DLocal Posts Record Q1, Fifth Consecutive 100%+ Revenue Growth Quarter

Edward Kim  |

DLocal ( DLO) reported record first quarter results Tuesday after the close, with revenues of $87.5 million, up 117% over the same quarter last year.

This was the fifth consecutive quarter of triple-digit growth for the Uruguay-based electronic payments company.

DLocal saw total payment volume (TPV) $2.1 billion in the quarter, up 127% year-over-year. It's the first time the company has exceeded $2 billion in TPV in a quarter.

Adjusted EBITDA was $32.9 million in Q1, up 84% over the same period last year, and net income was $26.3 million, or $0.08 per diluted share, up 56% over the first quarter last year.

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Image source: DLocal

On the earnings conference call Wednesday, CEO Sebastián Kanovich said, "Although Q1 2022 has been marked by a challenging global macro environment, our business continues to benefit from the diversity of our merchants across industry verticals, geographies, products, and consumer behavior partners."

Investment thesis

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DLocal went public on Nasdaq in June 2021, in a $618 million deal priced at $21 per share. The company raised gross proceeds of about $93 million, while existing shareholders sold $525 million worth of stock.

Since peaking in August at $73.43, shares had tumbled 74% through Tuesday's close, before rallying 15% Wednesday after earnings. DLocal was one of the few bright spots in a day that witnessed broad losses across the market.

While it's admittedly difficult to wade in during such a tumultuous market, we think investors have reasons to be optimistic about DLocal.

  • The company has been showing rapid top and bottom line growth consistently for multiple quarters.
  • DLocal is diversified across emerging market geographies and industries, while having no exposure to Russia or Ukraine.
  • 37 countries in Latin America, Africa, Middle East and Asia.
  • Growth across multiple verticals, including delivery, travel and advertising.
  • Company is directly integrated with some of the world’s largest online merchants, including Amazon, Uber, GoDaddy and DiDi.
  • Scalable, single API technology infrastructure.

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Source: Equities News

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