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 November 2022
Commission File Number: 001-38353
PagSeguro
Digital Ltd.
(Name
of Registrant)
Conyers Trust Company (Cayman) Limited,
Cricket Square, Hutchins Drive, P.O. Box 2681,
Grand Cayman, KY1-1111, Cayman Islands
(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 Third Quarter 2022 Results
Net Income | GAAP of R$ 380 million, +18% y/y
Net Income | Non-GAAP of R$ 411 million
São Paulo, November 22, 2022
–
PagSeguro Digital Ltd. (“PAGS” or “we”) announced today its third
quarter results for the period ended September 30, 2022. The
consolidated financial statements are presented in Reais (R$) and
prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”). For further information about certain of
the metrics and indicators in this release, please consult the
Glossary available at the end of this release.
3Q22 Highlights
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Total Revenue and Income |
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PagSeguro TPV |
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PagBank TPV |
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R$ 4.04 Billion |
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R$ 90.3 Billion |
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R$ 105.1 Billion |
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Net Income | GAAP |
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PagSeguro Monthly TPV / Merchant |
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Total Deposits |
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R$ 380 Million |
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R$ 4.1 K |
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R$ 19.4 Billion |
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Net Income | Non-GAAP |
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PagSeguro Revenue |
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Credit Portfolio |
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R$ 411 Million |
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R$ 3.7 Billion |
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R$ 2.7 Billion |
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To our shareholders
We are delighted to announce another quarter of strong results and
remarkable achievements, consolidating our disruptive position and
our commitment to long-term sustainable growth.
We ended the third quarter with
26 million PagBank clients,
the
second largest digital bank in Brazil.
PagBank cash-in surpassed
40 billion reais,
and Total Deposits reached almost
20 billion reais
just 3 years after its creation.
We are
the market share expansion winner in Payments this
year.
While the industry volume grew +30% in the first nine months of
2022,
PagSeguro TPV grew +50%,
+92 bps
vs. 4Q21 based on ABECS criteria, considering only cards TPV
(debit, credit and prepaid) and not including Pix QR code,
“boletos”
(bank slips) and vouchers. We also executed the
highest repricing in the industry
(+42 bps vs. 4Q21) with no additional churn, reinforcing our unique
and superior value proposition.
Remaining the longtail segment leader,
we have diversified our set of financial services (PagBank) and
payments solutions to explore a much larger
market.
Our unique and complete value proposition includes:
•One
app, One platform, One customer care:
banking and payments;
•PagBank:
wide range of financial services;
•Complete
set of payments acceptance:
cards, pix, boletos and wire transfers;
•Omnichannel
solutions:
in-store, online and self-service;
•Value-added
services:
loyalty, sales management, reconciliation and
delivery;
•Most
efficient salesforce:
HUBs and digital.
We have been highly disciplined and efficient, always balancing
growth with profitability. I remain extremely excited for the next
chapters of PAGS taking advantage of digital financial disruption
in Brazil.
Alexandre Magnani,
Chief Executive Officer
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PagBank Operational KPIs |
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3Q22 |
3Q21 |
Var. y/y |
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2Q22 |
Var. q/q |
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PagBank TPV | R$ Billion |
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105.1 |
58.8 |
79% |
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85.5 |
23% |
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Credit Porfolio | R$ Billion |
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2.7 |
1.6 |
71% |
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2.3 |
17% |
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Active Clients | # Million |
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15.8 |
12.2 |
29% |
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15.1 |
4% |
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ARPAC |
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R$ 90 |
R$ 83 |
8% |
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R$ 90 |
0% |
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PagSeguro Operational KPIs |
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3Q22 |
3Q21 |
Var. y/y |
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2Q22 |
Var. q/q |
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PagSeguro TPV | R$ Billion |
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90.3 |
66.8 |
35% |
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89.2 |
1% |
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Monthly TPV per Merchant | R$ Thousand |
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4.1 |
2.9 |
39% |
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3.9 |
4% |
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Gross Take Rate |
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4.11% |
3.73% |
38 bps |
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4.04% |
7 bps |
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Net Take Rate |
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2.59% |
2.15% |
44 bps |
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2.51% |
8 bps |
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Financial KPIs | R$ Million |
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3Q22 |
3Q21 |
Var. y/y |
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2Q22 |
Var. q/q |
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Total Revenue and Income¹ |
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4,035 |
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2,776 |
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45% |
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3,911 |
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3% |
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PagSeguro |
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3,713 |
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2,491 |
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49% |
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3,606 |
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3% |
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PagBank |
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339 |
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259 |
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31% |
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314 |
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8% |
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(-) Transactional Costs |
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(1,424) |
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(1,112) |
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28% |
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(1,414) |
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1% |
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(-) Financial Expenses |
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(921) |
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(210) |
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338% |
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(756) |
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22% |
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(-) Chargeback |
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(273) |
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(130) |
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110% |
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(270) |
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1% |
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(+) FX Expenses |
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12 |
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19 |
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-33% |
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9 |
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42% |
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(-) Other Financial Income |
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(46) |
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(46) |
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1% |
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(45) |
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3% |
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Gross Profit |
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1,384 |
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1,297 |
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7% |
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1,434 |
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-3% |
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(-) Operating Expenses |
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(615) |
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(555) |
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11% |
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(603) |
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2% |
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Adjusted EBITDA |
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770 |
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742 |
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4% |
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831 |
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-7% |
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PagSeguro |
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869 |
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778 |
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12% |
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927 |
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-6% |
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PagBank |
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(99) |
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(36) |
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172% |
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(96) |
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3% |
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(-) POS Write-off |
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(41) |
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0 |
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n.a. |
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(93) |
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-56% |
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(-) D&A |
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(290) |
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(200) |
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45% |
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(276) |
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5% |
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(+/-) Other Income (Expense), Net |
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34 |
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27 |
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24% |
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36 |
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-7% |
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(-) Income Tax |
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(61) |
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(150) |
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-59% |
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(95) |
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-35% |
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Net Income | Non-GAAP |
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411 |
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419 |
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-2% |
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403 |
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2% |
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(-) Non-GAAP Effects |
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(31) |
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(97) |
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-68% |
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(36) |
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-15% |
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Net Income | GAAP |
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380 |
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321 |
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18% |
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367 |
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4% |
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EPS |
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R$ 1.16 |
R$ 0.97 |
20% |
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R$ 1.10 |
5% |
1. Including Other Financial Income.
New Products
Following our mission to disrupt and democratize payments and
financial services in Brazil, we present our new products,
services, and features, to keep expanding our two-sided ecosystem
and increasing clients’ engagement.
