PagSeguro Digital(PAGS)

Search documents
PagSeguro Digital Ltd. (PAGS) Beats Q3 Earnings and Revenue Estimates
ZACKS· 2024-11-14 16:05
PagSeguro Digital Ltd. (PAGS) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this company would post earnings of $0.31 per share when it actually produced earnings of $0.32, delivering a surprise of 3.23%.Over the last four quarters, the com ...
PagBank Reports Net Revenue of R$4.8 billion in 3Q24
Prnewswire· 2024-11-14 13:40
Core Insights - PagBank reported strong financial results for the third quarter of 2024, with net revenues of R$4.8 billion, representing a 20% year-on-year increase, and recurring net income reaching a record R$572 million, up 30% year-on-year [1][6]. Financial Performance - The company's acquiring business achieved a total payment volume (TPV) of R$136.3 billion, reflecting a 37% annual growth, with micro, small, and medium enterprises (MSMEs) contributing 65% of TPV [2][4]. - Banking revenue increased significantly by 52% year-on-year, showcasing robust growth in the digital banking platform, with deposits reaching R$34.2 billion, a 59% increase year-on-year [3][6]. - The credit portfolio grew by 30% year-on-year to R$3.2 billion, driven by low-risk products such as credit cards and payroll loans [4][5]. Strategic Initiatives - The company emphasized its customer-centric approach, which has led to exceptional growth in its payments business, outpacing the overall card market [2][9]. - PagBank is launching new products, including a Multiple Card that combines credit and debit functions, and offering cash-back promotions to enhance customer engagement [8][9]. Market Position - PagBank has expanded its customer base to 32.1 million, solidifying its position as a leading financial institution in Brazil [7]. - The company is focusing on process optimization, innovation, and service quality to maintain healthy margins and competitive positioning in the market [4][6].
PagSeguro Digital Ltd. (PAGS) Rises Higher Than Market: Key Facts
ZACKS· 2024-11-09 00:16
PagSeguro Digital Ltd. (PAGS) closed at $8.12 in the latest trading session, marking a +1.37% move from the prior day. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.09%.Shares of the company have depreciated by 1.72% over the course of the past month, underperforming the Business Services sector's gain of 11.43% and the S&P 500's gain of 4.9%.Analysts and investors alike will be keeping a close e ...
PagSeguro Digital Ltd. (PAGS) Ascends But Remains Behind Market: Some Facts to Note
ZACKS· 2024-11-01 23:16
PagSeguro Digital Ltd. (PAGS) closed at $8.06 in the latest trading session, marking a +0.25% move from the prior day. The stock lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.8%.Prior to today's trading, shares of the company had lost 1.95% over the past month. This has lagged the Business Services sector's gain of 0.16% and the S&P 500's loss of 0.97% in that time.Investors will be eagerly watching for the p ...
PagSeguro Q2: Strong! Growing Profitably
Seeking Alpha· 2024-09-26 11:56
More than 5 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business rela ...
Wall Street Bulls Look Optimistic About PagSeguro Digital (PAGS): Should You Buy?
ZACKS· 2024-09-19 14:30
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about PagSeguro Digital Ltd. (PAGS) . PagSeguro Digital currently has an average ...
PagSeguro: Gaining Market Share And Outpacing Industry TPV Growth
Seeking Alpha· 2024-09-13 08:32
AsiaVision What Happened PagSeguro (NYSE:PAGS) has faced pressure on its upside momentum over the past month, despite 2Q FY2024 earnings beating both revenue and non-GAAP EPS estimates. While the company's growth is recovering, the stock sentiment remains sensitive to interest rates, which are currently on hold at 10.5%. In my previous analysis, I initiated a buy rating on the stock based on the potential for lower rates in Brazil. However, the stock has underperformed, as the current rate is significantly ...
PagBank posts record quarter with net income (Non-GAAP) of 542 million BRL (+31% y/y)
Prnewswire· 2024-08-21 14:36
In acquiring, record TPV of 124 billion BRL, three times the industry's growth; in banking, record revenue of 434 million BRL, +41% higher than the same period in 2023 SÃO PAULO, Aug. 21, 2024 /PRNewswire/ -- PagBank (NYSE: PAGS), a complete digital bank in financial services and payments solution, announces its results for the second quarter of 2024 (2Q24). Among the key highlights of the period, the company recorded a record net income (Non-GAAP) of 542 million BRL (+31% y/y). Net income in a GAAP basis, ...
After Strong Q2, PagSeguro Stock Still Looks Cheap
Seeking Alpha· 2024-08-21 07:46
Marcio Binow Da Silva/iStock via Getty Images Some LatAm fintechs are attracting the attention of investors because they combine growth potential with a cheap valuation. One example of this is Nu Holdings (NU), but as I mentioned in a recent article, its valuation has already become premium. However, there are other alternatives that still have more attractive valuations and similar characteristics. This is the case of PagSeguro (NYSE:PAGS), a Brazilian fintech (in the payments and banking sector) that is t ...
