JPMorgan Upgrades Nu Holdings to Overweight From Neutral, Price Target is $9
Velez trimmed his position to put money into his foundation. That's what the media is using as the spook anyways... It's in reality, moot, for longs following on core company fundementals.
Always going to get some dips.
Some good news also today. Goldman Sachs gave $NU a Buy rating, with a price target of $11.00
Fooking rug pull man,,, seriously, wtf!!!
Stack Capital Holding Hopper Strikes Deal with Nubank
Nubank, fintechs take the lead in Open Finance in Brazil
Nubank reaches 80 million customers in Brazil
¦ Customer growth: Nu added 4.5 million customers in Q1’23 and 19.5 million year-over-year (YoY), reaching a total of 79.1 million customers globally. This represents a 33% growth YoY, which underscores Nu's position as one of the largest and fastest-growing digital financial services platforms worldwide and the fifth-largest financial institution in Latin America by number of active customers.
¦ Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) increased to $8.6, expanding 30% YoY on FX neutral basis (FXN)1. This was the result of a higher number of active customers and primary banking relationship customers (PBA), which consumed a larger and more profitable set of financial products, driving record-high revenues. Nu has become the primary banking relationship for over 57% of the monthly active customers that have been with Nu for over a year. Activity rate2 hit 82.1%, striking the ninth consecutive quarterly increase.
¦ Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remains below the dollar level at $0.8, underscoring the Company’s ability to scale its platform by leveraging sustainable cost advantages. The company’s efficiency ratio, which reflects Nu’s operating leverage, has reached an all-time low at 39%, which would position Nu as one of the most efficient players in Latin America.
¦ Asset Quality: Nu’s 15-90 NPL ratio reached 4.4%, remaining 10 basis points lower than the historical trend, as traditionally this indicator has increased by 80 basis points in the first quarter of each year. Delinquency in the period was also aided by improved performance in the personal loan portfolio. The 90+ NPL ratio increased to 5.5%, in line with the expected stacking behavior of the buckets. Much like in other quarters,
¦ Net & Adjusted Income: At a Holding level, Nu posted a Profit of $141.8 million, compared to a $45.1 Loss in Q1’22, delivering another quarter of recurring Net Income. Adjusted Net Income3, reached $182.4 million compared to an Adjusted Net Income of $10.1 million in Q1’22. In Brazil specifically, Net Income grew to $171 million in the last quarter with an annualized ROE of 37%, one of the highest in the industry. Adjusted Net Income in Brazil grew to $200 million, with an Adjusted ROE of 43%.
¦ Revenue: Nu posted $1.6 billion in revenues, another all-time record high, which nearly doubles what the company posted in Q1’22, on a FX-neutral basis. This comes as a result of the compounding effect of customer growth and higher levels of customer monetization in Brazil, which alone responded to $1.5 billion of the quarter’s revenues.
¦ Gross Profit: Nu’s Q1’23 gross profit expanded to $650.9 million, with a 124% increase YoY FX neutral. Gross profit margin expanded to 40% from 34% in Q1’2022, reaching its highest level since 2021 and reinforcing Nu’s operational leverage capacity.
¦ Capital: Nu strengthened its position as one of the best-capitalized players in the region with a Basel Index in Brazil of 18.7%, well above the minimum required of 10.5%. In addition, Nu Holdings has $2.4 billion in excess cash.
¦ Liquidity: On March 31st, 2022, Nu had an interest-earning portfolio of $5.2 billion, while total deposits were three times this amount at $15.8 billion. Nu continues optimizing the use of deposits quarter after quarter, as reflected in its 33% loan-to-deposit ratio. The rise in the interest-earning portfolio reflects the ramp-up of personal loans and credit card receivables, as Nu continues to pursue the strategy of increasing the share of non-revolving credit card loans that earn interest, and given the improvement of the performance of personal loan cohorts over the last months.