Below, we share the details of our main initiatives launched in the
third quarter of 2022.
PagSeguro
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Tap on Phone |
PagTotem & Moderninha Smart 2 |
Automatic Savings |
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•Integrated
solution in PagVendas
◦Tap
on Phone
◦Payment
Link
◦Pix
QR Code
•Reducing
Capex deployment
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•Fostering
one-stop-shop solution
•Exploring
a much larger market
•Increasing
VAS usage
◦PagVendas
◦ClubPag
•Diversifying
POS suppliers
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•Auto
split settlement between
◦Balance
Account
◦Savings
Account
•%
savings based on merchants’ decision
•Unlocking
secured credit card offering
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PagBank
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Credit Card backed by Balance Account |
Bancassurance |
Financial Education
(“Trilha
do Rendimento”)
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•Expanding
credit offering
•Addressing
new and existing clients
•Credit
card limit tied to balance account
•No
NPLs
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•New
insurance products:
◦Pix
◦Credit
Cards
•Cross-selling
opportunity
•Distribution
of 3rd-party
products
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•Financial
education through gamification
•Daily
prizes for accomplished missions
•Fostering
PagBank deposits
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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$195.4 billion,
an increase of
+56%
vs. 3Q21 due to the growth of +35% in PagSeguro TPV and +79% in
PagBank TPV, mainly driven by the maturation of merchant cohorts’
and market share gains in payments combined with deeper engagement
with PagBank services.
PAGS Net Take Rate
totaled
2.90%
in 3Q22, an increase of
+48 bps
vs. 3Q21 and
+15 bps
vs. 2Q22. This increase reflects the ongoing repricing process,
which is mainly applicable to our prepayment services. As a result,
Financial Income yield increased
+48 bps
y/y. In addition, PagBank revenues continue to contribute to the
sustainability of consolidated take rates. Excluding one-time
positive effect on Transactions Costs, related to PagPhone’s
reimbursement, PAGS Net Take Rate totaled
2.84%.
PagSeguro
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PagSeguro TPV |
Net Take Rate |
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R$ Billion |
% of PagSeguro TPV |
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PagSeguro TPV
totaled
R$ 90.3 billion,
an increase of
+35%
vs. 3Q21 mainly due to:
(i)larger
share of wallet,
driven by the migration from cash to electronic payments, leading
to higher TPV per merchant;
(ii)maturation
of existing cohorts,
due to increasing productivity of our sales channels;
(iii)market
share gains,
boosted by HUBs execution exploring a much larger market; partially
offset by:
(iv)weaker
industry growth
mainly due to deflation in Brazil in the 3Q22, and tougher
comps.
As a result,
PagSeguro
market share grew
+92 bps
vs. 4Q21 based on ABECS criteria, considering only cards TPV
(debit, credit and prepaid) and not including Pix QR code,
“boletos”
(bank slips) and vouchers, showing the results of PAGS efforts and
strategies to prioritize merchants engaged with PagBank with higher
recurrence.
PagSeguro Gross Take Rate
totaled
4.11%
and
Net Take Rate
totaled
2.65%.
Excluding one-time positive effect on Transactions Costs, related
to PagPhone’s reimbursement, PagSeguro Net Take Rate totaled
2.59%,
+8bps higher than 2Q22 and +24bps higher than 1Q22.
This increase is mainly related to:
(i)ongoing
repricing strategy
to offset Brazilian Interest Rate hikes;
(ii)TPV
mix towards credit cards transactions
which have higher take rates;
partially offset by:
(iii)TPV
mix by merchant profile,
given our
moving upmarket strategy.
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Active Merchants |
Monthly TPV per Merchant |
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# Million |
R$ Thousand |
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PagSeguro
ended the quarter with
7.3 million
Active Merchants,
the highest Active Merchants base in the Brazilian Acquiring
Industry,
-5%
lower as compared to 3Q21. Since the beginning of the year,
PagSeguro has been adopting a more selective acquisition strategy
by increasing POS prices (reducing POS subsidies), focusing on
clients with better unit economics, higher activation, and deeper
engagement
with PagBank.
Average Monthly TPV per Merchant
totaled
R$ 4.1 thousand,
up
+39%
y/y, mainly related to larger share of wallet from merchants, due
to more selective acquisition strategy in online sales channel,
higher productivity of sales channels and market share
gains.
PagBank
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PagBank TPV |
PagBank Cash-in |
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R$ Billion |
R$ Billion |
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PagBank TPV
totaled
R$ 105.1 billion,
an increase of
+79%
vs. 3Q21. This growth is mainly related to deepening clients’
engagement with day-to-day banking (deposits, bill payments, mobile
top-up, Pix), cards spending and credit underwriting. The number of
Pix transactions by PagBank clients accounted for
9.5% of total Pix transactions in Brazil, an increase of
2.5x in cash-in volumes when compared to the same period last year.
The deeper engagement of our clients reflects our new products and
services strategy, increasing the penetration of digital
transactions replacing cash transactions.
PagBank Cash-in
totaled
R$ 41.9 billion,
an increase of
+131%
in comparison with 3Q21. Most of the cash-in was driven by Pix
transactions, and the Company has been working on advertising our
investment products and other initiatives that positively
contribute to foster growth in deposits.
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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$ 2.7 billion
in 3Q22,
+71%
vs. 3Q21. The increase in the quarter was mostly driven by secured
loans underwriting such as
Payroll Loans,
FGTS early prepayment
and our newest
Secured Credit Card.
Secured products reached 35% of share in the Credit Portfolio,
resulting in a better-balanced portfolio.
