UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2022
Commission File Number: 001-38353
PagSeguro Digital Ltd.
(Name
of Registrant)
Av. Brigadeiro Faria Lima, 1384, 4º andar, parte A
São Paulo, SP, 01451-001, Brazil
+55 11 3038 8127
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S- T Rule
101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S- T Rule
101(b)(7):
Yes ☐ No ☒
PAGS reports First Quarter Results
All-time high Net Income | Non-GAAP1
of R$ 371 million
1Q22 Net Income | GAAP up +29% y/y
1Q22 Total Revenue and Income up +66% y/y
São Paulo, June 8, 2022
–
PagSeguro Digital Ltd. (“PAGS” or “we”) announced today its first
quarter results for the period ended March 31, 2022. The
consolidated financial statements are presented in Reais (R$) and
prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”). For further information about the metrics
please consult the Glossary available in the end of this
release.
1Q22 Highlights
1. First quarters all-time high Net Income | Non-GAAP.
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Operational KPIs | R$ Billion |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Total Payment Volume (TPV) |
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152.2 |
81.4 |
87% |
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147.1 |
3% |
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PagSeguro |
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80.1 |
50.0 |
60% |
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78.9 |
2% |
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PagBank |
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72.1 |
31.4 |
129% |
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68.2 |
6% |
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Credit Portfolio |
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2.1 |
0.8 |
166% |
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1.9 |
8% |
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Total Deposits |
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11.2 |
5.0 |
124% |
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8.8 |
27% |
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Clients | # Million |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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PagBank Clients |
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23.5 |
14.8 |
59% |
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21.9 |
8% |
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PagBank Active Clients |
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14.3 |
9.1 |
57% |
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13.1 |
10% |
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Merchants |
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6.7 |
5.7 |
18% |
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6.6 |
1% |
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Consumers |
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7.6 |
3.5 |
121% |
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6.5 |
18% |
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Active Merchants |
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7.7 |
7.3 |
5% |
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7.7 |
0% |
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Financial KPIs | R$ Million |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Total Revenue and Income |
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3,427 |
2,067 |
66% |
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3,236 |
6% |
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PagSeguro |
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3,122 |
1,911 |
63% |
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2,928 |
7% |
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PagBank |
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305 |
156 |
95% |
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309 |
-1% |
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(-) Transactions Costs |
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(1,303) |
(846) |
54% |
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(1,398) |
-7% |
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(-) Financial Expenses |
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(621) |
(44) |
1298% |
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(403) |
54% |
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(+) FX Expenses |
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13 |
9 |
40% |
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17 |
-26% |
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(-) Other Financial Income |
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(42) |
(35) |
20% |
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(44) |
-4% |
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Gross Profit |
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1,475 |
1,152 |
28% |
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1,409 |
5% |
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(-) Opex & Other Costs |
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(810) |
(579) |
40% |
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(797) |
2% |
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Adjusted EBITDA |
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665 |
573 |
16% |
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612 |
9% |
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PagSeguro |
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769 |
640 |
20% |
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682 |
13% |
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PagBank |
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(104) |
(67) |
56% |
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(70) |
49% |
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(-) Depreciation and Amortization |
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(244) |
(153) |
59% |
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(220) |
11% |
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(+/-) Other Income (Expense), Net |
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28 |
25 |
11% |
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26 |
7% |
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(-) Income Tax |
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(78) |
(118) |
-34% |
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(84) |
-8% |
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Net Income | Non-GAAP |
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371 |
327 |
14% |
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334 |
11% |
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(-) Non-GAAP Effects |
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(21) |
(56) |
-63% |
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(33) |
-36% |
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Net Income | GAAP |
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350 |
271 |
29% |
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301 |
16% |
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Recurrent Net Income | Non-GAAP |
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371 |
357 |
4% |
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426 |
-13% |
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Recurrent Net Income | GAAP |
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350 |
301 |
16% |
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393 |
-11% |
Operational Performance
PAGS
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Total Payment Volume (TPV) |
Net Take Rate |
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R$ Billion |
% of PagSeguro TPV |
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PAGS TPV
totaled
R$ 152.2 billion,
an increase of
+87%
vs. 1Q21 mainly due to the growth of 60% in PagSeguro TPV, higher
engagement on PagBank services and better unit economics of PagBank
products.
PAGS Take Rate
totaled
2.60%
in 1Q22, an increase of
+21 bps
vs. 2.39% in 1Q21. This increase reflects the ongoing repricing
process to partially offset the basic Interest Rate (SELIC) hikes
in Brazil from 2.12% in 1Q21 to 10.37% in 1Q22. As a result,
Financial Income yield increased +35 bps. Also, PagBank revenues
continues to contribute to the sustainability of consolidated take
rates.
PagSeguro
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PagSeguro TPV |
Net Take Rate |
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R$ Billion |
% of PagSeguro TPV |
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PagSeguro TPV
totaled
R$ 80.1 billion,
an increase of
+60%
vs. 1Q21 mainly due to (i) larger share of wallet in cards
payments, driven by the migration from cash to plastic; (ii) market
share gains, boosted by HUBs execution to also serve small and
medium businesses (SMBs), both driven to a higher and healthier TPV
per merchant.
As a result,
PagSeguro TPV Market Share
ended the first quarter of 2022 at
10.6%
of the Brazilian TPV Payments Industry vs. 9.9% in 4Q21 (+70bps
q/q) and 8.9% in 1Q21 (+170bps y/y),
being the TPV market share gain winner in cards payments this
quarter.
PagSeguro Gross Take Rate
totaled
3.84%
and
Net Take Rate
totaled
2.33%.
This increase is mainly related to the ongoing repricing strategy
reflecting the increase in Brazilian Interest Rate from 2.12% on
1Q21 to 10.37% in 1Q22 and better TPV Mix towards credit cards
transactions. On top of that, this increase was achieved despite
the higher TPV exposure to SMBs, which have lower take rates but
larger TPV per merchant and higher transaction recurrence than
micro-merchants.
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Active Merchants |
PagSeguro TPV per Merchant |
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# Million |
R$ Thousand |
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PagSeguro ended the quarter with
7.7 million
Active Merchants,
an increase of
+5%
compared to 1Q21, consolidating its lion share in number of Active
Merchants in the Brazilian Acquiring Industry. Since the beginning
of the year, PagSeguro have been more selective on gross adds,
focusing on clients with better unit economics and higher
activation by lowering POSs subsidies.
PagSeguro TPV per Merchant
totaled
R$ 10.4 thousand.
This increase of
+50%
compared to 1Q21 is mainly related to larger number of merchants
added by HUBs and market share gains.
