Group 1: dLocal Ltd (NASDAQ:DLO) - dLocal Ltd is currently one of the best-performing stocks on Wall Street, with a recent increase of 13.4% to a trading price of $11.59 [1] - The company's first-quarter earnings and revenue exceeded estimates, leading to a price-target increase from Susquehanna from $16 to $18 [1] - dLocal has reclaimed its year-to-date breakeven level and is up 17% over the last 12 months [1] Group 2: LendingClub Corp (NYSE:LC) - LendingClub Corp is down 4% to a trading price of $10.66 and has seen a decline of 34% year-to-date [1] - Despite a nearly 10% increase in May, the stock's rally has been halted at its 80-day moving average [1] Group 3: Robinhood Markets Inc (NASDAQ:HOOD) - Robinhood Markets Inc is down 2.8% to a trading price of $59.68, having recently attempted to reach its four-year high of $66.91 [2] - The stock has achieved a 60% gain year-to-date, with support at its 200-day moving average [2] Group 4: Affirm Holdings Inc (NASDAQ:AFRM) - Affirm Holdings Inc is down 6.8% to a trading price of $52.68 and has declined 13% year-to-date [3] - The stock faced resistance at its 126-day moving average but remains up 63% over the last 12 months [3] Group 5: Market Sentiment and Short Selling - dLocal Ltd shows significant contrarian potential, with five out of seven brokerages covering the stock maintaining "hold" ratings [3] - Nearly 15% of dLocal's total available float is sold short, indicating potential for upward movement [3]

I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a ...

Core Viewpoint - DLocal reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.07 per share a year ago, representing a 25% earnings surprise [1][2] Financial Performance - The company achieved revenues of $216.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.92%, and up from $184.43 million year-over-year [2] - Over the last four quarters, DLocal has exceeded consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance and Outlook - DLocal shares have declined approximately 12.5% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $227.42 million, and for the current fiscal year, it is $0.55 on revenues of $952.81 million [7] - The estimate revisions trend for DLocal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which DLocal belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The total payment volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase [6][17] - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19] - Gross profit also reached a record level of $85 million, up 35% year-over-year or nearly 60% in constant currency [20] - Net income for the quarter was $47 million, representing a 57% quarter-over-quarter increase and a 163% year-over-year increase [25] - Free cash flow amounted to $40 million, up from $33 million in the previous quarter, indicating a 22% increase [26] Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion for the first time [17] - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18] - The pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while the payouts business grew 12% quarter-over-quarter and 61% year-over-year [18] Market Data and Key Metrics Changes - The company experienced strong growth in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [6][7] - Geographic diversification contributed to sustained growth momentum, even amid challenges in specific markets [20] Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and service quality [5][10] - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [10][11] - The company aims to expand its licensed portfolio to navigate complex regulatory environments, adding three new registrations in the first quarter [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets, driven by demographic and technological shifts [31][32] - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [33] - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [34] Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [27][28] - The company plans to return 30% of free cash flow to shareholders annually, with the first dividend payable in 2026 [28] Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [36][39] Question: Operating Expenses and Take Rates - Operating expenses grew 3% in the quarter, with management noting a focus on responsible spending [46][48] - The decline in take rates was attributed to a mix shift away from a high take rate merchant in the advertising sector [49][50] Question: Performance in Other LATAM Markets - Strong performance in Other LATAM was driven by TPV growth in frontier markets, particularly in Chile [53][56] Question: Brazil's Revenue and Gross Profit Dynamics - Brazil's revenue and gross profit faced challenges due to a repricing from a major merchant and migration to a lower take rate product [62][65] Question: Capital Allocation and M&A Strategy - The company is exploring M&A opportunities to enhance its capabilities and is confident in its asset-light business model [87][70] Question: Trends in April and May - Management noted that trends in April and May have remained within expectations, with no significant signs of slowdown [93][94]

