How does NU's earnings performance compare to peers?

Nu Holdings (NU) demonstrates a strong earnings performance compared to its peers, showcasing robust growth and profitability in the digital banking sector. Here's a detailed analysis:

1. **Net Income Growth**: Nu Holdings' net income has experienced significant year-over-year growth, rising from $361 million to $553 million, marking a substantial 50% revenue growth when adjusted for currency fluctuations. This growth trajectory outpaces many of its peers, reflecting Nu's strategic expansion and operational efficiency.
2. **Revenue Growth**: The company's revenue surged by 58% year-over-year to $11.5 billion in 2024, a notable increase that indicates a strong market presence and customer base growth. This growth in revenue is a testament to Nu's successful diversification beyond traditional banking services, such as the introduction of NuPay, NuTravel, NuMarketplace, and NuCel.
3. **Customer Base Expansion**: Nu Holdings has achieved remarkable growth in its customer base, with a significant increase in members across key markets in Brazil, Mexico, and Colombia. The company's innovative digital banking model and attractive high-rate savings accounts have driven customer acquisition and retention, leading to a substantial and active user base.
4. **Financial Metrics Comparison**: When compared to peers like PayPal (PYPL) and Square (SQ), Nu Holdings' net income and revenue growth rates are comparable, if not more impressive. For instance, PayPal reported a net income of $1.12 billion in the same period, while Nu Holdings' net income was $552.64 million. Nu's revenue of $11.5 billion is also substantial, indicating a strong market position and financial performance.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|PYPL|PYPL.O|Paypal Holdings|2024 Q1|7.699E9|0.83|185|
|NU|NU.N|Nu Holdings|2024 Q1|2.735901E9|0.0775|169|
|LC|LC.N|Lendingclub|2024 Q1|1.80688E8|0.11|169|
|PYPL|PYPL.O|Paypal Holdings|2024 Q2|7.885E9|1.08|185|
|NU|NU.N|Nu Holdings|2024 Q2|2.848691E9|0.0998|169|
|LC|LC.N|Lendingclub|2024 Q2|1.87241E8|0.13|169|
|PYPL|PYPL.O|Paypal Holdings|2024 Q3|7.847E9|0.99|185|
|NU|NU.N|Nu Holdings|2024 Q3|2.943188E9|0.1132|169|
|LC|LC.N|Lendingclub|2024 Q3|2.01881E8|0.13|169|
|PYPL|PYPL.O|Paypal Holdings|2024 Q4|8.366E9||185|

5. **Market Position and Growth Prospects**: Nu Holdings' market dominance in Brazil, with 58% of adult population being members, and its expanding presence in Mexico and Colombia, position it well for continued growth. The company's strategic investments in 2025 aimed at diversifying beyond traditional banking services are likely to contribute to its sustained growth and competitiveness.

In conclusion, Nu Holdings' earnings performance is robust and competitive within the digital banking sector, driven by strategic growth initiatives, customer expansion, and diversification. Its financial metrics, particularly net income and revenue growth, are noteworthy compared to industry peers, indicating a strong future potential for the company.