Nu Holdings Ltd. Reports Strong Q3 2024 Financial Results Despite Stock Dip

Nu Holdings Ltd. (NYSE: NU), the parent company of Nubank, one of the world’s largest digital financial services platforms, released its third-quarter 2024 financial results on November 13, 2024. Despite the stock experiencing a 0.7% decline during trading on the same day, the company reported robust financial growth.

The third-quarter results highlighted significant growth, with revenue reaching $2.9 billion, a 56% increase year-over-year on a foreign exchange neutral basis. This growth was driven by customer acquisition and enhanced customer engagement through cross-selling and up-selling initiatives. The company now serves 110 million customers globally, with notable expansions in Mexico and Colombia, where it has nearly 9 million and over 2 million customers, respectively.

Nu Holdings also reported a gross profit of $1.348 billion, marking a 67% year-over-year growth, and a gross margin of 46%, up from 43% in the third quarter of 2023. The company’s net income more than doubled to $553 million for the quarter, with an annualized return on equity (ROE) of 30% and an adjusted ROE of 33%.

Despite the strong financial performance, the stock traded lower during the day, with approximately 8,109,671 shares traded, a decline of 74% from the average daily volume. The stock had previously closed at $15.84 and traded as low as $15.69 during the day.

Analysts have generally maintained a positive outlook on Nu Holdings, with several firms adjusting their price targets. Bank of America, UBS Group, JPMorgan Chase & Co., and Barclays have all issued recent reports, with Barclays setting a price objective of $17.00 and giving the stock an “overweight” rating.

The company’s financial health is further underscored by its liquidity position, with an interest-earning portfolio of $11.2 billion and total deposits of $28.3 billion, up 60% year-over-year on a foreign exchange neutral basis.