Q2 2024 Nu Holdings Ltd Earnings Call Transcript
Key Points
- Nu Holdings Ltd (NU) achieved a significant milestone by reaching 105 million customers, a 60% increase from two years ago.
- Revenue surged to $2.8 billion, reflecting a 65% year-over-year increase, driven by successful cross-selling and upselling.
- Net income saw substantial growth, reaching $487 million, resulting in a record annualized return on equity of 28%.
- Adjusted net income hit $563 million, with a sequential expansion of 36% quarter over quarter and 131% year over year.
- The company maintained a low cost to serve, achieving a cost to serve per active customer of $0.90, showcasing strong operating leverage.
- LatAm currencies depreciated against the US dollar during the quarter, impacting financial results.
- Monthly ARPAC contracted to $11.2 this quarter compared to $11.4 last quarter, although it grew 6% on an FX-neutral basis.
- The 90-plus NPL ratio increased to 7%, reflecting higher delinquency rates due to strategic credit expansions.
- Despite strong growth, the lending portfolio's nominal dollar value contracted, indicating potential challenges in maintaining growth momentum.
- The company faces ongoing challenges in integrating new collateral agreements and launching new features for secured lending products.
Good afternoon, ladies and gentlemen. Welcome to Nu Holdings' conference call to discuss the results for the second quarter of 2024. A slide presentation accompanies today's webcast, which is available on Nu's Investor Relations website, www.investors.nu in English and www.investidores.nu in Portuguese.
This conference is being recorded, and the replay can also be accessed on the company's IR website. This call is also available in Portuguese. (Operator Instructions)
(spoken in Portuguese)
(Operator Instructions)
I would now like to turn the call over to Mr. Jörg Friedemann, Investor Relations Officer at Nu Holdings. Mr. Friedemann, you may proceed.
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Thank you very much operator. And thank you all for joining our earnings call today. If you have not seen our earnings release, a copy is posted in the Results Center
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