Nu posts strong results but the stock drops. Here’s what it means 📉; Klarna’s rewards program in 9 new markets to boost customer loyalty 📈; 3-year-old BNPL joins the unicorn club 🦄

Good Morning FinTech, February 24

Good day Everyone,

And happy Wednesday! As today we woke up to the war in Europe, I really hope everyone’s safe and well 🙏🏽🇺🇦

3 great FinTech stories for today:

Nu posts strong results but the stock drops. Here’s what it means 📉

Earnings call ☎️ Nu, the parent company of LatAm’s FinTech giant Nubank, reported its fourth-quarter and 2021 financial performance.

Despite strong results, investors were disappointed.

More on that 👉 Here are the highlights of Nubank’s recent performance:

• Nu added 5.8M customers in the quarter, reaching a total of 53.9M customers across Brazil, Mexico, and Colombia.

• Average Revenue per Active Customer (ARPAC) expanded to $5.6 in Q4'21 (from $3.3 in Q4’20), with active customers reaching 41.1M in the year-end.

• Total revenue for Q4'21 reached $635.9M, increasing year-over-year (YoY) by 224.3% FXN. In 2021, total revenue was $1.7B, setting a new record for the Company.

• Gross profit totaled $226.9M in Q4'21, increasing YoY 207% FXN, and increased to $732.9M in 2021, up YoY 131.6% FXN.

• Nu reported an Adjusted Net Income of $3.2M in Q4'21. In 2021, the Company reported an Adjusted Net Income of $6.6M compared to an Adjusted Net Loss of $26.8M in 2020. This was the first year the Company posted positive Adjusted Net Income.

The market was meh 😑 Nu’s shares rose in the wake of the company’s earnings report, but when regular trading began, the company slouched to a loss of around 9%.

If you zoom out, Nu has depreciated from a high north of $12 per share – the company is listed on the New York Stock Exchange and a local bourse – to just under $8 per share as per today’s prices. Despite recent declines, Nu is still worth nearly $35 billion.

That said, should the investors start to worry? Are FinTech valuations about to go bust? Here are the takeaways: