Nubank, a rapidly expanding digital lender globally, announced plans for further expansion after successful operations in Brazil, Mexico, and Colombia. Despite a remarkable 87% increase in adjusted net profits driven by revenue growth and an expanding client base, shares fell in after-hours trading.
Listed on the New York Stock Exchange as Nu Holdings, Nubank saw a 22% year-on-year growth in its customer base, surpassing 114 million by December. Looking ahead, the company aims to unveil its next market after its current locations by year-end, as shared by Jorg Friedemann, Nubank's director of investor relations.
With a vision to evolve into a multi-country technology company by 2025, Nubank's management hinted at further global expansion, with a focus on potential opportunities in the U.S. rather than Europe.
In the latest financial quarter, Nubank reported an adjusted net profit of $610 million, outperforming analysts' expectations of $567 million. However, Nu Holdings' shares dipped by about 6% after the results were released, with revenues increasing by 50% to $2.99 billion, falling short of the estimated $3.29 billion.
According to Citi analysts, the results were mostly viewed negatively due to revenue indicators slowing down and adjustments made in certain provisions.