Pedro Arnt: Two quick thoughts there. The first one, as you can see from the margin structure, the adjusted EBITDA to gross profit margin in the 2024 guidance at the midpoints, we are leaning into the business to build the right foundations, but we’re doing so in a very, very disciplined manner. So even in this year, where we’re not delivering operational leverage, we’re still coming in at what would be best-in-class adjusted EBITDA to gross profit margin at around 70%. I think that’s important to stress. The cadence of incremental investment, if we look at the Q4 run rate, is really not significantly increased into 2024, which should be one of the heavier years in terms of investment and we continue to be optimistic about the mid-term operational leverage and even more so the long-term operational leverage of our financial model, as is the case with most payments companies, and therefore, we’ve reiterated the mid-term guidance.
The cadence of that could potentially be slightly skewed towards the first half of the year. But since the biggest areas of incremental investment, as we said, is engineering talent and that’s also one of the reasons why we’re optimistic about mid-term operational leverage, is a lot of what we’re doing is building capabilities to be able to automate more, to be more efficient. DLocal will continue to want to run as a lean organization, where we automate as much as we can. But so if we’re able to hire more of those engineers in the first half of the year, excellent. That might lien – might skew the investments to H1, but we want to make sure we’re hiring the right people. So that could end up being evenly distributed throughout the year, depending on the pace of hiring.
Melissa Chen: Okay. Cool. Thanks.
Operator: One moment for our next question. Our next question comes from Neha Agarwala with HSBC. Your line is open.
Neha Agarwala: Hi. Thank you for taking my question. Just a quick one in terms of volume growth, are you seeing a pickup or a slowdown from your key merchants? Any changes in terms of which verticals are more important or less important? Anything to highlight in terms of volume growth? And the second question is, again, on Argentina. Should we expect Argentina, Nigeria? Nigeria you mentioned could be a bit of a headwind, but what other distortions can we expect, at least in the first half of this year, from countries like Argentina, Nigeria? Any specific colors would be very helpful. Thank you so much.
Pedro Arnt: Hi, Neha. Thanks. So in terms of verticals, if you look at the disclosures, we continue to see incredible strength in e-commerce. That was nearly 200% year-on-year growth as a vertical and then continued strength across many of the other verticals, financial services, ride-hailing. We saw, I would say, less relevant growth in the high 20s or low 20s across on-demand delivery and advertising. Some of that driven by the Argentina situation and some of that more globally. But, in general, I would say there hasn’t been a significant change in verticals, with the exception that e-commerce continues to gain mix. We are a particularly well-suited service provider and solution for many of the global e-commerce players as they globalize more and more.
So we’re seeing some really interesting gains in new markets that we are offering to some of the largest global e-commerce players. On Argentina, Nigeria, Egypt, just to be clear again on what I said before, what we built into the guidance is we expect for Argentina and Egypt a certain level of margin headwinds when we think of gross profit margin in those markets as exchange rate spreads have tightened and so that is built in to 2024, the tougher comps from 2023 in those two markets that had high margins on wide FX spreads, especially in Q2 and Q3. Nigeria, I said, is a different situation where at the revenue level we do see oscillations because of fluctuations between the official and the market exchange rate, but it’s much more neutral at the gross profit level, and so Nigeria, we see a similar gross profit margin for the 2024 guidance.
Neha Agarwala: Perfect. Super clear, Pedro. One last one. I know this year the focus is more on building up the organization and investing a bit more in stepping up the company, but any plans in terms of revenue diversification? Previously, we’ve talked about additional services like fraud-as-a-service. Is any of new services on your mind that we would expect during this year or next year? Thank you so much.
Pedro Arnt: So, as Sergio mentioned in his remarks, our strategy is one of being innovative and launching new products into the market and also pursuing new verticals. We’ve had tremendous recent success with the marketplace product and we hope to continue to see that in 2024. We’ve launched an invoice product, which is aimed at corporate treasuries and accounts receivables that we’d like to push and see that grow. And then there are a few new verticals that we’re beginning to plant the seeds for. We’ll need to see how those play out. As you know, in our business, there are sometimes long lead times in terms of moving into a new vertical and then those ramp ups really kick in. So if anything, those are expected more towards the back end of 2024 and then potentially into 2025.
Operator: Thank you. One moment for our next question. Our next question comes from Jamie Friedman with Susquehanna International Group. Your line is open.
Jamie Friedman: Hi. Thank you, guys, and thank you for taking my questions. I like the new format of the presentation, by the way, I just wanted to mention. But I want to ask about the revenue growth from new merchants up 68.6%, which accelerated from the third quarter. Can you help unpack that? Is that from the new merchants that you had alluded to earlier in the year or if you could share a framework about how to think about new framework – new merchant contribution, it would be helpful.
