O Nubank released its financial results for the first half of 2019: the company increased its customer base by 150% over the same period last year, considering NuConta and the credit card with no annual fee. Revenues doubled to R $ 1 billion; however, the loss also increased, reaching R $ 139 million.
Between January and June 2019, Nubank had recipe of R $ 1 billion; in the same period last year, it was R $ 503 million. Meanwhile, in the first half of 2017, 236.8 million. That is, the company’s revenue is almost doubling every year.
The number of customers it also grows rapidly: Nubank adds almost 50,000 users each day. At the end of June, the base was 10 million; now, two months later, there are more than 12 million.
Fintech also points out that it reduced its allowance for loan losses by 9%; it is the money set aside to cover the default of some customers. “In other words, we are growing a lot, but consciously, without increasing our risk”, says the financial director Gabriel Silva in a statement.
Not generating profit “is a Nubank choice”
However, Nubank continues to have loss: this time, it was R $ 139 million, against R $ 51 million in the same period of 2018 – losses more than doubled in the last year. “This is a consequence of growth, and it is expected; the profit could arrive tomorrow if we decided that this is the moment, but it is not ”, explains the financial director.
“Growing in a sustainable way and, therefore, not generating profit at that moment, is a choice of Nubank”, says Silva. In addition, he states that the company has been generating cash since 2017, that is, “it does not consume money to maintain itself”.
The executive focuses on another metric: this is the NPS (Net Promoter Score), used to assess the degree of customer satisfaction. First, the company asks, “From 0 to 10, how likely are you to recommend us to a friend?” Then, users are divided into three groups: promoters (grades 9 to 10), liabilities (grades 7 to 8) and detractors (grades 0 to 6).
The NPS corresponds to the percentage of “promoters” minus the percentage of “detractors”, and therefore varies between -100 and 100. The Nubank score is 86.
In the first half of 2019, Nubank expanded NuConta’s debt function; started testing personal loans; opened an office in Mexico, where he will launch a credit card with no annual fee; and opened a branch in Argentina.
Recently, fintech was valued at more than $ 10 billion after an investment round. Since 2013, it has raised $ 820 million from investors. The company earns money in two ways: receiving a percentage of each credit card transaction, and charging revolving credit interest.
With information: Nubank.