Net Income Guidance Upside
Q: Is there upside risk to your net income guidance?
A: While our Q1 net income reached the top of our full-year guidance, it's only the first quarter. We're performing better than expected, but it's too early to revise our forecasts. We're confident we'll reach the top of the guidance, but we need more time before considering any changes.

Sustainability of TPV Growth
Q: Given strong Q1 TPV growth, can it be sustained?
A: We achieved a 27% TPV growth in Q1, significantly outpacing the market's 11% growth. This strong momentum continues into Q2, with a record TPV during Mother's Day. Our integrated payments and banking proposition is maturing, and while there's upside risk to our TPV guidance, it's too early to revise it after just one quarter.

Margin Expectations
Q: How will net income margins trend this year?
A: We expect margins in Q2 and Q3 to be similar or slightly higher than in Q1. In Q4, margins might decrease due to seasonality and a higher mix of debit card transactions, which carry lower margins. Overall, margins should remain stable throughout the year.

Lending Portfolio Expansion
Q: What are your plans for accelerating lending?
A: We're resuming unsecured lending products in the second half of 2024, including working capital loans for MSMBs with durations around 15 months and customized interest rates, and overdrafts for merchants and consumers with small limits and durations under 30 days at rates up to 8% per month. We've spent two years improving our credit models and processes, and despite the economic environment, we have good clients and are confident in expanding our lending portfolio cautiously. It's too early to provide guidance on the portfolio's size.

Competition and Market Share
Q: Can you continue gaining market share amid competition?
A: Yes, we've grown TPV by 27% while the market grew 11%, indicating our gains are structural rather than temporary. Our integrated offering of payments and banking is paying off, and we don't see significant changes in competitive dynamics from international or local players. Our value proposition sets us apart in the market.

Expenses and Cost Management
Q: How are you managing expenses relative to revenue growth?
A: We're controlling costs in a disciplined way. In Q1, our total costs and expenses grew 12%, while revenues grew 15%, resulting in a cost leverage of 220 basis points compared to Q1 2023. Operating expenses are stable at 16.4% of revenue. We're investing in our sales force and marketing to support growth but expect expenses as a percentage of revenues to remain stable.

Credit Portfolio Mix
Q: Will your secured versus unsecured credit mix change?
A: In the short term, our credit portfolio mix will remain largely the same, predominantly secured. We're cautiously resuming unsecured products in the second half, but the unsecured portion will remain small, so the overall mix won't change significantly soon.

Capital Allocation
Q: How will you utilize your growing cash position?
A: We're focusing on organic growth opportunities and reinvesting our cash flow to support our positive growth momentum. While we analyze M&A opportunities, we've yet to find transformative acquisitions. We're not discussing new dividend or share buyback programs at this time, but we still have $45 million remaining in our existing buyback plan.

Deposit Growth
Q: What are your expectations for deposit growth?
A: Our integrated payments and banking platform is successfully driving deposit growth, with deposits increasing 64% year-over-year. Our high-yield CD offerings and new customer acquisitions through payroll loans are contributing significantly. We believe our strategy will continue to grow deposits in the coming quarters, though we have no specific guidance.

Impact of PIX on TPV
Q: How does PIX influence your TPV growth?
A: PIX has contributed to our TPV growth, but even excluding PIX, our growth would still be in the high 20% range. The majority of our growth is coming from cards, especially credit cards and installments. The overall industry grew 11.4% without including PIX, indicating strong fundamentals in the market.