Record the payment volume and …

Appearance date: May 13, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Pagseguro Digital LTD (NYSE: PAGS) recorded a strong quarter with a growth of the total payment volume (TPV) of 16% compared to the previous year and reached a record of 129 billion reais.

• The company achieved an increase in net sales in the course of the year by 13% of a total of 4.9 billion reas.

• Pagseguro Digital LTD (NYSE: PAGS) announced the introduction of a cash dividend of $ 0.14 per ordinary share and marked the first dividend payment in the company's history.

• The gross profit margin of the bank segment reached 70%, which marked the fifth growth quarter in a row and now corresponds to 22% of the total gross profit.

• The company successfully reduced its financing costs, whereby the average total deposit costs decreased by 700 basis points to 90% of the CDI.

• TPV growth slowed down from 28% in the previous quarter to 16% compared to the previous year, some of which were due to challenging comparisons and repicing strategies.

• The company rose by 42% of the financial costs, which was due to higher interest rates and TPV growth and required a larger advance payment volumes.

• The operating costs decreased by only 3% compared to the quarter, which indicates limited cost reduction measures.

• In the quarter there was a contraction of the deposits that was due to the higher chance costs due to the increased interest rate environment.

• The company recognized potential deviations in the MSMB segment based on repicing, which could affect future growth.

Q: What does the delay of TPV growth explain from 28% in Q4 to 16% in the first quarter? A: Ricardo Lutra, senior employee, said that the delay was partially due to a difficult comparison with Q1 2024 that had higher volumes. The focus remains on the winning of MSMBS and online segments, whereby a large retail is more sensitive to repetition due to interest rate increases. The company balances growth and profitability, with some customers switching to other companies due to repicing to other companies.

Q: Why is the dividend distribution only 10% of net income in view of the company's strong capital position? A: Ricardo Lutra, a manager, explained that the 10% dividend is part of a combined initiative with share purchases. The company has been aggressive in the past 12 months and bought over 1.1 billion reais in shares. The dividend content is a starting point and could change in the future.