Uruguayan fintech dLocal on Wednesday raised its forecasts for 2025, predicting higher ranges for its revenue and profit growth, after earnings surged ahead of analyst forecasts helped by solid results in Brazil and Mexico.
DLocal (DLO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
DLocal offers unique exposure to emerging market digital payments, with vast TAM and a strong moat against both local and global competitors. The company's profitability flywheel, geographic expansion, and full-stack fintech ambitions provide substantial long-term growth opportunities. Risks include high merchant concentration, currency volatility, and potential take rate compression from global fintech entrants.
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DLocal solves cross-border payment challenges in emerging markets via a single API, simplifying access for global businesses. Its moat lies in enabling seamless transactions across fragmented financial systems in Latin America, Africa, and Asia. Revenue is heavily concentrated in Latin America, but secular growth trends in emerging markets provide strong long-term catalysts.
DLocal's asset-light model, strong leadership in Latin America, consistent top (and bottom) line growth, and strong customer retention are reinforcing its expanding competitive moat. Despite take rate compression, DLocal's expansion into high-margin products, frontier markets, and efficiency supports robust revenue and profit growth, with a 6% dividend yield adding value. The company is well-positioned in emerging markets, leveraging tech innovation, API integration, local market know-how, and a dominant cross-border payments platform for long-term growth.
DLocal's unified payments platform enables global merchants to access emerging markets efficiently, driving rapid TPV and revenue growth. Despite market fears over a declining take rate, DLocal's Total Payment Volume (TPV) surged an incredible 53% year-over-year, signaling accelerating, not slowing, demand. Led by ex-Mercado Libre and Mastercard executives, DLocal's new management team brings unparalleled experience in scaling fintech operations in its key growth regions.
DLocal (DLO) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term.
dLocal acts as a toll bridge for global e-commerce in emerging markets, simplifying complex local payments and regulations through a single API integration. The new CEO, Pedro Arnt, brings proven experience from Mercado Libre, enhancing dLocal's growth prospects and operational execution in high-potential markets. Despite a declining take rate, dLocal maintains industry-leading margins and robust TPV growth, supported by strong cash reserves and consistent profitability.
DLocal (DLO) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
DLocal (DLO) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Lesser-known Uruguayan fintech stock dLocal Ltd (NASDAQ:DLO) is one of the best stocks on Wall Street today, last seen up 13.4% to trade at $11.59.