Uruguay’s dLocal posts 74% jump in Q2 net profit as platform grows

By Thomson Reuters Aug 22, 2022 | 4:52 PM

By Kylie Madry and Noe Torres

(Reuters) – Uruguayan payments firm dLocal posted a 73.5% increase in second-quarter net profit from the year before on Monday, hitting $30.7 million as payment volumes on its platform jumped by more than two-thirds.

Company revenue rose 71.6% to $101.2 million, beating the Refinitiv forecast of $98.53 million.

Dlocal’s revenue increase and a jump in total payment volumes come as the company adds new merchants and monetizes existing ones, Chief Executive Sebastian Kanovich said in a press release.

The company, which operates in 37 countries, continued expansion efforts in the second quarter, it said.

Revenue in the company’s Latin America segment grew 63% year-over-year, while more than doubling in its Africa and Asia segment, which accounts for a smaller percentage of its overall revenue.

Dlocal’s second-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 47.3% to $38.2 million.

Shares in the Uruguayan company, which is listed on the U.S. Nasdaq exchange, were down around 9% in after-hours trading after the market closed Monday. The trading price has fallen steadily in the months since dLocal went public last year, dropping 20% year-to-date.

(Reporting by Kylie Madry and Noe Torres; Editing by Brendan O’Boyle, Christian Plumb and Josie Kao)