The Uruguayan payments unicorn registered a decline in its profits, which fell to less than US$18M.
The Uruguayan payments unicorn, dLocalreported an interannual drop of 50.1% in its profits during the first quarter, which fell to 17.72 million dollars, mainly affected by a decrease in profit ebitda —English acronym— (earnings before interest, taxes, depreciation and amortization).
The decline in EBITDA profit, which was confirmed this Tuesday, was caused by pressure from higher corporate expenses, as well as higher tax rates.
On the other hand, the company’s revenue increased 34% compared to the same quarter last year, reaching $184 million. However, the figure showed a decline of 2% in comparison to the last three months of 2023, largely explained by seasonal factors, according to the results report itself.
dLocalnoted that its quarterly ebitda profits reached $37 million, that is, a decrease of 19% year-on-year and a drop of 25% compared to the fourth quarter of 2023.
Likewise, the company reported that quarterly payment volumes grew 49% year-over-year to $5.3 billion; while operating profit stood at almost 27 million dollars, that is, a year-on-year decrease of 32%, generated by a lower gross profit and a 60% increase in operating expenses.
dLocal loses ground in Argentina, but grows in Brazil and Mexico
From this, the gross profit in the Latin American market of dLocal fell 8% year-on-year to 48.6 million dollars, largely due to the result in Argentinawhere gross profit plummeted 71% year-over-year due to exchange rate adjustments, since in the past the company benefited from higher differentials between currencies.
Without taking Argentina into account, gross profit in the region grew 24% year-on-year, driven by the solid performance of its most competitive markets: Brazil and Mexico.
Source: Ambito
