Since its IPO last June, dLocal (DLO 3.30%) has enjoyed an impressive year on many fronts. In this video clip from the "Future of Fintech" on Motley Fool Live, recorded on May 19, Fool.com contributor Danny Vena outlines the company's booming businesses and why it's so attractive to investors.
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Danny Vena: This is a profitable fintech as well, a lot of the software-as-a-service type companies that you see, you have to wait until they scale before they are profitable, in this case, this is a company that's profitable now. Investors had somewhat low expectations for this company going into the quarter.
What we've seen with so many fintech companies being brutalized by the market and what management said was our business has shown resilience and continues to benefit from the diversity of merchants across industry verticals, geographies, products, and consumer patterns, consumer behavior products. They also don't have any exposure to Russia or Ukraine which didn't hurt, but they saw strong growth across their verticals, but particularly in on-demand delivery, travel, e-commerce, and advertising.
They also are continuing to expand into these emerging markets. The two most recent were the Ivory Coast in Africa and Rwanda, bringing the total number of countries where they operate to 37. Now, you'll see from the second to last bullet point there that Latin America still represents about 89% of their total revenue, which still doubled by the way. But the rest of that is in these other emerging markets where they are just now beginning to put down roots and expand their operations.
This is an interesting company to me, it's not one that I have invested in yet, it's one that I've been watching ever since its IPO last year. I think that they have the opportunity to be a good little niche play where they handle the payments, they can be the PayPal (PYPL 3.54%) of these emerging markets. Not what PayPal is now, which is that whole digital wallet, but PayPal was back 20 years ago when it was the trusted payment source between merchants and customers.