Total Deposits
reached
R$ 19.4 billion,
an increase of
+171%
vs. 3Q21. This increase reflects our superior value proposition to
our merchants, demonstrated by the 50% increase in checking
accounts (following TPV growth trends), and to our 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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3Q22 |
3Q21 |
Var. y/y |
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2Q22 |
Var. q/q |
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Total Deposits |
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19.4 |
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7.2 |
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171 |
% |
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15.5 |
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25 |
% |
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Checking Accounts |
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6.7 |
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4.5 |
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50 |
% |
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6.1 |
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11 |
% |
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Merchant's Payment Account |
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0.8 |
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0.7 |
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22 |
% |
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0.8 |
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6 |
% |
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Account Balances |
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5.9 |
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3.8 |
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55 |
% |
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5.3 |
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11 |
% |
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Savings Accounts |
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12.7 |
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2.7 |
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374 |
% |
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9.4 |
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35 |
% |
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Certificate of Deposits |
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10.2 |
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2.2 |
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374 |
% |
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7.0 |
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46 |
% |
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Interbank Deposits |
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2.2 |
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0.3 |
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649 |
% |
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2.2 |
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3 |
% |
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Corporate Securities |
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0.2 |
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0.2 |
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-4 |
% |
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0.2 |
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-13 |
% |
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PagBank Clients |
PagBank Active Clients |
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# Million |
# Million |
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PagBank
ended the quarter with
25.9 million clients,
an increase of
+32%
vs. 3Q21, and
Active Clients
of
15.8 million,
an increase of
+29%
vs. 3Q21. This increase is mainly related to higher penetration in
consumers segment which represents
58%
of PagBank clients vs. 47% in 3Q21. This increase also reflects
PagBank releasing new products and best-in-class user
experience.
Financial Performance
Total Revenue and Income
R$ Million
Total Revenue and Income
reached
R$ 4,035 million
in 3Q22, an increase of
+45%
from R$ 2,776 million reported in 3Q21, as described
below:
(i)Transaction
Activities and Other Services:
Revenues from Transaction Activities and Other Services
in 3Q22 amounted to
R$ 2,292 million,
an increase of
+28%
vs. 3Q21, due to:
↑ PagSeguro
TPV growth of +35% y/y,
reaching R$ 90.3 billion in 3Q22;
↑ PagBank
Net Revenues growth of +31%,
totaling R$ 339 million in 3Q22.
(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$ 1,697 million,
an increase of
+81%,
mainly due to:
↑ Increasing
volume of credit transactions
in PagSeguro TPV;
↑ Longer
duration of installments
in the TPV mix vs. 3Q21;
↑ Ongoing
repricing
while balancing client relationship.
(iii)Other
Financial Income:
Other Financial Income
reached
R$ 46 million
in 3Q22, flat compared to 3Q21, due to:
↑ Increase
in interest
on Cash and Cash Equivalents plus Financial Investments due to the
higher Brazilian Basic Interest Rate (SELIC) as compared to
3Q21.
↓ Deductions
from Other Financial Income
amounted to R$ 30 million in 3Q22 from R$ 2.2 million in 3Q21. This
increase is mainly due to new taxation legislation imposed by BCB
Resolution nº 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$ 1,424 million
in 3Q22, an increase of
+28%
from R$ 1,112 million reported in 3Q21. As a percentage of the
total of our Revenues from Transaction Activities and Other
Services, Transaction Costs remained stable in 62.1% in 3Q22 same
as 3Q21.
When including one-time positive effect on cost of R$ 53 million,
related to PagPhone’s reimbursement, Transaction Costs (GAAP)
totaled
R$ 1,372 million.
The increase is mainly related to:
↑ Interchange
Fees paid to Card Issuers
in 3Q22, totaled R$ 1,159 million, an increase of
+41%
y/y,
mainly driven by the increase in TPV higher penetration on small
and medium businesses (SMBs) segment and higher share of credit
card volumes;
↑ Card
Scheme Fees
in 3Q22 totaled R$ 220 million, representing an increase of
+34%
y/y.
Financial Expenses
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|
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|
|
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Financial Expenses |
Bridge |
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R$ Million |
R$ Million |
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Financial Expenses
totaled
R$ 921 million
in 3Q22, up
+339%
vs. 3Q21. This increase is mainly explained by:
(i)R$
637 million additional expenses related to the
Brazilian Basic Interest Rate (SELIC) hikes;
and
(ii)R$
74 million related to the
TPV growth with higher credit card mix;
Chargebacks
R$ Million
Chargebacks
reached a total of
R$ 273 million
in 3Q22, up
+110%
vs. 3Q21. As a percentage of Total Revenues and Income, Chargebacks
increased by
+210 bps
to 6.8% in 3Q22, up from 4.7% in 3Q21. This increase was mainly due
to PagSeguro TPV higher exposure to credit cards, which have a
higher likelihood of fraudulent transactions and additional
provisions in PagBank Credit operation.
Gross Profit
R$ Million
Gross Profit
totaled
R$ 1,384 million
in 3Q22, up
+7%
from R$ 1,297 million presented in 3Q21. This increase is mainly
related to volume gains, successes stemming from PAGS’ repricing
strategy, operating leverage captured by PAGS, diligent credit
underwriting strategy more focused on payroll products with longer
duration, partially offset by the increase in the average interest
rate of the quarter, driving up financial expenses.
Operating Expenses
Non-GAAP
| R$ Million
Operating Expenses
which include Personnel Expenses, Marketing and Advertising and
Other Expenses, totaled
R$ 615 million,
an increase of
+11%
compared to R$ 555 million in 3Q21. As a percentage of Total
Revenue and Income, Operating Expenses represented 15% vs. 20% in
3Q21, showing PAGS ability to capture operating
leverage.
When including non-GAAP expenses of R$ 95 million, Operating
Expenses
(GAAP) totaled
R$ 710 million.
The increase is mainly related to:
↑ Personnel
Expenses
reached
R$ 235 million,
up
+21%
vs. 3Q21. This amount excludes LTIP adjustment of R$ 43 million in
3Q22 and R$ 141 million in 3Q21. As a percentage of Total Revenues
and Income, non-GAAP Personnel Expenses were 5.8% in 3Q22, a
decrease of -1.2% compared to 7.0% reported in 3Q21.
When including non-GAAP Expenses of R$ 43 million, GAAP Personal
Expenses totaled R$ 278 million;
↓ Marketing
and Advertising
totaled
R$ 200 million
in 3Q22, down
-5%
from R$ 210 million presented in 3Q21. As a percentage of Total
Revenues and Income, Marketing and Advertising expenses decreased
by 260 bps to 5.0% in 3Q22, from 7.6% in 3Q21. This decrease was
mainly due to the Company's decision of being more selective to
attract new clients with better unit economics and LTV/CAC
ratio;
↑ Other
Expenses
reached
R$ 180 million
in 3Q22, an increase of
+20%
from R$ 150 million reported in 3Q21. As a percentage of Total
Revenues and Income, Other Expenses was 5.7% in 3Q22, an increase
of +20 bps when compared to 5.5% reported in 3Q21.