¦ Performance and Growth in Brazil: The profitability of the Brazilian operation is accelerating with revenues reaching $1.5 billion in Q1’23, Net Income growing to $171 million, and annualized ROE reaching 37%. Nu’s low-cost business model has consistently demonstrated massive operating leverage, with a best-in-class efficiency ratio reaching 37% this quarter in the country. Fueling this position is the continued growth of the customer base (75.3 million, 31% YoY growth), a monthly cost to serve flat at less than $1, and ARPAC at $ 8.4 in Brazil–with more mature client cohorts already averaging above $ 20. The company has a large runway ahead as it grows its share of market in different verticals (including new secured credit products) while setting efficiency and profitability records in the industry.
¦ International Expansion: In Mexico, Nu’s customer base grew 52% YoY to 3.2 million, and in Colombia, to 635,000 customers, which represents a 200% increase YoY. The growth trajectory in both countries will likely accelerate with the launch of the savings account product on the local markets. In Mexico, Cuenta Nu has already over 500,000 customers less than a week after being officially publicly launched.
¦ Multi-Product Platform: Nu keeps expanding its products portfolio with credit cards, NuAccounts and Personal loans reaching approximately 35 million, 56 million, and 6 million active customers, respectively. Insurance reached over 1 million active policies while NuInvest reached over 9 million active customers, likely positioning itself as the largest digital investments platform in Latin America. NuCripto grew to 1.4 million customers since its full rollout in July 2022, and the base of SMEs customers expanded 69% YoY to 2.7 million.
Gets interesting at 57 minute mark.
Thank you.... sounds good..steady and strong.
I'm thinking with the 3 month chart, I hope it bounces off of $4.50, and starts a new channel of trading between $4.50 and $5.50, and leaves $3.50-$4.50 behind, creating an upward trend that hopefully lasts for a long time.
What are you thinking here with the movement?
What you say makes complete sense. Thanks!.
It does, what stocks do.. it goes up and down. I don't really pay attention to daily movement, unless it is taken down into opportunity to add range.
As long as fundamentals are good, and growth continues, I'm comfortable. Eventually, with continued growth, the pps will follow.
When the market turns, this will most likely rip. Also, they are only two quarters in with realizing profit, as they have been focused on growth mostly. It's a new horse, being groomed to run.
Sorry, I don't have a definitive answer. Many factors, which I could only speculate on. Which just isn't a concern for me.
Why does this stock have a difficult time holdings its gain? Activity is all over the place.
Earnings call recording. Starts at 19 minutes, with some commentary by a young man from Canada, from his channel. Great call to listen to, with lots of important, positive, forward looking information.
Can be found on YouTube, under channel name, Future Investing.
I tried to put directly on this post, but keep getting error...
Anyways.. Great quarter, and a great earnings call!!
$NU CRUSHED EARNINGS, AGAIN!!!
Not sure it's a good idea.. but, they did..
Nonstop hacking, theft, and fraud stories with crypto. All though Nubank definitely looks trustworthy.
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Nu Holdings Ltd. Reports Third Quarter 2022 Financial Results
Mon, November 14, 2022 at 4:14 PM·8 min read
In this article:
SÃO PAULO, November 14, 2022--(BUSINESS WIRE)--Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), ("Nu" or the "Company"), one of the world’s largest digital financial services platforms, released today its Third Quarter 2022 financial results. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (IFRS). The full earnings release has been made available on the Company’s Investor Relations website at www.investors.nu, as well as the details of the Earnings Conference Call Nu will hold today at 5:00pm Eastern time/7:00pm Brasília time.
"Nu reported a net profit of $7.8 million in the third quarter, breaking even at the holding level with record revenues of $1.3 billion and year-on-year growth of 171%. Our customer base grew to over 70 million with a record high activity rate of 82% and a leading customer satisfaction score in our industry. We continue to launch and cross sell best-in-class products, while keeping a low-cost tech platform with low cost of funding and a widening profit margin. While we saw increased delinquency in the quarter, consistent with the market trend, our risk-adjusted margins expanded by 100bps, showing we are being able to price increased risk appropriately. Nu is well capitalized and is positioned to deliver growth at scale in the long term," said David Vélez, founder and CEO.
