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Nu Holdings Ltd (NYSE:NU) shares jumped over 18% Tuesday after the company posted earnings after the close Monday evening, exceeding revenue expectations.
Nu Holdings posted a second-quarter net income of $17 million, while revenue for the quarter came in at $1.2 billion, topping the consensus estimate of $1.01 billion.
As a result, Nu shares hit a level not seen since May.
The Brazil-based digital banking company said it added 5.7 million customers in the quarter, reaching a total of 65.3 million customers in Brazil, Mexico and Colombia, representing a 57% growth year-over-year.
“We registered record revenues and are making huge strides towards becoming a multi-product and multi-country platform. Our largest operation -Brazil- is now profitable, having registered a net profit of US$ 13 million in the first half of 2022, driven by customer growth to 65 million and ability to offer and cross-sell new products,” said David Vélez, founder and CEO of Nu Holdings.
Following its earnings report, a Wolfe Research analyst raised the price target on Nu Holdings to $6.50 from $5.00 per share, maintaining an Outperform rating on the stock.
Nu shares also rallied on Monday after Japanese investment management firm SoftBank revealed in its 13F filing that it had purchased 22 million shares of Nu valued at approximately $82.3 million.
