Pagseguro Digital Ltd. · NYSE:PAGS

Pagseguro Digital — Q2 2024 Earnings Presentation

26 slides from Pagseguro Digital's earnings presentation, Aug 20, 2024

  1. Slide 1: Earnings Presentation Q2 2024

    Earnings Presentation Q2 2024 PagSeguro Digital Ltd. (NYSE: PAGS) Webcast: click here to register August 20, 2024

  2. Slide 2: Forward-looking statements; Non-GAAP financial measures

    Forward-looking statements; 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 construed

  3. Slide 3: Q2 2024 Highlights

    Q2 2024 Highlights © PagBank

  4. Slide 4: All-time high Net Income with strong Total Revenue growth

    Q2 2024 Highlights All-time high Net Income with strong Total Revenue growth Total Revenue and Income Gross Profit Margin Net Income¹ R$ 4.6bn 40% R$ 542mn +19% y/y +86 bps y/y +31% y/y Q1 2024 R$ 4.3bn Q1 2024 41% Q1 2024 R$ 522mn Q2 2023 R$ 3.8bn Q2 2023 39% Q2 2023 R$ 415mn 6M 2024 R$ 8.9bn 6M 20

  5. Slide 5: All-time high Deposits of R$ 34.2bn, growing +87% y/y

    Q2 2024 Highlights All-time high Deposits of R$ 34.2bn, growing +87% y/y Total Clients Active Clients Total Deposits 31.6mn 17.7mn R$ 34.2bn +2.2mn y/y +0.7mn y/y +87% y/y Q1 2024 31.4mn Q1 2024 17.3mn Q1 2024 R$ 30.6bn Q2 2023 29.5mn Q2 2023 17.0mn Q2 2023 R$ 18.3bn ▪ Triple-A rating¹ by S&P and Mo

  6. Slide 6: All-time high TPV and Cash-in, supporting robust growth cycle

    Q2 2024 Highlights All-time high TPV and Cash-in, supporting robust growth cycle TPV Cash-In¹ Credit Portfolio R$ 124bn R$ 76.4bn R$ 2.9bn +34% y/y +52% y/y +11% y/y Q1 2024 R$ 112bn Q1 2024 R$ 66.1bn Q1 2024 R$ 2.7bn Q2 2023 R$ 93bn Q2 2023 R$ 50.2bn Q2 2023 R$ 2.6bn 6M 2024 R$ 236bn 6M 2024 R$ 143

  7. Slide 7: Business Units

    Business Units © PagBank

  8. Slide 8: Payments: All-time high TPV +34% y/y

    Payments All-time high TPV +34% y/y; Active Merchants +4% y/y (30D ex-nano) TPV TPV per Active Merchant 12M1 R$ Billion R$ Thousand +34% +42% 114 112 124 17.2 17.2 19.2 93 100 13.5 14.9 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Active Merchants 12M2 Active Merchants breakdown # Mil

  9. Slide 9: All-time high MSMB TPV +28% y/y

    Payments All-time high MSMB TPV +28% y/y, R$ 18.2bn higher than Q2 2023 MSMB1 TPV MSMB Highlights R$ Billion Q2-24 Milestones ▪ Strong POS Sales through multiple sales channels ▪ Geographic expansion positively contributing to results +28% ▪ Unique Value Proposition for MSMBs 83.6 ✓ Instant settleme

  10. Slide 10: All-time high LMEC TPV +50% y/y

    Payments All-time high LMEC TPV +50% y/y, R$ 13.5bn higher than Q2 2023 LMEC1 TPV LMEC Highlights R$ Billion Q2-24 Milestones ▪ Expanding Addressable Market in Payments beyond MSMB and POS ▪ Strong growth in CNP² transactions (Online, PIX, Digital Wallets) +50% ▪ New growth verticals: 40.8 ✓ e-Comme

  11. Slide 11: Banking: All-time high Cash-in, +52% y/y

    Banking All-time high Cash-in led by strong client engagement, +52% y/y Cash-in1 Active Banking Clients2 R$ Billion # Million +800k +52% Net Adds LTM +5% 76.4 66.3 66.1 17.3 56.3 16.4 16.7 16.7 16.9 50.2 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Cash-in per Active Banking Client3 A

  12. Slide 12: All-time high Total Deposits of R$ 34.2bn

    Banking All-time high Total Deposits of R$ 34.2bn Total Deposits1 Checking Accounts R$ Billion R$ Billion brAAA 2 AAA.br 2 +39% +87% 9.7 11.4 10.9 11.5 34.2 8.3 APY3 68% CDI 30.6 27.6 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 APY3 on Total Deposits 21.6 % 18.3 13.7% 13.3% 12.2% 11.3% 12.9% 10.5% 12.4% 11.5% 10.