PagBank
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PagBank TPV |
Net Take Rate |
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R$ Billion |
% of Monetizable TPV |
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PagBank TPV
totaled
R$ 72.1 billion,
an increase of
+129%
vs. 1Q21. This growth is mainly related to increasing client’s
engagement on day-to-day banking (deposits, bill payments, mobile
top-up, Pix), cards spending and credit underwriting. The number of
Pix transactions through PagBank accounts represented 9.2% of total
Pix transactions in Brazil, reflecting the increasing engagement of
our clients as we have been rolling out new products and services.
Also, Monetizable TPV increased +42% vs. 1Q21.
PagBank Net Take Rate
totaled
1.54%
vs. 0.93% in 1Q21, reflecting the increase of Monetizable TPV and
higher float revenues due to the increase of deposits and higher
the Brazilian basic Interest Rate (SELIC).
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Credit Portfolio |
Total Deposits |
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R$ Billion |
R$ Billion |
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PagBank Credit Portfolio
reached
R$ 2.1 billion
in 1Q22, an increase of
+166%
vs. 1Q21. This increase reflects higher and diligent credit
underwriting, primarily on secured loans such as Payroll Loans and
FGTS early prepayment, reaching 9% of share in the Credit Portfolio
this quarter.
Total Deposits
totaled
R$ 11.2 billion,
an increase of
+124%
vs. 1Q21. This increase reflects company’s superior value
proposition to merchants and consumers as a digital and complete
bank, with more clients considering PagBank as their primary bank,
positively impacting cash-in and increasing deposits.
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R$ Billion |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Total Deposits |
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11.2 |
5.0 |
124% |
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8.8 |
27% |
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Banking Accounts |
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5.5 |
3.5 |
55% |
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5.7 |
-4% |
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Certificate of Deposits |
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4.4 |
1.2 |
272% |
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2.5 |
76% |
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Interbank Deposits |
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1.1 |
0.0 |
n.a. |
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0.4 |
161% |
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Corporate Securities |
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0.2 |
0.3 |
-12% |
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0.2 |
3% |
R$ Billion 1Q22 1Q21 Var. y/y 4Q21 Var. q/q Total Deposits 11.2 5.0
1.24 8.8 0.27 Banking Accounts 5.5 3.5 0.55 5.7 -0.04 Certificate
of Deposits 4.4 1.2 2.72 2.5 0.76 Interbank Deposits 1.1 0.0 n.a.
0.4 1.61 Corporate Securities 0.2 0.3 -0.12 0.2 0.03
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PagBank Clients |
PagBank Active Clients |
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# Million |
# Million |
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PagBank Clients
ended the quarter with
23.5 million,
an increase of
+59%
vs. 1Q21, and
14.3 million Active Clients,
an increase of
+57%
vs. 1Q21. This increase is mainly related to higher penetration in
consumers segment which represents 53% of PagBank clients vs. 38%
in 1Q21. This increase also reflects PagBank releases new products
and best-in-class user experience.
Financial Performance
Total Revenue and Income
R$ Million
Total Revenue and Income
reached
R$ 3,427 million
in 1Q22, an increase of
+66%
from R$ 2,067 million reported in 1Q21, as described
below:
(i)Transaction
Activities and Other Services:
Revenues from Transaction Activities and Other Services
in the 1Q22 amounted to
R$ 2,054 million,
an increase of R$ 670 million, or
+48%
vs. 1Q21, due to:
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PagSeguro TPV growth of +60% y/y, reaching R$ 80.1 billion in 1Q22
vs. R$ 50.0 billion vs. 1Q21; |
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PagBank Net Revenues growth of +95%, totaling R$ 305 million in
1Q22 vs. R$ 156 million in 1Q21, mainly related to the increase in
Interest Income and Float Revenues; |
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Deductions from Gross Revenues from Transaction Activities and
Other Services, which consist principally of taxes, amounted to R$
247 million in the first quarter or 11% of Gross Revenues from
Transaction Activities and Other Services. In the 1Q21, these
deductions totaled R$ 170 million, or 11% in relation to the Gross
Revenue from Transaction Activities and Other Services for the
quarter. The increase of +45% in these deductions is directly
related to higher PagSeguro TPV and tax related to early payment of
accounts receivable to merchants. |
(ii)Financial
Income:
Financial Income,
which represents the discount fees we withhold from credit card
transactions in installments for the early payment of accounts
receivable, reached
R$ 1,331 million,
an increase of R$ 674 million, or
+103%,
mainly due to:
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Higher PagSeguro TPV and higher share of processed credit card
payments containing a higher percentage of credit card transactions
made in installments in the three months ended March 31, 2022,
compared to the three months ended March 31, 2021. |
(iii)Other
Financial Income:
Other Financial Income
reached
R$ 42 million
in the 1Q22, an increase of R$ 16 million, or
+65%,
from R$ 25 million in the 1Q21, due to:
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Increase in interest on cash and Cash Equivalents plus Financial
Investments because of the higher Brazilian basic interest rate
(SELIC) compared to 1Q21; |
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This quarter PAGS Other Financial Income was negatively impacted by
BCB Resolution n°33 of 10/29/2020 which was implemented in January
2022 and changed prepayment to merchants through a fund revenue
recognition to Financial Assets resulting in a tax of 4.65% vs.
0.00% charged previously. This effect will continue impacting PAGS’
results going forward. |
Transaction Costs
R$
Million
Transaction Costs
reached
R$ 1,303 million
in 1Q22, an increase of
+54%
from R$ 846 million reported in the 1Q21. As a percentage of the
total of our Revenues from Transaction Activities and Other
Services, our Transaction Costs increased 2.3 p.p., to 63% in the
1Q22 from 61% in the 1Q21, due to:
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Interchange Fees paid to Card Issuers in the first quarter of 2022,
reached R$ 1,018 million, an increase of R$ 452 million, from R$
567 million reported in first quarter of 2021. This growth was
driven by the increase of TPV and higher share of credit card
volumes; |
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Card Scheme Fees in the first quarter of 2022 totaled R$ 212
million, an increase of R$ 73 million, vs. R$ 139 million in the
same period of 2021. |
Financial Expenses
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Financial Expenses |
Bridge |
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R$ Million |
R$ Million |
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Financial Expenses
totaled
R$ 621 million
in 1Q22, up
+1298%
from R$ 44 million in 1Q21. This increase is explained by two main
factors (i) R$ 294 million due to the hike of SELIC from 2.12% in
1Q21 to 10.37% this quarter; (ii) R$ 283 million related to higher
volume of TPV and higher credit card mix. This effect was partially
offset by ongoing repricing in acquiring, APRs increase on credit
underwriting and lower cost of funding (APYs) through deposits
growth.
Gross Profit
R$
Million
Gross Profit totaled
R$ 1,475 million
in 1Q22, up
+28%
from R$ 1,152 million presented in 1Q21.
