PagSeguro Digital Ltd. Q4 FY2024 earnings call

• Ended 2024 with 33.2 million clients, growing 2.1 million year-over-year. - Payment TPV reached BRL 518 billion, a 32% year-over-year growth. - Net revenues increased 18% year-over-year to BRL 18.8 billion. - Net income was BRL 2.3 billion, a 28% growth year-over-year. - Disciplined strategy execution focusing on an integrated ecosystem of payments and banking, aiming to facilitate financial lives of businesses and individuals. - Implemented repricing strategies in Q4 2024 to mitigate impact of higher interest rates.

Payments Segment: Payment TPV reached a record of BRL 518 billion, a 32% year-over-year growth. Payments revenue was BRL 4.6 billion, a 14% year-over-year growth. Banking Segment: Banking revenue set a record of BRL 513 million and grew 58% year-over-year. Total deposits were up 31%, reaching BRL 36.1 billion. The credit portfolio grew 36% year-over-year to BRL 3.4 billion. Revenue contribution: Payments contributed significantly to total revenue, while banking's contribution to gross profit increased to 18% from 11% the previous year.

• Expect gross profit to grow between 7% and 11% in 2025. - Anticipate earnings per share growth in the range of 11% to 15% in 2025. - Capital expenditure is expected to be between BRL 2.2 billion to BRL 2.4 billion. - 50% of the $200 million buyback program launched in August 2024 was executed by year-end.

• Macroeconomic uncertainties which could impact business performance. - Interest rate fluctuations that may affect repricing strategies and client churn. - Potential impact of regulatory changes on business operations.

Q: Related to credit portfolio growth and TPV revenue.

A: Ricardo Dutra stated the credit portfolio is growing healthily, with plans to continue growing collateralized products faster than the market, and Artur Schunck mentioned reclassifications in revenues affecting TPV revenue discussion.

Q: About guidance and EPS growth.

A: Ricardo Dutra explained EPS guidance considers same number of shares, and TPV growth is a consequence of strategic focus on profitability.

Q: On TPV growth in LMEC segment and repricing.

A: Artur Schunck and Alexandre Magnani discussed LMEC segment growth and repricing as a dynamic process to balance client retention and profitability, with LMEC growing faster than other segments.