StoneCo doubles profitability and grows revenue by 71% to R$ 2.5 billion in 3Q22

Rhea-AI Summary

StoneCo Ltd. (Nasdaq: STNE) reported strong financial results for 3Q22, with adjusted EBT reaching R$ 211 million, a 97% increase from 2Q22 and 69% above guidance. The company saw net revenue grow by 71% year-over-year to R$ 2.5 billion, driven by an 84.1% increase in Financial Services and a client base expansion to 2.4 million. The banking business also showed robust growth, with TPV up 24.5% year-on-year. A leadership transition is underway, with Pedro Zinner replacing Thiago Piau, who remains on the Board to support future growth initiatives.

Positive

• Adjusted EBT increased 97% to R$ 211 million, exceeding guidance by 69%.
• Net revenue grew 71% year-over-year to R$ 2.5 billion.
• Client base expanded by 248,000 MSMB clients, reaching 2.4 million.
• TPV increased by 24.5% year-on-year to R$ 93.3 billion.

Negative

• None.

R$ 211 million adjusted EBT up +97% over 2Q22, exceeding guidance by 69%

With net addition of 248,000 MSMB clients in 3Q22, company accelerates its growth and reaches 2.4 million clients, with market share gains in payments

SÃO PAULO, Nov. 17, 2022 /PRNewswire/ -- On Thursday (17), StoneCo Ltd. (Nasdaq: STNE) released its 3Q22 financial results showing a strong increase in revenue, acceleration in net addition of clients, market share gains in payments, adjusted profit more than doubling compared to previous quarter, and strong liquidity with a better adjusted net cash.

Net revenue grew 71% year-over-year to R$ 2.5 billion, with an 84.1% growth in Financial Services (R$ 2.1 billion) and 21.6% in Software (R$ 366.2 million). Total client base in payments achieved 2.4 million clients.

"We achieved strong growth with market share gains, accelerated client addition, and had solid evolution in the banking strategy. We continue to evolve consistently, balancing growth and profitability, improving our take rates sequentially", says Stone CEO, Thiago Piau. "Our growth strategy linked to greater discipline in cost and expense efficiencies reflected in consistent improvement in our profitability: we doubled our adjusted profit compared to the last quarter", he adds.

Adjusted EBT (Earnings Before Taxes) totaled R$ 211 million (97% compared to 2Q22), with an EBT margin of 8.4%, a 3.8 percentage points sequential improvement. The result exceeded the R$ 125 million guidance by 69%, especially due to adjustments in pricing policy and efficiency gains. Adjusted net income was R$ 162.5 million with an Adjusted Net Margin of 6.5% in 3Q22, compared to R$ 76.5 million in 2Q22.

Consolidated TPV grew by 24.5% year-on-year to R$ 93.3 billion. In MSMBs, TPV grew by 44.7% year over year to R$ 74.7 billion and the take rate (revenue/TPV) reached 2.21%, mainly as a result of continuous pricing efforts to offset the higher level of funding costs. The Banking business reached 561 thousand active clients (32.8% higher year-on-year), with average revenue per customer increasing to R$ 44 from R$ 39 in 2Q22.

Stone recently announced transition in the company's leadership from Thiago Piau to Pedro Zinner. "Soon, Pedro will start working with the team and me on this transition. I have a deep trust in Pedro and I am certain that, under his leadership, StoneCo will be prepared to deliver even more robust results in this new phase of the company, which is well positioned for its future growth path. As a partner and on the Board, I will remain 100% committed and I am excited to support Pedro and the team in this new phase", says Piau.

Q422 revenue growth and profitability outlook

• Total revenue higher than R$ 2.6 billion in Q421 (growing at least 38.8% YoY);
• MSMB TPV between R$ 78 billion to R$ 79 billion against R$ 74.7 billion in 3Q22;
• Adjusted EBT above R$ 250 million over R$ 211 million in 3Q22.

View original content:https://www.prnewswire.com/news-releases/stoneco-doubles-profitability-and-grows-revenue-by-71-to-r-2-5-billion-in-3q22--301682203.html

SOURCE StoneCo. Ltd

FAQ

What were StoneCo's financial results for 3Q22?

StoneCo reported adjusted EBT of R$ 211 million for 3Q22, a 97% increase from the previous quarter.

How much did StoneCo's net revenue grow in 3Q22?

StoneCo's net revenue grew by 71% year-over-year to R$ 2.5 billion in 3Q22.

What was the client addition in 3Q22 for StoneCo?

StoneCo added 248,000 MSMB clients in 3Q22, bringing the total to 2.4 million.

What is the outlook for StoneCo's revenue growth in Q422?

StoneCo expects total revenue to exceed R$ 2.6 billion in Q422, which represents at least a 38.8% year-over-year growth.

Who is succeeding Thiago Piau as CEO of StoneCo?

Pedro Zinner is succeeding Thiago Piau as CEO, with Piau remaining on the Board to assist in the transition.