Online-payments services provider DLocal Ltd (NASDAQ:DLO)’s shares surged after reporting robust quarter two earnings. The number not only reflects positive movement but warrants some attention from Wall Street. DLocal shares have witnessed an increase of 26.68% and were as high as $68.61, demonstrating the peak after hitting the public markets in June.
The online-payments services provider beat analysts’ revenue estimates of $40.5 million as it had a top line of $59 million. Additionally, it surpassed analysts’ earnings-per-share expectations of $0.05. Dlocal has done expansion in the last quarter to countries like Malaysia, Vietnam, and Guatemala. The firm now gives its services to customers in more than 30 countries and also added over 10 new merchants in the previous quarter.
DLocal also said that the total payment volume was $1.5 billion in the previous quarter, resulting in a year-over-year increase of 319%, whereas growth over the previous quarter was 57%.
Management estimates that the firm’s growth may be attributed to the travel and ride-hailing industry rebound from the fall due to pandemic.
Furthermore, banking company HSBC has hiked target price from $52 to $55, which is noteworthy as Citigroup and New Street initiated coverage on the stock post its IPO with a target price of $50.
The expansion should come as welcome news for investors who bought the stock post its IPO. Additionally, new merchant platforms should be positive for their growth plans.