SÃO PAULO - Nu Holdings Ltd (BVMF:ROXO34) (NYSE:NU), a leading digital financial services platform, reported third-quarter results that exceeded revenue expectations.
The fintech giant posted adjusted earnings per share of $0.11 for the quarter, meeting analyst estimates. Revenue surged to $2.94 billion, surpassing the consensus forecast of $2.85 billion and marking a 56% YoY increase on an FX neutral basis.
The company's shares fell more than 5% in premarket trading Thursday.
Nu's customer base expanded by 5.2 million in Q3, reaching 109.7 million globally, a 23% YoY rise. The company's Monthly Average Revenue per Active Customer (ARPAC) grew to $11.0, up 25% YoY on an FX neutral basis.
"Our third quarter 2024 underscores the strength of our business model, demonstrating top-line growth and sustained profitability," said David Vélez, founder and CEO of Nubank. "As we make progress in our execution, we are preparing ourselves to consolidate Nu as the world's leading digital services platform, going beyond financial services."
Nu reported a net income of $553.4 million for Q3, more than doubling YoY, with an annualized return on equity (ROE) of 30%. The company's efficiency ratio improved to 31.4%, a 300 basis point enhancement from the previous year.
"Nubank posted a Q3 24 net income that was 9% ahead of the consensus but 4% short at the pre-tax level," Jefferies analysts noted. "So there is a bit for everyone from these results."
"There is, however, more than meets the eye on credit quality performance, which should shift the debate in the right direction. Specifically, NPL formation was particularly encouraging with S2+S3 formation down 25% qoq on a growing book, which reads good enough to us."
The fintech's international expansion continued to show promise, with its Mexican customer base growing to 8.9 million and Colombian customers surpassing 2 million.
Nu maintained a strong liquidity position, with an interest-earning portfolio of $11.2 billion, up 81% YoY on an FX neutral basis. Total (EPA:TTEF) deposits increased to $28.3 billion, representing a 60% YoY growth on FX neutral terms.
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