PagSeguro Digital Ltd (NYSE: PAGS) stock rose over 2.4% in the pre-market session of November 19th, 2020 (as of 7:59 pm GMT-5 ; Source: Google finance) after the company in the third quarter of FY 20 has reported 52.5% rise in total payment volume (TPV) to R$44.8 billion compared to 3Q19. As a result, Total revenue and income rose by 21.8% to R$1,781.5 million in the three months ended September 30, 2020, from R$1,463.0 million in the three months ended September 30, 2019. The Revenue from transaction activities and other services in the third quarter 2020 amounted to R$1,212.0 million, which reflects an increase of 37.8%, from R$879.4 million in the third quarter, 2019. The gross revenue from transaction activities and other services in the third quarter of FY 20 amounted to R$1,359.7 million, which reflects an increase of 34.9%, from R$1,008.3 million in the third quarter of FY 19. This increase in Gross revenue from transaction activities and other services was mainly due to a continued increase in the active merchant base and TPV. Financial income, amounted to R$544.8 million in the third quarter of FY 20, an increase of 1.3%, from R$537.8 million in the third quarter of FY 19. The increase in Financial income is due to higher TPV on the one hand, and fewer credit card transactions in installments and higher debit card transactions, on the other hand, in the in the third quarter of FY 20.
Moreover, the net take rate ended the third quarter at 2.35%, which is down 37 basis points quarter-over-quarter or 2.58% excluding coronavoucher products, down 14 basis points quarter-over-quarter, slowing down the decrease compared to previous quarter, but still temporarily affected by the TPV mix, meaning more debit card transactions and less credit installments, directly impacting the company’s prepayment revenues. The company reported the Non-GAAP net income of BRL330 million, reaching a net margin of 18.5% or 28%, excluding interchange, still affected by the pandemic and investments in PagBank.
Further, the active merchants reached 6.3 million in the third quarter. This is by adding 1.3 million new sellers or 25% year-over-year and 0.5 million new ones all in this quarter, reaching a historical record and adding 56% more merchants when compared to Q3 2019.
On the other hand, the company has appointed Mr. Eduardo Alcaro as Chief Business Development Officer, which is a new strategic executive officer position, and Mr. Artur Schunck as the new Chief Financial and Investor Relations Officer and Chief Accounting Officer.