PagSeguro Digital(PAGS) - 2024 Q2 - Earnings Call Transcript
2024-08-21 01:48
Financial Data and Key Metrics - Total revenue grew 19% YoY to BRL 4.6 billion, driven by strong TPV and revenue growth across all client segments [6] - Gross profit margin reached nearly 40%, an 86 basis points increase compared to Q2 2023, and 40.3% on a year-to-date basis [6] - Net income reached BRL 542 million, a 31% YoY growth, with EPS at BRL 1.68, a 32% increase YoY [6] - Deposits reached a record BRL 34.2 billion, an 87% YoY increase, reflecting strong client engagement and lower funding costs [7] - TPV grew 34% YoY to BRL 124 billion, significantly outpacing the card industry's 11% growth [8] Business Line Performance - Payments TPV grew 34% YoY to BRL 124 billion, with TPV per merchant up 42% YoY [10] - MSMB segment TPV grew 28% YoY to BRL 83.6 billion, driven by cross-selling and productivity improvements [11] - LMEC segment TPV grew 50% YoY to BRL 40.8 billion, accounting for one-third of total TPV, with strong growth in e-commerce and cross-border transactions [12] - Banking segment cash-in reached BRL 76.4 billion, a 52% YoY growth, with active banking clients growing 5% YoY to 17.3 million [13] - Credit portfolio grew 11% YoY to BRL 2.9 billion, with secured products representing 80% of the portfolio [15] Market Performance - The company added 2 million clients in the last 12 months, reaching 31.6 million clients by the end of June, with 17.7 million active clients [7] - PagBank app received high ratings of 4.9 stars on the App Store and 4.8 stars on Google Play [8] - The company achieved an AAA rating from both Moody's and S&P, enhancing its financial strength and CDS distribution [14] Strategic Direction and Industry Competition - The company is focused on expanding its payments business with a merchant profile that offers better engagement and profitability [10] - The strategy includes attracting merchants with monetization potential in financial services, particularly in the MSMB and LMEC segments [8] - The company is leveraging its banking platform to provide a seamless experience combining payments, value-added services, and banking, driving higher client engagement [13] - The company is exploring alternatives to reduce the cost of funding, supported by its strong deposit franchise [15] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong operational and financial performance, with all-time highs in key metrics such as revenue, net income, and TPV [6] - The company expects to maintain a gross profit margin above 40% for the year, with TPV guidance increased to BRL 480-505 billion [23] - Management emphasized the importance of balancing growth and profitability, with a focus on sustainable growth and long-term value creation [27] Other Important Information - The company is investing in customer care, product development, and service level agreements to improve client experience and engagement [21] - Tax efficiency initiatives are running above expectations, reducing income tax charges and optimizing the tax structure [20] - The company is increasing its guidance for the year, reflecting strong performance in larger segments and new growth avenues such as cross-border transactions [23] Q&A Session Summary Question: Guidance Adjustment and P&L Impact [25] - The company adjusted its TPV guidance upwards by 10%, but net income guidance increased only 2%, reflecting higher financial expenses due to increased interest rates [26] - Management explained that the company is managing costs and balancing growth with profitability, despite higher-than-expected interest rates [27] Question: SG&A Expenses and Future Efficiency [29] - SG&A expenses increased due to higher marketing and personnel costs, but management expects these to stabilize in the second half of the year [30] - The company is investing in customer experience and product development, which is expected to drive higher client engagement and cross-selling [30] Question: LMEC Segment Growth and Profitability [34] - The LMEC segment grew 50% YoY, but margins are lower compared to the MSMB segment, though still accretive to the bottom line [35] - Management expects the LMEC segment to continue growing faster than the MSMB segment, driven by e-commerce and cross-border transactions [41] Question: Deposits and Credit Portfolio Growth [83] - Deposits grew 87% YoY, but the loan-to-deposit ratio remains low at 8%, with management focusing on growing the credit portfolio, particularly in working capital and overdraft products [83] - The company expects the credit portfolio to become more balanced between retail and wholesale loans in the future [87] Question: CapEx and Future Investments [91] - CapEx is running above guidance at BRL 2.4 billion annualized, with investments focused on technology and product development rather than POS [92] - Management expects CapEx to stabilize in the coming quarters, with a focus on supporting business expansion and future growth [92] Question: Gross Profit Margin and Funding Costs [94] - Gross profit margin as a percentage of TPV declined by 11 basis points, partly due to the growth of the LMEC segment and the mix of products such as PIX [95] - The company is exploring alternatives to reduce funding costs, with no specific target for cost versus CDI, but a focus on diversifying funding sources [98]