Nu Holdings Faces After-Hours Stock Decline Following Q4 Earnings Report
Brazilian digital banking giant Nu Holdings (NYSE:NU) saw its stock dip 7.9% in after-hours trading on Thursday after reporting Q4 2024 earnings that fell short of revenue expectations and reflected slower sequential customer growth. Despite increased purchase volume and controlled expenses, the fintech firm’s results left investors cautious.
Q4 2024 Earnings Breakdown
- GAAP EPS: $0.11, in line with analyst expectations, flat from Q3 but up from $0.07 in Q4 2023.
- Revenue: $2.99B, missing Wall Street’s $3.17B estimate, but rising from $2.94B in Q3 and $2.40B in Q4 2023.
- Operating Expenses: $595.9M, down from $624.8M in Q3 but higher than $583.3M a year earlier.
- Purchase Volume: Increased to $32.2B, up from $30.9B in Q3, though slightly down from $32.6B in Q4 2023.
Customer Growth Slows, But Base Expands
Nu Holdings added 4.5 million new customers in Q4, bringing its total user base to 114.2 million. However, this was a slowdown from 5.2 million new customers added in Q3. While growth continues, the reduced pace raised concerns among investors.
- Monthly Average Revenue per Active Customer: $10.7, down from $11.0 in Q3, but slightly up from $10.6 in Q4 2023.
- Monthly Average Cost to Serve per Active Customer: $0.8, ticking up from $0.7 in Q3, but lower than $0.9 a year ago.
Market Reaction and Outlook
Despite positive trends in purchase volume and cost efficiency, the revenue miss and customer growth slowdown contributed to NU stock’s after-hours drop. Investors will closely watch Nu Holdings’ expansion efforts and monetization strategies as it aims to sustain momentum in Latin America’s competitive digital banking market.
