MONTEVIDEO - DLocal Limited (NASDAQ:DLO) reported better-than-expected third quarter revenue on Wednesday, sending shares up 10.7% in after-hours trading.
The Uruguay-based payments company posted revenue of $185.8 million for the quarter, surpassing analyst estimates of $181.47 million. However, adjusted earnings per share came in at $0.09, missing expectations of $0.11.
Total (EPA:TTEF) payment volume (TPV) reached a record $6.5 billion in Q3, up 41% YoY and 8% sequentially. Gross profit rose 5% YoY to $78.2 million.
"We are encouraged by how we see the business evolving. After a soft first quarter, we see ourselves consistently gaining momentum," said CEO Sebastian Kanovich.
The company maintained its full-year 2024 guidance, citing strong Q3 results but noting Q4 performance will heavily depend on seasonal commerce volumes in the coming weeks.
DLocal's net revenue retention rate was 110% for the quarter, indicating continued growth from existing merchant customers. Revenue from existing merchants increased 14% YoY to $179.9 million.
While profitability metrics declined YoY due to investments, DLocal noted its second consecutive quarter of increased operational leverage, with adjusted EBITDA over gross profit margin reaching 67%.
The company ended the quarter with $560.5 million in cash and cash equivalents. DLocal serves global enterprise merchants across emerging markets in Latin America, Africa and Asia.
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