DLO - DLocal Q1 Earnings: A Reality Check (Rating Downgrade)
2024-05-15 03:06:21 ET
Summary
- DLocal's gross profits grew by 2% y/y in Q1 2024, indicating a significant slowdown in growth rates.
- Investors had expected DLO to be a rapidly growing business in the emerging market, but it is not meeting those expectations.
- Despite the initial appeal of the Company's valuation metrics, I've observed a significant gap between its earnings report and management's guidance.
- As a result, I've made the strategic decision to downgrade DLocal to a sell recommendation.
Investment Thesis
DLocal ( DLO ) delivered an earnings report that put into question its ability to meet its own guidance....
DLocal Q1 Earnings: A Reality Check (Rating Downgrade)