When including non-GAAP expenses of R$ 52 million, GAAP Other
Expenses totaled R$ 232 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Operating Expenses |
|
(615) |
|
(555) |
|
11 |
% |
|
(603) |
|
2 |
% |
|
Personnel Expenses |
|
(235) |
|
(195) |
|
21 |
% |
|
(241) |
|
-3 |
% |
|
Marketing and Advertising |
|
(200) |
|
(210) |
|
-5 |
% |
|
(167) |
|
19 |
% |
|
Other (Expenses) Income, Net |
|
(180) |
|
(150) |
|
20 |
% |
|
(195) |
|
-8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Operating Expenses |
|
(710) |
|
(699) |
|
1 |
% |
|
(654) |
|
8 |
% |
|
Personnel Expenses |
|
(278) |
|
(336) |
|
-17 |
% |
|
(292) |
|
-5 |
% |
|
Marketing and Advertising |
|
(200) |
|
(210) |
|
-5 |
% |
|
(167) |
|
19 |
% |
|
Other (Expenses) Income, Net |
|
(232) |
|
(153) |
|
51 |
% |
|
(195) |
|
19 |
% |
POS Write-off
R$ Million
In September 2019, we changed our business model from selling POS
devices to subscription to follow the industry’s best standards and
to improve merchant’s user experience in terms of:
• POS delivery for new merchants;
and
• POS maintenance and replacement for
existing merchants.
At that time, we strategically prepared for the launch of more than
300 HUBs with a salesforce of 3,000 to have the best SLAs in the
market, providing a superior value proposition to focus not only on
pricing (POS, MDR and prepayment) itself.
Between 2020 and 2021, the COVID-19 pandemic changed merchants’
transaction profile into PAGS ecosystem, adding more complexity to
understanding merchants’ engagement and activity level. Now we have
a better understanding of merchants’ activity and we started to
write-off POS devices since the last quarter. In 3Q22 this value
amounted to
R$ 41 million
vs. R$ 93 million in 2Q22.
Depreciation and Amortization
Non-GAAP
| R$ Million
Depreciation and Amortization
reached
R$ 290 million
up
+45%,
from R$200 million in 3Q21. These amounts exclude M&A expenses
related to the amortization of fair value assets acquired as well
as expenses for external consulting, accounting, and legal services
in the amount of R$ 4.6 million in 3Q22 and R$ 3.5 million in
3Q21.
Including Non-GAAP expenses mentioned above, Depreciation and
Amortization totaled R$ 294 million
in the quarter, up +45% when compared to the R$ 203 million
reported in 3Q21.
Adjusted EBITDA
R$ Million
Adjusted EBITDA
amounted to
R$ 770 million
in 3Q22, up +4% vs. 3Q21, reflecting the ongoing repricing strategy
carried out by PAGS during the period and operating leverage gains
on HUBs and PagBank operations.
Income Tax and Social Contribution Reconciliation
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Profit for the period before Taxes |
|
425 |
|
421 |
|
1 |
% |
|
443 |
|
-4 |
% |
|
Statutory Rate |
|
34 |
% |
34 |
% |
0 |
% |
|
34 |
% |
0 |
% |
|
Expected Income Tax and Social Contribution |
|
(145) |
|
(143) |
|
1 |
% |
|
(151) |
|
-4 |
% |
|
Income Tax and Social contribution effect on: |
|
|
|
|
|
|
|
|
R&D and Tech Innovation Benefit - Law 11,196/05 (i) |
|
63 |
|
42 |
|
51 |
% |
|
59 |
|
6 |
% |
|
Taxation of Income abroad (ii) |
|
35 |
|
1 |
|
n.a. |
|
29 |
|
22 |
% |
|
Other |
|
2 |
|
1 |
|
65 |
% |
|
(13) |
|
n.a. |
|
Income Tax and Social Contribution Expenses |
|
(45) |
|
(100) |
|
-55 |
% |
|
(76) |
|
-41 |
% |
|
Effective Tax Rate |
|
11 |
% |
24 |
% |
(0.6) p.p. |
|
17 |
% |
(6.5) p.p. |
|
Income Tax and Social Contribution – Current |
|
2 |
|
(8) |
|
-121 |
% |
|
1 |
|
-100 |
% |
|
Income Tax and Social Contribution – Deferred |
|
(47) |
|
(92) |
|
-49 |
% |
|
(76) |
|
-39 |
% |
(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 Form 6-K related to our consolidated Financial Statements,
published on the date hereof.
(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$ 45 million
in 3Q22, representing a decrease of
-55%,
from an expense of R$ 100 million presented in 3Q21. Our Effective
Tax Rate (ETR) decreased by -1,310 bps to 10.6% in 3Q22 from 23.7%
in 3Q21. 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 2Q22 we experienced another effect related to
Taxation of Income abroad, Certain entities or investment funds
adopt different taxation regimes according to the applicable rules
in their respective jurisdictions, which resulted in a decrease in
our ETR by 8.2% for 3Q22.
|
|
|
|
|
|
|
Net Income GAAP |
Non-GAAP |
|
R$ Million |
R$ Million |
|
|
|
|
|
Net Income
for the quarter amounted to
R$ 411 million
on a non-GAAP basis, a decrease of
-2%,
from R$ 418 million reported in 3Q21, reflecting PAGS repricing
process during the period, operating leverage gains on HUBs and
PagBank operations and higher investment on marketing related to
PagBank products launching.
Including Non-GAAP expenses of R$ 31 million,
Net Income
on a GAAP basis totaled
R$ 380 million
in the quarter, up
+18%
when compared to R$ 321 million reported in 3Q21, benefited by the
items listed above and lower volume in share-based
compensation.
