DLocal drops almost 20% after reporting Q4 financial results

Shares of global payment processing platform DLocal (DLO) were down almost 20% in after-hours trading on Monday after the company reported financial results for the quarter… Pedro Arnt, CEO of dLocal said: “Looking ahead, I am even more excited for what’s to come. For 2024 we expect TPV growth of 40% to 50%, surpassing $26B of TPV at the midpoint. We see gross profit between $320 and US$360M and Adjusted EBITDA between US$220 and US$260m. We are committed to running a financial model that combines robust mid-term gross profit growth with an EBITDA margin that is among the best in our comparables. Therefore, we are re-affirming our mid-term guidance of 25%-35% gross profit CAGR and Adjusted EBITDA to gross profit of 75%+. The trajectory towards that mid-term guidance comes in for 2024 at around 70% Adjusted EBITDA over gross profit as we continue investing and tightening the foundations for long-term growth by further strengthening the dLocal team, with particular emphasis on our engineering talent pool; further upgrading back office capabilities and continuing to invest behind our license portfolio throughout emerging markets. The combination of these actions will further widen our moat and continue to position DLO as the go-to payments platform to serve emerging markets. As we look beyond 2024, we believe that as we conclude our short-term investment cycle, we will start to see the operational leverage inherent to our business kick in. We steer our business for decades, not quarters. We continue to have a high conviction in our massive opportunity. Other listed companies in the space include: PayPal (PYPL), Block (SQ), SoFi Technologies (SOFI) and Visa (V).