Shares Nu Holdings Pre-market prices rose 10% Tuesday for Nubank (NYSE:), which is the parent company to Warren Buffett’s fintech startup Nubank. The company announced results that exceeded the median analyst estimates in the quarter.

The Street estimate was $630.9 Million. It came in at $877.2million. The adjusted net loss reported was $10.1 million, which beats the $12.4 million expected.

Nubank had 59.6 Million clients. This represents a client increase of 5.7million.

Citi analyst Ashwin Shirvaikar stated that the Q1 earnings reported showed strong growth for Nubank.

“While investors are concerned about the resulting risk (rising credit loss provisioning, rising NPLs and delinquencies), the company addressed these – as expected, ECL accounting, post-pandemic credit normalization and seasonality are the driving factors for much of the change. The bigger question of comfort level to continue to pursue aggressive growth was also asked – we are unsure if the company’s answer of “historical track record” will fully satisfy every investor. We do expect solid growth to continue at NU and look for continued market and wallet share gains,” Shirvaikar said in a client note.

BofA analyst Jason Kupferberg said “there was much to like” in Nubank’s Q1 results, including “a continuation of strong client acquisition and engagement, as well as operating leverage gains, which supported a bottom line beat.”

“However, asset quality deterioration was sharper than anticipated, reflecting change in mix, and led to higher than anticipated provision charges and lower reserve coverage, which seems to be the focus of the market at the moment. Given the upcoming lock-up expiry, NU’s stock has been under significant pressure over the last three months (-52%), though NU noted on the call that a majority of shareholders will not be selling or distributing shares in the near future and expect to remain long-term holders of NU,” Kupferberg told clients in a memo.

By Senad Karaahmetovic