The Group operates in a single operating segment, which is “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, who in the Group’s case is the Executive Team, in deciding how to allocate resources and assess performance. The Executive Team is composed of the

Chief Executive Officer (“CEO”), the President of Dlocal Limited, the Chief Operating Officer (“COO”) and the Chief Financial Officer (“CFO”).

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

The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Position.

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

The Group’s revenues arise from operations in more than twenty countries, where the merchant customers are based.

Based on the region where payments from /to such customers are processed this is the revenue breakdown:


	2021		YoY%			2020		YoY%			2019
LatAm 1		223,602		140.1	%		93,124		82.2	%		51,103
Asia and Africa		20,518		86.2	%		11,019		163.2	%		4,186
Revenues 2		244,120		134.4	%		104,143		88.4	%		55,289

In 2019 LatAm revenues contain the warrant negative effect of USD 4,333 as more fully explained in Note 2.11.4. Warrant agreement.

During fiscal year 2021 the Group operated with more than 420 merchants (more than 330 merchants in the year ended December 31, 2020).

For the year ended December 31, 2021, the Group’s revenue from its top 10 merchants represented 56% of revenue (64% and 70% of revenue in the years ended December 31, 2020 and 2019, respectively). In 2021 there is one customer (two in 2020 and one in 2019) that on an individual level accounted for more than 10% of the total revenue.

The Executive Team assesses the financial performance of the Group’s sole segment by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin. The Adjusted EBITDA is defined as the consolidated profit from operations before financing and taxation for the year or period, as applicable, before depreciation of property, plant and equipment, amortization of right-of-use assets and intangible assets, and further excluding the changes in fair value of financial assets and derivative financial instruments carried at fair value through profit or loss, impairment gain/loss on financial assets, transaction costs, share-based payment non-cash charges, secondary offering expenses and inflation adjustment. The Group defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues.

The Group reconciles the segment’s performance measure to profit for the year as presented in the Consolidated Statement of Comprehensive Income as follows:


	Note	December 31, 2021			December 31, 2020			December 31, 2019
Profit for the year			77,853			28,187			15,602
Income tax expense	12		7,647			3,231			2,221
Inflation adjustment	11		334			(38	)		(10	)
Interest charges on leases	11		142			20			30
Interest income from financial assets at FVPL	11		(2,556	)		(443	)		(217	)
Fair value losses / (gains) on financial assets at FVPL	11		16			(9	)		(56	)
Other operating (gain) / loss	24		(2,896	)		2,896			—
Other finance expense	11		402			(3	)		(6	)
Impairment loss / (gain) on financial assets	16		33			(808	)		807
Depreciation and amortization	10		4,747			992			409
Secondary offering expenses (i)	8		5,158			453			574
Transaction costs (ii)	8		687			158			—
Share-based payment non-cash charges, net of forfeitures	13		7,590			7,295			716
Adjusted EBITDA			99,157			41,931			20,070

Revenues	6		244,120			104,143			55,289
Adjusted EBITDA			99,157			41,931			20,070
Adjusted EBITDA Margin			40.6	%		40.3	%		36.3	%

(i)

Corresponds to expenses assumed by dLocal in relation to a secondary offering of its shares.