Opex & Other Costs
Non-GAAP
| R$ Million
Opex & Other Costs,
which includes Marketing and Advertising, Personnel Expenses,
Chargeback and Other Expenses, totaled
R$ 810 million,
an increase of
+40%
compared to R$ 579 million in 1Q21.
When including Non-GAAP expenses of R$ 28 million, GAAP Opex &
Other Costs totaled
R$ 838 million.
The increase is mainly related to:
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Personnel Expenses
reached R$ 228 million, up +50% from R$ 152 million vs. 1Q21,
mainly related to the expansion of HUBs salesforce and PagBank
employees. This amount excludes LTIP adjustment of R$ 28 million in
1Q22 and R$ 80 million in 1Q21. As a percentage of Total Revenues
and Income, non-GAAP Personnel Expenses were 6.6% in 1Q22, a
decrease by 80 bps compared to 7.4% reported in the
1Q21.
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When including Non-GAAP expenses of R$ 28 million GAAP Personal
Expenses totaled R$ 255 million; |
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Marketing and Advertising
totaled R$ 172 million in the 1Q22, down -9% from R$ 190 million
presented in 1Q21. As a percentage of Total Revenues and Income,
Marketing and Advertising decreased by -420 bps to 5.0% in 1Q22,
from 9.2% in 1Q21. This decrease was mainly due to Company's
decision of being more selective to attract new clients with better
unit economics and LTV/CAC ratio;
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Chargeback
reached R$ 250 million in 1Q22, up +44% from R$ 173 million
reported in 1Q21. As a percentage of Total Revenues and Income
chargeback decreased by -110 bps to 7.3% in 1Q22 from 8.4% in 1Q21.
This decrease was mainly due to non-recurring effects in 1Q21 in
the amount of R$ 73 million related to Digital Account
Losses;
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Other Expenses
reached R$ 160 million in the 1Q22, an increase of +153.2% from R$
63 million reported in 1Q21. As a percentage of Total Revenues and
Income, Other Expenses was 4.7% in 1Q22, an increase of +160 bps
when compared to 3.1% reported in 1Q21. This increase was mainly
related to a tax reversal of R$ 29 million in 1Q21 that benefited
the Company.
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Non-GAAP | R$ Million |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Opex and Other Costs |
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(810) |
(579) |
40% |
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(797) |
2% |
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Personnel Expenses |
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(228) |
(152) |
50% |
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(214) |
6% |
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Marketing and Advertising |
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(173) |
(190) |
-9% |
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(178) |
-3% |
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Chargeback |
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(250) |
(173) |
44% |
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(214) |
17% |
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Other Expenses |
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(160) |
(63) |
153% |
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(191) |
-16% |
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GAAP | R$ Million |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Opex and Other Costs |
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(838) |
(658) |
27% |
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(842) |
0% |
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Personnel Expenses |
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(255) |
(232) |
10% |
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(259) |
-1% |
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Marketing and Advertising |
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(173) |
(190) |
-9% |
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(178) |
-3% |
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Chargeback |
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(250) |
(173) |
44% |
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(214) |
17% |
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Other Expenses |
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(160) |
(63) |
153% |
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(191) |
-16% |
Depreciation and Amortization
Non-GAAP
| R$ Million
Depreciation and Amortization
reached
R$ 244 million
up
+59%,
from R$153 million in 1Q21. These amounts exclude M&A expenses
related to the amortization of fair value assets acquired as well
as expenses for external consulting, accounting, and legal services
in the amount of R$ 4.6 million in 1Q22 and R$ 4.9 million in 1Q21.
As a percentage of Total Revenues and Income, non-GAAP Depreciation
and Amortization were 7.1% in 1Q22, a decrease of -30 bps compared
to 7.4% reported in 1Q21.
Including Non-GAAP expenses mentioned above, Depreciation and
Amortization totaled R$ 249 million
in the quarter, up +57% when compared to the R$ 158 million
reported in 1Q21.
Adjusted EBITDA
R$
Million
Adjusted EBITDA
in 1Q22 amounted to
R$ 665 million
up +16%, from R$ 573 million reported in 1Q21, mainly related to
PAGS repricing during the period, operating leverage gains on HUBs
operation and Marketing Investments.
Income Tax and Social Contribution
Reconciliation
GAAP
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R$ Million |
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1Q22 |
1Q21 |
Var. y/y |
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4Q21 |
Var. q/q |
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Profit for the period before Taxes |
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416 |
360 |
16% |
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557 |
-25% |
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Statutory Rate |
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34% |
34% |
0% |
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34% |
n.a. |
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Expected Income Tax and Social Contribution |
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(142) |
(123) |
16% |
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(189) |
-25% |
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Income Tax and Social contribution effect on: |
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R&D and Tech Innovation Benefit - Law 11,196/05 (i) |
53 |
36 |
44% |
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70 |
-25% |
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Taxation of Income abroad (ii) |
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26 |
(1) |
n.a. |
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- |
n.a. |
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Other |
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(3) |
(2) |
44% |
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(12) |
-72% |
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Income Tax and Social Contribution Expenses |
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(67) |
(89) |
-25% |
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(131) |
-49% |
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Effective Tax Rate |
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16% |
25% |
(8.7) p.p. |
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24% |
(7.6) p.p. |
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Income Tax and Social Contribution – Current |
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(29) |
(20) |
43% |
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(91) |
-68% |
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Income Tax and Social Contribution – Deferred |
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(38) |
(69) |
-45% |
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23 |
n.a. |
(i)Refers
to the benefit granted by the Technological Innovation Law
(“Lei
do Bem”),
which reduces the income tax charges, based on the amount invested
by the PagSeguro group on specific intangible assets, see Note 13
in our 6-K related to Financial Statements.
(ii)Some
entities and investment funds adopt different taxation regimes
according to the applicable rules in their
jurisdictions.
Income Tax and Social Contribution
amounted to an expense of
R$ 67 million
in 1Q22, a decrease
-25%,
from an expense of R$ 89 million presented in 1Q21. This item
consists of Current Income Tax and Social Contribution and Deferred
Income Tax and Social Contribution.
Our Effective Tax Rate decreased by 870 bps to 16.0% in 1Q22 from
24.7% in 1Q21. In both periods, the difference between the
Effective Income Tax and Social Contribution Rate and the Rate
computed by applying the Brazilian federal statutory rate was
mainly related to the Technological Innovation Law
(“Lei
do Bem”),
which reduces income tax charges based on investments made in
innovation and technology, such as those made by PagSeguro Brazil,
our Brazilian operating subsidiary. Additionally, in 1Q22 we had
another effect related to Taxation of Income abroad, some entities
or investment funds adopt different taxation regimes according to
the applicable rules in their jurisdictions, resulting in ETR lower
by 6.1% for 1Q22.
