DLocal Releases Third Quarter 2024 Earnings Report
Intellectia.AI
DLocal Releases Third Quarter 2024 Earnings Report
MONTEVIDEO, Uruguay, Nov. 13, 2024 - DLocal Limited (NASDAQ:DLO), a leading technology-first payments platform, has announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Q2 2024 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $185.8M | $163.9M | $171.3M | +13% | +8% | $181.46M |
| Earnings Per Share (EPS) | $0.09 | $0.13 | $0.15 | -31% | -40% | $0.10 |
Interpretation: DLocal's total revenue increased by 13% year-over-year and 8% quarter-over-quarter, slightly exceeding consensus estimates. However, the earnings per share fell short of both the quarterly and yearly comparisons, indicating challenges in net profitability despite revenue growth.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Year-Over-Year Change | Comments |
|---|---|---|---|
| LatAm | $145.2M | +7% | Driven by Mexico and strong performance in Other LatAm. |
| Africa & Asia | N/A | +45% | Notably driven by growth in Egypt and South Africa. |
Interpretation: LatAm remains the largest contributor to revenue, showing consistent growth driven by commerce and financial services. The Africa and Asia regions exhibited substantial growth, particularly in Egypt and South Africa, highlighting DLocal's expanding geographical footprint.
Key Developments and Operational Highlights
- Record total payment volume (TPV) of $6.5 billion, up 41% year-over-year.
- Gross profit reached a record $78 million, with a stable net take rate of 1.2%.
- Successful integration with major players like MoneyGram and new merchant expansions in Brazil and Asia.
- Launch of innovative solutions, such as Smart Requests and Payment Orchestration, improving transaction efficiency and cost management.
Comments from Company Officers
Company executives indicated that the quarter demonstrated the resilience of DLocal's business model. They emphasized growth across diverse verticals and geographical regions, integration of new major players, and continued advancements in technology to bolster service offerings. Executives remain focused on long-term growth through innovation and strategic market penetrations.
Forward Guidance
The company's forward guidance remains unchanged following the third quarter results, with anticipated seasonal increases expected in the fourth quarter, driven by holiday commerce.
Stock Price Movement
Following the earnings release, DLocal's stock experienced a decrease of approximately 3.21%.
Overall, DLocal's third quarter 2024 results reflect solid revenue growth and successful strategic expansions, albeit with challenges in net profitability. The company continues to capitalize on market opportunities within its growing geographic footprint.
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