Growth stocks rocketed in the first quarter as markets priced in Federal Reserve rate cuts. Indeed, based on history, the best growth stocks to buy in April will benefit if the Fed cuts rates.According to Schroders, stocks have had an average return of 11% since 1928, twelve months after the Fed began rate cuts. And, if we are just in the early innings of a bull market, growth stocks could have several years of appreciation.Further, the bull case is even stronger based on economic data. First, the unemploym ...

Investors looking for stocks in the Financial Transaction Services sector might want to consider either PagSeguro Digital Ltd. (PAGS) or DLocal (DLO) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank ...

LONDON, March 21, 2024 (GLOBE NEWSWIRE) -- dLocal, the leading cross-border payment platform specializing in high-growth markets, is proud to announce its strategic partnership with Ebury, a leading global fintech company. The collaboration aims to transform payment solutions, rapidly unlocking opportunities across Africa's largest markets. By leveraging dLocal's payment solution, Ebury can seamlessly manage both pay-ins and payouts while optimizing costs and delivery times and providing world-class support ...

Shares of dLocal (DLO -17.49%) plunged 17.5% on Tuesday after the Uruguay-based fintech announced weaker-than-expected quarterly results.DLocal's "extraordinary" results just weren't enoughFourth-quarter 2023 revenue grew 59% year over year to $188 million, translating to adjusted (non-IFRS) net income of $40.6 million, or $0.14 per share. Analysts on average were modeling slightly higher adjusted net income of $0.15 per share, but lower revenue of $173.2 million.Within dLocal's results, fourth-quarter tota ...

Company Overview and Growth - The company has a limited operating history since its inception in 2016, and its revenue growth rate is expected to slow down as the business matures[54]. - The company is experiencing significant expansion and plans to continue investing in infrastructure and internal controls to manage growth effectively[58]. - The company must continuously invest in new product development and market expansion to remain competitive, which carries risks of cost overruns and delays[46]. - The company’s growth depends on its ability to attract and retain merchants, and any failure in this area could limit revenue growth[51]. - The company is expanding into new geographies and industry verticals, which may strain resources and introduce new challenges[62]. - The company plans to hire approximately 100 people over the next year and 300 people in the medium term in Argentina, with an aggregate investment of up to US$ 100 million, including purchasing government bonds[195]. Financial Performance and Risks - The company relies on a limited number of large merchants for a significant portion of its revenues, and any reduction in business from these merchants could harm its financial performance[40]. - The top 10 customers accounted for 60% of total revenues in 2023, highlighting reliance on a small number of clients[70]. - The company’s working capital needs may grow beyond its cash generation capabilities, potentially leading to a decline in cash reserves and slower growth[56]. - The company is exposed to fluctuations in foreign currency exchange rates, particularly with currencies such as the Brazilian real, Mexican peso, and Euro, which may significantly impact financial results due to translation risk[91]. - The electronic payment industry is heavily dependent on consumer spending, which could be adversely affected by economic conditions, leading to reduced revenue[119]. Competition and Market Position - The company faces substantial competition in the payment services market, with competitors potentially offering lower prices and better services, which could adversely affect its market position[50]. - The company relies on third-party services, and any disruptions could materially affect its operations and financial condition[111]. - The company’s transaction processing capabilities must grow to accommodate increasing transaction volumes, or it risks harming its business[62]. Regulatory and Compliance Challenges - The company is licensed and regulated in the EU as an Electronic Money Issuer and operates in 40 countries, primarily in Latin America, including Brazil, Mexico, Argentina, and Chile[81]. - The company is in the process of obtaining additional regulatory approvals in various countries, including the UK, UAE, and Nigeria[81]. - The company may face significant costs and operational challenges due to evolving data protection laws and compliance requirements[78]. - The company is subject to regulatory oversight by FinCEN and must report currency transactions exceeding US$10,000, with penalties for non-compliance that could adversely affect financial condition and operations[146]. - Compliance with operating rules set by payment networks and credit card schemes is mandatory, and violations could lead to penalties, service suspensions, or increased operational costs[130]. Cybersecurity and Data Protection - The company faces potential cybersecurity threats that could result in data breaches and negatively impact its reputation and financial condition[73]. - The company does not maintain insurance coverage for cybersecurity risks, which may lead to significant expenditures in the event of a breach[79]. - The company experienced a cybersecurity breach in 2019, resulting in a loss of approximately US$516 thousand due to fraudulent cash withdrawals[75]. - The company expects to continue investing significant resources to enhance cybersecurity measures and comply with data protection laws[78]. Economic and Geopolitical Factors - The ongoing geopolitical conflicts may adversely affect the global economy, impacting the company’s operations and market conditions[41]. - The ongoing conflict between Russia and Ukraine has led to increased inflation and volatility in financial markets, potentially impacting the company's operations[120]. - Inflationary pressures have increased recently across Latin America due to supply shocks, climate events, and currency depreciation, impacting economic conditions[201]. - Political, social, and economic uncertainties in Latin America, Africa, and Asia could materially affect the company's business and financial condition[211]. Ownership and Shareholder Dynamics - As of December 31, 2023, holders of Class B common shares own 45.29% of outstanding common shares and 80.54% of voting rights, significantly influencing corporate matters[44]. - The concentration of ownership among Class B shareholders may limit the ability of other shareholders to influence corporate matters[222]. - Class B shareholders have preemptive rights to maintain their proportional ownership, which could impair the company's ability to raise funds[223]. - The potential sale of a large number of Class A common shares may lead to a significant decline in their market price[224]. Operational Challenges - The company relies on manual processes for various operations, increasing the risk of errors and control deficiencies[156]. - The company must enhance its internal controls over financial reporting to comply with the Sarbanes-Oxley Act, with potential costs and management time implications[158]. - The company is dependent on its subsidiaries for operational funds and may face restrictions on payments and distributions due to financing arrangements[183].

