Core Viewpoint - DLocal Limited has experienced a significant surge in its stock price following a strong earnings report, indicating a potential shift in market sentiment towards the company's growth prospects and operational efficiency [2][12]. Financial Performance - Total Payment Volume (TPV) reached a record $9.2 billion, reflecting a 53% year-over-year increase and a 14% sequential growth, marking the third consecutive quarter of over 50% growth [2]. - Revenue for the quarter was $256.5 million, exceeding estimates of $229.7 million, representing a 50% year-over-year growth and an 18% increase from the previous quarter, with constant currency revenue growth at 63% [3]. - Adjusted EBITDA was $70.1 million, surpassing expectations of $55.8 million, up 64% from the previous year, with margins steady at over 27% [4]. - Free cash flow increased by 156% year-over-year to $48 million, demonstrating strong cash generation even amid ongoing investments [4]. - Operating expenses grew only 9% year-over-year, significantly lower than revenue growth, indicating effective cost management and operational leverage [5]. Guidance and Market Sentiment - Management raised full-year guidance, now projecting revenue of approximately $1.01 billion and adjusted EBITDA of $274 million, reinforcing confidence in sustained growth momentum [7]. - The company has improved its communication and execution under CEO Pedro Arnt, which has positively influenced investor perception [8]. Growth Drivers and Competitive Positioning - DLocal's growth is supported by three structural tailwinds: a large addressable market in underpenetrated digital payments, increased share-of-wallet with existing merchants, and early-stage adoption by new clients [9]. - The company differentiates itself by innovating local payment infrastructure in emerging markets, serving global companies in regions with low digital penetration while maintaining high margins [10]. Analyst Attention and Stock Outlook - Following the strong quarterly results, HSBC upgraded DLocal's stock from Hold to Buy, raising its price target from $11.50 to $15, citing cost discipline and improved capital efficiency as key factors [11]. - The recent stock rally of 43% raises questions about whether the optimism has already been priced in or if further revaluation is possible for this payments leader [13].

Core Viewpoint - DLocal's strong Q2 performance led to a significant stock price increase and an upgrade in rating by HSBC, reflecting positive market sentiment and growth potential [1][2]. Financial Performance - DLocal reported Q2 revenue of $256 million, exceeding market expectations by 11% and up from $171 million in the same period last year [1]. - The company's Q2 earnings per share (EPS) were $0.14, surpassing the market average estimate of $0.13, although slightly down from $0.15 in the previous year [1]. - HSBC raised its target price for DLocal to $15, indicating a potential upside of 28.31% from the closing price [1]. Analyst Insights - Analyst Neha Agarwal highlighted DLocal's significant long-term growth potential and recent growth momentum, suggesting the company is on the right track [2]. - HSBC increased its EPS forecasts for DLocal for 2025 to 2027 by 6% to 9%, with a projected gross profit of $396 million for 2025 [2]. - Morgan Stanley maintained a "neutral" rating on DLocal but raised its target price to $15, noting a year-to-date stock price increase of over 25% compared to a 10% rise in the S&P 500 [2].

DLocal Limited (NASDAQ: DLO ) is a company that combines a low price-to-earnings over with a 50% revenue growth. And even though it is still a small company, it is already well established in its industry and Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Seeking Al ...

