PagSeguro Digital Ltd (NYSE: PAGS) stock fell over 9.6% on 20th November, 2019 (as of 9:34 am GMT-5; Source: Google finance) on lower than expected performance.
The company in the third quarter of FY 19 has reported the 30.3% increase in the total revenue and income amounted to R$1,463.0 million after non-GAAP adjustments. The gross revenue from transaction activities and other services in the three months ended September 30, 2019 grew 44.9% to R$1,008.3 million, from R$695.8 million in the three months ended September 30, 2018. This growth is mainly due to a continued increase in the active merchant base, average spending per merchant and TPV. The non-GAAP Profit before income taxes amounted to R$540.3 million in the three months ended September 30, 2019, which is an increase of 26.8%. The company has reported 48% increase in the Net income for the period in the three months ended September 30, 2019 amounted to R$342.6 million, from R$231.6 million in the three months ended September 30, 2018. As a percentage of the Total revenue and income, the net income for the period grew by 3 percentage points, to 23.4% in the three months ended September 30, 2019 compared with 20.4% in the three months ended September 30, 2018. The company has generated cash and cash equivalents at the beginning of the nine months ended September 30, 2019 of R$2,763.1 million.
Moreover, for the quarter, the company posted 1.9 million active PagBank users, the active merchants of 5.0 million, which is the growth of 1.2 million active merchants in the last twelve months and R$29.4 billion in total payment volume (“TPV”), which is up 45% compared to 3Q18. The company has delivered the Financial income, of R$537.8 million in the three months ended September 30, 2019, an increase of 38.9% from R$387.3 million in the three months ended September
Meanwhile, in October 2019, the company has announced the launch of the new SmartPOS device, Moderninha X, an innovative and advanced POS device. The company will offer the Moderninha X for 12 monthly installments of R$19.90 and has no additional cost and new technologies in one single POS device. It is the company’s most attractive product for micro-merchants and small businesses. Further, it integrates the free Pagbank digital account and international cash card, free of charge.
In addition, during the quarter, the company had announced the launch of the Savings Account feature and the Super App services for the free PagSeguro digital account.