Pagseguro Digital Ltd. · NYSE:PAGS
Pagseguro Digital — Q3 2021 Earnings Presentation
15 slides from Pagseguro Digital's earnings presentation, Nov 12, 2021
Slide 1: 3Q21 Results Earnings Release
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Slide 2: Total revenues and income reached R$ 2,775.8 million in 3Q21
Total revenues and income reached R$ 2,775.8 million in the third quarter of 2021, an improvement of 55.8% from R$ 1,781.5 million reported in the third quarter of 2020. The growth was mainly due to an increase in our Acquiring TPV and will be detailed in each revenue and income lines described belo
Slide 3: Revenue from transaction activities and other services
Revenues from transaction activities and other services in the 3Q21 amounted to R$ 1,792.2 million, an improvement of R$ 580.2 million, or 47.9% , from R$ 1,212.0 million presented in the 3Q20, because of the factors described below: Gross revenues from transaction activities and other services in t
Slide 4: Financial income
The quarterly Financial income, which represents the discount fees we withhold from credit card transactions in installments for the early payment of accounts receivable, reached R$ 937.7 million, an increase of R$ 392.9 million, or 72.1% , from R$ 544.8 million presented in the 3Q20. The financial
Slide 5: Other financial income
Other financial income reached R$ 45.9 million in the 3Q21, an increase of R$ 21.2 million, or 85.3% , from R$ 24.7 million in the 3Q20. This increase was explained mainly by the increase in the interest on cash and cash equivalents plus financial investments as a result of the higher Brazilian basi
Slide 6: Total expenses and non-GAAP total expenses reconciliation
(-) LTIP expenses [1] 140.7 101.4 38.8 % Non-GAAP Total Expenses (2,207.4) (1,327.9) 66.2 % Total expenses amounted to R$ 2,354.6 million in the 3Q21, R$ 925.3 million higher, or 64.7% , in comparison to the R$ 1,429.3 million presented in the 3Q20. As a percentage of our Total revenues and income,
Slide 7: Cost of services
Cost of services reached R$ 1,502.0 million in the 3Q21, an increase of R$ 444.8 million, or 42.1% , from R$ 1,057.2 million reported in the 3Q20. As a percentage of the total of our Revenues from transaction activities and other services, our Cost of services decreased 3.5 percentage points, to 83.
Slide 8: Selling expenses
Quarterly selling expenses amounted to R$ 367.9 million in the 3Q21, an increase of R$ 216.3 million, or 142.6% , from R$ 151.6 million presented in 3Q20. As a percentage of our Total revenues and income, Selling expenses increased by 4.8 percentage points, to 13.3 %, in the 3Q21, from 8.5% in 3Q20.
Slide 9: Administrative expenses
Administrative expenses reached R$ 273.0 million in the quarter, R$ 75.9 million higher, or 38.5% , when compared to the R$ 197.1 million reported in the 3Q20. As a percentage of our Total revenues and income, the Administrative expenses decreased by 1.2 percentage points, to 9.8% in the 3Q21 from 1
Slide 10: Financial expenses
Quarterly Financial expenses amounted to R$ 209.8 million, in the 3Q21, an increase of R$ 193.5 million, or 1,190.8 %, from expenses of R$ 16.3 million presented in the 3Q20. Expressed as a percentage of our Financial income, Financial expenses represented 22.4 % in the 3Q21 and 3.0 % in the 3Q20. T
Slide 11: Other income (expenses), net
Other income (expenses), net recorded expenses of R$ 1.8 million in the 3Q21, a decrease of R$ 5.3 million, or 74.2 %, from expenses of R$ 7.1 million reported in 3Q20.
Slide 12: Profit before income taxes
Profit before income taxes amounted to R$ 421.2 million in the third quarter of 2021, an increase of R$ 69.1 million, or 19.6 %, from R$ 352.2 million reported in the same period of 2020. The non-GAAP Profit before income taxes amounted to R$ 568.3 million in the 3Q21, an increase of R$ 114.8 millio
Slide 13: Income tax and social contribution
Income tax and social contribution amounted to an expense of R$ 99.6 million in the 3Q21, an increase of R$ 10.8 million, or 12.3 %, from an expense of R$ 88.8 million presented in the 3Q20. This item consists of current income tax and social contribution and deferred income tax and social contribut
Slide 14: Net income
Net income for the period ended 3Q21, amounted to R$ 321.5 million, an increase of R$ 58.1 million, or 22.1 %, from R$ 263.4 million in the third quarter of 2020. The Net Margin for the period decreased by 3.2 percentage points, to 11.6 %, in the 3Q21 when compared to 14.8% in the 3Q20.
Slide 15: Adjusted EBITDA reconciliation
(+) Income tax and social contribution 99.6 88.8 12.3 % (-) Other Financial income (45.9) (31.8) 44.0 % (+) M&A Expenses 3.5 — 100 % Adjusted EBITDA 741.5 530.4 39.8 % Adjusted EBITDA is a non-GAAP measure. Our Adjusted EBITDA in the 3Q21 amounted to R$ 741.5 million, an increase of R$ 211.1 million