(Reuters) -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 Velez said.
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.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath and Anil D’Silva)
