XP Inc. (NASDAQ:XP) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET

Company Participants

Andre Martins - Head of Investor Relations

Bruno Constantino - Chief Financial Officer

Conference Call Participants

Tito Labarta - Goldman Sachs

Geoffrey Elliott - Autonomous Research

Thiago Batista - UBS Group AG

Jorge Kuri - Morgan Stanley

Mario Pierry - Bank of America Merrill Lynch

Marcelo Telles - Credit Suisse

Andre Martins

Good evening, everyone. Thanks for waiting. We’re just giving up some seconds for everyone to join. I’m Andre Martins, Head of Investor Relations. And on behalf of the company, I’d like to thank you all for your interest in our quarterly earnings call. Today, we have with us Bruno Constantino, our CFO. We will both be available for the Q&A session right after the presentation. Remember that you can raise your hand in the Zoom tool, I see that as usual we have some raised hands, and we will answer them after the presentation.

Please refer to our legal disclaimer on Page 2. There we have – we clarify actually the forward-looking statements, their definition, and on our IR website you can find additional documents to forward-looking statements and why they might differ from actual results.

So without further ado, I’ll pass the word to Bruno Constantino, we have a lot to talk about today. And it’s later in São Paulo, right, Bruno, than usual. So let’s get going with the presentation. Thank you so much every one of you for the interest.

Bruno Constantino

Sure. Thank you, Andre. Good evening, everyone, a pleasure to be here with all of you one more time in our 12 [ph] earnings call. This call might take a little longer than usual. But, I promise, I’ll try to be as brief as possible, so we can jump into Q&A. So we can move to the highlights.

So here on Slide 5, the highlights, we have selected 4 main highlights for third quarter 2022. First is the improvement in our disclosure, always considering feedbacks from investors, and thinking about how to enhance our transparency over time. We have changed 3 points in our managerial disclosure. We have incorporated, Digital Content into Retail. As you know, Digital Content is an enabler, much more than our relevant contributor to our revenue. So it doesn’t make sense to disclose it on a standalone basis anymore.

Number two, we separated Corporate clients, companies with annual revenues above R$700 million annually from Retail clients. This change was motivated by: one, growth of the Corporate business, which was irrelevant until the end of 2021 last year, and has been gaining traction throughout this year, as you’re going to see throughout the presentation as well; and number two, different profile of clients as well; and third, we have opened the Retail revenue base on its main product classes, I think this is the main change in terms of disclosure that we are making from now.