Nu Holdings (NYSE:NU) popped Tuesday after the fintech firm topped analysts’ first-quarter earnings expectations. Nu reported adjusted net income of $182.4 million, greater than the consensus estimate of $113.4 million, according to FactSet. It posted revenue of $1.6 billion, compared to analysts’ forecasts of $1.40 billion.
Nu posted a profit of $141.8 million, compared to a $45.1 loss in Q1’22, delivering another quarter of recurring net income. Adjusted Net Income, reached $182.4 million compared to an Adjusted Net Income of $10.1 million in Q1’22. In Brazil specifically, net income grew to $171 million in the last quarter with an annualized ROE of 37%, one of the highest in the industry. Adjusted Net Income in Brazil grew to $200 million, with an Adjusted ROE of 43%.
Nu posted $1.6 billion in revenues, another all-time record high, which nearly doubles what the company posted in Q1’22, on a FX-neutral basis. This comes as a result of the compounding effect of customer growth and higher levels of customer monetization in Brazil, which alone responded to $1.5 billion of the quarter’s revenues.
Nu added 4.5 million customers in Q1’23 and 19.5 million year-over-year (YoY), reaching a total of 79.1 million customers globally. This represents a 33% growth YoY, which underscores Nu's position as one of the largest and fastest-growing digital financial services platforms worldwide and the fifth-largest financial institution in Latin America by number of active customers.
NU shares raced higher 46 cents, or 7.6%, to $6.56.
