth rate of the developed markets. It's a huge market that is growing very, very fast. That's the market we are going after. The other thing is that these consumers are, in a way, forgotten. You try to buy something in these emerging markets, it's really hard. Martin already said it, we're repeating, but we really want to get the message through. There is a lot of friction. People want to buy goods or services, people want to sell those services, transaction cannot happen because the payment cannot get through. One example: I'm a fairly sophisticated user of paperless, as you can imagine. Last week I was trying to buy a ticket from Toronto to here. It took me 15 minutes to complete the payment because the credit billing address was outside of the US but the credit card was issued in the US. These are the other type of nightmares that our consumers are facing every day. The ones who go through that travel. These are just some examples from the internet. These are all public information. There are two things I would like to emphasize here. This comes from people. This is some email that went last week, last month, sorry, announcing to their users in Brazil that Pix wouldn't be accepted anymore. You know what Pix is. Pix is the highest, most penetrated payment method, and PayPal is an amazing payments company, one we admire, and they cannot accept Pix. So the amount of friction there is in the market, the amount of complexity a global company like PayPal needs to abstract, really compounds when you think of it. Netflix is not a payment specialist. There is an example I like on the right, and this is one that I'm extremely proud of. This is a tweet from a user in Mozambique asking Starlink to start accepting payments. We came in, we allowed those transactions to happen, and now that user can buy internet, can buy Spotify. Obviously we're not providers of internet and we're not providers of Spotify, but when you generate opportunity and when you really create infrastructure, good things happen. So the friction is really real. I know it's very hard to find it tangible here when you're sitting in the US, but if you're sitting in Mozambique, in Nigeria, or in Brazil, you feel that friction on a daily basis. This is what the problem is, and this is what the users want. Sorry, and if I may have to add, other payments companies, if they don't process a transaction, the transaction will be processed through another method. In many of our cases, if we don't process the transaction, the transaction doesn't happen. As I told you, I've invested and started a lot of companies. There's Y Combinator, the famous accelerator, and I have this question. When entrepreneurs apply, they ask this: 'What do users do or go through now because the product you're building doesn't exist yet?' I want to show you some examples that apply to the market or to a promise that we serve. Things that people do in emerging markets when they want to buy stuff and they can't. You maybe have to use a VPN because of security reasons of your company. People in emerging markets, they all know what a VPN is because that's the only way they can access different services, sometimes to watch movies, sometimes to access, I don't know, in the case of China, to access WhatsApp or different things. Prepaid cards issued internationally, and you pay a premium to get a prepaid card issued in the UK or somewhere else. Virtual phone number so you can have a simulated presence in the US. I'm not talking about anything illegal. I'm talking about people trying just desperately to buy and they cannot do it. Some people manage to run through these hoops. Boxes: you get a physical address in the US where Amazon can send you a package, and these people will reship the package to your country. So the people who use these things are the most sophisticated users. When a merchant tailors its offering to a certain market and it starts with payments, then they see their conversion rates go up by, I don't know, sometimes an order of magnitude, and they find an untapped market where they have much less competition. That's where we get in. One of the things we sometimes travel with is to make this tangible. This is a very conceptual. This is how it looks in reality. This is a checkout from Spotify. In this case, it's checkout in Mexico. This is how it looks on the left: Visa, Mastercard, Diners, pay now $10. Good luck to understand how much is going to be charged in local currency. You only know once the bank statement comes. If you happen to have an international credit card, you'll input it here, you'll get a payment. How much local currency, how many pesos you're going to be charged, you don't know before you start. This is how that same checkout looks for Spotify with us in Mexico. You'll see those credit cards, but those are going to be locally acquired, which means number one that anyone with a credit or a debit card is going to be able to pay. Number two, the user will have full visibility in terms of how much you're going to be charging in Mexican pesos. There's a small thing there that says 'Also, I