Dlocal (NASDAQ:DLO), a recent addition to the payments platform movement, recently brought out its earnings report. The news was anything but good, as shares fell over 25% at the time of writing.
Dlocal’s earnings report disappointed on multiple fronts. It posted earnings of $0.06 per share, which was good news until you found that the analyst consensus estimate called for $0.12 per share. Revenue also disappointed, though not by much; it came in at $118.4 million against projections calling for $120.2 million. The only bright spot in the report was that revenue was actually up 55.2% year-over-year.
However, one point particularly puzzled investors and analysts. Despite the huge miss in earnings and the solid revenue growth, Dlocal posted an enormous gain in total payment volume. It reached $3.3 billion, which represented not only a 21% growth in a quarter-over-quarter comparison but also a 78% increase in year-over-year comparisons. This was mainly due to its business mix, with local payouts on the rise, particularly against large global retail payments.
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Dlocal’s last five days in trading were somewhat erratic but within a narrow band. The share price fluctuated quite a bit but tended to stay in the $16 – $17 range. At least, that was the case until today, when the bottom dropped out, and shares lost over a quarter of their value with little recovery on the horizon.