StoneCo Ltd. to Announce First Quarter 2024 Financial Results on May 13, 2024 and Adopt New Internal Accounting Policy

Rhea-AI Summary

StoneCo will announce its first quarter 2024 financial results on May 13, 2024, and implement a new internal accounting policy for membership fee revenues. The policy change will not impact the 2024 guidance, cash position, or cash flow generation. The company expects a reduction in transaction revenues and an increase in deferred revenue liabilities due to the new policy.

Positive

• StoneCo will release its first quarter 2024 financial results on May 13, 2024, and hold a conference call to discuss the results.
• The company will adopt a new internal accounting policy for the recognition of membership fee revenues starting in the first quarter of 2024.
• The new policy will defer the recognition of membership fee revenues through the expected lifetime of the merchant client.
• For fiscal year 2023, membership fee revenue accounted for R$316 million in net revenue from transaction revenues.
• The policy change is expected to have no impact on the company's 2024 guidance, cash position, or ongoing cash flow generation.
• The change will reduce transaction revenues by approximately R$60-70 million in 1Q24 and R$160-200 million in FY2024.
• Deferred revenue liabilities will increase by the same amounts in 1Q24 and FY2024.
• StoneCo will enter a Quiet Period related to the first quarter 2024 financial results on April 22, 2024.

Negative

• None.

GEORGE TOWN, Grand Cayman, April 16, 2024 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE, B3: STOC31) (“Stone”) announces that it will release its first quarter 2024 financial results on Monday, May 13, 2024 after the market closes and will host a conference call that afternoon at 5:00pm ET (6:00pm BRT) to discuss the results.

The Company also announces that, beginning in the first quarter of 2024, it will adopt a new internal accounting policy for the recognition of membership fee revenues. Membership fee revenue is generated from a non-refundable set up fee paid upfront by a merchant client upon the signing of its service agreement contract for some of our offerings. Previously, the Company recognized the entire membership fee at the time it was paid. Under the new policy, the recognition of these revenues will be deferred through the expected lifetime of the merchant client. For fiscal year 2023, membership fee revenue accounted for R$316 million in net revenue from transaction revenues.

Impact of Policy Change

This change is expected to:

• Have no impact on our 2024 Guidance given the strong continued performance of the business.
• Have no impact on the Company's cash position or its ongoing cash flow generation.

• Reduce transaction revenues by approximately R$60-70 million in 1Q24 and R$160-200 million in FY2024 and increase deferred revenue liabilities by the same amounts in 1Q24 and FY2024.
  

2024 Guidance Remains Unchanged

GUIDANCE	2023	∆% y/y	2024	∆% y/y
MSMB TPV (R$bn)	350	+21%	> 412	> +18%
Clients Deposits (R$bn)	6.1	+52%	> 7.0	> +14%
Growth ↑
Credit Portfolio (R$bn)	0.3	n.a.	> 0.8	> +2.6x
MSMB Take Rate (%)	2.45%	+30bps	> 2.49%	> +4bps
Monetization ↑
Adjusted Net Income (R$bn)	1.6	+3.8x	> 1.9	> +22%
Adjusted Administrative Expenses (R$bn)	1.052	+6%	< 1.125	< +7%
Efficiency ↑

The conference call can be accessed live over the Zoom webinar (ID: 819 7276 5380 | Password: 819157). You can also access the meeting over the phone by dialing +1 646 931 3860 or +1 669 444 9171 from the U.S. Callers from Brazil can dial +55 21 3958 7888. Callers from the UK can dial +44 330 088 5830. The call will also be webcast live and a replay will be available a few hours after the call concludes. The live webcast and replay will be available on Stone’s investor relations website at https://investors.stone.co/.

The Company will begin its Quiet Period related to first quarter 2024 financial results on April 22, 2024.

About Stone

Stone is a leading provider of financial technology and software solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses.

Contact:

Investor Relations
investors@stone.co

 

FAQ

When will StoneCo announce its first quarter 2024 financial results?

StoneCo will announce its first quarter 2024 financial results on May 13, 2024.

What new internal accounting policy is StoneCo adopting?

StoneCo is adopting a new internal accounting policy for the recognition of membership fee revenues.

How will the new policy impact StoneCo 's 2024 guidance?

The new policy is expected to have no impact on StoneCo 's 2024 guidance.

What was the impact of the policy change on StoneCo 's transaction revenues?

The policy change is expected to reduce transaction revenues by approximately R$60-70 million in 1Q24 and R$160-200 million in FY2024.

Will the new policy affect StoneCo 's cash position?

The new policy will have no impact on StoneCo 's cash position or ongoing cash flow generation.