DLocal shares plunge nearly 18% as Q4 earnings miss estimates

Published 27/02/2025, 22:20
Updated 27/02/2025, 22:22
DLocal shares plunge nearly 18% as Q4 earnings miss estimates

MONTEVIDEO - DLocal Limited (NASDAQ:DLO) saw its shares plunge 17.9% in after-hours trading on Thursday after the payment platform provider reported fourth quarter earnings that fell short of analyst expectations.

The Uruguay-based company posted adjusted earnings per share of $0.10 for Q4, missing the consensus estimate of $0.14. Revenue came in at $204.5 million, slightly below analysts’ projections of $204.88 million.

While revenue grew 9% year-over-year, the earnings miss appeared to disappoint investors who had higher hopes for the emerging markets-focused payments firm.

DLocal’s total payment volume (TPV) reached $7.7 billion in Q4, up 51% compared to the same period last year. However, the company’s take rate declined to 1.1% from 1.4% a year ago.

"Q4 marked the successful end to 2024 in terms of consistent TPV growth, controlled take rate decline, and balance of investment for future growth with a healthy margin and free cash profile," said CEO Sebastian Kanovich.

For the full year 2024, DLocal reported revenue of $746 million, up 15% year-over-year. Adjusted EBITDA declined 7% to $189 million.

Looking ahead, the company forecasts 2025 revenue growth of 25-35% and adjusted EBITDA growth of 20-30% compared to 2024 levels.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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