PagSeguro $PAGS 4Q22 Earnings
- Rev R$4b +22% โ๏ธ๐ข
- NTR R$2.4b +36% โ๏ธ margin 62% +612 bps โ
- GP R$1.4b +18% โ๏ธ margin 36% -137 bps โ๏ธ๐ด
- Adj EBITDA R$0.8b +29% โ๏ธ margin 20% +98 bps โ
- EBT R$0.5b +15% โ๏ธ margin 12% -80bpsโ๏ธ๐ด
- NG Net Inc R$0.4b +23% โ๏ธ margin 10% +5bpsโ
- Rev R$4b +22% โ๏ธ๐ข
- NTR R$2.4b +36% โ๏ธ margin 62% +612 bps โ
- GP R$1.4b +18% โ๏ธ margin 36% -137 bps โ๏ธ๐ด
- Adj EBITDA R$0.8b +29% โ๏ธ margin 20% +98 bps โ
- EBT R$0.5b +15% โ๏ธ margin 12% -80bpsโ๏ธ๐ด
- NG Net Inc R$0.4b +23% โ๏ธ margin 10% +5bpsโ
$PAGS FY22 Earnings
- Rev R$15.3b +47% โ๏ธ๐ข
- NTR R$9.5b +60% โ๏ธ margin 62% +509bpsโ
- GP R$5.5b +19% โ๏ธ margin 36% -842bpsโ๏ธ๐ด
- Adj EBITDA R$3.1b +19% โ๏ธ margin 20% -454bpsโ๏ธ๐ด
- EBT R$1.9b +1% โก๏ธ margin 12% -561bpsโ๏ธ๐ด
- NG Net Inc R$1.6b +12% โ๏ธ margin 10% -322bpsโ๏ธ๐ด
- Rev R$15.3b +47% โ๏ธ๐ข
- NTR R$9.5b +60% โ๏ธ margin 62% +509bpsโ
- GP R$5.5b +19% โ๏ธ margin 36% -842bpsโ๏ธ๐ด
- Adj EBITDA R$3.1b +19% โ๏ธ margin 20% -454bpsโ๏ธ๐ด
- EBT R$1.9b +1% โก๏ธ margin 12% -561bpsโ๏ธ๐ด
- NG Net Inc R$1.6b +12% โ๏ธ margin 10% -322bpsโ๏ธ๐ด
Biz Metrics
TPV R$209b +42% โ๏ธ๐ข
PagSeguro
- TPV R$94b +19% โ๏ธ๐ข
- Rev R$3.6b +25% โ๏ธ๐ข
- HUBS TPV Share 32.7% ๐ถ
- Gross Profit R$1.3b +14% โ๏ธ๐ก
TPV R$209b +42% โ๏ธ๐ข
PagSeguro
- TPV R$94b +19% โ๏ธ๐ข
- Rev R$3.6b +25% โ๏ธ๐ข
- HUBS TPV Share 32.7% ๐ถ
- Gross Profit R$1.3b +14% โ๏ธ๐ก
PagBank
- TPV R$115b +68% โ๏ธ๐
- Rev $329m +7% โ๏ธ๐ก
- Deposits R$21b +134% โ๏ธ๐
- Gross Profit R$131m โ๏ธโคด๏ธ๐ข
- ROAE 14% +250bps โ๏ธ๐ข
- ARPAC (PagSeguro) R$1.9K +50% โ๏ธ๐ข
- ARPAC (PagBank) R$86 โก๏ธ๐ก
- TPV R$115b +68% โ๏ธ๐
- Rev $329m +7% โ๏ธ๐ก
- Deposits R$21b +134% โ๏ธ๐
- Gross Profit R$131m โ๏ธโคด๏ธ๐ข
- ROAE 14% +250bps โ๏ธ๐ข
- ARPAC (PagSeguro) R$1.9K +50% โ๏ธ๐ข
- ARPAC (PagBank) R$86 โก๏ธ๐ก
1 | 2nd Largest Digital Bank in Brazil (after NuBank)
โIn December 2022, we had 28 million clients, making us the second largest digital bank in Brazil: a Brazilian tech company made for and focused on Brazilians.โ
โIn December 2022, we had 28 million clients, making us the second largest digital bank in Brazil: a Brazilian tech company made for and focused on Brazilians.โ
1 | contโd
โThe unique combination of 40% growth in PagSeguro TPV, leading to R$354bn in Payments, 10% market share in PIX transactions and salary portability led our deposits to surpass important landmarks: R$10bn in the first quarter and R$20bn in Q4.โ
โThe unique combination of 40% growth in PagSeguro TPV, leading to R$354bn in Payments, 10% market share in PIX transactions and salary portability led our deposits to surpass important landmarks: R$10bn in the first quarter and R$20bn in Q4.โ
2 | Most most profitable fintech/merchant acquirer in Brazil
โโฆwe presented net income growth in GAAP and non-GAAP basis totaling R$1.5bn and R$1.6bn, respectively, consolidating our position as the most profitable fintech/merchant acquirer in Brazil.โ
