(Updates with additional information from report, background)
April 4 (Reuters) - Uruguayan payments company dLocal posted an 18% slide in fourth-quarter profit compared to the same period last year, totaling $19.4 million for the three-month period, according to a statement Tuesday.
The company's profit was dampened by higher operating expenses including trapped deposits in bankrupt cryptocurrency exchange FTX and $2 million in costs related to a short-seller report, dLocal said.
Short-seller Muddy Waters had accused dLocal of
potential fraud in the quarter, which dLocal has denied.
Revenue for dLocal increased 55% from the year-ago quarter to $118.4 million, slightly under the Refinitiv estimate of $119.48 million.
Dlocal, which handles payments across most of Latin America as well as parts of Africa and Asia, saw its adjusted quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) rise 39% to $40 million.
For the first quarter of 2023, the company forecast revenues to land between $135 million to 138 million, and $620 million to 640 million for the full year.
Dlocal's board said in December that the key allegations made by short-seller Muddy Waters were "without merit" following an internal review, without going into detail.
Nearly five months later, it has yet to issue a written detailed response to Muddy Waters' claims, including that the company accessed client funds, had fudged reporting of its total payment volume, and was "likely a fraud."
Nasdaq shares in dLocal have recouped some of the losses since the Muddy Waters report was released, though they were still down around 30% at the end of the March from Nov. 15.
Top shareholders General Atlantic, Tiger, and Fidelity all bolstered their holdings in the company last quarter, according to SEC filings.
CEO Sebastian Kanovich said in the release the purchases showed shareholders' "confidence in and excitement about the future of dLocal."
(Reporting by Kylie Madry; Additional reporting by Isabel Woodford; Editing by Sarah Morland)
