Nu Holdings Ltd. (NU) stock plummeted 10.94% in pre-market trading on Friday, following the Brazilian digital banking company's Q4 2024 earnings report that missed revenue estimates and raised concerns about its ability to sustain rapid growth profitably.

While Nu Holdings reported strong 22% year-over-year customer growth to 114.2 million, its Q4 revenue of $2.99 billion fell short of analysts' expectations of $3.29 billion. Despite in-line earnings per share of $0.11, the revenue miss sparked investor worries that Nu's breakneck expansion may be facing headwinds amid increasing competition and market saturation in Latin America's fintech space.

During the earnings call, Nu Holdings executives acknowledged the challenges of balancing growth and profitability, particularly in newer markets like Mexico and Colombia. However, they remained confident in their ability to sustain growth, scale operations, and launch new products and services globally while focusing on sustainable and responsible expansion. The company plans to continue nurturing customer relationships, scaling credit operations, and increasing its role as customers' primary banking partner across its markets.