DLocal Slips 4.8% Despite Upbeat Q4 Results

Financial technology company DLocal Limited (NASDAQ: DLO) has reported stronger-than-expected results for the fourth quarter ended December 31, 2021.

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However, following the upbeat earnings, shares of the company declined 4.8% to close at $22.19 in Monday’s extended trading session.

Revenue & Earnings

DLocal’s revenues for the quarter stood at $76.3 million, up 120% year-over-year. Further, the figure surpassed the consensus estimate of $74.17 million. Year-over-year growth of $33.9 million witnessed in the revenue from existing merchants was the major contributor to the overall growth in revenues.

Earnings per share (EPS) for the quarter of $0.08 increased from $0.04 a year ago. Further, the figure surpassed the consensus estimate of $0.07 per share.

Total payment volume witnessed a year-over-year increase of 145% to $1.9 billion.

Although adjusted EBITDA grew 112% from the previous year to $29.1 million, adjusted EBITDA margin saw a slight decline from the previous year’s figure of 39% to 38%.

Management Commentary

The CEO of DLocal, Sebastian Kanovich, said, “2021 was a record year. Our TPV almost tripled in 2021, surpassing the US$6 billion threshold, increasing by 193% year-over-year. Revenues for the year reached US$244 million, a 134% year-over-year growth, with an Adjusted EBITDA margin of 41%, compared to 40% in 2020. We continued to make investments in infrastructure and people to support our expansion strategy. These results were supported by the continued growth from both existing and new merchants using our platform.”

Stock Rating

Consensus among analysts is a Moderate Buy based on 3 Buys and 2 Holds. The average DLocal stock prediction of $40.80 implies upside potential of 75.1% from current levels. Shares have declined 28.1% over the past year.

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