PagSeguro Digital Ltd. (NYSE:PAGS) Q4 2022 Earnings Call Transcript

Jeff Cantwell: Thanks very much for all the color. Much appreciate it. And if I could ask a quick follow-up, similarly thinking on the expense lines, what was interesting this quarter was the revenue came in, and we noticed that the selling line and the admin expense line were a little better versus our model. And so, I’m curious if there’s a read-through there for 2023, in the context of your prior statements where 10% net income margin seems to be the gating factor. So, I was hoping to get either clarification or any additional color about how you’re thinking about expenses/operating leverage for going forward? Thanks very much.

Artur Schunck: So regarding to selling expenses, what we have in this €“ under this line is total losses, chargebacks, and provisions for credit losses as we reduced 30% in comparison to Q3. So, we see a great result on this line. And going forward, we also expect a good performance in the selling expenses line. So, you can check in the Page 19 in the earnings release this reconciliation of selling expenses. And so we are expecting for the future good performance in this line because we are working hard to reduce the chargebacks in the issuing, in the acquiring and also the credit losses because of the volume and the level of secured products that we have in our credit operation.

Jeff Cantwell: Okay, great. Thanks very much. Congrats again.

Operator: The Q&A session is now concluded. I pass the floor over to Mr. Dutra for his closing statements.

Ricardo Dutra: Hi, everyone. Thank you very much for the participation. Thank you for the questions, for investing your time to talk to us. If you have any problems with connections and so on, we are going to pay attention to that and evaluate what we should do to get a better connection for the next call. Thank you very much. Take care.

Operator: PagBank conference call is now concluded. Have a nice evening. Thank you.