Why DLocal Stock Got Hammered Today
Shares of financial technology (fintech) company DLocal (NASDAQ: DLO) got hammered on Friday after the company reported financial results for the fourth quarter of 2024. The Uruguayan company's take rates are falling, unsettling investors. And that's why DLocal stock was down a crushing 32% as of 2:50 p.m. ET.Investors who like growth likely enjoyed reading parts of DLocal's Q4 report. The company's total payment volume was up an incredible 45% in 2024, including a 51% year-over-year jump in Q4. This volume growth allowed its Q4 revenue to grow by 9% to $205 million and its Q4 net income to increase by 4% to nearly $30 million.Observant investors will notice a steep drop-off in the growth rate for payment volume and revenue. And this is because DLocal's take rate -- the amount of a transaction that it gets to keep -- is falling. The take rate was around 1.2% going into the quarter, but in Q4 it dropped to 1.1%.Continue reading
Shares of financial technology (fintech) company DLocal (NASDAQ: DLO) got hammered on Friday after the company reported financial results for the fourth quarter of 2024. The Uruguayan company's take rates are falling, unsettling investors. And that's why DLocal stock was down a crushing 32% as of 2:50 p.m. ET.
Investors who like growth likely enjoyed reading parts of DLocal's Q4 report. The company's total payment volume was up an incredible 45% in 2024, including a 51% year-over-year jump in Q4. This volume growth allowed its Q4 revenue to grow by 9% to $205 million and its Q4 net income to increase by 4% to nearly $30 million.
Observant investors will notice a steep drop-off in the growth rate for payment volume and revenue. And this is because DLocal's take rate -- the amount of a transaction that it gets to keep -- is falling. The take rate was around 1.2% going into the quarter, but in Q4 it dropped to 1.1%.
