What happened DLocal Limited (NASDAQ: DLO) delivered preliminary results for the third quarter that showed year-over-year growth in total payment volume (TPV) decelerating over the prior quarter. Shares of DLocal were down 8.7% as of 12:10 p.m. EDT on Tuesday. The stock is still up nearly 70% since its initial public offering earlier this year. DLO data by YCharts. So what The company expects revenue to be between $67 million to $68 million, which is higher than the consensus analyst estimate of $64 million. But it seems investors were more concerned about DLocal's expectation for TPV growth to land in the range of 211% to 215% after posting 319% growth in Q2. DLocal attributes the growth in the third quarter to continued gains from enterprise merchants across several channels, including streaming, ride-hailing, advertising, retail, software-as-a-service, and travel. However, the company said that adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin for Q3 should be between 37.3% to 38.2%. That's down from 40.6% in Q2 2020 and 44% in Q2 2021. The lower margin should bring net profit to between $18 million to $19 million, which is more than double the year-ago quarter. Image source: Getty Images. Now what Despite the slower rate of growth, DLocal is making headway in a massive market, where it provides cloud-based payment services in over 30 countries around the world. It generated total payment volume of just $2.1 billion in 2020, yet DLocal is going after an addressable market worth over $1 trillion. The company has recently expanded its offering with fraud-detection capabilities and launched its services in new countries, including Malaysia and Vietnam in Q2. Still, investors are closely watching quarter-to-quarter growth trends for this recent IPO stock, given the highly competitive nature of this wide-open market. Shares sport a very high price-to-sales ratio of 120. At that valuation, the smallest misstep by the company is going to cause volatility in the share price. 10 stocks we like better than DLocal LimitedWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and DLocal Limited wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 17, 2021 John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source