Dlocal Limited ( (DLO) ) has released its Q3 earnings. Here is a breakdown of the information Dlocal Limited presented to its investors.
DLocal Limited is a technology-driven payments platform that facilitates local payments in emerging markets across Africa, Asia, and Latin America, connecting global merchants with billions of consumers through its One dLocal platform. In its third quarter of 2024, dLocal reported significant financial growth, highlighted by a 41% year-over-year increase in Total Payment Volume (TPV) reaching $6.5 billion and a record gross profit of $78 million. The company maintained a stable net take rate of 1.2% while achieving an Adjusted EBITDA of $52 million, demonstrating strong operating leverage despite increased investments in technology and back-office capabilities. Key growth drivers included expanded operations in new countries and increased payment volumes in regions such as Argentina, Mexico, and Egypt. DLocal’s focus on cost optimization and innovative solutions, such as the launch of its Payment Orchestration option and Smart Requests functionality, has strengthened its position in the market.
The company’s strategic efforts to integrate major players like MoneyGram and expand its merchant base with significant commerce players across various regions have contributed to its robust pipeline. Despite a decline in net income compared to previous quarters, dLocal’s effective tax rate has decreased significantly, enhancing its financial resilience. Looking ahead, dLocal remains optimistic, maintaining its guidance for Q4 2024 with expectations of a seasonal boost in commerce volumes due to Black Friday. Management underscores its commitment to innovation and expansion in emerging markets, aiming to capture a substantial share of the growing cross-border payments market, projected to reach $65 trillion by 2030. The company’s strategic focus on operational leverage and high cash conversion is expected to drive long-term value creation for shareholders.
