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$DLO: Growth Slowed to 12%. That Is the Miss
DLocal misses earnings by 10% as transaction volume growth decelerates in Brazil and Mexico.
Key Points
- Q2 EPS of $0.18 missed consensus of $0.20 by 10%.
- Revenue growth slowed to 12% YoY from 18% in Q1.
- Currency depreciation in Brazil and Mexico created a $6.2M USD revenue headwind.
- Operating margins compressed to 12.8% due to expense growth outpacing revenue.
- Q3 EPS guidance of $0.19 meets consensus but offers no upside surprise.
What To Watch
- Q3 revenue growth rate to confirm if deceleration is structural.
- Exchange rate trends for Brazilian real and Mexican peso.
- Operating margin trajectory in Q3 as expense controls take effect.
- Any changes in take rates or merchant acquisition costs.