On Tuesday, Citi analyst Arnon Shirazi initiated coverage of DLocal Limited (NASDAQ:DLO) with a Buy rating and a $14.60 price target. This sentiment comes from DLocal’s expanding payment volume and strategic position. Global competition remains concentrated in developed markets, and DLocal is a certain choice for merchants that are looking to expand into emerging markets.
A modern payment processor with illuminated buttons in a busy financial district.
DLocal recently reported strong Q1 2025 financial results on May 14. The company achieved record highs in revenue, which reached $217 million and was up 18% year-over-year, as well as in gross profit, which stood at $85 million and grew 35%. Notably, the company’s Total Payment Volume/TPV surged by 53% year-over-year to $8.1 billion. It also grew 5% sequentially.
However, local-to-local TPV declined 3% sequentially due to seasonality and partial loss of share with a large merchant in Mexico. Increased processing costs in South Africa and Nigeria also impacted gross profit margins. DLocal Limited operates a global payment processing platform. It offers a pay-in solution that allows businesses to get paid for their products and services through various payment methods.
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This article is originally published at Insider Monkey.
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