Dlocal Ltd (NASDAQ:DLO) stock plunges 26.18% (As on May 15, 11:23:53 AM UTC-4, Source: Google Finance) after the company missed the analysts’ expectations for the first quarter of FY 24. DLocal’s Total Payment Volume (TPV) showcased a robust year-over-year (YoY) increase of 49%, reaching a record $5.3 billion. TPV growth was solid across many verticals, with ecommerce nearly tripling, remittances practically doubling, and ride-hailing, SaaS, each growing north of 50% YoY. In addition, in 1Q24, the company saw cross-border (“XB”) processing hit a new record of $2.4B in TPV with volumes increasing by 9% QoQ. Cross-border remains the core of the value proposition, and witnessing a return to sequential growth is a great indicator. Local-to-local, despite being flat QoQ driven by seasonal effects, delivered TPV growth at nearly 80% YoY. The ongoing success of the local processing confirms that the world-class orchestration offering – which includes the AI powered smart routing to optimize traffic routes to deliver higher conversion rates, robust fallback and redundancy offering, efficient fraud prevention engines, best in class KYC/compliance layer, and merchant specific features – provides to global merchants a superior offer to what they can receive through direct integrations to local acquirers and alternative payment methods. The payouts business grew 17% QoQ and over 50% YoY. The quarterly pick up is particularly interesting, and driven by a strong Q1 ramp-up in remittance corridors for the partners.

DLO in the first quarter of FY 24 has reported the adjusted earnings per share of 7 cents, missing the analysts’ estimates for the adjusted earnings per share of 11 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 30 percent to $184.43 million in the first quarter of FY 24, missing the analysts’ estimates for revenue by 5.54%. The  gross profit growth was relatively flat, at 2% YoY. Revenue and gross profit decreased 2% and 10% QoQ. From a geographic standpoint, the company saw very strong performance in the key markets, Brazil and Mexico, with revenues increasing 89% and 50% YoY respectively, and gross profit growing, 63% and 44% YoY, respectively. The weaker QoQ performance was driven by seasonality in the commerce vertical, in addition to the higher volume price tiering alongside the renegotiation of this top merchant. In Africa and Asia, DLO saw strong revenue and gross profit growth, increasing by 51% and 60% YoY, respectively.