NU Holdings Ltd (NU)

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https://www.businesswire.com/news/home/20220222006162/en/Nu-Holdings-Ltd.-Reports-Fourth-Quarter-and-Full-Year-2021-Financial-Results

Q4’21 and FY’21 Results Snapshot
Below are Q4’21 and full year 2021 performance highlights of Nu Holdings Ltd.:

Operating Highlights:

Customer growth: Nu added 5.8 million customers in the quarter, reaching a total 53.9 million customers across Brazil, Mexico and Colombia.
Engagement and activity rates: Average Revenue per Active Customer (ARPAC) expanded to $5.6 in Q4'21 (from $3.3 in Q4’20) and the activity rate1 to 76.3% (from 65.6% in Q4’20), with active customers reaching 41.1 million in the year-end. Nu estimates that over 55% of the monthly active customers that have been Nu customers for over a year have made Nu their primary banking account provider.
Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer decreased 20.4% on an FX neutral basis (FXN)2 to $0.9 in Q4'21 (and to $0.8 in 2021), while non-performing loan delinquency rates have remained below Nu's historical averages and industry averages.
Financial Highlights:

Revenue: total revenue for Q4'21 reached $635.9 million, increasing year-over-year (YoY) by 224.3% FXN. In 2021, total revenue was $1.7 billion, setting a new record for the Company.
Gross Profit: totaled $226.9 million in Q4'21, increasing YoY 207% FXN, and increased to $732.9 million in 2021, up YoY 131.6% FXN. The gross margin was 35.7% in Q4'21 compared to 37.7% in Q4'20.
Adjusted Net income: Nu reported Adjusted Net Income of $3.2 million in Q4'21. In 2021, the Company reported an Adjusted Net Income of $6.6 million compared to an Adjusted Net Loss of $26.8 million in 2020. This was the first year the Company posted positive Adjusted Net Income.
Business highlights

Initial Public Offering (IPO): Nu’s IPO was the world’s largest dual listing since 2012, raising approximately $2.8 billion in gross proceeds, after the partial exercise of the underwriters’ option to purchase additional shares. It was the first-ever US IPO with a concurrent Brazilian Depository Receipt (BDR) offering in Brazil, through which the Company gifted a BDR to more than 7.5 million customers who joined the NuSócios program and which helped multiply the number of Brazilians financially included in the investments markets. The IPO also represented one of the largest-ever global Directed Share Programs (DSP), where over 800,000 people participated in Nu's offering. Historically, Nu estimates it was also the largest number of retail investors to participate in a Brazilian IPO.
Products: During 2021, Nu launched numerous new products and features, including Marketplace (currently with over 20 partners), Apple/Google/Whatsapp Pay, UltraViolet (premium card), Secured Cards, Life Insurance and Proprietary Funds. Nu has NPS levels 90 or above in the countries in which it operates.
SMEs: The base of SME customers almost tripled in 2021, growing from 0.5 million to 1.4 million.
M&A: During 2021, Nu closed the acquisition of Easynvest, the largest independent digital investment platform in Brazil, now NuInvest. The Company also closed the acquisitions of Juntos, a conversational platform, and SpinPay, a checkout solution provider, and announced the acquisition of Olivia, an AI-based personal finance management provider.
International expansion: Nu continues to see robust growth in Mexico, reaching 1.4 million customers at the end of 2021, expanding 1,243% YoY. It suggests Nu may have already become the largest issuer of new credit cards in the country in the same period.