Nu Holdings Ltd. Reports Fourth Quarter and Full Year 2021 Financial Results
February 22 2022 - 4:48PM
Business Wire
Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the
“Company”), one of the world’s largest digital banking platforms
and one of the leading technology companies in the world, released
today its Fourth Quarter and Full Year 2021 financial results.
Financial results are expressed in U.S. dollars and are presented
in accordance with International Financial Reporting Standards
(IFRS). The full earnings release has been made available on the
Company’s Investor Relations website at www.investors.nu, as well
as the details of the Earnings Conference Call Nu will hold today
at 5:00pm Eastern time/7:00pm Brasília time.
“Nu is off to a strong start as a public company, as our fourth
quarter performance makes clear. Nu’s stock exchange listings as
well as our NuSócios program also opened the door for millions of
Brazilians to be included in the capital markets. Maintaining our
long-term orientation and putting customers first, we are now
accelerating efforts to build out Nu’s powerful ecosystem, enhance
our digital banking platform and accelerate expansion into our new
geographic markets to improve financial access for many others,”
said David Vélez, founder and CEO.
Q4’21 and FY’21 Results Snapshot Below are Q4’21 and full
year 2021 performance highlights of Nu Holdings Ltd.:
Operating Highlights:
- Customer growth: Nu added 5.8 million customers
in the quarter, reaching a total 53.9 million customers across
Brazil, Mexico and Colombia.
- Engagement and activity rates: Average Revenue
per Active Customer (ARPAC) expanded to $5.6 in Q4'21 (from $3.3 in
Q4’20) and the activity rate1 to 76.3% (from 65.6% in Q4’20), with
active customers reaching 41.1 million in the year-end. Nu
estimates that over 55% of the monthly active customers that have
been Nu customers for over a year have made Nu their primary
banking account provider.
- Low-cost operating platform: Monthly Average Cost
to Serve Per Active Customer decreased 20.4% on an FX neutral basis
(FXN)2 to $0.9 in Q4'21 (and to $0.8 in 2021), while non-performing
loan delinquency rates have remained below Nu's historical averages
and industry averages.
Financial Highlights:
- Revenue: total revenue for Q4'21 reached $635.9
million, increasing year-over-year (YoY) by 224.3% FXN. In 2021,
total revenue was $1.7 billion, setting a new record for the
Company.
- Gross Profit: totaled $226.9 million in Q4'21,
increasing YoY 207% FXN, and increased to $732.9 million in 2021,
up YoY 131.6% FXN. The gross margin was 35.7% in Q4'21 compared to
37.7% in Q4'20.
- Adjusted Net income: Nu reported Adjusted Net
Income of $3.2 million in Q4'21. In 2021, the Company reported an
Adjusted Net Income of $6.6 million compared to an Adjusted Net
Loss of $26.8 million in 2020. This was the first year the Company
posted positive Adjusted Net Income.
Business highlights
- Initial Public Offering (IPO): Nu’s IPO was the
world’s largest dual listing since 2012, raising approximately $2.8
billion in gross proceeds, after the partial exercise of the
underwriters’ option to purchase additional shares. It was the
first-ever US IPO with a concurrent Brazilian Depository Receipt
(BDR) offering in Brazil, through which the Company gifted a BDR to
more than 7.5 million customers who joined the NuSócios program and
which helped multiply the number of Brazilians financially included
in the investments markets. The IPO also represented one of the
largest-ever global Directed Share Programs (DSP), where over
800,000 people participated in Nu's offering. Historically, Nu
estimates it was also the largest number of retail investors to
participate in a Brazilian IPO.
- Products: During 2021, Nu launched numerous new
products and features, including Marketplace (currently with over
20 partners), Apple/Google/Whatsapp Pay, UltraViolet (premium
card), Secured Cards, Life Insurance and Proprietary Funds. Nu has
NPS levels 90 or above in the countries in which it operates.
- SMEs: The base of SME customers almost tripled in
2021, growing from 0.5 million to 1.4 million.
