In Payments, TPV growth in 4Q23 reached +21% y/y, more than 2x industry growth;Digital bank reached 31 million clients, totaling R$28 billion in Deposits;The results consolidate the business expansion and diversification beyond longtail and POS devicesSÃO PAULO, Feb, 29, 2024 /PRNewswire/ -- PagBank (NYSE: PAGS), a complete digital bank in financial services and payments solution and one of the largest digital banks in the country, announces its results for the fourth quarter of 2023 (4Q23). Among the main ...

Have you been paying attention to shares of PagSeguro Digital Ltd. (PAGS) ? Shares have been on the move with the stock up 4.6% over the past month. The stock hit a new 52-week high of $13.83 in the previous session. PagSeguro Digital Ltd. has gained 10.4% since the start of the year compared to the 9.6% move for the Zacks Business Services sector and the 9.1% return for the Zacks Financial Transaction Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earning ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering PagSeguro Digital Ltd. (PAGS) , which belongs to the Zacks Financial Transaction Services industry.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.85%.For the last reported quarter, PagSeguro Digital Ltd. Came out with earnings of $0.28 ...

Have you been paying attention to shares of PagSeguro Digital Ltd. (PAGS) ? Shares have been on the move with the stock up 7.5% over the past month. The stock hit a new 52-week high of $13.4 in the previous session. PagSeguro Digital Ltd. has gained 3% since the start of the year compared to the 23.4% move for the Zacks Business Services sector and the 25.7% return for the Zacks Financial Transaction Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surpri ...

Investors with an interest in Financial Transaction Services stocks have likely encountered both PagSeguro Digital Ltd. (PAGS) and RB Global (RBA) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven stra ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, January 17th:  PagSeguro Digital (PAGS) : This financial technology company which, solutions and services for micro-merchants and small and medium-sized businesses primarily in Brazil and internationally, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.0% over the last 60 days.PagSeguro Digital has a price-to-earnings ratio (P/E) ...

One stock that might be an intriguing choice for investors right now is PagSeguro Digital Ltd. (PAGS) . This is because this security in the  Financial Transaction Services space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking p ...

andreswd The Company Founded in 2006 and headquartered in São Paulo, Brazil, PagSeguro Digital Ltd. (NYSE:PAGS) is a $3.9-billion market cap Brazilian fintech company providing a digital ecosystem for financial solutions. Their offerings include the PagSeguro Ecosystem, PagBank digital account, and PlugPag for merchants. They offer cash-in solutions, payment tools, online gaming, and cross-border services. The company issues prepaid, credit & cash cards, along with various features like purchase protect ...

Still a lot of room to grow in SMBs. We see there is bad service out there, and we can get these clients with the value proposition, instant settlement, digital free banking and so on. But we don't think that -- we don't have the plan to keep offering loans for the SMBs at this point. Regarding take rates, as we said, 2024 is likely downward stable. In 2025, 2026, it's hard to give you some visibility. But remember that as we grow our Financial Services business unit, we also are going to have a tailwind in ...

Financial Data and Key Metrics Changes - The company reported a total payment volume (TPV) of BRL92.7 billion, with cash earnings growing 24% year-over-year [58][90] - Adjusted EBITDA reached BRL849 million, reflecting a 90 basis points increase compared to the second quarter of 2022 [84] - Net income on a non-GAAP basis was BRL415 million, marking a 7% year-over-year increase [90] Business Line Data and Key Metrics Changes - The Financial Services division maintained a breakeven point despite regulatory impacts, with adjusted EBITDA improving by BRL66 million year-over-year [51] - The Payments division's TPV grew 10%, nearly double the industry growth rate [51] - Total revenues from Financial Services reached BRL242 million, down 27% from the previous quarter due to regulatory changes [66] Market Data and Key Metrics Changes - The company experienced a TPV growth of 8.5% year-over-year in the first 45 days of Q3 2023, up from 4% in Q2 2023 [59][114] - The overall market for card payments in Brazil is showing signs of deceleration, attributed to macroeconomic factors rather than market saturation [72] Company Strategy and Development Direction - The company is focusing on a mix shift towards larger merchants, which is expected to enhance EBITDA growth despite lower take rates [36][91] - The strategy includes diversifying the merchant base and enhancing omni-channel offerings to drive incremental volumes and gross profit [52] - The company aims to leverage its strong value proposition for SMBs, emphasizing instant settlement and digital banking services [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that competition remains stable, particularly in the MSMB segment, with no significant changes impacting their strategy [14][15] - The company anticipates that the interchange cap effects will ease in Q2 2024, potentially leading to easier comparisons and revenue growth [113] - There is optimism regarding TPV growth acceleration in the second half of 2023, with expectations of double-digit growth in volumes [114] Other Important Information - The company has a net cash balance exceeding BRL10 billion, with cash generation of BRL3.5 billion over the past 12 months [95] - Capital expenditures were reported at BRL530 million, down 8% year-over-year, but higher quarter-over-quarter due to increased POS inventory needs [94] Q&A Session Summary Question: Can you discuss the dynamics of the SMB segment and its growth potential? - Management highlighted a strong value proposition for SMBs, with a 10% growth rate in TPV, which is twice the industry average [29][30] Question: What is the impact of competition on the company's ability to benefit from lower SELIC rates? - Management indicated that competition remains stable, and they do not plan to be the first to decrease prices in response to lower interest rates [15][16] Question: How is the company addressing the decline in active merchants in the long tail segment? - Management acknowledged churn in the long tail but noted an increase in gross adds and a healthy activation rate [30][33] Question: What are the expectations for revenue growth in 2024? - Management expects revenue growth to accelerate post-Q1 2024, driven by easing regulatory impacts and a growing payroll loan portfolio [113][114]