Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the
“Company”), one of the world’s largest digital banking platforms,
released today its First Quarter 2022 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
6:00pm Eastern time/7:00pm Brasília time.
"This is the strongest quarter in Nu's history. We reached
nearly 60 million customers and a record-high activity rate of 78%.
Our earnings-generating formula helped drive a record high
quarterly revenue of US$887 million (226% increase YoY on a FXN),
with a low customer acquisition cost, increasing revenue per
customer, and decreasing cost to serve. Our credit portfolio grew
significantly above market and maintained healthy quality levels.
This result is driven by our advanced risk modeling, as well as our
disciplined and resilient lending, especially in light of the
current macroeconomic conditions. Despite recent short-term market
volatility and our upcoming lock-up release, we remain fully
confident and committed to our long-term value creation, as
reiterated by our main shareholders,” said David Vélez, founder and
CEO.
Q1’22 Results Snapshot
Below are Q1’22 performance highlights of Nu Holdings Ltd.:
Operating Highlights:
- Customer growth: Nu added 5.7 million customers in the
quarter, reaching a total of 59.6 million customers in Brazil,
Mexico and Colombia. This represents a 61% growth year-over-year
(YoY).
- Engagement and activity rates: Average Revenue per
Active Customer (ARPAC) expanded to $6.7, growing by 63% on a FX
neutral basis (FXN)1, and the activity rate to 78%, with active
customers2 reaching 46.5 million. Nu estimates that over 54% of the
total active customers that have been with Nu for more than 12
months have chosen Nu as their primary banking relationship.
- Low-cost operating platform: Monthly Average Cost to
Serve Per Active Customer decreased 30% YoY on a FXN to $0.7 in
Q1´22
- Asset Quality: Nu’s 90+ NPL ratio increased 70 bps in
the quarter, following the previous quarters behavior driven by
seasonality and a shift in product mix coupled with risk
normalization. The ratio remained below pre-COVID levels, the
Company's historical average and also below the industry average
during the period.
Financial Highlights:
- Revenue: total revenue for Q1´22 reached a record high
of $877.2 million, increasing 226% YoY on a FXN.
- Gross Profit: totaled $294.1 million in Q1´22,
increasing 131% YoY on a FXN. The gross profit margin was 34% in
Q1´22.
- Adjusted Net income3: Nu reported Adjusted Net
Income of $10.1 million in Q1´22, compared to an Adjusted Net Loss
of $11.9 million in Q1´21.
Business highlights
- Customer base growth: Nu ended Q1'22 with 59.6 million
customers. Brazilian customers increased 55% YoY to 57.3 million,
representing 33% of the country’s adult population. The SMEs
customer base was up 167%, growing to 1.6 million as of March 31,
2022.
- International Expansion: Nu continues to see robust
growth in Mexico with a customer base increase of 950% YoY to 2.1
million, consolidating its position as #1 new credit card issuer in
the country. Customers in Colombia reached 211,000. Moreover, after
the reporting of this period, on April 11, 2022, Nu secured a $650
million syndicated credit facility that will be invested in the
expansion of its businesses in these countries.
- Portfolio Maturation through Proprietary and Third-party
Products: During the quarter, Nu launched NuPay, a payment
solution for online purchases integrated with e-commerce checkout,
or made in installments, enabling customers to make more convenient
and secure online purchases with a few clicks through the Nu App.
On May 11, 2022, the Company launched an initial rollout of
Nucripto, which allows crypto trading starting from R$1. Consistent
with its mission, the Company aims to democratize crypto in Brazil
and in the rest of Latam. Like Nu’s other products, Nucripto was
created to eliminate the complexity of this market and to make it
accessible to anyone who wants to be part of it.
Footnotes
1 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. 2 Activity
rate is defined as monthly active customers divided by the total
number of customers as of a specific date. 3 Adjusted Net Income
(Loss) is a non-IFRS measure calculated using Net Income adjusted
for expenses related to our share-based compensation as well as the
tax effects applicable to these items. For more information, please
see “Non-IFRS Financial Measures - Reconciliation of Adjusted Net
Income section" of our financial statements.
CONFERENCE EARNINGS CALL
DETAILS
Nu will hold a Conference Earnings Call
today at 6:00pm 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 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 other third-party data
included in this release has been obtained by the Company from
third party sources. While the Company has compiled and extracted
the market data, it can provide no assurances of the accuracy and
completeness of such information and takes no responsibility for
such data.
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 was filed with the
Securities and Exchange Commission on April 20, 2022. 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.
The financial information in this document includes forecasts,
projections and other predictive statements that represent the
Company’s assumptions and expectations in light of currently
available information. These forecasts, projections and other
predictive statements are based on the Company’s expectations and
are subject to variables and uncertainties. The Company’s actual
performance results may differ. Consequently, no guarantee is
presented or implied as to the accuracy of specific forecasts,
projections or predictive statements contained herein, and undue
reliance should not be placed on the forward-looking statements in
this press release, which are inherently uncertain.
In addition to IFRS financials, this presentation includes
certain summarized, non-audited or non-IFRS financial information.
These summarized, non-audited or 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. References
in this presentation to “R$” refer to the Brazilian real, the
official currency of Brazil.
About Nu
Nu is one of the world’s largest digital banking platforms,
serving nearly 60 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/20220516005966/en/
Investors Relations Guilherme Lago
investors@nubank.com.br
Media Relations Leila Suwwan press@nubank.com.br
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