StoneCo Reports Third Quarter 2022 Results
StoneCo Ltd. (Nasdaq: STNE) reported strong financial results for Q3 2022, with a revenue of R$2,508 million, up 71% year-over-year and exceeding guidance. Adjusted EBT rose significantly by 97% quarter-over-quarter to R$211 million, with an adjusted EBT margin of 8.4%. The company saw a net addition of 248,000 MSMB clients, contributing to a total client base of 2.4 million. Financial services revenue grew by 84%, driven by strong MSMB performance. Cost efficiencies and successful pricing strategies positively impacted profitability, with expectations for continued margin growth in Q4.
- Revenue of R$2,508 million, +71% year-over-year, exceeding guidance of R$2,400 million.
- Adjusted EBT increased by 97% quarter-over-quarter to R$211 million.
- Adjusted EBT margin rose by 380 basis points to 8.4%.
- Net addition of MSMB clients reached 248,000 in Q3 2022.
- Financial services revenue grew 84% year-over-year, mainly from MSMB segment.
- None.
Revenue of R
Adj EBT of R
Acceleration in net addition of MSMB clients to 248,000 in 3Q22
GEORGE TOWN, Grand Cayman, Nov. 17, 2022 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”) today reports its financial results for its third quarter ended September 30, 2022.
“Dear Shareholders,
I am pleased to report to you that this quarter we had strong growth with market share gains, doubled our profits sequentially, accelerated net addition of clients and generated strong liquidity with improving Adjusted Net Cash balance. Our profitability recovery continues to gain more momentum.
On the top-line, we continued to perform well with nearly
On the bottom-line our earnings grew materially faster than we were expecting for the quarter because our repricing initiatives proved to be a little more successful than we were conservatively expecting internally, we gained some incremental operating leverage and our financial expenses as a percentage of our Total Revenue and Income began to normalize after an uptick in the second quarter (a positive trend we continue to see going forward). As a result, our Adjusted EBT of R
We keep focused and working hard to balance strong growth with increasing profitability, grow our banking platform, expand and integrate our Software business and rebuild our credit products. Overall, I think we had a good quarter and I am pleased with our results, but we still have plenty to do. Our performance so far in the fourth quarter continues to trend favorably and we expect our results to continue to improve as we position the business for 2023 and turn to a new chapter in Stone’s journey.
As we previously announced, I will become a Board member of StoneCo next year to focus my attention on developing key strategic and financial initiatives to drive the future expansion of the Company, and Pedro Zinner will join Stone’s executive team no later than March 31st, 2023 and will begin working closely with me and the management team in a transition period before taking on the CEO role. I have a deep trust in Pedro and I am excited to work with him and the team as we continue to evolve the business. I remain strongly committed to Stone as a partner and look forward to supporting the team in this new part of our journey”.
– Thiago Piau, CEO
Operating and Financial Highlights for 3Q22
Note about our non-IFRS Adjusted P&L metrics: following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our current adjusted results to our adjusted numbers prior to 2Q22. To allow for better understanding of our business performance trends, the tables in this Earnings Release make reference to our adjusted P&L metrics not adjusting for the bond expenses for all periods for comparability purposes. See table 16 for historical metrics with and without the bond adjustment.
MAIN CONSOLIDATED FINANCIAL METRICS
Table 1: Main Consolidated Financial Metrics
| Main Consolidated Financial Metrics | 3Q22 | 2Q22 | 3Q21 | Δ y/y % | Δ q/q % | |
| Total Revenue and Income (R$mn) | 2,508.4 | 2,304.1 | 1,469.6 | |||
| Adjusted EBITDA (R$mn) | 1,153.7 | 1,057.4 | 473.3 | |||
| Adjusted EBT (R$mn) | 210.7 | 106.7 | 81.3 | |||
| Adjusted Net Income (R$mn) | 162.5 | 76.5 | 85.3 | |||
| Adjusted Net Cash (R$mn) | 3,104.2 | 2,754.4 | 2,802.7 | |||
- Total Revenue and Income reached R
