What happened

Nu Holdings (NU 1.41%) saw its stock price soar on Wednesday, jumping more than 13% in early afternoon trading. At the closing bell, it was up about 8.7% for the day to $4.95 on what was an overall positive day on the markets, with all three major indexes finishing higher.

The holding company for the Brazil-based digital bank, Nubank, continues its forward momentum with some recent executive appointments the market reacted positively to.

So what

According to a regulatory filing posted Aug. 23, the company announced that its co-founder, Cristina Helena Zingaretti Junqueira, who is the current CEO of its Brazil operations, will take on the added role of chief growth officer. In this position, she will manage market team operations and customer-centric growth strategies in Brazil, Mexico, and Colombia.

Also, CEO David Vélez Osorno will maintain oversight of the company's operational management and will prioritize long-term strategy, including product development, market expansion, and M&A. Current COO Youssef Lahrech will also take the role of president, taking responsibility for day-to-day activities and budgets, while Jagpreet Singh Duggal has been named chief product officer, supporting innovation, product development, and portfolio expansion.

This news follows a solid second-quarter earnings report, released on Aug. 15. Nu Holdings saw revenue hit a record $1.2 billion, up 230% year over year, and gross profit jumped 109% to $363 million. Also, it increased its customer base in Brazil by 51% to 62.3 million and achieved profitability in the first of the year in Brazil, its largest market, with net income of $13 million. In addition, it increased its customer base in Mexico, its second-largest market, by six times to 2.7 million.

Now what

Overall, Nu Holdings had a $29.9 million net loss in the quarter, up from 15.2 million in the first quarter of 2021, due to higher share-based compensation and related tax effects. But it did become profitable in its largest market, Brazil, and the rapid growth in revenue and customers is promising for the stock, which Warren Buffett has in his Berkshire Hathaway portfolio.

The market reacted favorably to the executive appointments, which seems to signal that the company is planning to expand its products and presence in a huge addressable market of Central and South America. It is certainly a stock to watch.