Pagseguro Digital Ltd. · NYSE:PAGS
Pagseguro Digital — Q1 2025 Earnings Presentation
28 slides from Pagseguro Digital's earnings presentation, May 13, 2025
Slide 1: Q1 2025 Earnings Presentation
PagSeguro Digital Ltd. (NYSE: PAGS) Q1 2025 Earnings Presentation May 13, 2025 | Webcast: click here to register
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements and Non-GAAP financial measures Forward-looking statements This presentation, prepared by PagSeguro Digital Ltd (“we” or the “Company”), is solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be constr
Slide 3: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS
Slide 4: Sustainable growth and profitability amid market challenges
1Q25 highlights Sustainable growth and profitability amid market challenges Operational Highlights Total Clients TPV 1Q25 Credit Portfolio Total Funding² Million R$ (Expanded)¹ R$ R$ 32.0 129B 46B 40B (+2% YoY) (+16% YoY) (+34% YoY) (+24% YoY) Financial Highlights Net Revenue 1Q25 Net Income³ 1Q25 G
Slide 5: Business Overview
BUSINESS OVERVIEW
Slide 6: Proven track record EPS: Up ~2.3x, focused on delivering shareholder value
Business Overview Proven track record EPS: Up ~2.3x, focused on delivering shareholder value 30 Number of shares Repurchased (M) - 1st Program Number of shares repurchased (M) - 2nd Program 25 EPS (diluted, GAAP)(reported)(R$) 6.62 EPS w/o buyback (diluted, GAAP)(R$) 20 6.13 +15.0% CAGR 5.10 15.2 15
Slide 7: Greater than Payments, Greater than Banking: Your growth partner
Business Overview Greater than Payments, Greater than Banking: Your growth partner PAYMENTS BANKING Prepaid TPV Settled into PagBank Accounts Complete set Deposits Complete of payment digital Deposits franchise funds solutions TPV Prepayment banking offer ▪ Customer acquisition ▪ Customer acquisitio
Slide 8: Significant opportunities to drive future growth
Business Overview Significant opportunities to drive future growth PagBank Market Share Includes self-employed individuals in the informal economy | 19.1M ACTIVE 15.6% 6.3 MEI - Individual-like Merchants | 16.3M ME - Micro Businesses | 4.5M 40.5 MERCHANTS million EPP - Small Businesses| 0.6M million
Slide 9: Business Units
BUSINESS UNITS
Slide 10: Segmentation reviewed to better capture company strategic positioning
Business Overview Segmentation reviewed to better capture company strategic positioning Our Purpose ▪ To facilitate the financial lives of businesses and individuals Large retail Merchants¹ TPV(R$) >3M/month Recap on Our Strategic Goals ▪ Win on MSMB with payments and banking offering ▪ Expand payme
Slide 11: Building a high-quality client base
Payments + Banking Building a high-quality client base Total Clients Highlights Million +2% Customer ▪ Quality customer base expansion 33.2 Acquisition 31.4 32.0 ▪ Focus on activating higher value clients Customer ▪ Prioritizing profitability over volumes Engagement ▪ Deepening customer engagement a
Slide 12: Profitable growth with margin-focused repricing
Payments Profitable growth with margin-focused repricing Cards TPV Total TPV TPV per Active Merchant Highlights R$ Billion PIX +6% Y/Y R$ Thousand +16% +20% ▪ TPV Growth Focus on profitability as a result of repricing initiatives to 146 22.9 mitigate financial cost increase, and considered the 17% 1
Slide 13: Achieving customer principality and improving banking revenue contribution
Banking Achieving customer principality and improving banking revenue contribution Cash-in¹ Cash-in per Active Banking Client R$ Billion R$ Thousand Highlights +26% ▪ Cash-In +23% Robust growth YoY as a result of banking offer evolution 93 83 5.4 during this period and higher principality 66 4.8 3.9
Slide 14: Deposits + 11% YoY, with sustained cost efficiency, despite seasonality
Funding Deposits + 11% YoY, with sustained cost efficiency, despite seasonality Total Funding APY2 on Total Deposits R$ Billion % of CDI R$ million 1Q25 1Q24 YoY % 4Q24 QoQ % Checking Accounts 10.3 10.9 -5% 12.0 -14% 95% 90% 90% Certificate of Deposits 16.3 15.1 8% 17.0 -4% 69% Interbank Deposits 7.