โโฆwe presented net income growth in GAAP and non-GAAP basis totaling R$1.5bn and R$1.6bn, respectively, consolidating our position as the most profitable fintech/merchant acquirer in Brazil.โ
3 | $PAGS over the last 5Y - Solid growth
โOur company truly experienced an exponential growth and the scale over the yearsโฆinitially through payments, and then through digital bank [and financial] servicesโฆalways balancing growth and profitability.โ
โOur company truly experienced an exponential growth and the scale over the yearsโฆinitially through payments, and then through digital bank [and financial] servicesโฆalways balancing growth and profitability.โ
4 | Strong Deposit growth lowered COF and diversifies funding away from CDs
โAt the same time, we had strong deposit growth, which helped to reduce our funding costs and helped to diversify our funding resources.โ
โAt the same time, we had strong deposit growth, which helped to reduce our funding costs and helped to diversify our funding resources.โ
5 | Successful repricing to recover spreads
โimplemented a successful repricing model to recover spreads. At the same time, we gained market share and diversified our merchants base, with HUBs representing more than 30% of our TPV in the last two quarters.โ
โimplemented a successful repricing model to recover spreads. At the same time, we gained market share and diversified our merchants base, with HUBs representing more than 30% of our TPV in the last two quarters.โ
6 | Shift from Unsecured to Secured
โRegarding credit, we took the right decision in Q1 2022 to shift our credit from unsecured products to secured products. Today, we have 40% of our credit portfolio that is secured. We expect that to reach 60% in the short termโฆโ
โRegarding credit, we took the right decision in Q1 2022 to shift our credit from unsecured products to secured products. Today, we have 40% of our credit portfolio that is secured. We expect that to reach 60% in the short termโฆโ
7 | Improving Cash Earnings
8 | Strong growth in clients, selective acquisition of merchants leading to negative growth
โworking to keep growing payments in a profitable wayโฆ.Market share, to be honest, is a consequenceโฆ.growing our TPV in specific segmentsโฆlong tail micro merchants and the SMBs.โ
โworking to keep growing payments in a profitable wayโฆ.Market share, to be honest, is a consequenceโฆ.growing our TPV in specific segmentsโฆlong tail micro merchants and the SMBs.โ
9 | Credit Losses 4.8% of Revenues - Improving
10 | Trading at ~20% Discount below Book Value (at end 4Q22)
Key Takeaways on PagSeguro. $PAGS
Pivoting from Acquiring/Payments to Digital Bank with PagBank. Continued focus on profitable growth, and improving profitability.
Pivoting from Acquiring/Payments to Digital Bank with PagBank. Continued focus on profitable growth, and improving profitability.
โข โข โข
Missing some Tweet in this thread? You can try to
force a refresh
ใ
