Pagseguro Digital Ltd. · NYSE:PAGS
Pagseguro Digital — Q2 2022 Earnings Presentation
26 slides from Pagseguro Digital's earnings presentation, Aug 25, 2022
Slide 1: Earnings Release
© PagBank (es) PagSeguro Earnings Release August 25, 2022 << : § F = QO 8s on 0 / tD wn es m 6: PAGS LISTED NYSE
Slide 2: All-time high quarterly Net Income | Non-GAAP for a Second Quarter
1 All-time high quarterly Net Income | Non-GAAP for a Second Quarter period.
Slide 3: TPV growth +71%, 2Q21 vs 2Q22
+71% y 174.7 102.0 2Q21 2Q22
Slide 4: PAGS TPV totaled R$174.7 billion and net take rate
PAGS TPV totaled R$174.7 billion , an increase of +71% vs. 2Q21 due to the growth of +58% in PagSeguro TPV and +87% in PagBank TPV, mainly driven by the maturation of merchant cohorts’ and market share gains in payments combined with deeper engagement with PagBank services. PAGS Net Take Rate totale
Slide 5: PagSeguro TPV growth +58%
+58% 2021 2Q22
Slide 6: PagSeguro TPV totaled R$89.2 billion
PagSeguro TPV totaled R$ 89.2 billion , an increase of +58% vs. 2Q21 mainly due to: larger share of wallet , driven by the migration from cash to electronic payments; maturation of existing merchant cohorts , leading to higher recurrence and solid TPV growth; market share gains , boosted by HUBs exe
Slide 7: Active Merchants chart
2021 2Q22
Slide 8: PagSeguro ended the quarter with 7.5 million Active Merchants
PagSeguro ended the quarter with 7.5 million Active Merchants , the highest Active Merchants base in the Brazilian Acquiring Industry, which was -1% lower as compared to 2Q21. Since the beginning of the year, PagSeguro has been more selective on gross adds to leverage PagBank, focusing on clients wi
Slide 9: PagBank TPV chart
45.6 2Q21 2Q22
Slide 10: PagBank TPV totaled R$85.5 billion
PagBank TPV totaled R$ 85.5 billion , an increase of +87% vs. 2Q21. This growth is mainly related to deepening clients’ engagement with day-to-day banking (deposits, bill payments, mobile top-up, Pix), cards spending and credit underwriting. The number of Pix transactions through PagBank accounts re
Slide 11: Credit Portfolio composition: Working Capital, Credit Card, Others
1.1 20% 3% 2Q21 2Q22 !) Working Capital | Credit Card Others
Slide 12: PagBank Credit Portfolio reached R$2.3 billion
PagBank Credit Portfolio reached R$ 2.3 billion in 2Q22, an increase of +104% vs. 2Q21. This increase reflects our diligent credit underwriting strategy in a challenging macroeconomic context with high interest rate and inflation, with most of the underwriting in the quarter driven by secured loans
Slide 13: PagBank clients chart
17.6 2Q21 2Q22
Slide 14: PagBank ended the quarter with 24.8 million clients
PagBank ended the quarter with 24.8 million clients , an increase of +41% vs. 2Q21, and 15.1 million Active Clients , an increase of +35% vs. 2Q21. This increase is mainly related to higher penetration in consumers segment which represents 56% of PagBank clients vs. 45% in 2Q21. This increase also r
Slide 15: Total Revenue and Income reached R$3,911 million
Total Revenue and Income reached R$ 3,911 million in 2Q22, an increase of +65% from R$ 2,370 million reported in 2Q21, as described below: Transaction Activities and Other Services: Revenues from Transaction Activities and Other Services in the 2Q22 amounted to R$ 2,256 million , an increase of +46%
Slide 16: Transaction Costs reached R$1,414 million
Transaction Costs reached R$ 1,414 million in 2Q22, an increase of +47% from R$ 965 million reported in the 2Q21. As a percentage of the Total Revenues from Transaction Activities and Other Services, Transaction Costs increased +40 bps, to 62.7% in the 2Q22 from 62.3% in the 2Q21, due to:
Slide 17: Financial Expenses chart
C422% > 756 621 134 2021 1Q22 2Q22
Slide 18: Financial Expenses up +465% vs. 2Q21
Financial Expenses totaled R$ 756 million in 2Q22, up +465% vs. 2Q21. This increase is mainly explained by two factors (i) R$ 545 million because of the hike in the Brazilian Basic Interest Rate (SELIC); and (ii) R$ 77 million related to the higher volume of TPV and a higher credit card mix. These e
Slide 19: Chargeback up +84% vs. 2Q21
Chargeback reached a total of R$ 270 million in 2Q22, up +84% vs. 2Q21. As a percentage of Total Revenues and Income, Chargeback expenses increased by +70 bps to 6.9% in 2Q22, up from 6.2% in 2Q21. This increase was mainly due to an increase in PagSeguro TPV higher exposure to credit cards and highe
Slide 20: Gross Profit totaled R$1,434 million
Gross Profit totaled R$ 1,434 million in 2Q22, up +28% from R$ 1,125 million presented in 2Q21. This increase is mainly related to volume gains, successes stemming from PAGS’ repricing strategy and operational leverage captured by PAGS. Opex Non-GAAP | R$ Million
Slide 21: Opex totaled R$603 million
Opex which includes Personnel Expenses, Marketing and Advertising and Other Expenses, totaled R$ 603 million , an increase of +22% compared to R$ 496 million in 2Q21. As a percentage of Total Revenue and Income, Opex represented 15% vs. 21% in 2Q21, showing PAGS ability to capture operational levera
Slide 22: Depreciation and Amortization totaled R$281 million
Including Non-GAAP expenses mentioned above, Depreciation and Amortization totaled R$ 281 million Depreciation and Amortization reached R$ 276 million up +55% , from R$179 million in 2Q21. These amounts exclude M&A expenses related to the amortization of fair value assets acquired as well as expense
Slide 23: Adjusted EBITDA up +32% vs. 2Q21
Adjusted EBITDA amounted to R$ 831 million in 2Q22, up +32% vs. 2Q21, reflecting the ongoing repricing strategy carried out by PAGS during the period and operating leverage gains on HUBs and PagBank operations.
Slide 24: Net income chart 2Q21 1Q22 2Q22
SE 350 367 272 2Q21 1Q22 2Q22
Slide 25: Quarterly chart 2Q21 1Q22 2Q22
403 345 371 2Q21 1Q22 2Q22
Slide 26: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 25, 2022 PagSeguro Digital Ltd. By: /s/ Artur Schunck Name: Artur Schunck Title: Chief Fin