PagSeguro Digital Ltd. (NYSE:PAGS) Q1 2020 Earnings Conference Call - Final Transcript

May 28, 2020 • 05:30 pm ET


PagSeguro Digital Ltd. (NYSE:PAGS) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to PagSeguro's First Quarter 2020 Results Conference Call. [Operator Instructions] This event is also being broadcast live via webcast and may be accessed through PagSeguro's website at, where the presentation is also available. Participants may view the slides in any order they wish. The replay will be available shortly after the event is concluded. Those following the presentation via webcast may post their questions on PagSeguro's website.

Before proceeding, let me mention that any forward statements included in the presentation or mentioned on this conference call are based on currently available information and PagSeguro's current assumptions, expectations and projections about future events. While PagSeguro believes that their assumptions, expectations and projections are reasonable in view of currently available information, you are cautioned not to place undue reliance on these forward-looking statements.

Actual results may differ materially from those included in PagSeguro's presentation or discussed on this conference call. For a variety of reasons, including those described on the forward-looking statements and Risk Factors sections of PagSeguro's registration statements on Form 20-F and other filings with the Securities and Exchange Commission, which are available on PagSeguro's Investor Relations website.

Finally, I would like to remind you that during the conference call, the Company may discuss non-GAAP measures. For more details, the foregoing non-GAAP measures and the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the last page of this webcast presentation.

Now I will turn the conference over to Mr. Ricardo Dutra, CEO. Mr. Dutra, you may begin your presentation.

Ricardo Dutra da Silva

Hello, everyone. And thanks for joining our first quarter results conference call. Tonight, I have here with me Eduardo Alcaro, our Chief Financial Officer; and Andre Cazotto, our Head of Investor Relations.

First of all, I hope you and your families are well and safe. I also would like to say thank you to all PagSeguro PagBank team who have maintained their focus in supporting our businesses, our customers and partners, as well each other during the past weeks, while almost 100% of us have been working from home. Thank you very much, PagSeguro PagBank team.

I will start with an overview of our results, then I'll pass the word to Eduardo Alcaro, our CFO, and in the end, we will give you our perspective about COVID-19 and some preliminary data about Q2.

Going to Slide 3. We compare PAGS performance with our listed peers. PAGS is in a strong momentum and is the most resilient payments company in Brazil. Despite the health crisis and higher subsidies offered to our clients through this period, PAGS was able to combine growth with profitability. Comparing Q1 '20 with Q4 '19, our revenues grew 1%, despite the strong seasonality in Q4, while our peers revenues decreased 8% and 5%. And year-over-year, our net income grew 13%, while our peers net income decreased 13% and 65%. These results reinforce the strength of our broad ecosystem, the resilience of our business model and the caliber of our