dLocal derives revenue by processing payments for international merchants who operate in selected emerging markets.

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


	2024			2023			2022
Transaction revenues (i)		739,919			637,053			415,444
Other revenues (ii)		6,055			13,298			3,481
Revenues from payment processing		745,974			650,351			418,925
Cost of services		(451,301	)		(373,492	)		(216,758	)
Gross profit		294,673			276,859			202,167

(i)

Transaction revenues consist of processing, foreign exchange, installment, advances granted to merchants, chargebacks, refunds, advances granted to merchants and other transactional fees as described in note 2.15. These fees are recognized as revenue at a point in time when a payment transaction, or its reversal in the case of chargebacks and refunds, has been processed.

(ii)

Other revenues are mainly comprised of minor fees, such as smart defense, issuing, minimum monthly and small transfer fees.

Transaction revenues are recognized at a point in time when the payment transaction, or in the case of chargeback and refunds, its reversal, has been processed. Other revenues are recognized as revenue at a point in time when the respective performance obligation is satisfied. The Group did not recognize revenues over time during the year ended December 31, 2024, 2023 and 2022.

Cost of services are comprised of the following:


	2024		2023		2022
Processing costs (i)		427,127		356,295		206,223
Hosting expenses (ii)		7,723		6,235		4,331
Amortization of intangible assets (iii)		13,413		8,710		4,793
Salary and wages (iv)		3,038		2,252		1,411
Total		451,301		373,492		216,758

(i)

Include fees from financial institutions (e.g., banks, local acquirers or payment methods) charged 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, installment payments and merchant advances finance cost). 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 and the corresponding hedging results. For further details related to the effect of hedging results see Note 22. Derivative financial instruments

(ii)

Expenses related to hosting services for the Group’ s payment platform.

(iii)

Represents the amortization of capitalized internally generated software (i.e., dLocal’ s payment platform). For further detail refer to Note 20: Intangible Assets.

(iv)

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.