Pagbank (PAGS) Q4 2024 earnings summary

Executive summary

• Achieved record performance in 2024, with 33.2 million clients and robust growth in both top and bottom lines, including net income (non-GAAP) of R$2.3 billion, up 28% year-over-year.

• Total Payment Volume (TPV) grew 32% year-over-year to R$518 billion, with strong performance across MSMB and large retail merchants.

• Active clients reached 17.8 million (+3% YoY), with a strategic focus on higher-value SMB merchants and improved risk management.

• Strategic focus on revenue growth, cost efficiency, and shareholder value, including executing over 50% of a $200 million buyback program (R$784 million in shares repurchased).

• Navigated a challenging macroeconomic environment, outperforming guidance despite higher-than-expected interest rates and inflation.

Financial highlights

• Total payment volume (TPV) reached R$518 billion, up 32% year-over-year; net revenues grew 18% to R$18.8 billion.

• Net income hit an all-time high of R$2.3 billion, up 28% year-over-year; diluted EPS (GAAP) was R$6.62, up 30%.

• Q4 2024 revenue was R$5.1 billion (+18% YoY); consolidated gross profit margin was 38%.

• Banking revenue set a record at R$513 million (+58% YoY) in Q4; banking gross profit margin reached 69%.

• Total deposits reached R$36.1 billion, up 31% year-over-year; total funding was R$43 billion, up 52% YoY.

Outlook and guidance

• 2025 guidance: gross profit growth of 7–11%, EPS growth of 11–15%, CapEx between R$2.2–2.4 billion.

• Strategy for 2025 continues focus on revenue growth, cost control, and operational leverage, with plans to mitigate macro headwinds through repricing and reduced funding costs.

• Guidance assumes year-end Selic rate of 15%.

• Outperformed FY24 guidance on TPV, net income, and capital expenditures despite macroeconomic headwinds.

• Management expects to continue advancing on its mission to facilitate clients' financial lives, focusing on sustainable long-term growth and shareholder value creation.