Group 1 - DLocal reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $0.15 per share a year ago, representing an earnings surprise of +7.69% [1] - The company posted revenues of $256.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.00%, compared to $171.28 million in the same quarter last year [2] - DLocal has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Group 2 - The stock has underperformed the market, losing about 2.6% since the beginning of the year, while the S&P 500 gained 9.6% [3] - The current consensus EPS estimate for the coming quarter is $0.15 on revenues of $245.84 million, and for the current fiscal year, it is $0.60 on revenues of $969.24 million [7] - The Zacks Industry Rank for Financial Transaction Services is in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - The company achieved a record high Total Payment Volume (TPV) of $9.2 billion, marking a 53% year-over-year growth and a 14% quarter-over-quarter increase [4][18] - Revenue reached $256 million, growing 50% year-over-year or 63% on a constant currency basis, with an 18% quarter-over-quarter increase [5][19] - Gross profit hit a record of $99 million, up 42% year-over-year or approximately 55% on a constant currency basis [5][20] - Net income for the quarter totaled $43 million, negatively impacted by the Argentine peso devaluation [5][25] - Free cash flow was $48 million, a significant 22% increase from the first quarter [8][25] Business Line Data and Key Metrics Changes - Growth was particularly strong in remittances and commerce, followed by SaaS, delivery, streaming, and ride-hailing, with some weaknesses in advertising [18] - The company added three new licenses in the UAE, Turkey, and the Philippines, enhancing its portfolio of financial services licenses [8] Market Data and Key Metrics Changes - The top three markets now represent less than 50% of revenues, down eight percentage points since 2023, indicating increased geographic diversification [12] - Revenue in the rest of the markets is growing almost three times faster compared to the last four quarters [12] Company Strategy and Development Direction - The company is focused on expanding its merchant base and increasing share of wallet by integrating additional Alternative Payment Methods (APMs) [9] - The strategy includes significant investment in product innovation, with recent launches such as SmartPix in Brazil and buy now, pay later integrations [13][14] - The company aims to leverage stablecoin solutions, positioning itself as a key player in the emerging technology space [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, citing strong performance in the first half and sustained momentum across businesses [27][29] - Risks highlighted include evolving macroeconomic conditions, regulatory changes, and potential currency devaluation [28][29] Other Important Information - The company announced a transition to a majority independent Board and the cancellation of treasury shares held on the balance sheet [30][32] Q&A Session Summary Question: What drove the better-than-expected results? - Management noted strong momentum across Brazil, Mexico, and other markets, with a significant increase in localization of payments by global merchants [36][39] Question: Is the growth coming from a few particular merchants or across the board? - The growth is driven by the top 20 merchants, indicating a broad-based increase rather than concentration in a few [41][43] Question: Can you clarify the one-off processing costs in Brazil? - Management confirmed that part of the gain was a reversal, but Brazil is expected to sustain momentum in gross profit [47][50] Question: How do you see stablecoins impacting the business? - Management views stablecoins as an opportunity rather than a threat, emphasizing the company's unique position in providing on-ramps and off-ramps for stablecoin transactions [51][53] Question: What is the outlook for take rates? - Management expects a gradual decline in take rates, influenced by increased volumes and the introduction of new products [56][57] Question: Can you elaborate on tariffs as a risk? - Management highlighted potential risks from increased tariffs on cross-border e-commerce, particularly in Mexico, but noted no current negative impacts [66][70] Question: What is the strategy for offline payments? - The company is developing capabilities for offline payments in response to specific merchant contracts, indicating a shift in strategy [71][72] Question: What should be expected regarding operating expenses in the second half of the year? - Management anticipates an increase in operating expenses due to hiring and expansion into new markets and products [73][74]

Financial Data and Key Metrics Changes - The company achieved a record high Total Payment Volume (TPV) of $9.2 billion, marking a 53% year-over-year growth and a 14% quarter-over-quarter increase [5][18] - Revenue reached $256 million, growing 50% year-over-year and 63% on a constant currency basis [19] - Gross profit hit a record of $99 million, up 42% year-over-year or approximately 55% on a constant currency basis [20] - Net income for the quarter totaled $43 million, negatively impacted by the Argentine peso devaluation [6][24] - Free cash flow was $48 million, reflecting a 22% increase from the first quarter [24] Business Line Data and Key Metrics Changes - Growth was particularly strong in remittances and commerce, with notable contributions from Brazil, Mexico, Argentina, Turkey, South Africa, and Pakistan [18][19] - The company added three new licenses in UAE, Turkey, and the Philippines, enhancing its portfolio of financial services licenses [8] Market Data and Key Metrics Changes - The top three markets now represent less than 50% of revenues, indicating increased geographic diversification [13] - Revenue in the rest of the markets is growing almost three times faster compared to the last four quarters [13] Company Strategy and Development Direction - The company is focused on expanding its merchant base and increasing share of wallet by integrating additional Alternative Payment Methods (APMs) [10] - Investment in product innovation continues, with recent launches including SmartPix in Brazil and buy now, pay later integrations [14][15] - The company is positioning itself to leverage stablecoin opportunities, emphasizing its capabilities in on-ramps and off-ramps for stablecoins [15][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2025, despite potential risks from macroeconomic changes and regulatory shifts [26] - The company is confident in its ability to navigate challenges and seize opportunities in emerging markets [27] Other Important Information - The company announced a new CFO, Guillermo Lopez Perez, and emphasized its commitment to transitioning to a majority independent Board [28][30] - The company plans to cancel treasury shares held on its balance sheet, reflecting strong underlying business growth [30] Q&A Session Summary Question: What drove the better-than-expected results? - Management noted strong momentum across the board, particularly in Brazil and Mexico, with a pickup in interest in localizing payments from global merchants [36][38] Question: Is the growth coming from a few particular merchants or across the board? - The growth is driven by the top 20 merchants, indicating a broad-based increase rather than concentration in a few [40][41] Question: Can you clarify the one-off processing costs in Brazil? - Part of the gain was a reversal, but Brazil is expected to sustain its momentum moving forward [49] Question: How do you see stablecoins impacting the business? - Management views stablecoins as an opportunity rather than a threat, emphasizing their unique position in the stablecoin value chain [51][52] Question: What is the outlook for take rates? - The general trend for take rates is slightly downward, but the pace of decline may be more gradual than previously expected [57][58] Question: Can you elaborate on tariffs as a risk? - Tariffs could hinder cross-border commerce, which is the largest category serviced by the company, but no negative impacts have been observed so far [68][70] Question: What is the strategy for offline payments? - The company is developing capabilities to process payments at POSs in the physical world, responding to specific merchant contracts [71][72] Question: What should be expected regarding operating expenses in the second half of the year? - Operating expenses are expected to continue increasing due to hiring and expansion into new markets and products [73][74]

