While the market has no shortage of speculative biotech and tech names vying for your attention, many of these high-flyers are unlikely to see much upside going forward as they rapidly dilute shareholders. Instead, I prefer to focus on fundamentally sound companies trading at bargain valuations that are well-positioned to benefit from shifting economic trends and potentially lower interest rates. That's because, sometimes, these companies can offer moonshot stocks. Yes, chasing quadruple-digit gains comes w ...

Investing in dirt cheap stocks under $10 has a lot of appeal. One of the benefits is that a low share price allows you to buy more shares with a smaller amount of money. If the stock price increases significantly, even a small percentage gain can translate to a large return on your investment. DLocal (NASDAQ:DLO) operates a payment processing platform that helps businesses operating in international markets, especially emerging markets, accept payments from customers. That makes it especially attractive as ...

Core Viewpoint - DLocal Limited has experienced significant payment volume growth but is facing deteriorating margins, leading to investor pessimism following the Q1 report that highlighted these challenges [1][11]. Payment Volume and Revenue Growth - DLocal reported Q1 payment volumes of $5.3 billion, continuing its growth trajectory [3]. - Revenues increased by 34.3% in Q1, driven by strong performance in Brazil, Mexico, and Egypt, although there were declines in Argentina and Nigeria [3][4]. Margin and Profitability Concerns - The company's margins have weakened, with Q1 gross margins dropping to 34.1% and operating margins at 14.6%, significantly below long-term levels [19]. - The take rate fell to approximately 3.5% in Q1, raising concerns about future profitability as it is critical for maintaining high margins [14][19]. Future Outlook and Guidance - DLocal's 2024 outlook includes projected payment volumes of $25-27 billion and gross profit of $320-360 million, but there is skepticism regarding the ability to meet these targets following weak Q1 results [15]. - The company anticipates a gross profit growth of at least 15.6% in 2024, despite only a 1.8% improvement in Q1 [15]. Valuation and Investment Considerations - The discounted cash flow (DCF) model estimates DLocal's fair value at $12.46, indicating a potential upside of 68% from the current stock price [9]. - Despite the attractive valuation, the investment carries significant downside risks due to margin pressures and geographical challenges, particularly in Argentina [11][17]. Risk Factors - The company faces elevated risks related to its take rate and overall margins, with the potential for further declines impacting the investment case [11][17]. - The presence in emerging markets, particularly Argentina, poses additional risks that have already affected earnings [14][17].

MONTEVIDEO, Uruguay, July 22, 2024 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, "dLocal" or the "Company"), a technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets, intends to release financial results for its second fiscal quarter ended June 30, 2024 on August 14, 2024 after market close. The Company will host a conference call and video webcast on August 14, 2024 at 5:00 p.m. Eastern Time. Please click here to pre-register for ...

Group 1 - dLocal Limited plans to release its financial results for the second fiscal quarter ended June 30, 2024, on August 14, 2024, after market close [1] - A conference call and video webcast will be hosted on August 14, 2024, at 5:00 p.m. Eastern Time, with pre-registration available for participants [2] - dLocal operates a technology-first payments platform that connects global enterprise merchants with billions of consumers in emerging markets across regions such as APAC, the Middle East, Latin America, and Africa [3] Group 2 - The "One dLocal" concept allows global companies to manage payments, payouts, and fund settlements through a single direct API, platform, and contract, simplifying operations in various markets [3]

Finding obscure stocks with strong businesses can be a great investment strategy. Finding stocks that are a bit ignored by the market but are fantastic companies is a great investment strategy. These stocks can potentially have serious upside when the masses discover them. While no stock is really "unknown" today, with all the research available to individual and institutional investors, there is a certain level of popularity in the stock market. If you're looking to buy obscure stocks, consider these three ...

Core Viewpoint - DLocal's stock has experienced a significant decline of 27% following its first-quarter earnings report, yet the long-term outlook for the company remains positive [1] Financial Performance - DLocal reported its first-quarter earnings, which contributed to the stock price drop of 30.68% [1] - The earnings report indicates short-term challenges but suggests potential for long-term gains [1]

Financial Data and Key Metrics Changes - The company reported a record quarterly Total Payment Volume (TPV) of $5.3 billion, representing a growth of nearly 50% year-on-year [41] - Revenue growth was over 30% year-on-year, but gross profit growth was flat, leading to a decline in adjusted EBITDA [42] - Adjusted EBITDA came in at $37 million, down 19% year-on-year and 25% quarter-on-quarter, with an adjusted EBITDA margin of 20%, down 6 percentage points quarter-on-quarter [33][42] Business Line Data and Key Metrics Changes - The cross-border business returned to 9% quarter-on-quarter growth, hitting a new record of $2.4 billion in TPV during Q1 [21] - The payout business grew by 17% quarter-on-quarter and over 50% year-on-year, driven by a strong ramp-up in remittance corridors [22] - Revenue in Brazil increased by 89% year-over-year, while Mexico saw a 50% increase [24] Market Data and Key Metrics Changes - Revenues in Argentina were down 31% year-over-year, primarily due to currency devaluation and a decline in TPV [49] - In Africa and Asia, revenue growth was driven by Egypt, South Africa, Turkey, and the Philippines, with Egypt's TPV up 71% year-over-year [25] - Revenues in Nigeria were down 74% sequentially due to devaluation and a 35% decline in TPV [28] Company Strategy and Development Direction - The company is focused on sustaining planned investment increases to support long-term growth, even amid current gross profit levels [20] - The growing portfolio of regulatory approvals is seen as a competitive advantage for navigating complex regulatory environments in emerging markets [23] - The company aims to diversify its merchant base over time to reduce dependency on the top 10 merchants [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite short-term volatility, emphasizing the significant opportunities in emerging markets [89] - The company is tracking towards its 2024 objectives, albeit with a greater likelihood of coming in at the lower end of the guidance [61] - Management acknowledged the unpredictability of emerging markets but remains committed to delivering on its strategic plan [88] Other Important Information - The board authorized a share buyback program of up to $200 million, reflecting confidence in the company's capital allocation framework [34] - Operating expenses reached $36 million for the quarter, with a significant portion attributed to investments in technology and personnel [85] Q&A Session All Questions and Answers Question: Can you walk us through how to close the gap from 58% to 69% EBITDA to gross profit margin? - Management indicated that the most important part of closing the gap is the conversion of the existing pipeline to meet guidance [65] Question: What happened in Egypt, and how does the gross margin there compare to other markets? - Management noted that the Egyptian business benefited from wide FX spreads, but margins may tighten due to recent devaluation [73][99] Question: Are there any other significant merchant contract renewals that might impact gross profit guidance? - Management stated that they do not foresee similar renegotiations with other large merchants at this time, viewing the situation as isolated [123][124] Question: What are the reasons for the sequential decrease in revenues from Q4 to Q1? - Management explained that the decrease was primarily due to seasonality and the impact of a large merchant renegotiation [26][108] Question: Can you elaborate on the extra spending in the first quarter? - Management highlighted that the increased spending was focused on technology investments to accelerate product launches and enhance capabilities [130]

DLocal (DLO) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this online payment company would post earnings of $0.15 per share when it actually produced earnings of $0.14, delivering a surprise of -6.67%. Over the last four quarters, the ...

Investors interested in Financial Transaction Services stocks are likely familiar with Fidelity National Information Services (FIS) and DLocal (DLO) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision tr ...