Q3’22 Results Snapshot
Below are Q3’22 performance highlights of Nu Holdings Ltd.:
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Customer growth: Nu added 5.1 million customers in the quarter reaching a total of 70.4 million customers in Brazil, Mexico and Colombia. This represents a 46% growth year-over-year (YoY) and positions Nu as one of the largest and fastest-growing digital financial services platforms worldwide, as well as the sixth largest financial institution in Latin America by number of active customers.
Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) expanded to $7.9, growing by 61% on a FX neutral basis (FXN)1, reflecting the maturation of Nu’s customer cohorts, increasing customers’ activity rate and the rollout of new financial and non-financial products. Activity rate2 hit a new historical high mark growing to 82%. Nu has become the primary banking relationship for over 55% of the monthly active customers that have been with Nu for over a year.
Low-cost operating platform: Staying consistently stable throughout the quarters, Monthly Average Cost to Serve Per Active Customer remained at $0.8, underscoring the Company's ability to scale its platform leveraging sustainable cost advantages.
Asset Quality: 15-90 NPL ratio at 4.2% while 90+NPL reached 4.7%. These come as the result of two main factors: first, the deceleration of personal loan origination to increase credit resilience, and the subsequent mathematical increase on NPL ratio as the volume of originations decreases and therefore the denominator in the equation. Second, the general macro-trend deterioration observed across financial institutions in the region.
Net & Adjusted Income: Nu reported breakeven at a holding level, posting a Net Income of $7.8 million in Q3’22 and Adjusted Net Income3 of $63.1 million. These results reflect the sustained increase in the number of active customers and higher consumer engagement, which bolstered the revenue growth, combined with operating leverage and scale benefits of our low-cost platform.
Revenue: we delivered another record quarter with $1.3 billion in revenues, increasing 171% YoY FXN, as Nu continues to effectively upsell and cross sell its expanding portfolio of products across different segments.
Gross Profit: Nu reached a record high gross profit in Q3’22 with $427.0 million, increasing 90% YoY FXN. On a sequential basis, the company’s efforts to continuously reduce funding costs positively impacted gross profit margin, which expanded 2pp to 33%, after four quarters of compression.
Capital: Nu reinforces its positioning as one of the best capitalized players in the region with its adjusted capital reaching 4x the minimum regulatory capital in the countries in which it operates.
Liquidity: Nu maintains significant excess liquidity with a loan-to-deposit ratio of 25%. On September 30, 2022, Nu had an interest-earning portfolio of $3.5 billion, while total deposits were four times this amount at $14.0 billion
Multi-Product Platform: Nu achieved milestones across the different products of its portfolio with credit cards, NuAccounts and Personal loans reaching approximately 32 million, 50 million and 5 million active customers, respectively. Furthermore, NuInvest reached 6 million active customers, likely positioning itself as the largest digital investments platform in Latin America. NuCripto grew to 1.3 million active customers since its full rollout in July 2022, and the base of active SMEs customers expanded to 2.3 million.
Customer Base Growth: Nu became the fifth largest financial institution in Brazil in terms of numbers of active customers, according to the Brazilian Central Bank. In terms of total customers, Nu expanded its customer base to 66.9 million, which represents 39% of the country’s adult population. Purchase volume increased 75% YoY FXN, reaching US$21.2 billion in Q3’22, already reaching a market share of approximately 12% of the total for the industry in Brazil.
International Expansion: In Mexico, our second largest market, Nu’s customer base increased to 3 million, consolidating its position as the largest issuer of net new credit cards in the country since H2’21. In Colombia, we reached 439,000 customers. Together, both Mexico and Colombia contributed with 500,000 new unique customers in the third quarter.