DLocal Ltd. (DLO), a company operating as a payments platform worldwide, has declined 5.93% in the premarket trading session. As a result, DLO stock is trading at $57 at the time of this writing. The quarterly results for Q3 2021 are perceived to be the reason behind this decline. On Monday, DLO closed the day at $60.59 after declining 1.14% during regular trading hours.
Q3 2021 financial results
DLO announced in the late hours of Monday the financial results for the third quarter of the fiscal year 2021 which ended on 30th September 2021. The company said that the total payment volume for the three months was between $1780 million and $1800 million. During the same period of 2020, however, the total payment value was about $572 million. The increase represented a growth of about 211% to 215%. The net revenue retention rate for the period was between 175% and 180% against 175% for the same period of the fiscal year 2020. The net revenue for the three-month period was estimated to be between $67 million and $68 million against $30.9 million for the same period of 2020. The prime reason for this staggering growth, of about 116% to 120%, was due to continued improvements in the company’s enterprise merchants across most verticals.
DLO began underwritten public offering
On the same day, i.e. Monday, DLO announced the beginning of underwritten public offering of 16,000,000 Class A common shares. The shares were being offered by certain selling shareholders. The shares were offered pursuant to a registration statement filed with US Securities and Exchange Commission. The selling shareholders would intend to grant the underwriters an option to purchase up to 2,400,000 additional class A common shares in connection with the offering. J.P. Morgan, Goldman Sachs & Co. LLC, Citigroup and Morgan Stanley were serving as the global coordinators for that offering.
Launch of dLocal direct issuing
On 21st September, DLO announced the launch of dLocal’s Direct Issuing, which is a service that enables the merchants to issue their own branded prepaid cards for online and in-store shopping in the local currency. Chilean fintech, namely Vita Wallet, was the first one to accept the product. Moisés Zambrano, CBO, and Founder of Vita Wallet said that the partnership between dLocal and Vita Card would enable people to shop, pay their bills and receive payments much faster.
What’s ahead for DLO?
During the last three months, DLO stock has surged more than 25%, primarily due to strong second-quarter results. For the future ahead, the situation seems sanguine. The business expansion plans of dLocal have proven to be exciting for the investors in past and would prove in the future as well.