Financial Data and Key Metrics Changes - The total payment volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase [7][17] - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19] - Gross profit reached $85 million, up 35% year-over-year or nearly 60% on a constant currency basis [20] - Net income for the quarter was $47 million, up 57% quarter-over-quarter and 163% year-over-year [24] - Free cash flow amounted to $40 million, representing a 22% increase from the previous quarter [25] Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion [17] - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18] - The pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while the payouts business grew 12% quarter-over-quarter and 61% year-over-year [18] Market Data and Key Metrics Changes - Strong growth was noted in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [8] - The company experienced robust growth across multiple verticals, including remittances, commerce, financial services, and streaming [8] Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and service quality [6][12] - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [11][12] - The company aims to expand its licensed portfolio to navigate complex regulatory environments [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets despite short-term macroeconomic headwinds [30][31] - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [32] - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [33] Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [26][27] - The company plans to return 30% of free cash flow as annual dividends starting in 2026 [27] Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [38] Question: Operating Expenses - Operating expenses grew 3% in the quarter, with management indicating a focus on responsible expense management [45][48] Question: Performance in Other LATAM - Strong performance in Other LATAM was attributed to improved take rates and volume growth in frontier markets, particularly in Chile [56] Question: Brazil's Revenue and Gross Profit - Management noted that Brazil is beginning to stabilize, with volume growth expected to improve as execution enhances [64] Question: Competition and Market Dynamics - Management acknowledged that share losses in Mexico and Brazil could be attributed to competitive dynamics but expressed confidence in regaining market share through improved execution [78][82] Question: M&A Opportunities - The company is exploring M&A opportunities, particularly in acquiring subscale fintech companies that could complement its existing services [88] Question: Future Operating Expenses - Management expects operating expenses to increase in the coming quarters as investments ramp up, particularly in technology [92]

Financial Data and Key Metrics Changes - Total Payment Volume (TPV) reached $8 billion, reflecting a 53% year-over-year growth and a 5% quarter-over-quarter increase, with a constant currency growth of 72% [6][17]. - Revenue hit a record high of $217 million, up 18% year-over-year and 36% in constant currency [19]. - Gross profit reached $85 million, representing a 35% year-over-year increase or nearly 60% in constant currency [20]. - Net income for the quarter was $47 million, up 57% quarter-over-quarter and 163% year-over-year [25]. - Free cash flow amounted to $40 million, a 22% increase from the previous quarter [26]. Business Line Data and Key Metrics Changes - Cross-border flows grew 14% quarter-over-quarter and 76% year-over-year, reaching $4 billion [17]. - Local to local TPV decreased by 3% quarter-over-quarter but increased by 33% year-over-year [18]. - Pay-ins business grew 2% quarter-over-quarter and 49% year-over-year, while payouts business grew 12% quarter-over-quarter and 61% year-over-year [18]. Market Data and Key Metrics Changes - Strong growth was noted in emerging markets, particularly in Chile, Pakistan, Nigeria, Turkey, and Brazil [7]. - The company experienced robust growth across multiple verticals, including remittances, commerce, financial services, and streaming [7]. Company Strategy and Development Direction - The company is focused on strategic investments in technology and operations to enhance efficiency and expand service offerings [6][11]. - There is a commitment to leveraging automation and AI to drive operational efficiency and optimize performance [10][11]. - The company aims to grow its licensed portfolio to navigate complex regulatory environments, adding three new registrations in the first quarter [13]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of emerging markets despite short-term macroeconomic headwinds [30][32]. - The company anticipates continued demand for localized payment solutions as emerging markets gain prominence [33]. - Management reaffirmed full-year guidance and commitment to disciplined execution for sustainable growth [34]. Other Important Information - The Board of Directors approved a dividend policy, with an extraordinary cash dividend of approximately $150 million [27][28]. - The company plans to return 30% of free cash flow as annual dividends starting in 2026 [28]. Q&A Session Summary Question: Growth in Argentina and Mexico - Management indicated that growth in Argentina appears sustainable due to increased interest from global merchants, while Mexico requires better execution to reignite growth [38]. Question: Take Rates in Argentina - The higher take rates in Argentina are considered sustainable due to the nature of the products offered, which include receivables discounting [42]. Question: Operating Expenses - Operating expenses are expected to increase in subsequent quarters, but management emphasized a focus on responsible spending [48][91]. Question: Brazil's Revenue and Gross Profit - Brazil's revenue and gross profit have been impacted by a repricing from a major merchant and a migration to a lower take rate product, but management sees potential for recovery [66][68]. Question: Competition and Market Dynamics - Management acknowledged that share losses in Mexico and Brazil could be attributed to competitive dynamics but expressed confidence in regaining market share through improved execution [78][83]. Question: M&A Opportunities - The company is actively exploring M&A opportunities, particularly in the fintech space, to enhance its capabilities and market position [88].

Forward-looking statements 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 factors that may cause dLocal's actual results, performance or achievements to be materially dif ...

Record highs across key financial and operational metrics.TPV milestone of US$8 billion, +53% YoY and +5% QoQ. In constant currency, TPV increased +72% YoY.Revenue and gross profit record highs of US$217 million and US$85 million. Continued geographic diversification.Adjusted EBITDA of US$58 million, with Adjusted EBITDA/Gross Profit at 68%, demonstrating our ability to scale efficiently.Strong cash flow, with free cash flow to net income conversion at 85%, reinforcing cash generating financial model. MONTE ...

