Dlocal (NASDAQ:DLO), a recent addition to the payments platform movement, recently brought out its earnings report. The news was anything but good, as shares fell over 25% at the time of writing.
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Dlocal’s earnings report disappointed on multiple fronts. It posted earnings of $0.06 per share, which was good news until you found that the analyst consensus estimate called for $0.12 per share. Revenue also disappointed, though not by much; it came in at $118.4 million against projections calling for $120.2 million. The only bright spot in the report was that revenue was actually up 55.2% year-over-year.
However, one point particularly puzzled investors and analysts. Despite the huge miss in earnings and the solid revenue growth, Dlocal posted an enormous gain in total payment volume. It reached $3.3 billion, which represented not only a 21% growth in a quarter-over-quarter comparison but also a 78% increase in year-over-year comparisons. This was mainly due to its business mix, with local payouts on the rise, particularly against large global retail payments.
Dlocal’s last five days in trading were somewhat erratic but within a narrow band. The share price fluctuated quite a bit but tended to stay in the $16 – $17 range. At least, that was the case until today, when the bottom dropped out, and shares lost over a quarter of their value with little recovery on the horizon.