don't know if you see it, from OXXO.' People in Mexico pay 45% of subscriptions with cash. Spotify has come up with weekly subscriptions. I know this sounds super abstract. This is how the reality looks on the ground. The other thing I'll say is that this example we could do 900 times with 40 different countries and 900 different payment methods. All of this falls under one API. So if Spotify wants to do also in Bali, and they want to do in Egypt, and they want to do in Nigeria, they will need to reintegrate. In the example I gave, four times. With us, all of that is abstracted in only one API. This is an IKEA example. This example comes from Chile. On the left you see authorization checkout. On the right you see the thing called installments. Many of you have heard now about buy now, pay later. For those of you who come from emerging markets, we've been paying with installments forever, at least since I was born. I've heard of quarters. If you're a retailer and you don't offer installments, you are not really a retailer in these markets. We offer our merchants the ability of accepting installments without taking credit risk. We don't take credit risk either. We abstract again all of this complexity. We give them the ability to get all the settlement periods together. Again, all these are the small incremental things that make our company valuable. Martin was speaking about our margins. This is where our margins come in: abstracting this sort of complexity. It looks basic, it's four boxes, it's really complex to run behind the scenes. So we've come a long way, and this is our growth curve. I remember very, very vividly a few years ago, not so long ago, we had an off-site meeting of all the employees, and Seva was saying that the dream of maybe one day processing one billion dollars in a year is not that far away. I was saying, 'This guy is a dreamer.' And today, one billion dollars of pay-ins would be a very bad month for us. That's something we're used to. This is our growth curve. In terms of TPV, I think we have a side. Just a commentary on something here. In 2016, we processed $100 million for the full year. Today, we process $100 million in two good days or three bad days. The reason we're saying this is it's hard to get a payments business started. You need to get the trust of global merchants, you need to have the operations, you need to have the financial infrastructure, you need to have the licensing. So that's huge momentum. There's huge inertia in our business. The fact that we've grown at this rate, I think it's a testament not so much of how hard we work, because we did work hard, but it's a testament of our strategy. We are indexed to some of the biggest global merchants in the world, and when you hold tight to them, you grow. So this is just a consequence of our strategy. We're not going to bore you. We're running a bit late with too many graphs. We'll let Maria bore you with the numbers. But yes, we are growing very, very consistently, very fast. We were standing here at NASDAQ three years ago with a very interesting story to tell. I think since then we grew by a factor of three in all major metrics. Our volumes are more than three times higher, our revenue is more than three times higher, our adjusted EBITDA is more than three times higher. That's super impressive. As you know, there are very few companies that have managed this discourse at this stage, and we feel that we are just at the beginning. One of the things I'll say is that when we went public, many of you were asking us, 'Are we investing enough?' It was a different world out there. No one cared about the box on the right on EBITDA. We said, 'Look, we care because we want to run a sustainable business for the long term, and we believe, we might be old school, but we think profits are a good thing.' I think that alignment has paid off. These are the key metrics. You can ask anyone at dLocal, 'What should I look at?' Look at TPV, revenue, gross profit, EBITDA. Anyone on the team will know that. Why? Because if you run a business based on TPV but you don't get profits out of that, that's not what you want. If you don't manage to turn those gross profit dollars into EBITDA, then you are not really adding value to our shareholders. Diego will touch on this, but 76% EBITDA margin when divided by gross profit is best in class. You've heard me speak a lot about Adyen and how much I admire them. They're targeting 65% in the long run. We are really at 75%. We want to keep the independence to invest because we believe the opportunity is massive, but we're already at that profitability level that is best in class.

Sorry, if I may add to that. People ask us, 'How are you so efficient?' The truth is that we are tapping on the best talent in emerging markets. I've seen amazing talent. I've worked with the best engineers in the world. I've worked in the best sales organization in the world, and believe me, there is the same or higher level of talent in emerging markets. We can get that with a level of commitment of our management team that you don't see anywhere else.