Adjusted EBITDA and Non-GAAP Net Income Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ Million |
|
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
|
Net Income | GAAP |
|
271 |
|
272 |
|
322 |
|
301 |
|
350 |
|
367 |
|
380 |
|
|
(+) Income Tax and Social Contribution |
|
89 |
|
66 |
|
100 |
|
67 |
|
67 |
|
76 |
|
45 |
|
|
(+) LTIP Expenses3
|
|
80 |
|
106 |
|
141 |
|
44 |
|
28 |
|
51 |
|
43 |
|
|
(+) POS Write-off |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
93 |
|
41 |
|
|
(+) Depreciation and Amortization |
|
158 |
|
182 |
|
203 |
|
226 |
|
249 |
|
281 |
|
294 |
|
|
(-) Other Financial Income |
|
(35) |
|
(35) |
|
(46) |
|
(44) |
|
(42) |
|
(45) |
|
(46) |
|
|
(+) M&A Expenses4
|
|
0 |
|
2 |
|
4 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
(+) FX Expenses |
|
9 |
|
36 |
|
19 |
|
17 |
|
13 |
|
9 |
|
12 |
|
|
(+) PagPhone net realizable value reversal1
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
(53) |
|
|
(-) Software's disposals3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
29 |
|
|
(-) Boleto Flex impairment3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
13 |
|
|
(-) Agreement with POS supplier3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
10 |
|
|
Adjusted EBITDA |
|
573 |
|
629 |
|
742 |
|
612 |
|
665 |
|
831 |
|
770 |
|
|
(+) Tax Provision Reversal3
|
|
(29) |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
(+) Digital Losses2
|
|
73 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
(+) PagPhone write-off3
|
|
0 |
|
0 |
|
0 |
|
139 |
|
0 |
|
0 |
|
0 |
|
|
Adjusted EBITDA | Recurring |
|
617 |
|
629 |
|
742 |
|
751 |
|
665 |
|
831 |
|
770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ Million |
|
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
|
Net Income | GAAP |
|
271 |
|
272 |
|
322 |
|
301 |
|
350 |
|
367 |
|
380 |
|
|
(+) LTIP Expenses3
|
|
80 |
|
106 |
|
141 |
|
44 |
|
28 |
|
51 |
|
43 |
|
|
(+) M&A Expenses4
|
|
5 |
|
5 |
|
6 |
|
6 |
|
5 |
|
5 |
|
5 |
|
|
(+) Income Tax and Social Contribution |
|
(29) |
|
(38) |
|
(50) |
|
(17) |
|
(11) |
|
(19) |
|
(16) |
|
|
(+) PagPhone net realizable value reversal1
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
(35) |
|
|
(-) Software's disposals3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
19 |
|
|
(-) Boleto Flex impairment3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
8 |
|
|
(-) Agreement with POS supplier3
|
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
7 |
|
|
Net Income | Non-GAAP |
|
327 |
|
345 |
|
419 |
|
334 |
|
371 |
|
403 |
|
411 |
|
|
(+) Tax Provision Reversal3
|
|
(19) |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
(+) Digital Losses2
|
|
48 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
|
(+) PagPhone write-off3
|
|
0 |
|
0 |
|
0 |
|
92 |
|
0 |
|
0 |
|
0 |
|
|
Net Income | Recurring |
|
356 |
|
345 |
|
419 |
|
426 |
|
371 |
|
403 |
|
411 |
|
Non-GAAP expenses booked in:
1. Transaction Costs;
2. Chargebacks;
3. Operating Expenses;
4. Depreciation and Amortization.
Cash Flow Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Earnings before Income Taxes |
|
425 |
|
421 |
|
1 |
% |
|
443 |
|
-4 |
% |
|
Expenses (Revenues) not affecting Cash |
|
1,238 |
|
537 |
|
130 |
% |
|
1,032 |
|
20 |
% |
|
Net Cash provided by (used in) Operating Activities |
|
1,071 |
|
363 |
|
195 |
% |
|
231 |
|
364 |
% |
|
Net Cash provided by (used in) Investing Activities |
|
(498) |
|
(432) |
|
15 |
% |
|
(509) |
|
-2 |
% |
|
Net Cash provided by (used in) Financing Activities |
|
(361) |
|
(4) |
|
n.a. |
|
(13) |
|
n.a. |
|
Increase (Decrease) in Cash and Cash Equivalents |
|
213 |
|
(73) |
|
n.a. |
|
(291) |
|
n.a. |
|
Cash and Cash Equivalents at the beginning of the
Period |
|
1,192 |
|
1,196 |
|
0 |
% |
|
1,483 |
|
-20 |
% |
|
Cash and Cash Equivalents at the end of the Period |
|
1,404 |
|
1,122 |
|
25 |
% |
|
1,192 |
|
18 |
% |
Cash and Cash Equivalents
at the beginning of 3Q22 amounted to R$ 1,192 million and ended the
period amounted to
R$ 1,404 million,
representing a decrease of R$ 212 million.
Earnings before Income Taxes
in 3Q22 was
R$
425 million,
+1% vs. 3Q21.
The Revenues, Income and Expenses which did not affect our cash
flows, totaled a positive amount of R$ 1,238 million in 3Q22. This
increase of 130% vs. 3Q21 is mainly explained by:
▪Increase
in Chargebacks, mainly related to PagSeguro TPV growth and
provisions for PagBank Credit operations, both totaling R$ 273
million, an increase of +110% vs. 3Q21;
▪Increase
in Depreciation and Amortization amounted to R$ 294 million, an
increase of +45% vs. 3Q21;
▪Increase
in Interest accrued of Financial Assets and Liabilities totaling R$
509 million vs. R$ 42 million in 3Q21, mainly related to interest
paid on PagBank deposits/ Company’s borrowings;
▪Increase
in Disposal of Property, Equipment and Intangible Assets, mainly
explained by the write-offs of POS devices and software totaling R$
84 million during 3Q22.
Net Cash provided by (used in) |
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Net Cash provided by (used in) Operating Activities |
|
1,071 |
|
363 |
|
195 |
% |
|
(287) |
|
n.a. |
|
Earnings before Income Taxes |
|
425 |
|
421 |
|
1 |
% |
|
(416) |
|
n.a. |
|
Expenses (Revenues) not affecting Cash |
|
1,238 |
|
537 |
|
130 |
% |
|
(756) |
|
n.a. |
|
Changes in Operating Assets and Liabilities |
|
(1,548) |
|
(878) |
|
76 |
% |
|
1,523 |
|
n.a. |
|
Income Tax and Social Contribution paid |
|
(7) |
|
(3) |
|
121 |
% |
|
40 |
|
n.a. |
|
Interest Income received |
|
963 |
|
286 |
|
237 |
% |
|
(678) |
|
n.a. |
Net Cash provided in Operating Activities
in 3Q22 totaled
R$ 1,071 million,
a decrease of 195% vs. 3Q21.
The adjustments for changes
in Operating Assets and Liabilities
in 3Q22 amounted to negative cash flow of
R$ 1,548 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$ 35,533 million at September 30, 2022 compared to
R$ 31,536 million at June 30, 2022) 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$ 5,230 million in the three months ended
September 30, 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$ 15,179 million as of September
30, 2022 compared to R$ 14,360 million as at June 30, 2022).
