DLocal (NASDAQ:DLO) shares tanked nearly 13% in the pre-market session today after the payments platform’s third-quarter results lagged the Street’s expectations. EPS of $0.13 missed estimates by $0.02. Further, revenue of $164 million missed the cut by about $2.2 million, despite a nearly 47% year-over-year growth.
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During the quarter, the total payment volume (TPV) jumped by 69% year-over-year to $4.6 billion, and gross profit increased by 38% year-over-year to $74.5 million. Further, the company witnessed a robust 56% year-over-year increase in revenue from the Latin America region (LatAm).
However, a devaluation in the Nigerian Naira impacted revenue from the Africa and Asia region by 19% sequentially. Net revenue retention during the quarter stood at 141%.
For Fiscal year 2023, DLocal expects revenue to be in the range of $620 million to $640 million. Adjusted EBITDA for the year is seen landing between $200 million and $220 million.
Is DLO a Buy, Sell, or a Hold?
Overall, the Street has a Hold consensus rating on DLocal and the average DLO price target of $19.17 implies the stock may be fairly priced at current levels. But that’s after a nearly 28% surge in the company’s share price over the past six months.
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