Dlocal Ltd (NASDAQ:DLO) stock surges 25.65% (As on May 18, 11:37:48 AM UTC-4, Source: Google Finance) after the company beaten the topline estimates for the first quarter of FY 22. Total Payment Volume reached $2.1 billion in Q1, an increase of 127% Y/Y. The net revenue retention rate reached 190% for Q1. Revenue from New Merchants was $10.9 million compared to $6.8 million for 1Q21. Adjusted EBITDA grew by 84.2% Y/Y to $32.86 million, and margin contracted by 675 bps to 37.6%. The gross margin contracted by 800 bps to 49.8%, and the operating margin was 33.3%, compared to 46.7% in 1Q21. As of March 31, 2022, dLocal had $410.1 million in cash, cash equivalents, and marketable securities, compared with US$336.2 million as of December 31, 2021 and US$127.5 million as of March 31, 2021. The quarter-over-quarter increase of US$73.9 million reflects an increase of US$23.9 million in the funds and an increase of US$49.9 million in funds due to the merchants with respect to the fourth quarter of 2021. The company continued to expand its footprints in emerging markets, launching operations in Ivory Coast and Rwanda, bringing the total number of countries with services available to 37. The company continues to make disciplined investments in the infrastructure and people to support the expansion strategy while maintaining an Adjusted EBITDA margin of 38%. The total number of employees increased to 562 by the end of March 2022, a 54% year-over-year increase. Profit for the first quarter of 2022 was US$26.3 million, compared with profit of US$16.9 million, for the first quarter of 2021 and with profit of US$23.5 million, for the fourth quarter of 2021.

DLO in the first quarter of FY 22 has reported the adjusted earnings per share of 8 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 8 cents. The company had reported the adjusted revenue growth of 117 percent to $87.5 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $82.79 billion. During the first quarter 2022 dLocal saw triple digit year-over-year growth in TPV driven by the performance and continued growth of its merchants across most verticals, particularly in on-demand delivery, travel, commerce, advertising and SaaS. Revenue increased across all regions during the quarter, with LatAm growing 116% compared to the first quarter of 2021, accounting for 89% of the total revenue. Asia & Africa revenue, which accounted for the remaining 11%, increased by 127% compared to the first quarter of 2021.