DLocal nabs MercadoLibre veteran as co-CEO, stock surges

Shares of financial-technology company DLocal Ltd. (DLO) were surging about 30% higher in after-hours trading Tuesday after the company named Pedro Arnt its co-chief executive. Arnt previously worked as the chief financial officer at Latin American e-commerce giant MercadoLibre Inc. (MELI). "We view the onboarding of Arnt, a widely respected payments leader, as a positive and a steady hand on the DLO tiller," Barclays analyst John Coffey wrote. Additionally, Uruguay-based DLocal reported better-than-expected second-quarter financial results, including GAAP earnings per share of 15 cents, up from 10 cents a year before. The FactSet consensus was for 13 cents. DLocal's revenue increased to $161.1 million from $101.2 million, while analysts had been modeling $149.4 million. "Our performance demonstrates the distinctive advantages of our business, from our cutting-edge technology and broad and well-diversified geographic reach to our excellent sales execution and vast market opportunity," Co-Chief Executive Sebastian Kanovich said in a release. DLocal shares advanced more than 13% in Tuesday's regular session.

-Emily Bary

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08-15-23 1932ET

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