Okay, now I can move these slides. Thank you, Seba, thank you, Sergio, for the fantastic introduction to our business and overview of dLocal. I have seen many of you before, and I'm looking forward to continuing discussing our opportunity and our business. Now I'm going to cover three main topics here: one, our market opportunity; two, our growth strategy, how we have been capturing this growth and how we're going to continue to do so; and three, our competitive and sustainable advantage. Our opportunity is huge. We are talking about 1.4 trillion dollars in digital payments in emerging markets across the markets that we operate in today. If I know that everyone here loves to talk about gross merchandise value, if you do the quick math here, it is over $50 billion of revenue up for grabs, over $20 billion of gross profits, and over $15 billion of EBITDA. But what excites us the most about this opportunity is that all those markets are very poorly served. As Martin mentioned earlier on, we are just scratching the surface. Even being the leader in this space, we still have less than one percent of the market opportunity. What continues to excite us is the growth opportunity of these markets. There are very strong tailwinds in those markets. To mention a few: internet users continue to grow across our emerging markets; consumer spending, the growth of consumer spending across emerging markets is almost double what you see in developed markets; and combining the internet usage with the changing behavior of our consumers, they are more and more preferring to shop online versus offline. You have the e-commerce penetration which is growing at double-digit numbers in these markets. When you compare Brazil, which is one of the most developing forms of e-commerce penetration, to the UK, we have basically a two-fold opportunity just by doing that math. And the UK continues to grow. This continues to supercharge our market opportunity, which is said to be over $3 trillion by 2028, with each of the markets we operate in growing at least at 16% CAGR. Now that you have seen the massive opportunity ahead of us, let's talk about how we have been growing and how we're going to continue to grow. Our strategy is based on three axes of growth: product, merchants, and geography. I'm going to cover each of those. First, starting with product. You're going to see this many times today, and it's very important to have this in your mind. We solve for many complexities across 40 markets, 900 payment methods. What is very important is that we are emerging market centric in everything that we do. Our merchants, Amazon, Google, they don't have time to think about the complexities of each emerging market. It's not their core business. They have bigger things to think about. We solve for them. More than solving for them, we have to package this in a very simple way for them. This is done through one API, one developer, one integration. We cannot ask Amazon or Facebook or all the other logos that I've seen to do other integrations with us. It's only once, and with that we enable them to truly access end users. When I talk about access, it's very important to go over how the payment system works in emerging markets. If you're in the UK or in the US, with basically three different card schemes, you can cover more than 90% of transactions: Visa, Mastercard, and American Express. In emerging markets, this is completely different. You have markets where alternative payment methods are more than 50% of the overall transactions. You have single payment methods specific to one market. I know everyone is familiar with Pix in Brazil, right? More than half of the population of Brazil uses Pix on an active basis. As I have seen before, a global finance company that I truly admire stopped supporting Pix. It's not about just creating the connection. You have to enhance the connection, you have to continue to improve, you have to comply with other changes. This is complicated and it's difficult to replicate. You see the same spectrum when you look at regulatory points or FX or compliance. We'll go over that later. Here, every single market is different. When you look into Europe, you have a very consolidated regulatory framework, tax framework that applies across all the different markets. In emerging markets, they're completely different. Even Brazil and Argentina being neighbors, they're completely different. So for all that, very importantly, connected to one single API. Now moving to our merchants. This is our most important stakeholder. I know that many of you are shareholders, but our merchants are at the center of everything that we do. Every time that we have a product, geography, how we operate, we're thinking about our merchants. This is the result of that. We have grown 10-fold from 2016 to 2022. Over the past seven years, we continue to grow. Very importantly, we continue to grow across various verticals. The way that we build our product is vertical agnostic. We can serve the various verticals. Also, the way that we approach sales, and John's going to cover this later on, we also approach this being vertical agnostic. We can serve every single merchant. Now, once we win a merchant, once you're on board, our focus moves into how we expand it, how we grow with them, how we continue adding opportunities to them. This can clearly be seen through our cohort analysis. From the time that they start, year over year, we have been adding more geographies, we have been adding more payment methods, and this turns into a continuous growth of TPV and revenue. You're going to see this on our financial results that Diego is going to cover later on. When you look into these cohorts, this translates into a metric that we are also very proud of: our NRR. We have best-in-class NRR. Our NRR has been consistently outperforming our peer group, which is around 120. Our NRR for 2022 was at 165. What is under that NRR? First of all, turnover: we basically have no turnover. Our turnover is less than one percent. Secondly, we grow with our merchants. We know that all these global companies, their growth comes mostly, the highest rate of growth comes from emerging markets. Then you have the share of wallet. The share of wallet is very important because this shows the satisfaction and trust of our multinational solution. They continue to trust more and more volumes with us. This is a conscious decision that they take every day. Then we have also opportunities which we continue capturing by trusting those merchants to new geography, new payment methods, enabling them to reach more and more users across emerging markets. Now let's focus on our share of wallet. This is a question that I get a lot. As you know, it's very difficult to find the precise numbers of your thoughts. But what we have done here: we mapped our opportunity for our main merchants together for them. We saw all the opportunities that we have with them across the markets we currently operate in, and we're still just scratching the surface. We have 10 to 12% share of wallet just by that. There is a five to ten-fold opportunity. Why are we