$2,508.4 million in the quarter,4.5% above our guidance of more than R$2,400.0 million . This represents an increase of70.7% from R$1,469.6 million in the prior-year period. The increase in revenues was mainly a result of (i)84.1% growth in our financial services platform revenues, that reached R$2,121.5 million and (ii)21.6% growth in our software platform revenues, that reached R$366.2 million . Non-Allocated represented the remaining R$20.8 million in revenue. Financial services revenue growth was mostly a result of our performance in the MSMB segment, with strong TPV growth combined with increasing take rates. Our year over year software revenue growth was driven mostly by our software Core business performance. - Adjusted EBITDA up
9.1% quarter over quarter. Adjusted EBITDA in 3Q22 was R$1,153.7 million , up from R$473.3 million in 3Q21 and9.1% higher quarter over quarter. Adjusted EBITDA Margin was slightly up sequentially to46.0% , mainly due to efficiency gains in our costs and expenses, despite higher salesforce and marketing expenses. - Adjusted EBT1 of R
$210.7 million was ahead of our guidance of over R$125.0 million for the quarter, with adjusted EBT margin increasing 3.8 percentage points sequentially and reaching8.4% in 3Q22. The better result compared to our guidance is mainly due to better-than-expected performance from our financial services solutions. - Adjusted Net Income2 in 3Q22 was R
$162.5 million with adjusted net margin of6.5% , compared with R$76.5 million and a margin of3.3% in 2Q22. This improvement was mostly related to (i) higher monetization of our MSMB clients, with a successful implementation of our pricing policy amid a changing interest rate environment, (ii) operating leverage in cost of services and (iii) lower financial expenses mainly as a result of a lower and more normalized duration of receivables sold to fund the prepayment business and the use of our own cash to pay down debt, which reduces financial expenses. - Adjusted Net Cash was R
$3,104.2 million in 3Q22, R$349.8 million higher compared with 2Q22, mostly explained by: (i) a cash net income of R$391.9 million , which is our net income plus non-cash income and expenses as reported in our statement of cash flows; (ii) R$67.8 million of net collections from our credit business and (iii) R$201.1 million of taxes payable and recoverable taxes. These factors were partially offset by (iv) -R$109.3 million of capex, (v) -R$140.3 million of interest and income tax paid, and (vi) -R$20.8 million from M&A. Other effects negatively contributed with R$40.6 million .
SEGMENT REPORTING
Starting 1Q22, we report our financial and operating metrics in two segments, Financial Services and Software, and non-allocated activities comprised of non-strategic businesses. Note that our segment reporting is performed on an adjusted basis, adjusting for items such as the mark-to-market expenses related to Banco Inter investment, amortization of fair value adjustments on acquisitions, among other factors.
Financial Services: comprised of our financial services solutions serving both MSMBs and Key Accounts, which includes mainly our payments solutions, digital banking, credit and our registry business TAG.
Software: comprised of two main fronts, namely: (i) Core, which includes POS/ERP solutions, TEF and QR Code gateways, reconciliation and CRM and (ii) Digital, which includes OMS, e-commerce platform, engagement tools, ads solution and marketplace hub. The remaining results of the Linx Pay legacy business are accounted for in both Core and Digital revenues and costs.
Below, we provide our main financial metrics broken down into our two reportable segments.
Table 2: Financial metrics by segment
| Segment Reporting (R$mn Adjusted) | 3Q22 | % Rev3 | 2Q22 | % Rev3 | 3Q21 | % Rev | Δ y/y % | Δ q/q % | |
| Total Revenue and Income | 2,508.4 | 100.0% | 2,304.1 | 100.0% | 1,469.6 | 100.0% | 70.7% | 8.9% | |
| Financial Services | 2,121.5 | 100.0% | 1,932.6 | 100.0% | 1,152.5 | 100.0% | |||
| Software | 366.2 | 100.0% | 350.7 | 100.0% | 301.1 | 100.0% | |||
| Non-Allocated | 20.8 | 100.0% | 20.8 | 100.0% | 16.0 | 100.0% | |||
| Adjusted EBITDA | 1,153.7 | 46.0% | 1,057.4 | 45.9% | 473.3 | 32.2% | 143.7% | 9.1% | |
| Financial Services | 1,098.6 | 51.8% | 1,020.6 | 52.8% | 457.4 | 39.7% | |||
| Software | 54.8 | 15.0% | 53.2 | 15.2% | 20.0 | 6.6% | |||
| Non-Allocated | 0.3 | 1.4% | (16.5) | (79.1%) | (4.1) | (25.3%) | n.m | n.m | |
| Adjusted EBT | 210.7 | 8.4% | 106.7 | 4.6% | 81.3 | 5.5% | 159.0% | 97.4% | |
| Financial Services | 177.6 | 8.4% | 84.0 | 4.3% | 104.3 | 9.1% | |||
| Software | 33.7 | 9.2% | 40.0 | 11.4% | (11.6) | (3.9%) | n.m | ( | |
