Nubank reported an increase in revenue on Monday that beat expectations as the Warren Buffett-backed digital bank benefited from a healthy loan book and strong customer additions, pushing its shares up nearly 8% in deals extended.
The fintech company has managed to avoid an increase in defaults in its main Brazilian banking market, given its focus on low-risk, low-return credit card receivables, prompting some analysts to call it an “outlier”.
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“This is the strongest quarter in Nu’s history. We reached nearly 60 million customers and a record 78% activity rate,” said CEO David Velez.
Nubank added 5.7 million new customers this quarter, while its average monthly revenue per active customer rose to $6.7, up $3.2 from a year earlier. On average, the cost per customer has decreased to 70 cents per month from 80 cents a year ago.
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The company said net loss decreased to $45.1 million from $49.4 million a year earlier.
Revenue more than tripled to $877.2 million from a year earlier, well above analysts’ estimates of $624.15 million, according to Refinitiv data.
Earlier this month, the company changed its final lockdown terms and set an end to May 17.
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U.S.-listed shares of Nubank have fallen 61% since debuting on Wall Street in December.