  13. Slide 13: Credit Portfolio of R$ 2.9bn, growing +11%

    Credit Credit Portfolio of R$ 2.9bn, growing +11% vs. Q2 2023 Credit Portfolio Credit Portfolio mix R$ Billion % Credit Portfolio +11% 53% 60% 66% 2.9 73% 80% 2.7 2.6 2.5 2.5 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 42% Secured Unsecured 48% 54% 61% 69% NPL901 % over Credit Portfolio up to 360 days 14.4% 34% 1

  14. Slide 14: Consolidated Financial Results

    Consolidated Financial Results

  15. Slide 15: All-time high Net Income and EPS

    Net Income All-time high Net Income and EPS Net Income (Non-GAAP) Net Income (GAAP) R$ Million R$ Million R$1.63 R$1.63 R$1.68 R$1.53 R$1.50 R$1.56 R$1.28 R$1.36 R$1.27 R$1.18 +31% +31% 520 522 542 488 504 483 440 411 415 385 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 EPS Diluted EP

  16. Slide 16: All-time high Total Revenue; Gross Profit Margin

    Revenue and Gross Profit Margin All-time high Total Revenue; Gross Profit Mg >40% in 6M 2024 Total Revenue and Income Total Revenue and Income (Payments) R$ Billion R$ Million 1.6% 1.5% 1.5% 1.6% 1.5% +17% 3,518 3,700 4,021 3,942 4,122 +19% 37% 37% 38% 39% 38% 4.6 4.3 4.3 Q2-23 Q3-23 Q4-23 Q1-24 Q2-

  17. Slide 17: Discipline in capital allocation led to EBT growth of +20% y/y

    Total Costs and Expenses Discipline in capital allocation led to EBT growth of +20% y/y Total Costs and Expenses q/q Highlights R$ Million Non-GAAP Q2-23 Q1-24 Q2-24 Δ% y/y Δ% q/q Total Payment Volume 92,676 Q1-24 Q2-23 111,737Q2-24 124,390 Δ% y/y 34.2% Δ% q/q 11.3% Q2-23 Q1-24 Q2-24 Δ% y/y Total Pa

  18. Slide 18: Solid capital structure to support new growth cycle

    Balance Sheet Solid capital structure to support new growth cycle Net Cash Balance¹ Equity R$ Billion R$ Billion +22% +14% 11.5 12.3 14.3 10.6 11.2 13.8 10.1 13.2 12.5 12.9 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Cash and Financial Investments R$ Billion 8.8 Fund raising 6.2 anticipated 6.2 61% 62% for Apr-24

  19. Slide 19: Raising TPV and Net Income goals for 2024

    2024 Guidance Raising TPV and Net Income goals for 2024 6M 2024 2024e 2024e Results Old Guidance New Guidance Total Payment Volume R$ 236B R$ 441B to 457B R$ 480B to 505B +31% y/y +12% to +16% y/y +22% to +28% y/y Gross Profit Margin 40.3% >40.0% >40.0% % Total Revenue and Income Net Income R$ 1.06B

  20. Slide 20: 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

  21. Slide 21: Appendix

    Appendix © PagBank

  22. Slide 22: Net Income Reconciliation and EPS

    Appendix Net Income Reconciliation and EPS R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Net Income | GAAP 370 385 411 488 483 504 Non-GAAP Items 22 30 29 32 39 38 Long-term Incentive Plan 19 30 30 32 41 38 Amortization of Fair Value Adjustment 5 5 3 5 5 5 Amortization of Capitalized Expenses of Pl

  23. Slide 23: Net Cash Balance Reconciliation

    Appendix Net Cash Balance Reconciliation R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Assets 37,685 37,205 41,574 49,109 53,013 59,969 Cash and Cash Equivalents 1,816 1,724 1,975 2,899 4,366 1,374 Financial Investments 1,064 1,122 1,078 3,309 4,399 4,844 Accounts Receivable, net (Cards Issuers + C

  24. Slide 24: New disclosure model for Gross Profit since Q1 2024

    Appendix New disclosure model for Gross Profit since Q1 2024 Prior Current R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 Total Revenue and Income 3,750 3,826 4,026 4,347 3,750 3,826 4,026 4,347 (-) Other Financial Income (65) (65) (66) (73) - - - - (+) FX Expenses 17 9 10 9 - - - - (-)

  25. Slide 25: New disclosure model for Banking revenues

    Appendix New disclosure model for Banking revenues R$ million Q1-23 Q2-23 Q3-23 Q4-23 Prior Total Revenue and Income 331 243 260 253 Current Total Revenue and Income 395 308 326 326 Current (-) Prior Total Revenue and Income (Other Financial Income) 65 65 66 73 25

  26. Slide 26: Investor Relations

    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: https://xcom.net.br/ E-mail: pagbank@xcom.net.br

PagSeguro Digital Ltd. Class A Common Shares — Q2 2024 Earnings Presentation on 6ix