| Non-Allocated | (0.6) | (2.7%) | (17.3) | (83.0%) | (11.4) | (70.9%) | n.m | n.m | |
FINANCIAL SERVICES SEGMENT PERFORMANCE HIGHLIGHTS
Table 3: Financial Services Main Operating and Financial Metrics
| Main Financial Services Metrics | 3Q22 | 2Q22 | 3Q21 | Δ y/y % | Δ q/q % | |
| Financial Metrics (R$mn) | ||||||
| Total Revenue and Income | 2,121.5 | 1,932.6 | 1,152.5 | |||
| Adjusted EBITDA | 1,098.6 | 1,020.6 | 457.4 | |||
| Adjusted EBT | 177.6 | 84.0 | 104.3 | |||
| Adjusted EBT margin (%) | (0.7 p.p.) | 4.0 p.p. | ||||
| TPV (R$bn) | 93.3 | 90.7 | 75.0 | |||
| MSMB | 74.7 | 69.9 | 51.6 | |||
| Key Accounts | 18.6 | 20.9 | 23.4 | ( | ( | |
| Monthly Average TPV MSMB ('000) | 11.2 | 11.8 | 14.4 | ( | ( | |
| Active Payments Client Base ('000)5 | 2,372.1 | 2,122.3 | 1,388.4 | |||
| MSMB5 | 2,314.4 | 2,066.4 | 1,336.1 | |||
| Key Accounts | 64.3 | 61.2 | 56.1 | |||
| Net Adds ('000)5 | 249.8 | 196.1 | 293.8 | ( | ||
| MSMB5 | 248.0 | 195.5 | 290.3 | ( | ||
| Key Accounts | 3.1 | 1.0 | 4.4 | ( | ||
| Take Rate | ||||||
| MSMB | 0.54 p.p. | 0.11 p.p. | ||||
| Key Accounts | 0.33 p.p. | 0.09 p.p. | ||||
| MSMB Banking | ||||||
| Active Banking Client Base ('000) | 561.2 | 526.1 | 422.5 | |||
| Total Accounts Balance (R$mn) | 2,653.1 | 2,317.8 | 1,287.1 | |||
| Stone Card TPV (R$mn) | 542.8 | 531.6 | 415.8 | |||
| Banking ARPAC4 | 43.6 | 39.0 | 18.3 | |||
| MSMB Credit | ||||||
| Portfolio (R$mn) | 522.3 | 603.9 | 1,591.4 | ( | ( | |
| Credit Clients ('000) | 35.5 | 44.7 | 102.4 | ( | ( | |
- Total Revenue and Income for Financial Services segment rose
84.1% year over year in 3Q22 to R$2,121.5 million . This growth was mostly a result of our performance in the MSMB segment, with strong year over year TPV and client base growth, in addition to increasing take rates. Furthermore, we continue to grow our banking solutions revenue, driven by both active client base growth and increase in ARPAC. - Adjusted EBT for Financial Services segment more than doubled sequentially in 3Q22 to R
$177.6 million from R$84.0 million reported in 2Q22. Adjusted EBT margin for the segment was8.4% in 3Q22, 4.0 percentage points higher sequentially from4.3% in 2Q22. This margin improvement is mainly explained by (i) higher monetization of our MSMB clients, with a successful implementation of our pricing policy amid a changing interest rate environment, (ii) operating leverage in cost of services, and (iii) lower financial expenses, mainly as a result of a lower and more normalized duration of receivables sold to fund the prepayment business and the use of our own cash to pay down debt, which reduces financial expenses. - Consolidated TPV grew
24.5% year over year to R$93.3 billion in 3Q22, mainly related to growth in the MSMB segment. - Total Payments Active Client base reached 2.4 million6, with total quarterly net addition of 249,800, higher than 196,100 in the previous quarter. In 3Q22, we continued to see positive addition of clients in all client tiers. We are not considering in our client base numbers clients that use exclusively our TapTon solution.
a. MSMB – Balancing Growth and Profitability
- MSMB active payment clients reached 2,314,4007, representing client net additions of 248,000 in the quarter. Net additions were higher than 195,500 in the previous quarter. In 3Q22, we continued to see positive addition of clients in all MSMB client tiers.
- MSMB TPV was R
$74.7 billion , up44.7% year over year, and above our guidance of between R$73.0 and R$74.0 billion . This increase was mainly a result of the growth in both MSMB active client base and average TPV per client within all client tiers. - Average monthly TPV per client in MSMB decreased
22.6% year over year and5.5% quarter over quarter to R$11,200 , due to the faster growth of our Ton product, which has lower average TPV compared to Stone and Pagar.me SMB products. Nevertheless, TPV per client grew in all client tiers. - MSMB Take Rate rose to
2.21% in 3Q22 from2.09% in 2Q22, mainly a result of our continuous efforts in adjusting our commercial policy amid a changing interest rate environment, with stronger adjustments in 3Q22 compared with 2Q22, as well as continued growth in our banking business. - As a result of stronger adjustments in our commercial policy in 3Q22 after mild adjustments in 2Q22, both Stone and Ton products saw an increase in their revenues net of funding costs per client on a quarter over quarter and year over year basis.
