DLocal Shares Plummet 31% After Fourth Quarter Earnings Miss

DLocal (DLO), a leading digital payments specialist, experienced a significant drop in its share price, falling by 31% following the release of its fourth-quarter 2024 earnings. The company reported mixed results, with a notable earnings miss and a slight revenue shortfall, which raised concerns among investors and led to a substantial decline in the stock's value.

DLocal's fourth-quarter earnings report revealed that the company's earnings per share (EPS) of $0.10 fell short of the forecasted $0.14, representing a shortfall of approximately 28.6%. Additionally, the company's revenue of $204.5 million was slightly below the anticipated $204.88 million. Despite these setbacks, DLocal demonstrated strong operational growth, with a total payment volume (TPV) increase of 45% year-over-year and a robust gross profit margin of 64% (DLocal, 2025).



The company's earnings miss and revenue shortfall can be attributed to several factors, including operational challenges in Brazil due to regulatory shifts, gross margin compression, and increased spending on technology and marketing. These factors impacted DLocal's profitability and raised concerns about the company's ability to maintain its growth momentum (DLocal, 2025).

However, DLocal's strategic focus on emerging markets and expansion into new industries remains a significant strength for the company. By operating in multiple emerging markets and serving diverse industries, DLocal can better navigate regulatory changes and maintain growth momentum. The company's broad geographical reach and adaptability enable it to capitalize on global digital payment trends and mitigate risks associated with regulatory changes in any particular market (DLocal, 2025).

To improve cost management and mitigate the impact of take rate compression on profitability, DLocal can consider several steps, such as optimizing hedging strategies, negotiating better terms with processors and brokers, expanding into higher take rate markets and verticals, improving operational efficiencies, and closely monitoring and controlling spending. By implementing these measures, DLocal can enhance its cost management and maintain its strong operational growth and expanding global footprint (DLocal, 2025).

In conclusion, DLocal's shares fell by 31% following the release of its fourth-quarter 2024 earnings, which revealed a notable earnings miss and a slight revenue shortfall. Despite these setbacks, the company's strong operational growth and expanding global footprint remain intact. By focusing on cost management and leveraging its strategic advantages in emerging markets and new industries, DLocal can overcome these challenges and maintain its growth momentum. Investors should closely monitor the company's progress and consider its long-term potential as it navigates the dynamic and often challenging regulatory environments in emerging markets.