DLocal shares down 5% after posting mixed Q2 results

MONTEVIDEO, Uruguay - DLocal Limited (NASDAQ:DLO) reported second quarter earnings that beat expectations on the bottom line but missed on revenue, as the payment platform provider continues to navigate challenges in emerging markets. Shares were down 5% in aftermarket trading Wednesday.

The company reported earnings per share of $0.15, surpassing analyst estimates of $0.10. However, revenue came in at $171 million, falling short of the $203.18 million consensus forecast.

Total payment volume (TPV) reached a record $6.0 billion in Q2, up 38% year-over-year and 14% quarter-over-quarter.

"We continue to see strong growth in our business, achieving another quarterly record of $6.0 billion of TPV during the second quarter of 2024, an increase of nearly 40% year-over-year," said DLocal in its earnings release.

Gross profit was $69.8 million, down 1% compared to Q2 2023 but up 11% sequentially. Adjusted EBITDA came in at $42.7 million, down 18% year-over-year but up 16% from Q1.

The company noted challenges including currency devaluations in Nigeria and Egypt, as well as repricing by its largest merchant in Brazil and Mexico.

For full year 2024, DLocal revised its outlook, now expecting TPV of $24.5-26.5 billion, gross profit of $280-300 million, and adjusted EBITDA of $180-200 million.

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Source: Investing.com