- M&A: During 2021, Nu closed the acquisition
of Easynvest, the largest independent digital investment platform
in Brazil, now NuInvest. The Company also closed the acquisitions
of Juntos, a conversational platform, and SpinPay, a checkout
solution provider, and announced the acquisition of Olivia, an
AI-based personal finance management provider.
- International expansion: Nu continues to see
robust growth in Mexico, reaching 1.4 million customers at the end
of 2021, expanding 1,243% YoY. It suggests Nu may have already
become the largest issuer of new credit cards in the country in the
same period.
Footnotes 1 Activity rate is defined as monthly active
customers divided by the total number of customers as of a specific
date. 2 FX neutral measures were calculated to present what such
measures in preceding periods/years would have been had exchange
rates remained stable from these preceding periods/years until the
date of the Company’s more recent financial information.
CONFERENCE EARNINGS CALL DETAILS Nu
will hold a Conference Earnings Call today at 5:00pm Eastern
time/7:00pm Brasília time with simultaneous translation in
Portuguese and English. To pre-register for this call, please click
here A replay of the webcast will be made available after the call
on the Investor Relations page: click here.
Note on forward-looking statements and non-IFRS financial
measures This release contains forward-looking statements. All
statements other than statements of historical fact contained in
this release may be forward-looking statements and include, but are
not limited to, statements regarding the Company’s intent, belief
or current expectations. These forward-looking statements are
subject to risks and uncertainties, and may include, among others,
financial forecasts and estimates based on assumptions or
statements regarding plans, objectives and expectations. Although
the Company believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject
to several risks and uncertainties and are made in light of
information currently available, and actual results may differ
materially from those expressed or implied in the forward-looking
statements due to various factors, including those risks and
uncertainties included under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in our prospectus dated December 8, 2021
filed with the Securities and Exchange Commission pursuant to Rule
424(b) under the Securities Act of 1933, as amended, and in our
Annual Report on Form 20-F for the year ended December 31, 2021,
which will be filed with the Securities and Exchange Commission.
The Company, its advisers and each of their respective directors,
officers and employees disclaim any obligation to update the
Company’s view of such risks and uncertainties or to publicly
announce the result of any revision to the forward-looking
statements made herein, except where it would be required to do so
under applicable law. The forward-looking statements can be
identified, in certain cases, through the use of words such as
“believe,” “may,” “might,” “can,” “could,” “is designed to,”
“will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “forecast”, “plan”, “predict”, “potential”, “aspiration,”
“should,” “purpose,” “belief,” and similar, or variations of, or
the negative of such words and expressions.
This release speaks at the date hereof, and the Company is under
no obligation to update or keep current the information contained
in this release. Any information expressed herein is subject to
change without notice. Any market or third-party data included in
this release has been obtained by the Company from third-party
sources; the Company can provide no assurances of the accuracy and
completeness of such information and takes no responsibility for
such data. This release includes financial measures defined as
“non-IFRS financial measures” by the SEC, including Adjusted Net
Income (Loss) and certain FX Neutral measures. For definitions of
these non-IFRS financial measures and reconciliations to the most
directly comparable IFRS financial measures, see the full earnings
release available on the Company’s Investor Relations website a
www.investors.nu. These non-IFRS financial measures are in addition
to, and not a substitute for or superior to, measures of financial
performance prepared in accordance with IFRS
About Nu Nu is one of the world’s largest digital banking
platforms, serving around 54 million customers across Brazil,
Mexico and Colombia. As one of the leading technology companies in
the world, Nu leverages proprietary technologies and innovative
business practices to create new financial solutions and
experiences for individuals and SMEs that are simple, intuitive,
convenient, low-cost, empowering and human. Guided by a mission to
fight complexity and empower people, Nu is fostering the access to
financial services across Latin America, connecting profit and
purpose to create value for its stakeholders and have a positive
impact on the communities it serves. For more information, please
visit www.nubank.com.br
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version on businesswire.com: https://www.businesswire.com/news/home/20220222006162/en/
Investors Relations Federico Sandler
investors@nubank.com.br
Media Relations Leila Suwwan press@nubank.com.br
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