What happened
Some encouraging growth numbers and a fatter bottom-line figure in its latest completed quarter pushed DLocal's (DLO 1.50%) share price up on Thursday. The South American fintech's stock closed 1.4% higher on the day, narrowly beating the S&P 500 index's 0.9% gain, following the release of those results.
So what
For its first quarter, DLocal notched a new all-time quarterly record for total payment volume. This hit $3.6 billion, which was a robust 70% higher on a year-over-year basis. This filtered down into revenue that was just over $137 million, representing a 57% improvement. Generally accepted accounting principles (GAAP) net income also headed north, rising at a 35% rate to nearly $35.5 million ($0.11 per share).
While those growth numbers were chunky, they weren't too far away from analyst projections. On average, prognosticators following DLocal stock were estimating the company would book slightly over $134 million in revenue and net a profit of $0.11 per share.
In the earnings release, DLocal said that the reported growth was "underpinned by the value our solution delivers to our global merchants, who quarter after quarter decide to continue growing their businesses with us; as well as positive tailwinds across the markets that we serve."
Now what
DLocal didn't provide much of a glimpse of its future, as the company provided no guidance in the earnings release. That's very possibly a key reason why investors didn't get more excited about the results.
It did imply that it aims to continue on a growth path by expanding its operations and, by extension, its headcount. The fintech's employee rolls increased by 36% during the quarter, and it seems there's room for more. Hopefully, this will result in continued improvement in the financials.
