What happened

Shares of the Brazilian fintech company and digital bank Nu Holdings (NU -0.54%) traded more than 15% higher as of noon ET today after the company reported earnings results for the third quarter of the year last night.

So what

Nu reported net income of $7.8 million on total revenue of roughly $1.3 billion. Revenue beat analyst estimates.

Nu, which has become a huge disruptor in the Latin American banking market with its low-fee banking products and sleek digital experiences, also continued its impressive growth, adding another 5 million-plus customers in the quarter. Nu now has 70.4 million customers and banks roughly 39% of the Brazilian adult population.

"This mix of growth and profitability shows we are being able to balance appropriately the significant growth opportunity we have ahead while strengthening the earnings fundamentals of our business model," Nu's CEO David Vélez said on the company's earnings call. "We will continue to reinvest our profits to fuel our growth and long-term value creation."

The company not only continues to see further activity across its platform but is also increasing monthly average revenue per active customer (ARPAC). In the third quarter, ARPAC grew to $7.90, up slightly from the second quarter. However, some of Nu's most mature customer cohorts have monthly ARPACs of $22.

Now what

Nu delivered a solid quarter, despite some short-term uncertainty in the Brazilian economy. Revenue and customers are still growing at a very healthy clip, and the company continues to make progress on growing ARPAC. 

While the road may not always be perfectly smooth, I continue to like this stock because of the huge opportunity it has in the Latin American banking market.