Pagseguro Digital Ltd. · NYSE:PAGS
Pagseguro Digital — Q2 2021 Earnings Presentation
15 slides from Pagseguro Digital's earnings presentation, Aug 12, 2021
Slide 1: 2Q21 Results Earnings Release
2Q21 RESULTS EARNINGS RELEASE
Slide 2: Total revenues and income
Total revenues and income reached R$ 2,369.6 million in the second quarter of 2021, an improvement of 74.6% from R$ 1,357.4 million reported in the second 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 be
Slide 3: Revenue from transaction activities and other services
Revenues from transaction activities and other services in the 2Q21 amounted to R$ 1,548.1 million, an improvement of R$ 691.6 million, or 80.8% , from R$ 856.5 million presented in the 2Q20, because of the factors described below: Gross revenues from transaction activities and other services in the
Slide 4: Financial income
Acquiring TPV. The quarterly Financial income, which represents the discount fees we withhold from credit card transactions in installments for the early payment of accounts receivable, attained R$ 786.6 million, an increase of R$ 327.4 million, or 71.3 %, from R$ 459.2 million presented in the 2Q20
Slide 5: Other financial income
Other financial income reached R$ 34.9 million in the 2Q21, a decrease of R$ 6.8 million, or 16.5 %, from R$ 41.7 million in the 2Q20. This reduction was explained mainly by the decrease in the interest on cash and cash equivalents plus financial investments as a result of the lower levels of amount
Slide 6: Total expenses
Total expenses amounted to R$ 2,031.4 million in the 2Q21, R$ 1,086.4 million higher, or 115.0 %, in comparison to the R$ 945.0 million presented in the 2Q20. As a percentage of our Total revenues and income, quarterly total expenses in the 2Q21 increased by 16.1 percentage points, to 85.7% from 69.
Slide 7: Cost of services
Cost of services reached R$ 1,295.0 million in the 2Q21, an increase of R$ 501.7 million, or 63.2% , from R$ 793.3 million reported in the 2Q20. As a percentage of the total of our Revenues from transaction activities and other services, our Cost of services decreased 9.2 percentage points, to 83.4%
Slide 8: Selling expenses
Quarterly selling expenses amounted to R$ 363.8 million in the 2Q21, an increase of R$ 252.6 million, or 227.1% , from R$ 111.2 million presented in 2Q20. As a percentage of our Total revenues and income, Selling expenses increased by 7.3 percentage points, to 15.5 %, in the 2Q21 from 8.2% in 2Q20.
Slide 9: Administrative expenses
Administrative expenses reached R$ 225.9 million in the quarter, R$ 131.6 million higher, or 139.6% , when compared to the R$ 94.3 million reported in the 2Q20. As a percentage of our Total revenues and income, the Administrative expenses rose by 2.6 percentage points, to 9.5% in the quarter from 6.
Slide 10: Financial expenses
Quarterly Financial expenses summed R$ 133.8 million, in the 2Q21, an increase of R$ 115.9 million, or 648.5 %, from expenses of R$ 17.9 million presented in the 2Q20. Expressed as a percentage of our Financial income, Financial expenses represented 16.9 % in the 2Q21 and 3.9 % in the 2Q20 This incr
Slide 11: Other income (expenses), net
*Excluding the effect of R$ 84.3 million related to the reversal of taxation of PIS/COFINS on financial income.
Slide 12: Profit before income taxes
Profit before income taxes amounted to R$ 338.2 million in the second quarter of 2021, a decrease of R$ 74.2 million, or 18.0 %, from R$ 412.4 million reported in the same period of 2020. The non-GAAP Profit before income taxes amounted to R$ 448.8 million in the 2Q21, an increase of R$ 20.2 million
Slide 13: Income tax and social contribution
Income tax and social contribution amounted to an expense of R$ 66.0 million in the 2Q21, a decrease of R$ 50.1 million, or 43.1 %, from an expense of R$ 116.1 million presented in the 2Q20. 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 2Q21, amounted to R$ 272.1 million, a decrease of R$ 24.2 million, or 8.2 %, from R$ 296.3 million in the second quarter of 2020. The Net Margin for the period decreased by 10.3 percentage points, to 11.5 % , in the 2Q21 when compared to 21.8% in the 2Q20. Non-GAAP Ne
Slide 15: Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure. Our Adjusted EBITDA in the 2Q21 amounted to R $628.6 million, an increase of R$ 160.4 million, or 34.3% , from R$468.2 million reported in the 2Q20, which is calculated using Net income and adding (i) income tax and social contribution, plus (ii) depreciation a