Net Income
|
|
|
|
|
|
|
GAAP |
Non-GAAP |
|
R$ Million |
R$ Million |
|
|
|
Net Income
for the quarter amounted to
R$ 371 million
in non-GAAP basis, an increase of
+14%,
from R$ 327 million reported in 1Q21, reflecting PAGS repricing
process during the period and operating leverage gains on HUBs
operation and Marketing Investments.
Including Non-GAAP expenses of R$ 21 million,
Net Income
in GAAP basis totaled
R$ 350 million
in the quarter, up
+29%
when compared to R$ 271 million reported in 1Q21, benefited by the
items listed above and lower LTIP expenses.
Adjusted EBITDA and Non-GAAP Net Income Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Net Income | GAAP |
|
350 |
271 |
29% |
|
301 |
16% |
|
(+) Income Tax and Social Contribution |
|
67 |
89 |
-25% |
|
67 |
-1% |
|
(+) LTIP Expenses |
|
28 |
80 |
-65% |
|
44 |
-37% |
|
(+) Depreciation and Amortization |
|
249 |
158 |
57% |
|
226 |
10% |
|
(-) Other Financial Income |
|
(42) |
(35) |
20% |
|
(44) |
-4% |
|
(+) FX Expenses |
|
13 |
9 |
42% |
|
17 |
-25% |
|
Adjusted EBITDA |
|
665 |
573 |
16% |
|
612 |
9% |
|
(+) Tax Provision Reversal |
|
0 |
(29) |
n.a. |
|
0 |
n.a. |
|
(+) Digital Losses |
|
0 |
73 |
n.a. |
|
0 |
n.a. |
|
(+) PagPhone Write-off |
|
0 |
0 |
n.a. |
|
139 |
n.a. |
|
Recurring Adjusted EBITDA |
|
665 |
617 |
8% |
|
751 |
-11% |
|
|
|
|
|
|
|
|
|
|
R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Net Income | GAAP |
|
350 |
271 |
29% |
|
301 |
16% |
|
(+) LTIP Expenses |
|
28 |
80 |
-65% |
|
44 |
-37% |
|
(+) M&A Expenses |
|
5 |
5 |
-6% |
|
6 |
-19% |
|
(+) Income Tax and Social Contribution |
|
(11) |
(29) |
-62% |
|
(17) |
-35% |
|
Net Income | Non-GAAP |
|
371 |
327 |
14% |
|
334 |
11% |
|
(+) Tax Provision Reversal |
|
0 |
(19) |
n.a. |
|
0 |
n.a. |
|
(+) Digital Losses |
|
0 |
48 |
n.a. |
|
0 |
n.a. |
|
(+) PagPhone Write-off |
|
0 |
0 |
n.a. |
|
91 |
n.a. |
|
Recurring Net Income |
|
371 |
357 |
4% |
|
426 |
-13% |
R$ Million 1Q22 1Q21 Var. y/y 4Q21 Var. q/q Net Income | GAAP 350
271 29% 301 16% (+) Income Tax and Social Contribution 67 89 -25%
67 -1% (+) LTIP Expenses 28 80 -65% 44 -37% (+) Depreciation and
Amortization 249 158 57% 226 10% (-) Other Financial Income (42)
(35) 20% (44) -4% (+) FX Expenses 13 9 42% 17 -25% Adjusted EBITDA
665 573 16% 612 9% (+) Tax Provision Reversal 0 (29) n.a. 0 n.a.
(+) Digital Losses 0 73 n.a. 0 n.a. (+) PagPhone Write-off 0 0 n.a.
139 n.a. Recurring Adjusted EBITDA 665 618 8% 751 -11% R$ Million
1Q22 1Q21 Var. y/y 4Q21 Var. q/q Net Income | GAAP 350 271 29% 301
16% (+) LTIP Expenses 28 80 -65% 44 -37% (+) M&A Expenses 5 5
-6% 6 -19% (+) Income Tax and Social Contribution (11) (29) -62%
(17) -35% Net Income | Non-GAAP 371 327 14% 334 11% (+) Tax
Provision Reversal 0 (19) n.a. 0 n.a. (+) Digital Losses 0 48 n.a.
0 n.a. (+) PagPhone Write-off 0 0 n.a. 91 n.a. Recurring Net Income
371 357 4% 426 -13%
Non-GAAP recurring total expenses excludes: (i) LTIP expenses in
the total amount of R$ 28M (R$ 80M in the three months ended March
31, 2021), consisting of expenses for equity awards under our LTIP.
We exclude LTIP expenses from our non-GAAP measures primarily
because they are non-cash expenses and the related employer payroll
taxes depend on our stock price and the timing and size of
exercises and vesting of the equity awards, over which management
has limited to no control, and as such management does not believe
these expenses correlate to the operation of our business. The
total amount of LTIP expenses is allocated between Cost of
Services, Selling expenses and Administrative expenses; (ii)
M&A expenses in the total amount of R$ 5M (R$ 5M in the three
months ended March 31, 2021). We exclude M&A expenses from our
Non-GAAP measures primarily because such expenses are non-recurring
and do not correlate to the operation of our business; (iii)
Non-recurring effects for 1Q21 in the total amount of R$ 44M
composed by one-time adjustments related to unexpected digital
account losses and the reversal in the Value-added Tax on Sales and
Services. We exclude Non-recurring adjustments from our Non-GAAP
measures primarily because such adjustments are non-recurring and
do not correlate to the operation of our business.
Cash Flow Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Earnings before Income Taxes |
|
416 |
360 |
16% |
|
368 |
13% |
|
Expenses (Revenues) not affecting Cash |
|
756 |
401 |
89% |
|
777 |
-3% |
|
Net Cash provided by (used in) Operating Activities |
|
287 |
(18) |
n.a. |
|
134 |
114% |
|
Net Cash provided by (used in) Investing Activities |
|
(751) |
(359) |
109% |
|
(200) |
276% |
|
Net Cash provided by (used in) Financing Activities |
|
152 |
(3) |
n.a. |
|
738 |
-79% |
|
Increase (Decrease) in Cash and Cash Equivalents |
|
(311) |
(380) |
-18% |
|
672 |
n.a. |
|
Cash and Cash Equivalents | Beginning of the Period |
|
1,794 |
1,640 |
9% |
|
1,122 |
60% |
|
Cash and Cash Equivalents | End of the Period |
|
1,483 |
1,260 |
18% |
|
1,794 |
-17% |
Cash and Cash Equivalents
at the beginning of the three months ended March 31, 2022 amounted
to R$ 1,794 million and ended the period amounted to
R$ 1,483 million,
a decrease of R$ 311 million, mainly impacted by additional POS
purchase to recover the inventory's coverage ratio and to prevent a
potential new lack of semi-conductors due to lockdowns in some
geographies.
