DLocal Limited's stock experienced a sharp pre-market plunge of 7.58% on Friday, as investors reacted negatively to the company's latest financial results.
The fintech company reported a 10% year-over-year decline in first-quarter net profit to $41.9 million, missing analyst estimates. Earnings per share of $0.14 fell short of expectations, with the results impacted by a one-off tax charge of $9.7 million and higher expenses from a recent investment cycle that offset strong payment volume growth.
Despite the profit decline, DLocal reported revenue of $335.9 million that beat analyst forecasts, with total payment volume surging 73% to $14.1 billion. The company's guidance for future periods remained unchanged, but investors focused on the deteriorating profitability metrics.
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