Financial Performance - dLocal reported quarterly earnings of 14 cents per share, meeting analyst consensus estimates [1] - Quarterly revenue reached $256.45 million, exceeding the Street estimate of $229.65 million and increasing from $171.27 million in the same period last year [1] - Total Payment Volume hit a record $9.2 billion in Q2, up 53% year-over-year from $6 billion in Q2 2024 and up 14% from $8.1 billion in Q1 2025 [2] Management Commentary - CEO Pedro Arnt highlighted solid growth and disciplined execution, emphasizing the acceleration in key financial metrics and the value provided to merchants [3] Future Outlook - dLocal anticipates fiscal 2025 revenue growth of 30% to 40% year-over-year [3] Stock Performance - dLocal stock increased by 15.48% to $13.50 in after-hours trading [4]

Earnings Presentation 2Q25 Earnings Presentation Q1'25 ➔ 1 Forward-looking statements 2Q25 Earnings Presentation ➔ 4 This presentation may contain forward-looking statements. These forward-looking statements convey dLocal's current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance involve known and unknown risks, uncertainties and other factor ...

Core Viewpoint - dLocal Limited has appointed Guillermo López Pérez as the new Chief Financial Officer, enhancing its leadership team and supporting its growth strategy in the cross-border payments sector [1][2][4]. Group 1: Appointment Details - Guillermo López Pérez will join dLocal in the coming months and will report directly to CEO Pedro Arnt [1]. - The appointment is seen as a strategic move to strengthen dLocal's leadership, with Guillermo bringing over 25 years of experience in finance and payments from companies like Visa and American Express [2][4]. Group 2: Guillermo's Background - Guillermo has previously served as CFO at Featurespace, focusing on fraud prevention, and held leadership roles at Tink and Visa's Continental Europe business [2]. - His extensive experience includes a 13-year tenure at American Express, where he held various leadership positions [2]. Group 3: Company Strategy and Vision - Guillermo expressed enthusiasm about contributing to dLocal's growth in emerging markets and strengthening its position in the cross-border payments sector [3]. - The company aims to drive growth, enhance operational excellence, and deliver long-term value to stakeholders [3][4]. Group 4: Company Overview - dLocal operates a technology-first payments platform that connects global enterprise merchants with consumers in over 40 emerging market countries across Africa, Asia, and Latin America [5]. - The "One dLocal" platform allows global companies to manage payments, pay-outs, and fund settlements efficiently without needing multiple local entities or payment processors [5].

Core Insights - dLocal achieved a record Total Payment Volume (TPV) of US$9.2 billion in Q2 2025, marking a 53% year-over-year increase and a 14% increase from Q1 2025 [7][11] - The company reported strong financial performance with significant growth in revenue, gross profit, and adjusted EBITDA, reflecting a healthy business model [5][10] - dLocal's management has updated its full-year 2025 guidance, indicating optimism based on strong performance in the first half of the year [2][6] Financial Performance - Revenue for Q2 2025 reached US$256.5 million, up 50% year-over-year from US$171.3 million in Q2 2024 [10][11] - Gross profit was US$98.9 million, representing a 42% increase compared to US$69.8 million in Q2 2024 [10][11] - Adjusted EBITDA for the quarter was US$70.1 million, a 64% increase from US$42.7 million in Q2 2024, with an adjusted EBITDA margin of 27% [10][11] Cash Flow and Liquidity - dLocal generated US$48 million in free cash flow for Q2 2025, a 156% increase year-over-year [10][11] - As of June 30, 2025, the company had US$476.9 million in cash and cash equivalents, including US$253.8 million in corporate cash [10][11] Market and Operational Highlights - The company experienced solid results in Brazil and Mexico, with the fastest growth occurring in other geographies, leading to increased diversification [1][7] - dLocal's operational leverage improved, with adjusted EBITDA over gross profit increasing to 71% for Q2 2025, marking the fifth consecutive quarter of improvement [1][10] Governance and Strategic Initiatives - dLocal is transitioning to a majority independent Board of Directors and has initiated the search for additional independent directors [8] - The company plans to cancel treasury shares, highlighting its commitment to returning excess capital to shareholders [8]