Earnings before Income Taxes
in the three months ended March 31, 2022 was
R$
416 million.
The adjustments for Revenues, Income and Expenses recorded in the
Income Statement in the three months ended March 31, 2022, but
which did not affect our cash flows, totaled a positive amount of
R$ 756 million, mainly due to R$ 36 million of Share-Based
Long-Term Incentive Plan (LTIP) expenses, R$ 250 million in
Chargebacks provisions, R$ 249 million of Depreciation and
Amortization recorded in our Income Statement and R$ 218 million of
Interest accrued of Financial Assets and Liabilities. LTIP expenses
relate to equity awards under our LTIP, Chargebacks refer to losses
recognized during the period related to card processing operations
(acquiring and issuing), losses on Digital Accounts and Provision
for Delinquency Rate of Credit Portfolio.
Net Cash provided by (used in) |
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Net Cash provided by (used in) Operating Activities |
|
287 |
(18) |
n.a. |
|
134 |
114% |
|
Earnings before Income Taxes |
|
416 |
360 |
16% |
|
368 |
13% |
|
Expenses (Revenues) not affecting Cash |
|
756 |
401 |
89% |
|
777 |
-3% |
|
Changes in Operating Assets and Liabilities |
|
(1,523) |
(867) |
76% |
|
(1,518) |
0% |
|
Income Tax and Social Contribution paid |
|
(40) |
(25) |
58% |
|
(19) |
107% |
|
Interest Income received |
|
678 |
113 |
499% |
|
527 |
29% |
|
Interest Income paid |
|
0 |
0 |
n.a. |
|
0 |
n.a. |
Net Cash provided in Operating Activities
in the three months ended March 31, 2022 totaled
R$ 287 million,
an increase of 114% vs. year-end 2021.
The adjustments for changes in
Operating Assets and Liabilities
in the three months ended March 31, 2022 amounted to negative cash
flow of
R$ 1,523 million,
mainly due to:
▪Accounts
Receivable, mainly related to receivables derived from transactions
where we act as the financial intermediary in operations with the
issuing banks, which is presented net of Transaction Costs and
Financial Expenses we incur when we elect to receive early payment
of the accounts receivable owed to us by card issuers, consists of
the difference between the opening and closing balances of the
Accounts Receivable item of Current Assets and Non-current Assets
on our Balance Sheet (R$ 26 million at March 31, 2022 compared to
R$ 24 million at year-end 2021) excluding Interest Income Received
in cash and Chargebacks, which are presented separately in the
statement of Cash Flows. Accounts Receivable represented negative
cash flow of R$ 3,181 million in the three months ended March 31,
2022;
▪Payables
to Third Parties, which is presented net of Revenue from
Transaction Activities and Financial Income we receive when
merchants elect to receive early payments, consists of the
difference between the opening and closing balances of the Payables
to Third Parties item of Current Liabilities on our Balance Sheet
(R$ 13 million on March 31, 2022 compared to R$ 13 million at
year-end 2021). Payables to Third Parties represented negative cash
flow of R$ 193 million in the three months ended March 31,
2022;
▪Receivables
from (Payables to) related Parties consists of the difference
between the opening and closing balances of the Payables to related
Parties excluding Interest Paid, which are presented separately in
the statement of Cash Flows. (R$ 283 million on March 31, 2022
compared to R$ 544 million at year-end 2021). Receivables from
(Payables to) related Parties represented negative cash flow of R$
271 million in the three months ended March 31, 2022;
▪Salaries
and Social Charges consist of the amounts that were recorded on our
Statement of Income, but which remained unpaid at the end of the
period. This item represented negative cash flow of R$ 76.7 million
in the three months ended March 31, 2022;
▪Trade
Payables item consists of the difference between the opening and
closing balances of Trade Payables (R$ 558 million on March 31,
2022 compared to R$ 578 million at year-end 2021). Trade Payables
represented a negative cash flow of R$ 22 million in the three
months ended March 31, 2022;
▪Taxes
and Contributions item consists of Sales Taxes (ISS, ICMS, PIS and
COFINS). This item represented positive cash flow of R$ 3 million
in the three months ended March 31, 2022;
▪Financial
Investments (Mandatory Guarantee) item consists of the minimum
amount that we need to maintain as required by the Brazilian
Central Bank. This item represented a negative cash flow of R$ 258
million in the three months ended March 31, 2022;
▪Taxes
Recoverable item consists of withholding Taxes and Recoverable
Taxes on Transaction Activities and Other Services and purchase of
POS devices. This item represented positive cash flow of R$ 51
million in the three months ended March 31, 2022;
▪Deposits
item consists of issued Certificates of Deposit, excluding paid
Interest Income Paid to, which are presented separately in the
statement of cash flows. This item represented a positive cash flow
of R$ 2,525 million in the three months ended March 31,
2022;
▪We
paid Income Tax and Social Contribution in cash totaling R$ 40
million and recorded positive cash flow of R$ 678 million related
to interest income received in cash in the three months ended March
31, 2022.
Net Cash provided by (used in) |
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Net Cash provided by (used in) Investing Activities |
|
(751) |
(359) |
109% |
|
(200) |
276% |
|
Amount paid on Acquisitions, Net of Cash Acquired |
|
0 |
0 |
n.a. |
|
1 |
n.a. |
|
Purchases of Property and Equipment |
|
(440) |
(250) |
76% |
|
(271) |
62% |
|
Purchases and Development of Intangible Assets |
|
(242) |
(149) |
62% |
|
(252) |
-4% |
|
Acquisition of Financial Investments |
|
(69) |
0 |
n.a. |
|
0 |
n.a. |
|
Redemption of Financial Investments |
|
0 |
40 |
n.a. |
|
322 |
n.a. |
Net cash used in Investing Activities
in the three months ended March 31, 2022, totaled
R$ 751 million,
an increase of
276% vs. at year-end 2021, mainly due to:
▪Purchases
of Property and Equipment of R$ 440 million, an increase of +76%
y/y, mainly related to POS device purchases. During 1Q22 PagSeguro
made an additional POS purchase to recover the inventory's coverage
ratio that was affected by lack of semi-conductor in 2021 and to
prevent a potential new lack of semi-conductors due to lockdowns in
some geographies this year;
▪Purchases
and Development of Intangible Assets of R$ 242 million, an increase
of +62% y/y, which represent purchases of third-party software and
salaries and other amounts that we invested to develop software and
technology internally, which we capitalize as intangible
assets;
▪Acquisition
of Financial Investments, which negatively impacted the cash flow
in R$ 69 million.
