Overview
- Nu reported robust quarterly results with revenue up 42% year over year and net income rising 41% to $871 million while average monthly revenue per user reached a record $15.90.
- The company now serves about 135 million customers across Latin America, with over half of its users in Brazil and roughly 15 million active customers in Mexico where the business has recently turned profitable.
- Shares have fallen substantially from recent highs, a move some commentators call a buying opportunity and others attribute to worries about credit metrics and analyst downgrades.
- Short-term delinquencies for loans 15 to 90 days past due rose to about 5%, a figure management and some analysts describe as seasonal and tied to the customer mix rather than a broad credit collapse.
- Management is pushing higher monetization through product expansion including a premium credit card and broader cross-sell, and the company faces near-term scrutiny after a recent uptick in expected credit losses and an announced CFO departure.