Actionable insights straight to your inbox

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

Rapidly growing emerging markets payments company.

DLocal (DLO - $17.14 0.16 (0.933%)  ) 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.

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

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.

_____

Source: Equities News