Net Cash provided by (used in) |
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Net Cash provided by (used in) Financing Activities |
|
152 |
(3) |
n.a. |
|
738 |
-79% |
|
Proceeds from Borrowings |
|
250 |
0 |
n.a. |
|
1,012 |
-75% |
|
Payment of Leases |
|
(4) |
(3) |
23% |
|
(5) |
-8% |
|
Acquisition of Treasury Shares |
|
(94) |
0 |
n.a. |
|
(258) |
-64% |
|
Capital Increase by non-controlling Shareholders |
|
0 |
0 |
n.a. |
|
(12) |
n.a. |
Net cash used in Financing Activities
in the three months ended March 31, 2022, totaled
R$ 152 million,
a decrease of -79% vs. at year-end 2021, mainly due to related to
the Proceeds from Borrowings in the amount of R$ 250 million minus
R$ 94 million that we spent on the Acquisition of Shares to be held
in Treasury.
Appendix
Balance
Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ Million |
1Q22 |
1Q21 |
|
R$ Million |
1Q22 |
1Q21 |
|
Total Assets |
33,808 |
21,976 |
|
Total Liabilities and Equity |
33,808 |
21,976 |
|
Current Assets |
28,872 |
18,643 |
|
Current Liabilities |
20,926 |
10,714 |
|
Cash and Cash Equivalents |
1,483 |
1,260 |
|
Payables to Third Parties |
13,180 |
8,748 |
|
Financial Investments |
1,132 |
965 |
|
Trade Payables |
558 |
306 |
|
Accounts Receivable |
25,529 |
15,824 |
|
Payables to Related Parties |
283 |
80 |
|
Derivative Financial Instruments |
1 |
0 |
|
Borrowings |
1,110 |
0 |
|
Inventories |
49 |
53 |
|
Derivative Financial Instruments |
193 |
0 |
|
Taxes Recoverable |
434 |
383 |
|
Deposits |
5,146 |
1,158 |
|
Other Receivables |
243 |
158 |
|
Salaries and Social Charges |
183 |
153 |
|
- |
- |
- |
|
Taxes and Contributions |
56 |
30 |
|
- |
- |
- |
|
Provision for Contingencies |
30 |
20 |
|
- |
- |
- |
|
Deferred Revenue |
147 |
194 |
|
- |
- |
- |
|
Other Liabilities |
41 |
26 |
|
Non-Current Assets |
4,936 |
3,333 |
|
Non-Current Liabilities |
2,090 |
1,582 |
|
Judicial Deposits |
41 |
38 |
|
Deferred Income Tax and Social Contribution |
1,422 |
1,184 |
|
Accounts Receivable |
390 |
44 |
|
Provision for Contingencies |
14 |
13 |
|
Prepaid Expenses |
10 |
9 |
|
Deposits |
569 |
289 |
|
Deferred Income Tax and Social Contribution |
114 |
77 |
|
Deferred Revenue |
17 |
25 |
|
Investment |
16 |
16 |
|
Other Liabilities |
69 |
71 |
|
Property and Equipment |
2,579 |
1,944 |
|
- |
- |
- |
|
Intangible Assets |
1,786 |
1,204 |
|
- |
- |
- |
|
- |
- |
- |
|
Equity |
10,791 |
9,680 |
|
- |
- |
- |
|
Share Capital |
0 |
0 |
|
- |
- |
- |
|
Capital Reserve |
6,014 |
5,853 |
|
- |
- |
- |
|
Other Comprehensive Income |
(3) |
1 |
|
- |
- |
- |
|
Equity Valuation Adjustments |
(22) |
(22) |
|
- |
- |
- |
|
Profit Retention Reserve |
5,083 |
3,838 |
|
- |
- |
- |
|
Treasury Shares |
(281) |
(1) |
|
- |
- |
- |
|
Non-controlling Interests |
0 |
12 |
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Total Revenues and Income |
|
3,427 |
2,067 |
66% |
|
3,236 |
6% |
|
Transaction Activities and Other Services |
|
2,055 |
1,385 |
48% |
|
2,060 |
0% |
|
Financial Income |
|
1,331 |
657 |
103% |
|
1,133 |
17% |
|
Other Financial Income |
|
42 |
25 |
65% |
|
44 |
-4% |
|
Total Costs and Expenses |
|
(2,978) |
(1,622) |
84% |
|
(2,818) |
6% |
|
Cost of Sales and Services |
|
(1,737) |
(1,140) |
52% |
|
(1,830) |
-5% |
|
Selling Expenses |
|
(480) |
(367) |
31% |
|
(424) |
13% |
|
Administrative Expenses |
|
(135) |
(111) |
22% |
|
(143) |
-5% |
|
Financial Expenses |
|
(621) |
(44) |
1298% |
|
(403) |
54% |
|
Other Expenses, Net |
|
(4) |
41 |
n.a. |
|
(19) |
-76% |
|
Income Tax and Social Contribution |
|
(78) |
(118) |
-34% |
|
(84) |
-8% |
|
Income Tax and Social Contribution – Current |
|
(27) |
(20) |
36% |
|
(91) |
-70% |
|
Income Tax and Social Contribution – Deferred |
|
(50) |
(98) |
-48% |
|
6 |
n.a |
|
Tax Rate |
|
17% |
26% |
(9.2) p.p. |
|
20% |
(2.8) p.p. |
|
Net Income | Non-GAAP |
|
371 |
327 |
14% |
|
334 |
11% |
|
% Net Margin |
|
11% |
16% |
(5.0) p.p. |
|
10% |
0.5 p.p. |
|
Non-GAAP effects |
|
(21) |
(56) |
-62% |
|
(33) |
-35% |
|
Net Income | GAAP |
|
350 |
271 |
29% |
|
301 |
16% |
|
|
|
|
|
|
|
|
|
|
Financial KPIs (ex-ITC) | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Total Revenues and Income (ex-ITC) |
|
2,197 |
1,361 |
61% |
|
2,058 |
7% |
|
Adjusted EBITDA |
|
665 |
573 |
16% |
|
612 |
9% |
|
% EBITDA Margin |
|
19% |
28% |
(8.3) p.p. |
|
19% |
0.5 p.p. |
|
% EBITDA Margin (ex-ITC) |
|
30% |
42% |
(11.8) p.p. |
|
30% |
0.5 p.p. |
|
Net Income | Non-GAAP |
|
371 |
327 |
14% |
|
334 |
11% |
|
% Net Margin |
|
11% |
16% |
(5.0) p.p. |
|
10% |
0.5 p.p. |
|
% Net Margin (ex-ITC) |
|
17% |
24% |
(7.1) p.p. |
|
16% |
0.7 p.p. |
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted EPS to Non-GAAP Basic and
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Reconciliation |
1Q22 |
1Q21 |
Var. y/y |
|
Net Income attributable to: |
|
|
|
|
Owners of the Company | R$ Million |
350 |
271 |
29% |
|