- Our banking ecosystem8 continued to grow in 3Q22:
- Our banking client base continues to increase sequentially, accelerating growth compared to 2Q22. Active Digital Banking Accounts reached 561,200, up
6.7% quarter over quarter and32.8% year over year, as we continue to increase the activation of banking accounts within our payments client base. Meanwhile, average revenue per active client (ARPAC)9 has increased139.2% year over year and11.8% quarter over quarter to reach R$43.6 per client per month. As we sell more banking into our Ton client base we expect to see a significant increase in our number of accounts, total accounts balance and overall banking revenues, although the average revenue per client should decrease, as micro-merchants have naturally smaller revenue contribution. - Total Accounts Balance reached R
$2.7 billion , up106.1% year over year or14.5% quarter over quarter. The quarter over quarter growth is mainly due to an increase in the number of clients with balance and in average balance per client, which, combined with a higher CDI rate, contributed to an increase in the ARPAC of our banking platform. - Stone Card TPV10 grew
30.5% year over year and2.1% quarter over quarter to reach R$542.8 million .
- Our banking client base continues to increase sequentially, accelerating growth compared to 2Q22. Active Digital Banking Accounts reached 561,200, up
- Update on our Credit Business:
- Our Legacy credit portfolio reached R
$522.3 million in 3Q22, decreasing R$81.6 million from 2Q22. The decrease is mainly a result of a cash inflow of R$67.8 million in the quarter. - Of the R
$522.3 million portfolio in 3Q22, we have a balance of R$472.7 million provisioned for bad debt. The fair value of the credit portfolio in our balance sheet in September was R$61.4 million , given that we expect to receive back interest still to be accrued. The R$472.7 million provisioned for bad debt compares with an NPL of R$480.5 million , implying a coverage ratio of98% . - We have started testing our new credit product and more recently, in November 2022, Gregor Ilg, our new Head of Credit, has effectively joined our team. Our focus with the new credit product is to enhance our understanding of clients’ ability to pay on one hand, and, at the same time, enable our clients to better manage their cash flows when they use our credit solutions. Some examples of the elements we are currently testing in order to achieve this are: (i) we have increased the set of variables within our credit decision models, leveraging both internal and external data; (ii) we created a seamless and fully automated process that we expect to greatly improve our clients experience and provide them with the possibility to restructure their payment schedule whenever necessary; (iii) we are testing the ways in which we can leverage our proximity with clients through our agents in the hubs and customer relationship team to improve the overall credit lifecycle. We will start with a Working Capital and a Credit Card related product, but we expect to expand our portfolio to provide a broader set of products in the future. We will take a conservative approach given the credit cycle we are facing and expect to ramp up our credit client base in 2023.
- Our Legacy credit portfolio reached R
b. Key Accounts – Growth in Platform Services with Deprioritization of Sub-Acquiring Business
- Platform Services TPV grew
63.2% year over year. Total Key Accounts TPV was R$18.6 billion ,20.3% lower year over year. This expected reduction resulted from the ongoing deprioritization of sub-acquirers, for which volumes decreased56.2% , partially offset by a63.2% increase in TPV from Platform Services, which reached R$11.5 billion and includes volumes from the upsell of our payments offering to the Linx client base. - Key Accounts Take Rate of
0.95% . Key Accounts take rate was0.95% in 3Q22, higher than0.86% in 2Q22. This increase is mainly a result of (i) lower representation of sub-acquirers, which have lower take rates compared to platform clients and (ii) higher prices from both MDRs and the effect of higher CDI rates, which directly affect prepayment prices from larger clients. These factors were partially compensated by lower take rates within our sub-acquiring clients.