Total Payment Volume Revenue Gross Profit Adjusted EBITDA1 +67% YoY $17.7B $650M +55% YoY $277M FY23 $202M +55% YoY | +11% QoQ $5.1B $188M +59% YoY | +15% QoQ $70M 4Q23 $49M +71% CAGR +63% CAGR +46% +37% YoY +32% YoY CAGR +43% +27% YoY | -6% QoQ +22% YoY | -11% QoQ Adjusted EBITDA1 CAGR Note: 1 dLocal has only one operating segment. Although Adjusted EBITDA may be commonly viewed a non-IFRS measure in other contexts, pursuant to IFRS 8, Adjusted EBITDA is treated by dLocal as an IFRS measure based on the ma ...

DLocal Limited (NASDAQ:DLO) Q4 2023 Earnings Conference Call March 19, 2024 8:30 AM ET Company Participants Pedro Arnt - Co-Chief Executive Officer Sebastian Kanovich - Co-Chief Executive Officer Sergio Fogel - Co-President and Chief Strategy Officer Diego Cabrera Canay - Chief Financial Officer Maria Oldham - Senior Vice President, Corporate Development, Investor Relations and Strategic Finance Soledad Nager - Head, Investors Relations Conference Call Participants Tito Labarta - Goldman Sachs Melissa Chen ...

Earnings Presentation Q4 2023 Pedro Arnt Co-Chief Executive Officer Sebastián Kanovich Co-Chief Executive Officer Sergio Fogel Co-President and Chief Strategy Officer Diego Cabrera Canay Chief Financial Officer Maria Oldham SVP - Corp. Development, Investor Relations and Strategic Finance EARNINGS PRESENTATION Q4 2023 4 We delivered another year of strong results with stellar TPV and revenue growth 5 Safe Harbor This presentation may contain forward-looking statements. These forward-looking statements conve ...

In this video, I will go over DLocal's (DLO 2.13%) fourth-quarter earnings report and explain why I remain bullish despite a short-term hit on the stock.*Stock prices used were from the trading day of March 18, 2024. The video was published on March 18, 2024. ...

MONTEVIDEO, Uruguay, March 18, 2024 (GLOBE NEWSWIRE) -- dLocal (NASDAQ:DLO), the leading cross-border payment platform specializing in high-growth markets, is pleased to announce the appointment of Dr. Verónica Raffo as an independent board member, effective March 18, 2024. Dr. Raffo will join the esteemed ranks of our Audit Committee, bringing with them a wealth of experience and expertise in corporate governance. Dr. Raffo brings a distinguished track record of accomplishments as a partner in Ferrere, one ...