Why DLocal Stock Is Soaring Wednesday

DLocal Limited DLO shares are trading higher Wednesday after the company reported better-than-expected financial results and reaffirmed full-year guidance.

What Happened: DLocal said second-quarter revenue increased 59% year-over-year to $161.1 million, which beat the consensus estimate of $151.18 million, according to Benzinga Pro. 

The online payments company reported quarterly earnings of 15 cents per share, which beat estimates of 13 cents per share.

Total payment volume increased 80% year-over-year, gross profit climbed 43% and adjusted EBITDA jumped 36%. 

"Our merchants recognize the value we add to their business, propelling our growth alongside theirs. During the quarter we experienced strong traction with our platform solution, in particular from marketplaces," said Sebastian Kanovich, co-CEO of dLocal.

DLocal reaffirmed its full-year revenue guidance of $620 million to $640 million versus estimates of $631.43 million. The company expects full-year adjusted EBITDA to be in the range of $200 million to $220 million. 

DLocal also said it appointed Pedro Arnt as co-CEO. 

Following the print, Susquehanna analyst James Friedman maintained DLocal with a Positive rating and raised the price target from $18 to $24.

See Also: Why Nu Holdings Shares Are Higher Today

DLO Price Action: DLocal shares were up 39.2% at $21.68 at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.