Nubank on Monday posted a surge in revenue that beat expectations, as the Warren Buffett-backed digital bank benefited from a healthy loan book and strong client additions, sending its shares surging nearly 8% in extended trading.
The fintech firm has managed to sidestep a rise in defaults in its main Brazilian banking market, given its focus on low-risk, low-yielding credit card receivables, prompting some analysts to call it an “outlier”.
“This is the strongest quarter in Nu’s history. We reached nearly 60 million customers and a record-high activity rate of 78%,” Chief Executive Officer David Véléz said. The majority of clients (57.3 million) are in Brazil.
Nubank added 5.7 million new clients this quarter, while its monthly average revenue per active client rose to $6.7, up $3.2 from a year earlier. On average, cost per client decreased to 70 cents per month from 80 cents a year ago.
The company said net loss shrunk to $45.1 million from $49.4 million a year earlier.
Revenue more than tripled to $877.2 million from a year earlier, well above analysts’ estimates of $624.15 million, according to data from Refinitiv.
Earlier this month, the company modified its final lock-up terms and set the end for May 17.
Nubank‘s U.S.-listed shares have shed 61% since their debut on Wall Street in December.