DLocal Stock Falls On Q3 Earnings: Revenue Miss, EPS Miss, Soft Guidance
Portfolio Pulse from Adam Eckert
DLocal Ltd (NASDAQ:DLO) reported Q3 earnings with revenue and EPS below estimates, and provided soft guidance for full-year 2023. Revenue was $163.92 million versus the expected $168.51 million, and EPS was 13 cents compared to the forecasted 15 cents. Despite a 47% year-over-year revenue increase and a 69% increase in total payment volume, the reaffirmed revenue guidance of $620 million to $640 million falls short of the $645.96 million estimate. Additionally, CFO Diego Cabrera Canay is stepping down but will remain through Q1 2024 for a smooth transition. After the report, DLocal shares dropped significantly in after-hours trading.
November 21, 2023 | 9:54 pm
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NEGATIVE IMPACT
DLocal's Q3 earnings report showed lower-than-expected revenue and EPS, and the company's full-year 2023 revenue guidance was below analyst estimates. The CFO's departure announcement may also affect investor sentiment.
The negative earnings report, with both revenue and EPS missing expectations, is likely to have a direct negative impact on DLocal's stock price in the short term. The soft guidance for the upcoming year could further dampen investor sentiment. The CFO's decision to step down, although not immediate, introduces additional uncertainty which can be perceived negatively by the market.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100