PriyaPatel
TLDR:
- dLocal, a Uruguayan fintech company, is looking at possible acquisitions to expand its commercial distribution and geographic footprint.
- The company is also considering share buybacks after reporting $536 million in cash and equivalents at the end of last year.
Uruguayan digital payments company dLocal is exploring potential acquisitions in order to enhance its commercial distribution, services, and geographic reach. Co-CEO Sebastian Kanovich will be stepping down to focus on leading a committee dedicated to identifying acquisition opportunities. The company’s Chief Executive, Pedro Arnt, mentioned on a call that they anticipate market consolidation as some companies are facing financial challenges and are seeking to be acquired. Despite reporting $536 million in cash and equivalents at the end of last year, dLocal executives are also considering share buybacks. However, the company’s stock slumped by 18% in early trading after missing analysts’ forecasts on quarterly earnings. Analysts at JPMorgan noted concerns about slower growth than expected in the company’s 2024 guidance.
dLocal’s customer base includes prominent names such as Shein, Temu, Didi, Amazon, Google, and Spotify. The company has also invested in Argentina amidst the country’s economic crisis, forecasting increased cross-border transactions in the medium-term as the government works towards lifting capital controls. Despite challenges, dLocal remains optimistic about future growth and expansion, citing their success in 2023 and the potential for further progress.
