He dLocal Uruguayan unicorn goes through a period of devaluation of its shares in the Nasdaq and it has already had 9 consecutive weekly falls, which took its value to a new historical minimum of $8.10.
After overcoming a 2023 full of difficulties, the fintech began this year with new adversities, after the market reacted negatively in March to the loss of profits and then, in May, reported a 50.1% year-on-year drop in its profits during the first quarter.
Promptly, dLocal It began the year with a value of $17.35 per share, so, after 4 monthly declines in a row, it lost 53.31% of its value in just over 5 months.
When analyzing the value of the company, May began at around 3,924 million dollars, while its market capitalization It is today 2,397 million dollars, giving up 38.91% and losing 1,527 million in a few weeks.
dLocal’s quarterly results did not convince the market
The latest sharp drop in US stocks Uruguayan unicorn occurred on May 15, when they fell 26.6% after the year-on-year drop of 50.1% in their profits, which became 17.72 million dollars, affected by a drop in the ebitda profit.
Although the company’s revenue increased by 34% compared to the same period in 2023, reaching $184 million, the figure decreased by 2% compared to the previous quarter, losing ground in Argentina and despite the growth in Brazil and Mexico.
In its previous report, the fintech It generated revenues of $650 million last year, but its shares fell due to the decline in earnings per share, which in the last quarter of last year were $0.10, when analysts’ expectations were 0.15. dollars, according to the specialized site Investing.
The Uruguayan unicorn advances with a payment manual
To deal with the situation, dLocal launched the first Emerging Markets Payments Handbook, a guide to making successful transactions with local payment methods in Africa, Asia and Latin America, “Designed exclusively for international companies and has the necessary knowledge and context to expand into high-growth markets,” the firm stated.
Pedro Arnt, executive director of the firm, highlighted that “as our global population exceeds 8 billion people, with projections rising to almost 10 billion by 2050, the opportunities within the emerging markets “They have never been more promising.”
“In 2024, emerging and developing economies are prepared to contribute 66.7% to the global growth, surpassing their more developed counterparts,” Arnt assessed, while contrasting: “However, emerging markets are extremely fragmented and more than 50% of transactions are made in cash, while 80% are made through payment methods other than Credit cards”.
“Those challenges, combined with regulatory obstacles, can be very important,” he said of the brand new tool, which addresses all aspects of the payments context in emerging markets, including country-specific information that is difficult or impossible to find in other places.
Source: Ambito