so confident about that? When you zoom in on the share of wallet that you can capture within one payment method and one geography, we have been consistently doing that. Let me explain. There's a lot of information here. We have here three examples of three different merchants. The companies are very well admired by everyone here. On the top part, we are looking at how we have been growing our share of wallet within one payment method in one geography. On the first one, this is the largest social media company in the world. We are working with them in Brazil. If we take the example of one alternative payment method in Brazil and how we have grown with them over the past four years, we got to 50% of the share of wallet. Second is the same example, a very well-known ride-hailing company in Mexico. If you look into credit card and debit card, we got to 90% of share of wallet. This is also true for South Africa with one of the largest fast-growing e-commerce companies in the world. We got to 100% of the share of wallet. This shows the trust that our merchants have in our solution and how we have been consistently showing better performance than peers. In the meantime, those merchants didn't stop with us on those payment methods. They are consistently growing countries, products, and payment methods, which have been consistently enlarging opportunities with them. Now let's move to the third axis of growth: geographies. We started in Brazil back in 2016 with one payment method. Since the beginning, we had global ambitions. Over the past seven years, we added 40 geographies, over 900 payment methods. We enable each merchant to truly operate across emerging markets. How do we do that? We have a consistent playbook that has been tested many times. How has it been so successful? We are a global company. We serve global merchants, but we leverage local expertise. When you think of expanding to a new market, we start typically with the discovery phase. As you know, this starts with an ask of our merchants. The merchants need us in a specific country. We also look across our base: what other merchants would like us to be in the same country? We analyze the market attractiveness of that country. As you know, being profitable is in our DNA, and we want to be profitable in each region with each payment method from the outset. We analyze also the payments ecosystem, the regulatory ecosystem. Once we decide to launch, we move to the next phase. We build a start team. By start team, we mean we leverage the local. As you have seen, Sergio sometimes in China, Hako spent some time in Africa. We hire local expertise, we hire local talent. We also keep ourselves with the best experts in the region, from a regulatory standpoint, from a tax standpoint, from a payment standpoint. We collaborate with the regulators. In many cases, we come into a geography that does not have any framework for payments. We collaborate with them, we partner with them, we help them evolve this framework. Once we enable the merchants to operate in those geographies, then we move to the next phase: accelerate. We scale our volumes, we bring more merchants in there, we build more connections, we improve our connections, we improve our conversions, which improves performance, which also translates into our numbers. Here I have two examples of geographies we expanded into. They are very different, as you can see: Morocco and Philippines. But when you look into the pain points, it's very similar. We had merchants that needed to go to those geographies. We had a very fragmented payment space. In Morocco, 5% of the population could have access to international credit cards. More than 50% of the transactions were done from alternative payment methods. Competition: there was no global payment company serving global merchants. They would be there only through international cards. As you can see, with that you only reach 5% of the population or less. We collaborated with local authorities to build a framework. We got a license. What was the result of that? Besides enabling global merchants to operate in those countries, we also improved their conversions that they were seeing on their credit card transactions by at least 40%. Now let's talk a little bit about how these three axes play together: product, geographies, and merchants. The way that the dLocal platform is built, for every product that we add, that product is available across geographies. There is a network effect on that because everything is connected to one API. So every combination of product and geography is automatically available to every single merchant. When you look into these slides here, you'll see that at the end of 2022, we had more than 100,000 potential connections. This means a current or potential stream of revenue. This is a combination of merchant, product, and geography expansion. With that, we can serve more merchants. If you compare a merchant that came in 2018, they had one connection: one merchant, one geography, one product. We have merchants that started in 2020 with 10, 14 connections, and very quickly they expanded to 40 connections. There is a massive opportunity just inside our installed capacity, and it continues to compound on each of those axes. Now let's see our competitive landscape. There is no one doing what we're doing. We wake up and sleep every day thinking about emerging markets, how it can be better in emerging markets. When you look into the potential competition, the first one that we have here is Adyen. We admire Adyen, but they are focused on developed markets. As I said, we wake up and sleep every day thinking about emerging markets. The ones I think are worth commenting on here: international acquirers. With international acquirers in emerging markets, you're reaching 5 to 10% of the population. You're not truly enabling global merchants. Then you have regional PSPs. They can have some global markets, but they do not serve the same kind of global merchants that we operate. They cannot serve to the same extent. Very important here: many times they might be operating across three, four geographies, but it might be required for ourselves to build another connection. Can you imagine asking Amazon, 'I have an integration here, it's great, but you're going to have to build another one once we operate in another geography?' That's not possible for Google merchants. Those are the most demanding merchants. So with that, we have confidence that we are positioned to be the winner in this space, to capture this huge market opportunity ahead of us. We have a unique product that is difficult to replicate. We have been growing exceptionally for our merchant base. Our merchants trust us, and they continue to trust more volumes every day. They take that decision every day. We have an outstanding playbook to expand to new geographies. All these compounds, and we have been consistently widening our moats. With that, you know that at dLocal, we are obsessed about execution. I'll leave you with Hako, our co-president, and Moses to talk about how we have been expanding and being so successful across many geographies.