PagSeguro Digital Ltd. Class A Common Shares

Good evening, my name is Ogir and I'll be your conference operator today. Welcome to Pegasiguro Digital earnings call for the first quarter of 2025. This live presentation for today's webcast is available on Pegasiguro Digital's investor relations website at investors.pegabank.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 all your questions at once. Alternatively, you can also write your question directly into the Q&A icon located on the lower part of your screen. Today's conference has been 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.

Hello, everyone, and welcome to the Pike Bank's earnings conference call for the quarter ended March 31st, 2025. I'm Gustavo Sequin, Pike Bank's investor relations director. Thank you for taking the time to join us today. We will begin by sharing the highlights of the quarter, followed by our live Q&A session. Tonight, I am joined by Ricardo Dutra, our Principal Executive Officer, Alexandre Maiani, our CEO, and Artur Schunk, our CFO. Now, I would like to turn it over to Dutra. Please, Dutra.

Hello, everyone, and thank you for joining our First Order 2025 Learning School. I will begin with slide four, where we present our key operational and financial highlights. I am pleased to announce another strong quarter delivering growth with profitability despite this challenging microeconomic environment. We ended the quarter with 32 million clients, growing 0.6 million clients year over year. Our financial performance this quarter was marked by a robust top line growth in the resilient bottom line, while earnings per share grew at an accelerated pace. Payments TPV, reaching a record first quarter of 129 billion reais, a 16% growth year over year. Our credit portfolio and funding are experienced rapid year over year growth, further solidifying our financial strength and competitive position. Going to financial highlights, our net revenues increased 13% year over year, reaching 4.9 billion reais. Our non-GAAP net income was 554 million reais, a 6% growth year-over-year. Our diluted EPS on a gap basis reached R$1.72, 14% growth year-over-year, which reinforces our commitment to continuously create shareholder value. In this context, following our existing buyback program with R$1.9 billion repurchase over the past 12 months, we are pleased to announce the launch of two key initiatives to further enhance shareholder value and drive more efficient capital allocation. We are canceling 23.9 million stocks held in Treasury, and for the first time, we announced the payment of cash dividend of $0.14 per common share to be paid in June 6. Going forward, at the discretion of Paxiglou Board and company and market conditions, among other factors, we expect to pay dividends corresponding to approximately 10% of net income. In conclusion, This quarter's performance highlights our ability to consistently create value and deliver solid results. We remain one of the few companies in our segment to have posted positive results every single quarter since our IPO, a track record we have upheld despite evolving industry dynamics and economic cycles. On slide six, we illustrate the consistent growth in our earnings per share. Since our IPO in 2018, we have delivered a 15% CAGR for our reported GAAP-based ZPS metric. This trajectory reflects our strong operational execution and our disciplined capital allocation strategy, including increasing buybacks over time, which showcases our confidence in the long-term value of the company. Along the way, we have achieved several key milestones that have expanded our addressable market and increased profitability. The acquisition of our banking license enabled us to broaden our product offering and deepen customer engagement through our credit offerings and digital banking platform. More recently, our strategy has focused on winning the MSNBs, attracting and retaining these profitable customers while continuing to scale our platform. The results of this shift are already visible in our improving monetization metrics and sustained EPS growth. Moving to slide seven, We highlight how we've been building the company with a long-term vision. Our fully integrated ecosystem combining payments, banking, and credit allows us to use one business to effectively leverage the other by offering a comprehensive suite of products and features to our clients. This approach has allowed us to deepen engagement, boost monetization, and capture a greater share of wallet by becoming a primary financial partner for our clients. Moving to next slide, we show that on top of our robust performance, there remain significant room for market presentation and future growth. In some banking businesses, we have less than 1% market share, so that we strongly believe we are still scratching the surface in terms of the full potential our platform can reach. As we scale our banking operations, we open up new avenues for sustainable growth. including a deeper focus on cross-selling banking products, strengthening our deposit franchises, and increasingly expand and diversify our credit portfolio. Now, I'll pass to Alex, who will deep dive into our operational performance for Q125. Thank you.