What happened
Shares of the Brazilian digital bank Nu Holdings (NU 2.92%) surged higher today after the company reported second-quarter results that beat analysts' top-line consensus estimate.
The fintech stock was up by 12.1% at 10:32 a.m. ET.
So what
Nu's sales in the second quarter increased by 232% from the year-ago quarter to $1.2 billion. That easily outpaced Wall Street's consensus estimate of $907.8 million and added to investor enthusiasm for the stock today.
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The company's non-GAAP (adjusted) earnings were flat year over year, which was in line with analysts' average estimate.
Nu's management said that its largest banking operation -- which is in Brazil -- is now profitable with $13 million in net profit in the first half of this year.
"We had another very strong quarter, with growth and profitability in our core business. We registered record revenues and are making huge strides toward becoming a multi-product and multi-country platform," Nu's founder and CEO, David Vélez, said in a press release.
Other highlights from the quarter include Nu's customer growth of 57% from the year-ago quarter to 65.3 million and average revenue per active customer increasing 105% year over year to $7.8.
Nu also reported a gross profit of $363.5 million, an increase of 109% from the year-ago quarter.
Now what
Nu shareholders should clearly be happy with the company's second-quarter results, and they're likely even more enthusiastic about the stock today following yesterday's revelation that the Japanese conglomerate SoftBank owns 22 million shares of the company.
With Nu's stock receiving a stamp of approval from SoftBank yesterday and the company delivering better-than-expected results today, it's no wonder this fintech stock is soaring.
