Nu Holdings Ltd.

Good evening, ladies and gentlemen. Welcome to New Holdings conference call to discuss the results for the second quarter 2022. A slide presentation accompanies today's webcast, which is available in New Investors Relations website at www.investors.new in English and in Portuguese. This conference is being recorded, and a replay can also be accessed on the company's IR website. This call is also available in Portuguese. To access it, you can press the icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, select Mute Original Audio. Para acessar nossa conferência em português, clique no ícone ao lado inferior direito da sua tela Zoom e selecione a opção Portuguese Room. Ao acessar a nova sala, certifique-se de mutar o áudio original. Please be advised that all participants will be in listening-only mode. You may submit online questions at any time today, using the Q&A box on the webcast. I would now like to turn the call over to Mr. Jorg Friedman, Investor Relations Officer at New Holdings. You may proceed.

Thank you very much, Operator. Good evening, everyone, and thank you for joining our earnings call today. If you have not seen our earnings release, a copy is posted in the Results Center section of our Investor Relations website. With me on today's call are Davi Velas, our Founder, Chief Executive Officer and Chairman, Youssef Larache, our President and Chief Operating Officer, and Guilherme Lago, our Chief Financial Officer. Additionally, Jack Dougal, our Chief Product Officer, will join us for the Q&A session of the call. Throughout this conference call, the company will be presenting non-IFRS financial information, including adjusted net income. These are important financial measures for the company, but are not financial measures as defined by IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information are available in our earnings press release. Unless noted otherwise, all growth rates are on a year-over-year and effects neutral basis. I would also like to remind everyone that today's discussion might include forward-looking statements, which are not guarantees of future performance and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the company's expectations. Please refer to the forward-looking statements disclosure in the company's earnings press release. Today, our founder and CEO, David Vélez, will discuss the main highlights of our second quarter 2022 results and some of the opportunities ahead. Subsequently, Guilherme Lago, our CFO, and Youssef Lares, our president and COO, will take you through our financial performance for the quarter, after which time we will be happy to take your questions. I would now like to turn the call over to David. David, please go ahead. Thank you.