Non-controlling interests | R$ Million |
0.0 |
0.1 |
n.a. |
|
Weighted average number of Outstanding Common Shares | #
Thousand |
331,079 |
329,973 |
0% |
|
Weighted average number of common shares diluted | #
Thousand |
333,138 |
330,350 |
1% |
|
Basic Earnings per common share | R$ |
1.0569 |
0.8221 |
29% |
|
Diluted Earnings per common share | R$ |
1.0504 |
0.8212 |
28% |
|
|
|
|
|
|
Non-GAAP Net income | R$ Million |
371 |
356 |
4% |
|
Weighted average number of outstanding common shares | #
Thousand |
331,079 |
329,973 |
0% |
|
Weighted average number of common shares diluted | #
Thousand |
333,138 |
330,350 |
1% |
|
Non-GAAP Basic Earnings per common share | R$ |
1.1214 |
1.0800 |
4% |
|
Non-GAAP Diluted Earnings per common share | R$ |
1.1145 |
1.0787 |
3% |
Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
1Q22 |
1Q21 |
Var. y/y |
|
4Q21 |
Var. q/q |
|
Earnings before Income Taxes |
|
416 |
360 |
16% |
|
368 |
13% |
|
Expenses (Revenues) not affecting Cash |
|
756 |
401 |
89% |
|
777 |
-3% |
|
Depreciation and Amortization |
|
249 |
158 |
57% |
|
225 |
10% |
|
Chargebacks |
|
250 |
173 |
44% |
|
214 |
17% |
|
Accrual of Provision for Contingencies |
|
6 |
5 |
11% |
|
6 |
-2% |
|
Reversal of Taxes and Contributions |
|
0 |
(29) |
n.a. |
|
24 |
n.a. |
|
Share based Long Term Incentive Plan (LTIP) |
|
36 |
80 |
-55% |
|
44 |
-19% |
|
Loss on disposal: property/equipment/intangible assets |
|
2 |
5 |
-50% |
|
8 |
-70% |
|
Interest accrued |
|
218 |
13 |
1631% |
|
146 |
49% |
|
Other Financial Cost, Net |
|
(5) |
(4) |
23% |
|
102 |
n.a. |
|
Changes in Operating Assets and Liabilities |
|
(1,523) |
(867) |
76% |
|
(1,518) |
0% |
|
Account Receivables |
|
(3,181) |
(78) |
3963% |
|
(4,109) |
-23% |
|
Financial Investments (Mandatory Guarantee) |
|
(258) |
(21) |
1151% |
|
(87) |
198% |
|
Inventories |
|
0 |
(23) |
n.a. |
|
(68) |
n.a. |
|
Taxes Recoverable |
|
51 |
25 |
102% |
|
61 |
-16% |
|
Other Receivables |
|
(47) |
(22) |
115% |
|
(65) |
-27% |
|
Deferred Revenue |
|
(16) |
6 |
n.a. |
|
(23) |
-32% |
|
Other Payables |
|
(35) |
(58) |
-41% |
|
(3) |
889% |
|
Payables to Third Parties |
|
(193) |
(1,363) |
-86% |
|
2,058 |
n.a. |
|
Trade Payables |
|
(22) |
(30) |
-26% |
|
201 |
n.a. |
|
Receivables from (Payables to) Related Parties |
|
(271) |
21 |
n.a. |
|
160 |
n.a. |
|
Deposits |
|
2,525 |
673 |
275% |
|
421 |
500% |
|
Salaries and Social Charges |
|
(77) |
(21) |
270% |
|
(18) |
337% |
|
Taxes and Contributions |
|
3 |
26 |
-88% |
|
(43) |
n.a. |
|
Provision for Contingencies |
|
(4) |
(2) |
113% |
|
(5) |
-15% |
|
Income Tax and Social Contribution paid |
|
(40) |
(25) |
58% |
|
(19) |
107% |
|
Interest Income received |
|
678 |
113 |
499% |
|
527 |
29% |
|
Net Cash provided by (used in) Operating Activities |
|
287 |
(18) |
n.a. |
|
134 |
114% |
|
Amount paid on Acquisitions, Net of Cash Acquired |
|
0 |
0 |
n.a. |
|
1 |
n.a. |
|
Purchases of Property and Equipment |
|
(440) |
(250) |
76% |
|
(271) |
62% |
|
Purchases and Development of Intangible Assets |
|
(242) |
(149) |
62% |
|
(252) |
-4% |
|
Acquisition of Financial Investments |
|
(69) |
0 |
n.a. |
|
0 |
n.a. |
|
Redemption of Financial Investments |
|
0 |
40 |
n.a. |
|
322 |
n.a. |
|
Net Cash provided by (used in) Investing Activities |
|
(751) |
(359) |
109% |
|
(200) |
276% |
|
Proceeds from Borrowings |
|
250 |
0 |
n.a. |
|
1,012 |
-75% |
|
Payment of leases |
|
(4) |
(3) |
23% |
|
(5) |
-8% |
|
Acquisition of Treasury Shares |
|
(94) |
0 |
n.a. |
|
(258) |
-64% |
|
Capital Increase by non-controlling Shareholders |
|
0 |
0 |
n.a. |
|
(12) |
n.a. |
|
Net Cash provided by (used in) Financing Activities |
|
152 |
(3) |
n.a. |
|
738 |
-79% |
|
Increase (Decrease) in Cash and Cash Equivalents |
|
(311) |
(380) |
-18% |
|
672 |
n.a. |
|
Cash and Cash Equivalents | Beginning of the Period |
|
1,794 |
1,640 |
9% |
|
1,122 |
60% |
|
Cash and Cash Equivalents | End of the Period |
|
1,483 |
1,260 |
18% |
|
1,794 |
-17% |
Glossary
Active Merchants:
At least one transaction in the last twelve months.
Adjusted EBITDA:
GAAP Net Income + Income Tax and Social Contribution – Other
Financial Income + Depreciation and Amortization + FX Expenses +
M&A Expenses + LTIP Expenses.
Please see the Supplemental Information for a reconciliation of
this adjusted financial measure.
APR:
Annual Percentage Rate.
APY:
Annual Percentage Yield.
Gross Profit
•PagSeguro:
(MDR Revenue + Prepayment Revenue) – (Transaction Costs + Card
Scheme Fee + Financial Expenses).
•PagBank:
(Net Interest Income + Revenue form Services) – Provision for
Losses.
Gross Take Rate
•PagSeguro:
(Net Revenue from Transaction Activities and Other Services +
Financial Income) / PagSeguro TPV. Excluding revenues and costs
originated by membership fees.
•PagBank:
(Net Interest Income + Revenue form Services) / PagBank Monetizable
TPV.
Net Interest Income:
Interest Income – Cost of Funding + Float.
Net Take Rate
•PagSeguro:
(Net Revenue from Transaction Activities and Other Services +
Financial Income - Transaction Costs) / PagSeguro TPV. Excluding
revenues and costs originated by membership fees.
•PagBank:
(Net Interest Income + Revenue form Services - Transaction Costs) /
PagBank Monetizable TPV.
Non-GAAP numbers:
Non-GAAP financial measure. Please see the Slide 28 for a
reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP financial measure.
PagBank Clients:
Number of bank accounts registered at Brazilian Central
Bank.
PagBank Active Clients:
Active clients using one additional digital account feature/service
beyond acquiring and consumers with a balance in their digital
account on the last day of the month.
PagBank Revenues:
composed by Interest Income, Interchange from PagBank cards,
transaction fees from day-to-day banking (bill payments, mobile-top
ups, among others).
Recurrent Measures:
Excluding one-time effects that may affect company’s
results.
Total Payment Volume (TPV):
PagSeguro TPV + PagBank TPV.
•PagSeguro:
Includes PagSeguro’s TPV, which is the value of payments
successfully processed through our end-to-end digital banking
ecosystem, net of payment reversals, not including PagBank
TPV.
•PagBank:
Includes prepaid card top-ups, cash cards spending, credit cards,
mobile top-ups, wire transfers to third-party, cash-in
through
boletos,
bill payments, tax collections, P2P transactions, QR Code
transactions, credit underwriting, Super App and GMV
TPV Per Merchant:
PagSeguro TPV / Average Active Merchants of last two
quarters.
Non-GAAP disclosure
This press release includes certain non-GAAP measures. We present
non-GAAP measures when we believe that the additional information
is useful and meaningful to investors. These non-GAAP measures are
provided to enhance investors' overall understanding of our current
financial performance and its prospects for the future.
Specifically, we believe the non-GAAP measures provide useful
information to both management and investors by excluding certain
expenses, gains and losses, as the case may be, that may not be
indicative of our core operating results and business
outlook.
These measures may be different from non-GAAP financial measures
used by other companies. The presentation of this non-GAAP
financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered separately from, or as a substitute for,
our financial information prepared and presented in accordance with
IFRS as issued by the IASB. Non-GAAP measures have limitations in
that they do not reflect all the amounts associated with our
results of operations as determined in accordance with IFRS. These
measures should only be used to evaluate our results of operations
in conjunction with the corresponding GAAP measures.
Non-GAAP results consist of our GAAP results as adjusted to exclude
the following items:
LTIP expenses:
This consists of expenses for equity awards under our two long-term
incentive plans (LTIP and LTIP-Goals). We exclude LTIP expenses
from our non-GAAP measures primarily because they are non-cash
expenses and the related employer payroll taxes depend on our stock
price and the timing and size of exercises and vesting of equity
awards, over which management has limited to no control, and as
such management does not believe these expenses correlate to the
operation of our business.
M&A expenses:
This
consists of expenses for mergers & acquisitions (“M&A”)
transactions, including, among others, expenses for external
consulting, accounting and legal services in connection with due
diligence and negotiating M&A documentation for our
acquisitions, as well as amortization and write-downs of the fair
value of certain acquired assets. We exclude M&A expenses from
our non-GAAP measures primarily because such expenses are
non-recurring and do not correlate to the operation of our
business.
Non-recurring adjustments:
This consists of one-time adjustments related to PagPhone sales,
PagPhone inventory provisions and tax impairment. We exclude
non-recurring adjustments from our non-GAAP measures primarily
because such items are non-recurring and do not correlate to the
operation of our business.
Income tax and social contribution on LTIP expenses, M&A
expenses and non-recurring adjustments:
This represents the income tax effect related to the LTIP expenses,
M&A expenses and non-recurring adjustments mentioned
above.
For a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP measures, see the tables elsewhere in
this press release under the following headings: “Reconciliation of
Total Expenses to non-GAAP recurring Total Expenses,”
“Reconciliation of Income Tax and Social Contribution to non-GAAP
recurring Income Tax and Social Contribution,” “Reconciliation of
Net Income to non-GAAP recurring Net Income,” “Reconciliation of
Net Income to Adjusted EBITDA,” “Reconciliation of Basic and
diluted EPS to non-GAAP Basic and diluted EPS,” and “Reconciliation
of GAAP Measures to non-GAAP Measures.”
Earnings Webcast
PagSeguro Digital Ltd. (NYSE:PAGS) will host a conference call and
earnings webcast on
June 8, 2022,
at
5:00 pm ET.
Event Details
HD Web Phone:
Click here
Dial–in (Brazil): +55 (11) 4210-1803 or +55 11
3181-8565.
Dial–in (US and other countries): +1 (412) 717-9627 or +1 (844)
204-8942
Password: PagBank PagSeguro
Webcast:
http://choruscall.websiteseguro.com/pagseguro/1q22.htm
Contacts:
Investor Relations:
ir@pagseguro.com
investors.pagseguro.com
Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of the U.S. federal securities laws. Statements contained
herein that are not clearly historical in nature are
forward-looking, and the words “anticipate,” “believe,”
“continues,” “expect,” “estimate,” “intend,” “project” and similar
expressions and future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “can,” “may,” or similar
expressions are generally intended to identify forward-looking
statements. We cannot guarantee that such statements will prove
correct. These forward-looking statements speak only as of the date
hereof and are based on our current plans, estimates of future
events, expectations and trends (including trends related to the
global and Brazilian economies and capital markets, as well as the
continuing economic, financial, political and public health effects
of the coronavirus, or the COVID-19, pandemic.) that affect or may
affect our business, financial condition, results of operations,
cash flow, liquidity, prospects and the trading price of our Class
A common shares, and are subject to several known and unknown
uncertainties and risks, many of which are beyond our control. As
consequence, current plans, anticipated actions and future
financial position and results of operations may differ
significantly from those expressed in any forward-looking
statements in this press release. You are cautioned not to unduly
rely on such forward-looking statements when evaluating the
information presented. In light of the risks and uncertainties
described above, the future events and circumstances discussed in
this press release might not occur and are not guarantees of future
performance. Because of these uncertainties, you should not make
any investment decision based upon these estimates and
forward-looking statements. To obtain further information on
factors that may lead to results different from those forecast by
us, please consult the reports we file with the U.S. Securities and
Exchange Commission (SEC) and in particular the factors discussed
under “Forward-Looking Statements” and “Risk Factors” in our annual
report on Form 20-F.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
Date: June 8, 2022
|
|
|
|
|
|
|
|
|
|
PagSeguro Digital Ltd. |
|
|
|
By: |
/s/ Artur Schunck |
|
Name: |
Artur Schunck |
|
Title: |
Chief Financial Officer, Chief Accounting Officer and Investor
Relations Officer |
PagSeguro Digital (NYSE:PAGS)
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