What caused NU's net profit spike in Q2 2024?

Nu Holdings' net profit spike in Q2 2024 can be attributed to several key factors:

1. **Revenue Growth**: The most significant contributor to the net profit spike was the revenue growth, which exceeded market expectations. Nu reported a revenue of $2.7 billion for Q2 2024, jumping 66.7% year-over-year. This substantial increase outpaced the analyst estimate of $2.53 billion, indicating a stronger-than-expected business performance.
2. **Customer Base Expansion**: Nu's customer base continued to grow significantly, adding 5.5 million customers in Q1 2024, reaching a total of 99.3 million customers globally by March 31, 2024. This expansion in the customer base is a testament to the company's successful product innovation and service quality, which has led to increased market share and revenue.
3. **Monthly Average Revenue per Active Customer (ARPAC) Increase**: The ARPAC increased to $11.4 in Q2 2024, up from $10.6 in the previous quarter and $8.6 in the same quarter of the previous year. This indicates a higher average revenue generated per active customer, which is a positive signal for profitability.
4. **Cost Control**: Nu maintained a low-cost operating platform, with the monthly average cost to serve per active customer remaining stable and below the dollar level at $0.9. This efficient cost control, coupled with increasing revenues, has contributed to the net profit margin.
5. **Deposit Growth**: Deposits rose to $24.3 billion, up from $23.7 billion in the previous quarter and $15.8 billion a year ago. This increase in deposits is a reflection of growing customer trust and usage of Nu's services, which can lead to higher interest income and better profitability.

In summary, Nu Holdings' net profit spike in Q2 2024 is primarily driven by robust revenue growth, customer base expansion, and effective cost management, with deposits and ARPAC also contributing to the overall profitability.