The market expects DLocal (DLO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May ...

Competition and Market Dynamics - The company operates in a highly competitive electronic payments market, facing substantial competition from larger firms with greater resources and established relationships with merchants [46]. - The company has a limited operating history since its inception in 2016, and its revenue growth rate is expected to slow as the business matures [51]. - The company may face pricing pressures from competitors who can offer lower prices through cross-subsidization, potentially impacting profit margins [47]. - The electronic payment industry is sensitive to economic conditions, with potential impacts from geopolitical tensions and inflation affecting consumer spending [115]. - The ongoing conflict between Russia and Ukraine has led to increased energy prices and inflation, which could further impact macroeconomic conditions globally [117]. Ownership and Control - As of December 31, 2024, holders of Class B common shares own 46.96% of outstanding shares and control 81.57% of voting rights, significantly influencing corporate decisions [41]. - The concentration of ownership among Class B shareholders may limit the ability of other shareholders to influence corporate matters [218]. - Class B shareholders have preemptive rights to acquire additional shares, which may impair the company's ability to raise funds [219]. - The dual class structure of common stock concentrates voting control, with Class B shares having five votes per share compared to one vote for Class A shares [227]. Regulatory and Compliance Risks - The company is subject to complex and evolving regulatory environments in the countries it operates, which could impact its ability to maintain necessary licenses and permissions [41]. - The company expects to expend significant resources to maintain compliance with evolving data protection laws, which could impose substantial costs and operational challenges [74]. - The company is licensed and regulated in multiple jurisdictions, including the EU as an Electronic Money Issuer and in the UK as a Payment Institution, with operations primarily in Latin America [80]. - The company may face reputational harm and legal liability due to challenges in managing artificial intelligence applications, which are increasingly integrated into its operations [75]. - The company is subject to stringent anti-corruption and anti-bribery laws, which impose liability for engaging in improper activities [141]. Financial Performance and Growth - The company is experiencing significant expansion and anticipates continued growth to address potential increases in its customer base and market opportunities [55]. - The top 10 customers accounted for 62% of the company's revenues in the year ended December 31, 2024, compared to 60% in 2023 and 50% in 2022 [66]. - The company’s future growth depends on its ability to attract and retain merchants, as well as to expand its product portfolio, including cryptocurrency processing [48]. - The company’s working capital needs may grow beyond its cash generation capabilities, leading to potential declines in cash reserves and slower growth [54]. Cybersecurity and Operational Risks - The company faces risks from cyberattacks and data breaches, which could materially affect its reputation and financial condition [68]. - The company experienced a cybersecurity breach in 2019, resulting in a loss of approximately US$ 516 thousand due to fraudulent cash withdrawals [71]. - The company has limited insurance coverage for cybersecurity risks, which may expose it to significant expenditures in the event of a major claim [78]. - The company relies heavily on third-party services, including Amazon Web Services, Google Cloud, and Microsoft Azure, for its operations, making it vulnerable to service disruptions [111]. Market and Economic Conditions - The company is exposed to currency risk from fluctuations in foreign exchange rates, particularly with currencies like the Argentine peso and Brazilian real, which have experienced significant devaluations [89]. - Political and economic instability in Brazil and Argentina poses risks to business operations, potentially affecting financial performance [192]. - The company faces challenges from inflationary pressures in Latin America, driven by supply shocks and currency depreciation, which may persist into early 2025 [196]. - The political environment in Latin America, Africa, and Asia significantly influences economic performance, with potential adverse effects on business operations [198]. Legal and Litigation Risks - Ongoing litigation and investigations could materially affect the company's financial position and results of operations, with potential reputational harm [167]. - The company may incur significant legal expenses related to cybersecurity attacks, which could negatively impact its financial condition [74]. - The company faces risks related to operational controls and procedures, which may fail or be circumvented, adversely affecting financial results [148]. Strategic Initiatives and Challenges - The company is expanding into new geographies and industry verticals, which may strain resources and introduce new challenges [58]. - The company is developing new payment solutions involving cryptocurrencies, which may expose it to additional regulatory risks and compliance challenges [86]. - The company may pursue strategic acquisitions, but there is no guarantee of finding suitable targets or completing acquisitions on acceptable terms [160]. - The success of acquisitions depends on accurate assumptions regarding valuation and integration; failure to integrate could lead to unforeseen costs and operational difficulties [161].