Slide 15: Total Credit Portfolio +34% YoY, NPL ~2x lower than industry average
Credit Total Credit Portfolio +34% YoY, NPL ~2x lower than industry average Credit Portfolio Credit Portfolio Evolution R$ Billion % Credit Portfolio +34% # million 1Q25 1Q24 YoY % 4Q24 QoQ % 3.7 3.4 Payroll Loans 2.7 1.7 63% 2.7 9% 2.7 Credit Card 0.8 0.7 8% 0.8 -1% 73% 74% Working Capital 0.2 0.3
Slide 16: Financial Results
4 - i FINANCIAL # RESULTS Cee 8 Fy Hits? = Se
Slide 17: Total revenue +13% YoY, with solid banking performance (+60% YoY)
Revenue and Gross Profit Margin Total revenue +13% YoY, with solid banking performance (+60% YoY) Total Revenue and Income Payments: Total Revenue and Income R$ Million R$ Million +8% 41% 38% 39% 4,602 4,268 3,942 +13% 39% 35% 34% 5,115 4,850 4,306 Q1-24 Q4-24 Q1-25 1,943 1,874 Gross Profit Margin 1
Slide 18: Payments repricing and increased Banking contribution driving profitability
Gross Profit Margin Payments repricing and increased Banking contribution driving profitability Gross Profit Evolution QoQ Payments: Gross Profit R$ Million R$ Million -4% 37 1,530 1,589 1,465 (184) 213 1,943 57 mainly due to quarter’s (189) seasonality 1,874 (3) Q1-24 Q4-24 Q1-25 18% buyback impact
Slide 19: Operating leverage +10bps YoY; Total losses -19% YoY
P&L Operating leverage +10bps YoY; Total losses -19% YoY Total Expenses Highlights R$ Million Q1-25 Q1-24 YoY % Q4-24 QoQ% 1. 1 Financial Costs, impacted by Brazilian interest rate hike, mitigated by Total Payment Volume 129,230 111,553 16% 146,004 -11% the ongoing repricing in Payments Total Revenu
Slide 20: EPS +14% YoY with ROAE improving 140bps in the same period
Profitability Analysis EPS +14% YoY with ROAE improving 140bps in the same period Net Income (GAAP, Non-GAAP) EPS diluted (GAAP) Equity and ROAE¹ R$ Million R$ Billion LTM ROAE +6% +14% 13.6% 15.0% 631 1.91 32 16.5% 1.72 14.3% 14.2% 554 522 29 40 1.50 +8% 14.7 14.9 13.8 599 525 483 Q1-24 Q4-24 Q1-25
Slide 21: Capital strength and value creation: buybacks, dividends and share cancellations
Capital Structure Capital strength and value creation: buybacks, dividends and share cancellations Total Buybacks Buyback Execution (2018 to 2025 YTD) Highlights R$ Million R$ 2.2B 1. 1 75% of the current program (USD 200M) executed since launch 15,244 in August 2024. Over 40.2M shares bought since
Slide 22: Q1 Results on track to deliver 2025 Guidance
Outlook Q1 Results on track to deliver 2025 Guidance Q1 2025 FY25 Guidance Gross Profit +7.1% 7% 11% % y/y Dec-24 same basis¹ EPS (GAAP, diluted) +15.0% 11% 15% % y/y Capital Expenditures R$ 635M R$ Billion 2.2B 2.4B YTD performance Guidance range 1 – GAAP diluted EPS on a December-2024 same basis c
Slide 23: Closing Remarks
CLOSING L oe.) REMARKS —
Slide 24: Closing Remarks
Closing Remarks Closing Remarks 1Q 2025 Takeaways ▪ Continuing to deliver sustainable growth and profitability despite ongoing market challenges ▪ Consistent expansion of our Banking business, accounting for more than 22% of total Gross Profit (+86% YoY) ▪ Company on track to deliver 2025 Guidance 2
Slide 25: Q&A
Q&A To ask a live question via audio, please use the “raise hand” button to join the queue. Once you are announced, a request to activate your microphone will appear on your screen. Please ask all your questions at once. You can also write your question directly into the Q&A icon on the lower part o
Slide 26: Appendix
APPENDIX PagSeguro Digital Ltd. (NYSE: PAGS) Q1 2025 Earnings Presentation May 13, 2025 | Webcast: click here to register
Slide 27: Net Income Reconciliation and EPS
Appendix Net Income Reconciliation and EPS R$ million Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Net Income | GAAP 483 504 531 599 525 Non-GAAP Items 39 38 41 32 29 Long-term Incentive Plan 41 38 41 28 23 Amortization of Fair Value Adjustment 5 5 5 5 5 Amortization of Capitalized Expenses of Platforms Developmen
Slide 28: Investor Relations Media Press
YouTube Logo PNG, Transparent YouTube Linkedin - ícones de mídia Logo Icon Free DOWNLOAD social grátis Investor Relations Website: https://investors.pagbank.com/ E-mail: ir@pagbank.com Address: Av. Brigadeiro Faria Lima, 1384, 10th floor | São Paulo Zip Code (CEP): 01451-001 Media Press Website: htt
PagSeguro Digital Ltd. Class A Common Shares — Q1 2025 Earnings Presentation on 6ix