Brazilian Digital Banking Company Nu Holding Tops Q3 Estimates On Strong Customer Growth & Monetization
Portfolio Pulse from Lekha Gupta
Nu Holdings Ltd (NYSE:NU) reported Q3 FY23 revenue of $2.14 billion, a 64% increase year-over-year, surpassing the $2.05 billion consensus. The growth was driven by customer acquisition and improved monetization in Brazil, with 5.4 million new customers added. The company's ARPAC grew by 18% Y/Y to $10.0, gross profit doubled to $915 million, and adjusted net income increased to $355.6 million from $63.1 million. Adjusted EPS was $0.07, beating the $0.06 consensus. NIM expanded to 18.8%, and deposits grew to $19.1 billion. The credit card and lending portfolios receivables rose to $15.4 billion. Despite the strong financial performance, NU shares dropped 1.47% to $8.70 in premarket trading.
November 15, 2023 | 1:25 pm
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Nu Holdings reported strong Q3 FY23 results with significant revenue and profit growth, but shares fell 1.47% premarket despite the positive earnings report.
Nu Holdings' financial performance in Q3 FY23 was strong, with significant year-over-year growth in revenue, profit, and customer base. However, the premarket stock price movement is negative, which could be due to market expectations already pricing in the positive results or other external factors not mentioned in the article. The short-term impact is likely negative based on the premarket trading activity, but this could change as the market fully digests the earnings report.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100