Nu Holdings (NYSE:NU) reported mixed results for the first quarter of 2024. However, the company’s shares gained 3.5% in the extended trading session yesterday. Investor sentiment was boosted by a significant increase in revenue and a rise in monthly average revenue per active customer (ARPAC).
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NU provides a digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, Germany, Argentina, the United States, and Uruguay.
NU’s Q1 Snapshot
The company reported total revenue of $2.7 billion, a 66.7% increase from the year-ago quarter, and surpassed analysts’ expectations of $2.49 million.
In Q1, the purchase volume increased to $31.1 billion from $23.3 billion in the same quarter last year. Furthermore, NU gained 5.5 million customers in Q1, reaching a total of 99.3 million customers globally by March 31, 2024. In addition, this quarter’s monthly ARPAC was $11.4, higher than the $8.6 recorded in the same period the previous year. The monthly average cost to serve per active customer remained mostly stable at $0.9.
Meanwhile, NU posted earnings of $0.078 per share, up from $0.039 in the year-ago quarter. However, it missed the analysts’ average estimate of $0.083 by a slight margin.
Is Nu Holdings a Good Stock to Buy?
Interestingly, NU stock is up about 39% year-to-date, outperforming the S&P 500 Index (SPX) rally of 0.5%. Further, Wall Street analysts are bullish on the stock. With four Buy and one Hold recommendations, Nu Holdings sports a Strong Buy consensus rating. Analysts’ average price target on NU stock is $12.74, implying 10.3% upside potential from current levels.
Investors interested in NU stock could consider following Goldman Sachs (GS) analyst Tito Labarta. He is the most accurate analyst covering the stock (in a one-year timeframe). He boasts an average return of 39.7% per rating and a 100% success rate. Click on the image below to learn more.
