Pre-Market Trades In DLocal (DLO) Propelled By High Payment Volume And Strong Performance

After a strong rise in premarket trading, DLocal Limited (NASD: DLO) shares surged 15.36%, reaching an impressive $16.15. The previous session saw DLO’s stock close at $14.00, experiencing a slight decrease of -4.11% or -$0.6. The surge in DLO stock is nothing short of spectacular, especially after the recent announcement of their impressive financial results for the first quarter, which ended on March 31, 2023.

What Financial Information Has DLO Shared?

DLocal (DLO), a technology-first payments platform, has recently announced its financial results for the first quarter of 2023. The company showcased impressive growth in payment volume, revenues, gross profit, and adjusted EBITDA. With a surge in payment volume and a solid financial position, DLocal is positioning itself for continued success in the global payments industry.

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Record-Breaking Payment Volume

DLocal achieved remarkable growth in total payment volume (TPV), reaching a record US$3.6 billion in the first quarter of 2023. This represents a significant increase of 70% compared to the same period last year, showcasing the company’s ability to attract and serve a growing customer base. The substantial surge in payment volume highlights DLocal’s strong market position and its effective payment solutions.

Impressive Revenue Growth

DLO reported revenues of US$137.3 million in the first quarter of 2023, reflecting a robust year-over-year increase of 57%. This exceptional revenue growth can be attributed to the company’s expanding customer base and successful execution of its growth strategy. DLocal’s ability to generate consistent revenue growth demonstrates its strong market presence and the increasing demand for its payment solutions.

Stable Gross Profit And Margin

The first quarter of 2023 saw DLocal achieve a gross profit of US$61.8 million, representing a solid year-over-year growth of 42%. Although gross profit over TPV remained stable at 1.7% compared to the previous quarter, the gross profit margin declined from 50% in the first quarter of 2022 to 45% in the current quarter. This decrease was primarily due to a higher volume of transactions from global merchants in Nigeria, which had a lower gross profit margin. However, excluding Nigeria, the gross profit margin reached an impressive 54% in the first quarter of 2023.

Strong Adjusted EBITDA Performance

DLO delivered an adjusted EBITDA of US$45.5 million in the first quarter of 2023, demonstrating an impressive year-over-year growth of 38%. This solid performance indicates the company’s ability to efficiently manage costs while driving substantial revenue growth. Despite a slight decline in the adjusted EBITDA margin from the previous year, the first quarter of 2023 maintained a healthy margin of 33%, reflecting DLocal’s strong financial position and operational efficiency.

Enhanced Financial Position

As of March 31, 2023, DLoca (DLO) held a substantial cash and cash equivalents position of US$517.9 million, a remarkable increase from the previous year. This significant cash reserve, which includes both own funds and merchant funds, provides DLocal with a solid financial foundation for future growth opportunities. The company’s consistent investment in its share buy-back program also demonstrates its commitment to enhancing shareholder value.