Pagbank (PAGS) Q2 2024 earnings summary

Executive summary

• Achieved all-time highs in net income, EPS, revenue, and TPV for Q2 2024, with total revenue up 19% year-over-year to R$4.6 billion and net income (non-GAAP) reaching R$542 million, up over 30% year-over-year.

• Total Payment Volume (TPV) reached R$124.4 billion, up 34% year-over-year, and deposits surged 87% to R$34.2 billion, with active clients at 17.7 million and total clients at 31.6 million.

• Received Triple-A ratings from Moody's and S&P, reflecting robust financial strength and improved cost of funding.

• Gross profit increased 21.7% year-over-year to R$1,819 million, with a margin of 39.9%.

• Net cash balance increased 22% year-over-year to R$12.3 billion; equity up 14% to R$14.3 billion.

Financial highlights

• Non-GAAP net income: R$542 million (+30.5% y/y); GAAP net income: R$504 million (+30.8% y/y); diluted EPS (non-GAAP): R$1.68 (+31.5% y/y); diluted EPS (GAAP): R$1.56 (+32.0% y/y).

• Total revenue and income: R$4,557 million (+19.1% y/y); gross profit margin: 40% (+86 bps y/y).

• Payments revenue: R$4,122 million (+17.2% y/y); banking revenue: R$434 million (+41.1% y/y).

• Credit portfolio reached R$2.9 billion (+11% y/y), with 80% in secured products; NPL90 at 3.2%.

• Cash and financial investments at R$6.2 billion, representing 40%-50% of equity.

Outlook and guidance

• Raised 2024 guidance: TPV expected at R$480–505 billion, net income (non-GAAP) at R$2.1–2.2 billion, and gross profit margin above 40%.

• CapEx guidance at R$1.9–2.2 billion; D&A plus POS write-offs expected at R$1.7–1.8 billion.

• Guidance reflects higher-than-expected growth, especially in large segments and cross-border, with continued focus on balancing growth and profitability.