South American Fintech DLocal Shares Surge, Total Payment Volume Jumps 41% In Q3

DLocal Limited DLO shares are trading higher premarket Thursday after the company reported better-than-expected third-quarter results.

Revenues rose 13% year-over-year to $185.8 million and increased 8% quarter-over-quarter growth. The company credited this boost to strong performances in Latin America, Egypt, Africa and Asia.

Total Payment Volume (TPV) surged 41% year-over-year and 8% quarter-over-quarter to $6.5 billion in the third quarter.

In third quarter of 2024, pay-ins TPV rose 35% year-over-year and 8%  quarter-over-quarter to $4.6 billion, making up 71% of total TPV.

Pay-outs TPV increased 58% year-over-year and 7% quarter-over-quarter to $1.9 billion, representing 29% of TPV.

Cross-border TPV grew 35% year-over-year and 12% quarter-over-quarter to $3.0 billion (47% of TPV), while local-to-local TPV climbed 47% year-over-year and 4% quarter-over-quarter to $3.5 billion (53% of TPV).

Gross profit totaled $78.2 million. This reflects an increase of 5% year-over-year and a 12% quarter-over-quarter.

DLocal noted higher volumes in Egypt, South Africa, Mexico, and Other Latin American markets.

Consequently, the gross profit margin came in at 42%, down from 45% in the third quarter of 2023 and up from 41% in the second quarter of 2024.

Adjusted EBITDA fell 6% year-over-year to $52.4 million, with adjusted EBITDA margin of 28%, vs. 34% in the third quarter of 2023.

EPS of nine cents missed the consensus of 11 cents.

As of Sept. 30, DLocal had cash and cash equivalents of $560.5 million, including $208.0 million of own funds and $352.5 million of merchants’ funds.

Price Action: DLO shares are up 19.4% at $10.78 premarket at the last check Thursday.

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