PAGS - PagSeguro results…

I know some on this board were intrigued or invested in this. The results look incredible.
Q2 Non-GAAP EPS of R$0.79 beats by R$0.06.
Revenue of R$974.5M (+74.9% Y/Y) beats by R$68.84M.

Having said that - the share price chart looks a disaster…



This company has tremendous potential over the next 5 years in Latin America.

I added to my long term hold “do nothing” (a la Dreamer) portfolio some weeks back.

Lots of risks including currency, the Brazilian economy, elections, and an ugly chart. They don’t give Fwd guidance which irks me too.

But its growth rate is strong and they are already profitable. That’s a rare combination and gives them a decent moat.

Kinda reminds me of the SQ opportunity a year ago.they don’t have Sarah Friar or the full ecosystem. Yet


There is a useful article here

PagSeguro Disrupting A Large, Previously Untapped Market $PAGS, $CIOXY, $MELI, $PYPL

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And new analysis by the Motley fool’s Abigail Malin from today…

While Brazil is the largest economy in Latin America as measured by GDP, the financial infrastructure in the company is lacking. Only about 2/3 of Brazilian adults have a bank account and less than 1/3 have a credit card. Furthermore, because the interest rates on credit card purchases are extremely high, only 28% of total payment volume in Brazil was transacted using a credit card. In the coming years, consumption will increasingly shift to online means as Brazil boasts the fourth largest online audience, and PagSeguro is the company that will best help make that possible.

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