Thank you, Jorg. Hello, everyone. Thank you for being with us today. Happy to announce that we had another very strong quarter, combining growth, efficiency, and significant progress towards building the largest digital finance platform in Latin America. On the customer acquisition front, we attracted another 5.7 million customers, reaching more than 65 million customers at the end of the quarter. This growth continued to be primarily fueled by organic channels with very low customer acquisition costs. Notably, our monthly activity rate improved even further to 80%, a new historical high mark, where customers now account for 36% of the adult population of Brazil. The growing number of active customers, coupled with the continuous maturation of our earlier cohorts, resulted in new historical highs of purchase volume, credit portfolio, and revenue. Our purchase volumes reached $20 billion, up 94% year-on-year. We became the number four cash player in Brazil this quarter, surpassing century-old incumbent institutions. And we continue to gain market share quarter after quarter. Our consumer finance credit portfolio grew significantly above market, up 107% year-on-year, to a total of $9.1 billion, while maintaining very strong unit economics. Our credit portfolio remains concentrated in credit cards and unsecured personal loans. We have not even started our journey into secure credit products. Over revenue, more than tripled year on year to about $1.2 billion this quarter, driven by both product upsell and cross-sell, and resulting in a historical high average revenue per active customer, or RPAC. Well, we have discussed our ecosystem in the past. In today's presentation, we wanted to spend a bit more time highlighting the significant progress we have made to date in cross-sale, a key piece of our strategy. Going from a monoproduct to a multiproduct platform and from a monocountry to a multicountry platform while improving profitability as we scale. First, moving from a monoproduct to a multiproduct platform. We started in 2013 with a strategy of building the future of financial services in Latin America with a credit card as our first product. We chose credit card as it addressed a large consumer pain in Brazil, had very attractive unit economics, and enabled us to start building the credit underwriting capabilities from day one. We were very successful in using credit cards to build a large consumer base in one of the strongest consumer brands in the region. And in about nine years, we became one of the largest credit card issuers and one of the top 10 most loved brands in Brazil. And we continue to expand this core product at a very significant pace. It remains one of the highest credit cards in the Brazilian market, while already generating hundreds of millions of reais in earnings, which we then are able to use to finance the growth of new verticals. Most fintechs globally have had a very hard time going from being a successful monoliner to then being able to build a multi-product platform. And here is where we think Nu is a significant exception in having been able to successfully introduce products across many verticals in financial services. Our second product, our savings account Nuconta, has now surpassed our first product, credit cards, and today comes with over 45 million active customers. It has displayed exceptional levels of engagement and deposits growth. Nuconta has allowed us to become one of the largest payment platforms in Brazil, Today, with around 23% of all the big transactions in the country passed through our pipes. Nuconta has also allowed us to develop a unique deposit franchise. Today, our retail deposits exceed our interest-earning portfolio by more than 4x. We do not need to rely on portfolio securitization or wholesale funding. We own our own destiny with respect to funding, a rare feat for a consumer fintech. Our third product, Personal Loans, currently has 4 million customers and is generating meaningful earnings for our business. Here, our growth bottleneck is our own willingness to underwrite credit and enable this feature for our customers, as we tend to go slowly and conservatively with any credit product. Our growth bottleneck is certainly not distribution. As of April 2022, our almost 59 million Brazilian customers account for approximately 32% of the entire personal loans market in Brazil. So we do not need to go outside our existing ecosystem to tap into approximately one third of the Brazilian consumer finance industry. Our fourth product, our savings account for small and medium enterprises, has brought us access to the SME segment, whose profit pool is estimated at approximately 25% of the consumer profit pool. In less than three years, and with a particular focus on micro entrepreneurs and small enterprises, we became one of the top five SME players in Brazil. in terms of number of active customers, with 12% market share of corporate checking accounts in Brazil. As of the end of this post quarter, we had 2 million SME customers, up 150% year-on-year. Beyond these core four products, we launched insurance last year, where our first product, Nuvida, a life insurance product, became the fastest growing insurance product in the history of Brazil. Today, NuVida has over 700,000 policies and maintains the highest net promoter score of the sector. Then, we entered the investment space through the acquisition of the largest independent direct-to-consumer platform in Brazil, EasyInvest, rebranded NuInvest, which was a key part in allowing us to reach now over 5 million active customers in our investment business, already likely the market leader in the Latin American direct-to-consumer investment space. And even more recently, we announced that we reached more than 1 million customers in our crypto product, Nucrypto, three weeks after launching it to our entire customer base. So in just a few years, we were able to go from a credit card monoliner to achieving leadership positions in the verticals we enter, deposit accounts, personal loans, SMEs, life insurance and investments, while reaching over one third of the adult population in Brazil. These to us represent significant progress in advancing a product diversification and cross-sell strategy. Second, moving from a monocountry to a multi-country platform. On the international expansion front, we reached 2.7 million customers in Mexico, consolidating our position as the number one issuer of new cars in this country. In Colombia, we grew our customer base to over 300,000 customers and have received over 1.5 million applications to date, demonstrating a combination of the significant pent-up demand as well as the selectivity we're having in this country. Likely, we are the number one credit card issuer in Colombia as well by now. All of this was achieved while sustaining a net promoter score in the 90s and high levels of customer virality in both geographies. It's worth highlighting that one week ago, New Columbia received approval for its requested license to establish a financing company in the country. With this approval, we now have banking licenses in the three countries we operate, transposing an important barrier to entry and enabling us in the future to intermediate financial products and offer deposit products to our customers. Together, Mexico and Colombia are largely the size of Brazil in terms of both GDP and population. We're excited with the prospects of these two countries and confident that they can be as relevant to us in the future as Brazil has become. Finally, all of this growth has required tremendous investment, and we realized that it might be hard for investors to assess whether all of this growth is profitable. Therefore, we thought it would be useful to share a few KPIs of our operations in Brazil, our core market, which we do here for the first time. the first half of 2022 new brazil generated an accounting profit of 13 million dollars up from a loss of 19.7 million in the full year 2021 while continuing to provision significantly as a result of the continued fast growth of our credit portfolios as well as expensing large investments of new products and features such as crypto new top new pay investments fixed financing etc our core products credit cards personal loans and new conta are by now very profitable. And therefore, we're able to reinvest all of those profits into the expansion and improvement of our operations. And even with all of that investment, Brazil is now profitable and generates profits which we now expect to reinvest into the growth of Mexico and Colombia. We acknowledge investors' increasing focus on the importance of profitability. And while we continue to make our decisions based on long term value creation, we're not disconnected from our investors in the need to sanity check the profitability engine of the entire model as we invest for the future. The current context of macro volatility reinforces our focus on cost diligence on different fronts. This should contribute not only for us to achieve our goal of becoming the lowest cost manufacturer in our markets, but also shorten the path to very high profitability. And with that, I turn the call to our CFO, Guilherme Lago, who will discuss the operating trends for the second quarter. Go ahead, Guilherme.