Payables to Third Parties represented a positive cash flow of R$
561 million in the three months ended September 30,
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$ 451
million as at June 30, 2022 compared to R$ 270 million as at June
30, 2022). Receivables from (Payables to) related Parties
represented positive cash flow of R$ 171 million in the three
months ended September 30, 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 positive cash flow of R$ 49 million in the three
months ended September 30, 2022
▪Trade
Payables
item consists of the difference between the opening and closing
balances of trade payables (R$ 372 million on September 30, 2022,
compared to R$ 507 million on June 30, 2022). Trade payables
represented a negative cash flow of R$ 146 million in the three
months ended September 30, 2022.
▪Taxes
and contributions
item consists of sales taxes (ISS. ICMS. PIS and COFINS). This item
represented positive cash flow of R$ 9 million in the three months
ended September 30, 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$ 0.3 million in the
three months ended September 30, 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$ 14 million
in the three months ended September 30, 2022.
▪Deposits
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$ 2,992
million in the three months ended September 30, 2022.
•We
paid income tax and social contribution in cash totaling R$ 7
million and recorded positive cash flow of R$ 963 million related
to interest income received in cash in the three months ended
September 30, 2022.
▪Interest
Income
received consisted of interest recorded under Accounts Receivable
(monthly), which related to fees charged from merchants,
considering the Brazilian monthly Interest Rate over PAGS Accounts
Receivable. Interest Income amounted to R$ 963 million,
representing an increase of 237% vs. 3Q21 mainly explained by the
hike in the Brazilian Basic Interest rate (SELIC) and acquiring TPV
growth.
Net Cash provided by (used in) |
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Net Cash provided by (used in) Investing Activities |
|
(498) |
|
(432) |
|
15 |
% |
|
(509) |
|
-2 |
% |
|
Amount paid on Acquisitions, Net of Cash Acquired |
|
0 |
|
(44) |
|
n.a. |
|
0 |
|
n.a. |
|
Purchases of Property and Equipment |
|
(247) |
|
(226) |
|
9 |
% |
|
(341) |
|
-28 |
% |
|
Purchases and Development of Intangible Assets |
|
(256) |
|
(202) |
|
26 |
% |
|
(234) |
|
9 |
% |
|
Acquisition of Financial Investments |
|
4 |
|
38 |
|
-89 |
% |
|
66 |
|
-94 |
% |
|
Redemption of Financial Investments |
|
0 |
|
2 |
|
n.a. |
|
0 |
|
n.a. |
Net Cash used in Investing Activities
in 3Q22, totaled
R$ 498 million,
representing a decrease of 15% vs. 3Q21, mainly due
to:
▪Purchases
of Property and Equipment
of R$ 247 million, an increase of 9% y/y, mainly related to POS
device purchases.
▪Purchases
and Development of Intangible Assets
of R$ 256 million, an increase of 26% 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 positively impacted on the cash flow in R$ 4
million.
Net Cash provided by (used in) |
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million
|
|
3Q22
|
3Q21
|
Var. y/y
|
|
2Q22
|
Var. q/q
|
|
Net Cash provided by (used in) Financing Activities
|
|
(361) |
|
(4) |
|
n.a.
|
|
(13) |
|
n.a.
|
|
Payment of Borrowings
|
|
(250) |
|
0
|
n.a.
|
|
0
|
n.a.
|
|
Payment of Borrowings Interest
|
|
(8) |
|
0
|
n.a.
|
|
(7) |
|
19 |
% |
|
Payment of Leases
|
|
(4) |
|
(4) |
|
0 |
% |
|
(6) |
|
-25 |
% |
|
Acquisition of Treasury Shares
|
|
(98) |
|
0
|
n.a.
|
|
0
|
n.a.
|
Net Cash used in Financing Activities
in 3Q22, totaled
R$ 361
million, this increase vs. R$ 4 million is related to payments of
borrowings and its interests in the amount of R$ 258 million,
payments of R$ 4 million in connection with leases and R$ 98
million to shares repurchase.
Appendix
Selected Capsule Balance Sheet Data*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Total Assets |
|
43,276 |
|
26,960 |
|
61 |
% |
|
39,196 |
|
10 |
% |
|
Current Assets |
|
37,709 |
|
23,007 |
|
64 |
% |
|
33,955 |
|
11 |
% |
|
Cash & Financial Investments |
|
2,478 |
|
2,123 |
|
17 |
% |
|
2,239 |
|
11 |
% |
|
Account Receivables |
|
34,570 |
|
20,123 |
|
72 |
% |
|
31,025 |
|
11 |
% |
|
Others |
|
661 |
|
762 |
|
-13 |
% |
|
692 |
|
-4 |
% |
|
Non-Current Assets |
|
5,567 |
|
3,953 |
|
41 |
% |
|
5,241 |
|
6 |
% |
|
Account Receivables |
|
731 |
|
180 |
|
307 |
% |
|
512 |
|
43 |
% |
|
PP&E & Intangible Assets |
|
4,671 |
|
3,616 |
|
29 |
% |
|
4,546 |
|
3 |
% |
|
Others |
|
164 |
|
157 |
|
4 |
% |
|
183 |
|
-10 |
% |
|
Liabilities and Equity |
|
43,276 |
|
26,960 |
|
61 |
% |
|
39,196 |
|
10 |
% |
|
Current Liabilities |
|
28,287 |
|
14,821 |
|
91 |
% |
|
24,681 |
|
15 |
% |
|
Payables to Third Parties |
|
8,214 |
|
6,575 |
|
25 |
% |
|
8,278 |
|
-1 |
% |
|
Checking Accounts |
|
6,734 |
|
4,493 |
|
50 |
% |
|
6,081 |
|
11 |
% |
|
Savings Accounts |
|
10,795 |
|
2,458 |
|
339 |
% |
|
7,689 |
|
40 |
% |
|
Borrowings |
|
987 |
|
0 |
|
n.a. |
|
1,206 |
|
-18 |
% |
|
Others |
|
1,558 |
|
1,294 |
|
20 |
% |
|
1,426 |
|
9 |
% |
|
Non-Current Liabilities |
|
3,477 |
|
1,683 |
|
107 |
% |
|
3,326 |
|
5 |
% |
|
Saving Accounts |
|
1,843 |
|
212 |
|
770 |
% |
|
1,735 |
|
6 |
% |
|
Others |
|
1,634 |
|
1,471 |
|
11 |
% |
|
1,591 |
|
3 |
% |
|
Equity |
|
11,512 |
|
10,457 |
|
10 |
% |
|
11,189 |
|
3 |
% |
Balance Sheet Reconciliation
1. Cash & Cash Investments:
Cash and Cash Equivalents + Financial Investments;
2. Others:
Inventories + Taxes Recoverable + Other Receivables;
3. PP&E & Intangible Assets:
Property and Equipment + Intangible Assets;
4.Others:
Judicial Deposits + Prepaid Expenses + Deferred Income Tax and
Social Contribution + Investments;
5. Payables to Third Parties:
Payable to Third Parties – Checking Accounts;
6. Savings Accounts:
Current Deposits;
7. Others:
Trade Payables + Payables to Related Parties + Derivative Financial
Instruments + Salaries and Social Charges + Taxes and Contributions
+ Provision for Contingencies + Deferred Revenue + Other
Liabilities
8. Savings Accounts:
Non-current Deposits;
9. Others:
Deferred Income Tax and Social Contribution + Provision for
Contingencies + Deferred Revenue + Other Liabilities;
10. Equity:
Capital Reserve + Other Comprehensive Income + Equity Valuation
Adjustments + Profit Retention Reserve + Treasury
Shares.
