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PagSeguro Digital (PAGS) Q2 Earnings call transcript Aug 20, 2024

AInvestThursday, Aug 22, 2024 12:01 pm ET
1min read

In the recent PagSeguro Digital earnings call for the second quarter of 2024, the company showcased a robust financial performance, highlighting significant growth across various key metrics. The call, led by CEO Alex Magnani and CFO Artur Schunck, provided valuable insights into the company's operational and financial health, as well as its strategic initiatives and future outlook.

Strong Financial Performance

PagSeguro Digital reported an all-time high in total revenue, reaching BRL 4.6 billion, a 19% year-over-year increase. The company's net income also hit an all-time high, with BRL 542 million in both GAAP and non-GAAP basis, marking a 31% year-over-year growth. This strong financial performance was driven by a combination of strategic initiatives and a focus on client engagement and value proposition.

Client Engagement and Value Proposition

The company ended the quarter with 31.6 million clients, adding over 2 million clients in the last 12 months, and 17.7 million active clients. This growth was also reflected in the company's deposit level, which reached BRL 34.2 billion, a staggering 87% increase year-over-year. This increase in deposits is a testament to PagSeguro Digital's value proposition, which has been contributing to improved client engagement and lowering the cost of funding, supporting the company's profitability metrics.

Strategic Initiatives and Future Outlook

PagSeguro Digital's strategic focus on both payments and banking segments has been paying off, with the payments segment registering a 34% year-over-year growth in TPV, reaching BRL 124 billion. The banking segment also showed strong growth, with cash-in reaching BRL 76.4 billion, a 52% year-over-year growth. The company's credit portfolio grew by 11% year-over-year, reaching BRL 2.9 billion, demonstrating its ability to attract and retain clients.

The company also announced its intention to increase its guidance for the year, indicating a confident outlook for the rest of 2024. With a focus on sustainable growth and profitability, PagSeguro Digital is well-positioned to continue its momentum in the digital payments and banking space.

Investor Relations Transition

During the call, PagSeguro Digital also announced a change in its Investor Relations team, with Éric Oliveira transitioning to a new role focused on Banking growth initiatives and Gustavo Sechin joining the team as the new Head of Investor Relations, ESG, Market Intelligence and Economy. This transition is expected to ensure a smooth transition and continuity in the company's investor communication efforts.

Conclusion

PagSeguro Digital's second quarter 2024 earnings call painted a picture of a company on a growth trajectory, with a strong financial performance and strategic initiatives driving its growth. With a focus on client engagement, value proposition, and a confident outlook for the future, PagSeguro Digital is poised to continue its success in the digital payments and banking sector.

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