{
  "docId": "019dd923-622c-750b-8b97-535532caa115",
  "docSlug": "b0d4509b946d",
  "documentTitle": "dLocal (DLO)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-11-16 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 17,
  "pageCount": 47,
  "prevPage": 16,
  "nextPage": 18,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 3,
  "notes": "The slide highlights a potential discrepancy in DLO's financial reporting and management commentary regarding take rate drivers.",
  "elementsJson": [
    "headline_text",
    "line_chart",
    "paragraph",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-535532caa115/17",
  "deckHref": "/decks/019dd923-622c-750b-8b97-535532caa115",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-535532caa115.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-535532caa115#slide-17",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "It begs the question: Why wasn't this also in evidence in 2020?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bff-60a2e707d744",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.4,
        "x": 0.3,
        "y": 0.15
      },
      "kind": "chart",
      "text": "Avg Annual Gross Take Rate",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cad5eadb-3013-42da-9430-5d74b6c5d764",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Take Rate: 5.04%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bff-687cb7cfded2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.76,
        "x": 0.12,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "In the 4Q21 earnings presentation, DLO's data showed that in 2019 and 2020 the low-take rate new merchant cohort years of 2018 and 2020 increased from a minority share (43%) of TPV to a majority (59%) of annual TPV.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1d958f2e-0d53-48cf-96e0-fb6058f964d4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.76,
        "x": 0.12,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "The Q4 2021 earnings call, which followed an additional $622.2 million offering by insiders, strongly suggested that something is amiss in the 2020 numbers because the purported reason for the drop in the 2021 Take Rate was due to the growth of the 2018 and 2020 cohorts. It begs the question: Why wasn't this also in evidence in 2020?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7692a28c-d290-4278-9c6e-b7b9cff8f1a3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.76,
        "x": 0.12,
        "y": 0.66
      },
      "kind": "paragraph",
      "text": "In the 4Q21 conference call, DLO specifically explained that the fastest growing cohort years 2018 and 2020 were also both low take rate cohorts. These were made up of low-margin pay-outs and even lower margin local-to-local flows.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "db27d9a1-32ef-43d6-8a24-da0e9446c058",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.7,
        "x": 0.15,
        "y": 0.74
      },
      "kind": "quote",
      "text": "The cohorts that grew the most in 2021 were the 2018 and 2020 vintages. And these cohorts came with a lower take rate, mainly driven by the business mix of higher payouts and local to local payment flows.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d830ea1c-d913-4e3b-919d-22c804546992",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "The cohorts that grew the most in 2021 were the 2018 and 2020 vintages. And these cohorts came with a lower take rate, mainly driven by the business mix of higher payouts and local to local payment flows. — DLocal 4Q21 Earnings Conference Call",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bff-641f45f55255",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.6,
        "x": 0.2,
        "y": 0.41
      },
      "kind": "title",
      "text": "Low Take Rate Cohorts Grew Faster than Other Cohorts in 2020",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "adcadf7f-bb0c-4406-95fe-c836970ed6ff",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.3,
        "x": 0.35,
        "y": 0.11
      },
      "kind": "title",
      "text": "DLO Pre-IPO Take Rate Spikes",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "57a7f109-8c3e-45b9-9a54-9f68e3b0f2bd",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "04347a71-f3fe-4a38-a214-b38993fef9b7",
      "evidence": "The slide explicitly questions the veracity of financial reporting and management explanations.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 15,
      "beatId": "21527098-0427-43a1-85ae-8be24994c54e",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Further contradictions in DLO's take rates and revenue breakdown",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}