* This selected capsule balance sheet data is presented only to
facilitate a general overview of highlights of our financial
performance for the periods indicated for informational purposes.
For our complete Balance Sheet information, see our consolidated
financial statements prepared in accordance with IFRS as issued by
the IASB, in our Form 6-K related to the Financial Statements,
published on the date hereof.
Selected Capsule Income Statement Data*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Total Revenues and Income |
|
4,035 |
|
2,776 |
|
45 |
% |
|
3,911 |
|
3 |
% |
|
Transaction Activities and Other Services |
|
2,292 |
|
1,998 |
|
15 |
% |
|
2,545 |
|
-10 |
% |
|
Financial Income |
|
1,697 |
|
954 |
|
78 |
% |
|
1,660 |
|
2 |
% |
|
Other Financial Income |
|
46 |
|
46 |
|
1 |
% |
|
45 |
|
3 |
% |
|
Total Costs and Expenses |
|
(3,563) |
|
(2,207) |
|
61 |
% |
|
(3,413) |
|
4 |
% |
|
Cost of Sales and Services |
|
(1,911) |
|
(1,491) |
|
28 |
% |
|
(1,896) |
|
1 |
% |
|
Selling Expenses |
|
(531) |
|
(368) |
|
44 |
% |
|
(499) |
|
6 |
% |
|
Administrative Expenses |
|
(141) |
|
(138) |
|
3 |
% |
|
(153) |
|
-8 |
% |
|
Financial Expenses |
|
(921) |
|
(210) |
|
339 |
% |
|
(756) |
|
22 |
% |
|
Other Expenses, Net |
|
(59) |
|
(2) |
|
n.a. |
|
(109) |
|
-46 |
% |
|
Income Tax and Social Contribution |
|
(61) |
|
(150) |
|
-59 |
% |
|
(95) |
|
-35 |
% |
|
Current income tax and social contribution |
|
2 |
|
(8) |
|
n.a. |
|
1 |
|
203 |
% |
|
Deferred income tax and social contribution |
|
(63) |
|
(142) |
|
-56 |
% |
|
(95) |
|
-34 |
% |
|
% Tax Rate |
|
13 |
% |
26 |
% |
(13.4) p.p. |
|
19 |
% |
(6.1) p.p. |
|
Net Income | Non-GAAP |
|
411 |
|
419 |
|
-2 |
% |
|
403 |
|
2 |
% |
|
Non-GAAP effects |
|
(31) |
|
(97) |
|
-68 |
% |
|
(36) |
|
-15 |
% |
|
Net Income | GAAP |
|
380 |
|
322 |
|
18 |
% |
|
367 |
|
4 |
% |
*
This selected capsule income statement data is presented only to
facilitate a general overview of highlights of our financial
performance for the periods indicated for informational purposes.
For our complete Income Statement information, see our consolidated
financial statements prepared in accordance with IFRS as issued by
the IASB, in our Form 6-K related to the Financial Statements,
published on the date hereof.
Basic and Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Reconciliation |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Net Income attributable to: |
|
|
|
|
|
|
|
|
Owners of the Company | R$ Million |
|
380 |
|
321 |
|
18 |
% |
|
367 |
|
4 |
% |
|
Non-controlling interests | R$ Million |
|
— |
|
0.2 |
|
— |
|
|
— |
|
— |
|
|
Weighted avg. number of Outstanding Common Shares | #
Million |
|
327 |
|
330 |
|
-1 |
% |
|
332 |
|
-1 |
% |
|
Weighted avg. number of common shares diluted | #
Million |
|
329 |
|
332 |
|
-1 |
% |
|
333 |
|
-1 |
% |
|
Basic Earnings per common share | R$ |
|
1.1639 |
|
0.9727 |
|
20 |
% |
|
1.1059 |
|
5 |
% |
|
Diluted Earnings per common share | R$ |
|
1.1562 |
|
0.9669 |
|
20 |
% |
|
1.1012 |
|
5 |
% |
Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP | R$ Million |
|
3Q22 |
3Q21 |
Var. y/y |
|
2Q22 |
Var. q/q |
|
Earnings before Income Taxes |
|
425 |
|
421 |
|
1 |
% |
|
443 |
|
-4 |
% |
|
Expenses (Revenues) not affecting Cash |
|
1,238 |
|
537 |
|
130 |
% |
|
1,032 |
|
20 |
% |
|
Depreciation and Amortization |
|
294 |
|
203 |
|
45 |
% |
|
281 |
|
5 |
% |
|
Chargebacks |
|
273 |
|
130 |
|
110 |
% |
|
270 |
|
1 |
% |
|
Accrual of Provision for Contingencies |
|
17 |
|
7 |
|
138 |
% |
|
5 |
|
280 |
% |
|
Reversal of Taxes and Contributions |
|
0 |
|
0 |
|
n.a. |
|
0 |
|
n.a. |
|
Share based Long Term Incentive Plan (LTIP) |
|
37 |
|
141 |
|
-74 |
% |
|
40 |
|
-7 |
% |
|
Loss on Disposal of Property, Equipment and Intangible
Assets |
|
84 |
|
8 |
|
924 |
% |
|
103 |
|
-18 |
% |
|
Interest accrued |
|
509 |
|
41 |
|
n.a. |
|
336 |
|
51 |
% |
|
Other Financial Cost, Net |
|
23 |
|
6 |
|
261 |
% |
|
(3) |
|
n.a. |
|
Changes in Operating Assets and Liabilities |
|
(1,548) |
|
(878) |
|
76 |
% |
|
(2,089) |
|
-26 |
% |
|
Account Receivables |
|
(4,999) |
|
(2,997) |
|
67 |
% |
|
(6,775) |
|
-26 |
% |
|
Financial Investments (Mandatory Guarantee) |
|
0 |
|
(19) |
|
-98 |
% |
|
48 |
|
n.a. |
|
Inventories |
|
(4) |
|
(22) |
|
-81 |
% |
|
1 |
|
n.a. |
|
Taxes Recoverable |
|
14 |
|
37 |
|
-61 |
% |
|
38 |
|
-63 |
% |
|
