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$DLO: On FX Headwinds; Revenue Growth Slows
DLocal reports Q2 EPS of $0.18 vs $0.20 est; revenue rises 12% YoY but guidance remains cautious amid currency volatility.
Key Points
- Q2 EPS of $0.18 missed consensus $0.20 by 5% due to FX losses and restructuring costs.
- Revenue of $148.5M rose 12% YoY, beating estimates and driven by 18% volume growth.
- Gross margin expanded 150 bps to 41.8%, offsetting some FX impact.
- Full-year revenue guidance reaffirmed at $580M-$595M; EPS guidance maintained at $0.72-$0.76.
- Operating cash flow improved 25% YoY to $18.2M, supporting positive FCF conversion.
What To Watch
- Q3 revenue growth rate and gross margin trends in Brazil and Mexico.
- FX impact on H2 earnings and potential hedging strategies.
- Expansion progress in Peru and Chile and associated capex requirements.
- Customer acquisition costs and take rate stability in emerging markets.