What happened
Shares of dLocal Limited (DLO -4.21%) charged sharply higher Wednesday, gaining as much as 33.2%. As of 1:26 p.m. ET, the stock was still up 24.3%.
The catalyst that sent the Uruguayan fintech higher was its quarterly financial report, which illustrated robust growth that outpaced expectations.
So what
In the first quarter, dLocal generated revenue of $87.5 million, up an eye-catching 117% year over year. The company's net income improved by 56% to $26.3 million, resulting in earnings per share of $0.08. To put those numbers in context, analysts' consensus estimates were calling for revenue of $82.8 million and earnings per share of $0.07.
Image source: Getty Images.
Total payment volume soared 127% year over year to $2.1 billion, while gross profit jumped 87% to $43.6 million. And dLocal's results were robust across its major markets. Revenues from Latin America, which represents the lion's share of its business (89%) surged 116%, while its Asia and Africa segment jumped 117%.
Customer metrics also impressed, with a net revenue retention rate of 190%. Put another way, customers that have been with the company for more than one year are spending 90% more with it this year than last.
The results were surprising considering the challenges that some other fintech and payment processing companies have been experiencing recently. In the earnings release, management said that despite the challenges of the macro-environment, "our business has shown resilience and continues to benefit from the diversity of our merchants across industry verticals, geographies, products, and consumer behavior patterns." Additionally, the company pointed out that it has no exposure to Russia or Ukraine.
Now what
The company doesn't provide quarterly guidance, focusing on the long road ahead. That said, there's every indication that dLocal's impressive growth will continue.
Chief Operating Officer Sumita Pandit said the company remains "extremely bullish" on the growing opportunity, having expanded its services into Rwanda and the Ivory Coast during the first quarter.
It's still early days for dLocal, but based on what it has done so far, this stock has all the earmarks of a buy.