Other Receivables |
|
56 |
|
7 |
|
741 |
% |
|
30 |
|
89 |
% |
|
Deferred Revenue |
|
(6) |
|
(19) |
|
-66 |
% |
|
(7) |
|
-5 |
% |
|
Other Payables |
|
(1) |
|
(37) |
|
-98 |
% |
|
0 |
|
827 |
% |
|
Payables to Third Parties |
|
329 |
|
1,199 |
|
-73 |
% |
|
989 |
|
-67 |
% |
|
Trade Payables |
|
(146) |
|
33 |
|
n.a. |
|
(52) |
|
183 |
% |
|
Receivables from (Payables to) Related Parties |
|
171 |
|
81 |
|
110 |
% |
|
(19) |
|
n.a. |
|
Deposits |
|
2,992 |
|
855 |
|
250 |
% |
|
3,580 |
|
-16 |
% |
|
Salaries and Social Charges |
|
49 |
|
14 |
|
257 |
% |
|
68 |
|
-28 |
% |
|
Taxes and Contributions |
|
9 |
|
(7) |
|
n.a. |
|
11 |
|
-20 |
% |
|
Provision for Contingencies |
|
(11) |
|
(3) |
|
264 |
% |
|
(2) |
|
474 |
% |
|
Income Tax and Social Contribution paid |
|
(7) |
|
(3) |
|
121 |
% |
|
(40) |
|
-83 |
% |
|
Interest Income received |
|
963 |
|
286 |
|
237 |
% |
|
885 |
|
9 |
% |
|
Net Cash provided by (used in) Operating Activities |
|
1,071 |
|
363 |
|
195 |
% |
|
231 |
|
364 |
% |
|
Amount paid on Acquisitions, Net of Cash Acquired |
|
0 |
|
(44) |
|
n.a. |
|
0 |
|
n.a. |
|
Purchases of Property and Equipment |
|
(247) |
|
(226) |
|
9 |
% |
|
(341) |
|
-28 |
% |
|
Purchases and Development of Intangible Assets |
|
(256) |
|
(202) |
|
26 |
% |
|
(234) |
|
9 |
% |
|
Acquisition of Financial Investments |
|
4 |
|
38 |
|
-89 |
% |
|
66 |
|
-94 |
% |
|
Redemption of Financial Investments |
|
0 |
|
2 |
|
n.a. |
|
0 |
|
n.a. |
|
Net Cash provided by (used in) Investing Activities |
|
(498) |
|
(432) |
|
15 |
% |
|
(509) |
|
-2 |
% |
|
Payment of Borrowings |
|
(250) |
|
0 |
|
n.a. |
|
0 |
|
n.a. |
|
Payment of Borrowings Interest |
|
(8) |
|
0 |
|
n.a. |
|
(7) |
|
19 |
% |
|
Payment of Leases |
|
(4) |
|
(4) |
|
0 |
% |
|
(6) |
|
-25 |
% |
|
Acquisition of Treasury Shares |
|
(98) |
|
0 |
|
n.a. |
|
0 |
|
n.a. |
|
Net Cash provided by (used in) Financing Activities |
|
(361) |
|
(4) |
|
n.a. |
|
(13) |
|
n.a. |
|
Increase (Decrease) in Cash and Cash Equivalents |
|
213 |
|
(73) |
|
n.a. |
|
(291) |
|
n.a. |
|
Cash and Cash Equivalents at the beginning of the
Period |
|
1,192 |
|
1,196 |
|
0 |
% |
|
1,483 |
|
-20 |
% |
|
Cash and Cash Equivalents at the end of the Period |
|
1,404 |
|
1,122 |
|
25 |
% |
|
1,192 |
|
18 |
% |
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 + POS Write-off + Depreciation and Amortization +
FX Expenses + M&A Expenses + LTIP Expenses. Please see the
Supplemental Information for a reconciliation of this adjusted
financial measure.
ARPAC:
Sum of LTM revenues / Average of active clients over the last 5
quarters.
Cash-in:
Wire transfers + Pix transfers
Gross Profit
•PagSeguro:
(MDR Revenue + Prepayment Revenue) – (Transaction Costs + Card
Scheme Fee + Financial Expenses + Chargeback).
•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.
Monthly TPV per Merchant:
PagSeguro TPV / Average Active Merchants of last two
quarters.
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.
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).
Total Payment Volume (TPV):
PagSeguro TPV + PagBank TPV.
•PagSeguro:
Includes PagSeguro’s TPV, which is the value of payments
successfully processed through our payments´ecosystem for new
clients that are under zero MDR promotion and volumes that
generates any type of revenues (MDR, fees, prepayment) and, 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.
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,” “Adjusted EBITDA and
Non-GAAP Net Income Reconciliation,” “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
November 22, 2022,
at
5:00 pm ET.
Event Details
HD Web Phone:
Click here
Dial–in (Brazil): +55 (11) 4090-1621 | +55 11
3181-8565.
Dial–in (US and other countries): +1 (412) 717-9627 | +1 (844)
204-8942
Password: PagBank PagSeguro
Webcast:
https://choruscall.com.br/pagseguro/3q22.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: November 22, 2022
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PagSeguro Digital Ltd. |
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By: |
/s/ Artur Schunck |
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Name: |
Artur Schunck |
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Title: |
Chief Financial Officer,
Chief Accounting Officer and Investor Relations Officer |
PagSeguro Digital (NYSE:PAGS)
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