Hey Fools,
I’ve submitted to the Fool Administrator to allow a discussion on NU Holdings. NU Holding is the worlds largest digital platform and yesterday announced for the first time that 2021 was profitable. I hope the board approves of my request and I hope you fools join me in the discussion. This stock is currently trading at $9.50/Share Pre Market today (02/23/2022)up 9.5% after hours.
Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the “Company”), one of the world’s largest digital banking platforms and one of the leading technology companies in the world, released today its Fourth Quarter and Full Year 2021 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 BrasÃlia time.
“Nu is off to a strong start as a public company, as our fourth quarter performance makes clear. Nu’s stock exchange listings as well as our NuSócios program also opened the door for millions of Brazilians to be included in the capital markets. Maintaining our long-term orientation and putting customers first, we are now accelerating efforts to build out Nu’s powerful ecosystem, enhance our digital banking platform and accelerate expansion into our new geographic markets to improve financial access for many others,” said David Vélez, founder and CEO.
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.