PagSeguro Digital Ltd. Class A Common Shares

Good evening. My name is Algir and I will be your Conference Operator today. Welcome to PagSeguro Digital Earnings Call for the third quarter of 2024. The slide presentation for today's webcast is available on PagSeguro Digital Investor Relations website at investors.pagbank.com. Please refer to the forward-looking statements and reconciliation disclosure in this presentation and in the company's earnings release appendix. Finally, be advised that all participants will be in listen-only mode. After the presentation, to ask a live question, please use the raise hand button to join the queue. Once you are announced, a request to activate your microphone will appear on your screen. Please ask our questions at once. Alternatively, you can also write your question directly into the Q&A icon on the lower part of your screen. Today's conference is being recorded and will be available on the company's IR website after the event is concluded. I would now like to turn the call over to Gustavo Sequin, Head of IR. Please, go ahead, sir.

Hi, everyone. I am Gustavo Sequin, Head of Investor Relations of PacBank. I would like to welcome and thank you for joining us for our third quarter 2024 earnings call. Tonight, I have the company of Ricardo Dutra, our principal executive officer, Alexandre Maiani, our CEO, and Arthur Schunk, our CFO. With that, I would like to turn it over to Dutra, who will begin today's presentation. Please, Dutra.

Hello, everyone, and thanks for joining our third quarter 2024 earnings call. I start with slide number four, where we share our main operational and financial highlights. Our third quarter 2024 is one more chapter in our path to deliver sustainable growth combining TPV and banking, revenues expansion and profitability. I'm not going to run through each number on the slide, but I will highlight some of them. We ended the quarter with 32 million clients in both segments, payments and banking, adding close to 2 million clients to our customer base in the last 12 months. On payments, we registered a record volume of 136 billion reais of TPV, an impressive 37% growth year over year, which will give more color on the next section of our presentation. Our credit portfolio and funding are also growing very fast year over year. Moving to financial highlights, as a result of a strong operational performance, total revenue grew 20% year over year, reaching 4.8 billion reais, the highest quarter performance in our history. We also reached our highest quarterly net income in GAAP and non-GAAP basis, which reached 572 million reais, a 30% year-over-year growth. The solid results delivered boost our return on average equity close to 15%, 182 bps increase despite our conservative capital structure. Once again, we demonstrate with the current quarter performance our ability to create value and deliver solid results. We are perhaps one of the very few companies in the segment, not to say the only one, that has managed to deliver positive results with positive net income every single quarter since IPO, despite industry dynamics and economic cycles. Our track record reinforces our commitment to create shareholder value. In this quarter, our diluted EPS on a GAAP basis reached R$1.66, growing 31% versus previous year. Moving on to slide five, Let me start with a quick update on our strategy. We have a clear view for PagBank, which is win on MSNB segment and diversify revenues beyond payments, paving the way for a larger profitable company. Our DNA is built on the back of a history of disruption and leadership on opening new growth avenues with high performance execution, financial discipline, 206 degree security and clients and human capital oriented culture. always with focus in our purpose, which is to facilitate the financial lives of businesses and individuals. With that in mind, let me remind you of our strategic goals. Win on MSNB as we improve our digital ecosystem product offering. Expand payments beyond POS. We are just starting our journey to catch up our fair share on the online segment. Diversify banking revenue streams beyond merchants. Remember, we have more than 11 million peer banking-owning clients. And finally, cross-sell credit products across the customer base. On the right side of the slide, we can see our client segmentation. We keep successfully executing our strategy to move up in the pyramid, growing not only our core segments, but also assessing large and creative clients. Now, I'll hand it over to Alex for the quarterly highlights on the business units. Thank you.