Nu (NU) Q2 2024 earnings summary

Executive summary

• Customer base reached 105 million by Q2 2024, up 60% from two years ago, with strong growth in Brazil, Mexico, and Colombia; 56% of Brazil's adult population are customers, with an 83% monthly activity rate.

• Revenue reached $2.85 billion, up 65% year-over-year (FX neutral), driven by cross-sell, up-sell, and new product launches.

• Net income hit $487.3 million, more than doubling year-over-year; adjusted net income at $563 million, up 131% year-over-year.

• Gross profit rose to $1.4 billion, an 88% year-over-year increase, with gross margin improving to 48%.

• Nu is now the primary banking account for 60% of monthly active customers in Brazil, with continued expansion and product launches in Mexico and Colombia.

Financial highlights

• Gross profit rose to $1.4 billion, up 88% year-over-year, with a gross margin of 48%.

• Net interest income reached $1.72 billion, up 77% year-over-year; net interest margin at 19.8%.

• Consumer finance portfolio grew 49% year-over-year (FX neutral), reaching $18.9 billion.

• Lending portfolio expanded 92% year-over-year (FX neutral), now 24% of total portfolio.

• Deposits totaled $25.2 billion, up 64% year-over-year, with Mexico surpassing $3 billion.

Outlook and guidance

• Management expects continued customer and revenue growth, with further balance sheet optimization and profitability in new markets.

• Focus remains on cross-selling, up-selling, and expanding product offerings to drive ARPAC and engagement.

• Anticipates gradual increase in secured lending originations as new features are introduced.

• Expects interest-earning installment balances to stabilize after steep adoption curve.

• Remains focused on long-term value creation, even with short-term strategic investments.