[FREE CONTENT] Earnings Summary | NU, MELI, BKNG, CPRT, POOL
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NU
Executive Summary:
In 2024, NU Holdings demonstrated robust growth and strategic advancements across its core markets of Brazil, Mexico, and Colombia. The company reported significant increases in customer base, revenue, and profitability, underscoring the effectiveness of its digital banking model. NU Holdings continues to focus on expanding its market share and product offerings while maintaining a strong emphasis on customer engagement and operational efficiency.
Financial Highlights:
Revenue: NU Holdings achieved a 58% year-over-year increase in revenue on an FX neutral basis, reaching $11.5 billion in 2024. This growth was driven by sustained ARPA growth, which rose 23% year-over-year to $10.7.
Net Income: The company's net income nearly doubled from 2023, closing at approximately $2 billion, with an annualized return on equity of 28%.
Efficiency Ratio: The efficiency ratio improved, dropping below the 30% mark to end the year at 29.9%, highlighting NU Holdings as one of the most efficient global financial services platforms.
Segment Performance:
Customer Growth: The customer base expanded by 22% year-over-year, reaching 114.2 million customers. In Brazil, NU Holdings added over 1 million customers per month, serving 58% of the population.
Credit Portfolio: The total credit portfolio grew 45% year-over-year and 13% quarter-over-quarter, reaching $20.7 billion. This growth was supported by both lending and credit card segments.
Key Financial Ratios and Metrics:
Net Interest Margin (NIM): The NIM contracted by 70 basis points to 17.7% this quarter, primarily due to lower credit yields and shifts in product and customer mix.
Cost to Serve: The cost to serve per active customer was maintained at $0.8, reflecting an 11% year-over-year increase due to seasonal spikes in data and processing usages.
Significant Events and Developments:
Secured Lending: The secured lending portfolio grew 615% year-over-year to $1.4 billion, representing 23% of the total lending portfolio. NU Holdings signed nine new agreements with collateral counterparties, expanding the total addressable market for payroll loans to 70% of the segment.
Product Expansion: The company launched new verticals such as NewCell, a telecom service, and expanded its marketplace and travel offerings, further diversifying its ecosystem.
Capital Allocation and Financing:
Deposits: Total deposits grew 55% FX neutral to $28.9 billion, reinforcing the company's liquidity position and enabling prudent credit expansion.
Loan to Deposit Ratio (LDR): The LDR dipped slightly from 40% to 39%, with plans to optimize the balance sheet by growing the credit book faster over time.
Outlook and Guidance:
NU Holdings remains focused on its three-act strategy: building the largest retail banking franchise in Latin America, expanding beyond financial services, and evolving into a global AI-driven digital banking model. The company anticipates 2025 to be a pivotal year of investment, with continued emphasis on deepening its presence in Brazil, Mexico, and Colombia, expanding its product portfolio, and laying the groundwork for long-term ambitions.
MELI
Executive Summary
MercadoLibre concluded 2024 with robust financial performance, marked by significant growth in both its e-commerce and fintech segments. The company achieved a record income from operations of $820 million in Q4 2024, reflecting a 13.5% margin. Net income for the quarter was $639 million, with a 10.5% margin. The company surpassed 100 million unique buyers and 60 million monthly active users on its fintech platform, underscoring its strong market position in Latin America.
Financial Highlights
Net Revenues: Reached $6.1 billion in Q4 2024, up 37% YoY and 96% FX-neutral.
Gross Merchandise Volume (GMV): Increased by 8% YoY and 56% FX-neutral, totaling $14.5 billion.
Total Payment Volume (TPV): Grew by 33% YoY and 49% FX-neutral, amounting to $58.9 billion.
Free Cash Flow: Generated $680 million in Q4 2024, contributing to an annual total of $1.3 billion.
Segment Performance
E-commerce: The segment saw a strong recovery in Argentina with items sold growing by 18% in Q4, up from 10% in the previous quarter. The company also expanded its logistics network, enhancing delivery efficiency and customer satisfaction.
Fintech: The credit portfolio expanded by 74% YoY, with credit card issuance doubling. The fintech segment's monthly active users reached 61.2 million, a 33.6% increase.
Key Financial Ratios and Metrics
Operating Margin: Improved to 13.5% in Q4 2024, up by 60 bps from the previous year.
Net Income Margin: Achieved 10.5% in Q4 2024, reflecting a 290 bps increase from the previous year.
Gross Profit Margin: Stood at 46.1% for the year, despite a 410 bps decline due to increased provisions for the expanding credit business.
Significant Events and Developments
Credit Portfolio Growth: The credit card portfolio grew by 118%, driven by improved underwriting and increased credit limits.
Logistics Expansion: New fulfillment centers were opened, enhancing the company's capacity to handle peak season demand efficiently.
Capital Allocation and Financing
CapEx: Invested $860 million primarily in logistics infrastructure.
Fintech Funding: Allocated nearly $3 billion to support the expansion of the credit book.
Cash Position: Available cash and investments increased from $3.8 billion in Q4 2023 to $4.8 billion in Q4 2024.
Outlook and Guidance
MercadoLibre remains optimistic about 2025, focusing on leveraging its strong ecosystem to capture growth opportunities in e-commerce and fintech. The company plans to continue strategic investments in logistics and credit offerings, aiming for long-term sustainable growth despite potential short-term margin pressures.
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