DLocal Soars 8% After-Hours on Robust Revenue Growth and Q4 Optimism
Wednesday, Nov 13, 2024 4:44 pm ET
4min read DLocal, a technology-first payments platform, has gained 8% in after-hours trading following the announcement of its third-quarter financial results. The company reported a 13% year-over-year (YoY) increase in revenue, driven by strong performance across various verticals and countries. This impressive growth, coupled with a positive outlook for the fourth quarter, has fueled investor confidence in the stock.
DLocal's robust revenue growth can be attributed to several factors. The company's expansion into new countries and payment methods has allowed it to reach a broader customer base and offer more payment options. By launching operations in five new countries during 2022, dLocal expanded its footprint to 40 countries, powering over 900 payment methods through local-to-local and cross-border online pay-in and pay-out transactions. This expansion has enabled dLocal to tap into new markets and provide merchants with access to billions of users, ultimately driving revenue growth.
The integration of major players like MoneyGram has also played a significant role in dLocal's revenue growth and overall performance. During the third quarter of 2024, dLocal successfully integrated MoneyGram, one of the largest global providers of money transfer and payment services, to serve them across countries in Latam, Africa, and Asia. This strategic move expanded dLocal's merchant base and increased payment volumes, contributing to the company's 13% revenue growth and strong Q4 outlook.
DLocal's focus on cost efficiencies and pricing power has helped maintain its net take rate and gross profit margins during Q3 2024. The company's differentiated value proposition, continuous pursuit of cost efficiencies, and the real value in solving complexities across emerging markets granted it pricing power, which differentiated it from more commoditized payments offerings in the developed world. This strategy allowed dLocal to reach a record gross profit of $78 million with a stable net take rate of 1.2% since Q1 2024, despite weakness in most emerging market currencies.
DLocal's strong pipeline and continued growth opportunities with existing merchants and new merchants have significantly contributed to its Q3 2024 results and positive outlook for Q4. The company successfully integrated major players like MoneyGram and expanded its services with a leading Asian commerce player, demonstrating its ability to attract and retain high-value clients. Additionally, dLocal's entry into Brazil with a major global Fintech company highlights its strategic expansion into new markets. These developments, coupled with the company's strong performance across various verticals and countries, indicate a healthy pipeline that supports its growth trajectory.
DLocal's impressive 13% YoY revenue growth and robust Q4 outlook have driven an 8% after-hours gain in the stock. The company's success can be attributed to strategic initiatives such as expanding its merchant base, entering new markets, and investing in technology. DLocal grew its merchant base from 300+ in 2020 to over 600 in 2022, and expanded its footprint in emerging markets by launching operations in five new countries during 2022. The company's flexible and scalable platform, offering a single API, single platform, and single contract, enables it to reach billions of users across 40 countries and power over 900 payment methods. DLocal's focus on growing gross profit and EBITDA dollars, coupled with its diversification across verticals, regions, and products, has strengthened its value proposition and client relationships. These strategic initiatives have positioned dLocal for continued growth and success in the emerging markets.
DLocal's robust revenue growth can be attributed to several factors. The company's expansion into new countries and payment methods has allowed it to reach a broader customer base and offer more payment options. By launching operations in five new countries during 2022, dLocal expanded its footprint to 40 countries, powering over 900 payment methods through local-to-local and cross-border online pay-in and pay-out transactions. This expansion has enabled dLocal to tap into new markets and provide merchants with access to billions of users, ultimately driving revenue growth.
The integration of major players like MoneyGram has also played a significant role in dLocal's revenue growth and overall performance. During the third quarter of 2024, dLocal successfully integrated MoneyGram, one of the largest global providers of money transfer and payment services, to serve them across countries in Latam, Africa, and Asia. This strategic move expanded dLocal's merchant base and increased payment volumes, contributing to the company's 13% revenue growth and strong Q4 outlook.
DLocal's focus on cost efficiencies and pricing power has helped maintain its net take rate and gross profit margins during Q3 2024. The company's differentiated value proposition, continuous pursuit of cost efficiencies, and the real value in solving complexities across emerging markets granted it pricing power, which differentiated it from more commoditized payments offerings in the developed world. This strategy allowed dLocal to reach a record gross profit of $78 million with a stable net take rate of 1.2% since Q1 2024, despite weakness in most emerging market currencies.
DLocal's strong pipeline and continued growth opportunities with existing merchants and new merchants have significantly contributed to its Q3 2024 results and positive outlook for Q4. The company successfully integrated major players like MoneyGram and expanded its services with a leading Asian commerce player, demonstrating its ability to attract and retain high-value clients. Additionally, dLocal's entry into Brazil with a major global Fintech company highlights its strategic expansion into new markets. These developments, coupled with the company's strong performance across various verticals and countries, indicate a healthy pipeline that supports its growth trajectory.
DLocal's impressive 13% YoY revenue growth and robust Q4 outlook have driven an 8% after-hours gain in the stock. The company's success can be attributed to strategic initiatives such as expanding its merchant base, entering new markets, and investing in technology. DLocal grew its merchant base from 300+ in 2020 to over 600 in 2022, and expanded its footprint in emerging markets by launching operations in five new countries during 2022. The company's flexible and scalable platform, offering a single API, single platform, and single contract, enables it to reach billions of users across 40 countries and power over 900 payment methods. DLocal's focus on growing gross profit and EBITDA dollars, coupled with its diversification across verticals, regions, and products, has strengthened its value proposition and client relationships. These strategic initiatives have positioned dLocal for continued growth and success in the emerging markets.
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