Shares of financial technology (fintech) company DLocal (NASDAQ: DLO) were crushed on Wednesday after the company released financial results for the first quarter of 2024. As of 12:15 p.m. ET, DLocal stock was down 24%.

DLocal primarily makes it easier for companies to do business without worrying about foreign currency exchange. From a volume perspective, business is booming. In Q1, the company's total payment volume was up a whopping 49% year over year to $5.3 billion -- not bad. Unfortunately, as I'll explain, this didn't benefit the business much.

As a smaller company, DLocal has customer concentration risk. In 2023, 60% of the company's revenue came from its top 10 customers, and one customer accounted for more than 10% of revenue. One of its big customers renegotiated its contract with DLocal during Q1, reducing its take rate.

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Source Fool.com