SOFTWARE PERFORMANCE HIGHLIGHTS
Table 4: Software Main Operating and Financial Metrics
| Main Software Metrics | 3Q22 | 2Q22 | 3Q21 | Δ y/y % | Δ q/q % | |
| Financial Metrics (R$mn) | ||||||
| Total Revenue and Income | 366.2 | 350.7 | 301.1 | |||
| Adjusted EBITDA | 54.8 | 53.2 | 20.0 | |||
| Adjusted EBITDA Margin | 8.3 p.p. | (0.2 p.p.) | ||||
| Adjusted EBT | 33.7 | 40.0 | (11.6) | n.m | ( | |
- Total Revenue and Income for Software grew
21.6% year over year in 3Q22 to R$366.2 million . This growth is mainly a result of our Core business performance, which was driven by both (i) organic growth from higher number of POS/ERP locations and higher average ticket as well as (ii) inorganic growth. - Adjusted EBITDA for the Software division grew to R
$54.8 million in 3Q22, with a margin of15.0% , a strong growth compared with R$20.0 million and a margin of6.6% in 3Q21. Compared with 2Q22, Adjusted EBITDA Margin for Software was broadly in line, due to non-recurring higher cloud costs which we expect to normalize in 4Q22. We continue to expect Adjusted EBITDA Margin improvements over time. - Adjusted EBT for Software was R
$33.7 million in 3Q22, compared with -R$11.6 million for the prior year period. Compared with 2Q22, Adjusted EBT decreased15.7% from R$40.0 million to R$33.7 million in 3Q22, with Adjusted EBT Margin decreasing from11.4% to9.2% . This reduction is a result of lower levels of amortization in 2Q22, which normalized this quarter. Going forward, we expect Adjusted EBT margin improvement over time. - Our Core11 Software business revenue increased
23.3% year over year. This increase was driven by increases in average ticket and number of locations, in addition to the consolidation of recent investments. - Our Digital12 business revenue increased
10.0% year over year mainly due to the consolidation of Plugg.to, a solution focused on helping merchants to sell online through the integration with different marketplaces.
RECENT DEVELOPMENTS
Transition in Leadership Roles and Management changes
As per our press release on November 3rd, 2022 and following the evolution of the Company’s management and Board, the Company announced that:
- Thiago Piau, our current CEO, will become a Board member of the Company, where he will focus his attention on developing key strategic and financial initiatives to help drive the future expansion of StoneCo;
- Pedro Zinner, a current Board member of StoneCo, will step-down from the Board and succeed Mr. Piau as CEO. Mr. Zinner, who has over 25 years of experience in strategy, risk management and finance, was most recently the CEO of Eneva, one of the leading power-generation companies in Brazil, from 2017 to November 2022. He will join Stone’s executive team no later than March 31st, 2023 and will begin working closely with Mr. Piau and the management team in a transition period before taking on the CEO role.
In addition, the Company also announces that:
- André Monteiro was appointed as our Chief Risk Officer, a newly created position. Before joining Stone, Mr. Monteiro was XP Inc.’s CRO for financial risks between May/2021 and Aug/2022. From Sep/2013 to Mar/2021, he has served as CRO at B3, the Brazilian Exchange and OTC. He was partner with Gávea Investments from 2004 to 2013, being CRO and quantitative portfolio manager. Previously, he was Chief-Economist for the buy-side at Icatu Bank (1998-2002), artificial intelligence analyst at IBM Brazil’s Business Intelligence Unit (1997) and macroeconomic analyst at Galanto Consulting (1996). From 2018 to 2020, he served as independent member of the Brazilian Development Bank (BNDES) Board of Directors Risk Committee. Mr. Monteiro has the following academic degrees: post-doc in Finance from The Bendheim Center for Finance at Princeton University (2003), Ph.D. in Decision Support Methods (2002) and M.Sc. in Finance and Investment Analysis (1997) from Catholic University of Rio de Janeiro and BA in Chemical Engineering from University of São Paulo (1995).
OUTLOOK FOR 4Q22
The outlook below constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond StoneCo's control. While the World Cup and the macroeconomic environment may have some negative impact in our results, we continue to expect strong core growth and improving profitability in our business. Please see “Forward-looking Statements” below. In view of these factors, we expect the following:
- Total Revenue and Income is expected to be above R
$2,600.0 million in 4Q22, or a year over year growth of above38.8% ; - Adjusted EBT is expected to be above R
$250.0 million in 4Q22, compared with R$210.7 million in 3Q22; - MSMB TPV is expected to be between R
$78.0 billion and R$79.0 billion in 4Q22, compared with R$74.7 billion in 3Q22. This guidance reflects an estimated negative impact in this fourth quarter of between R$2.0 billion to R$3.0 billion in MSMB TPV from the World Cup.
Income Statement
Table 5: Statement of Profit or Loss (IFRS, as Reported)
| Statement of Profit or Loss (R$mn) | 3Q22 | % Rev. | 3Q21 | % Rev. | Δ % | 9M22 | % Rev. | 9M21 | % Rev. | Δ % | |
| Net revenue from transaction activities and other services | 677.8 | 27.0% | 436.7 | 29.7% | 1,839.6 | 26.7% | 1,114.2 | 37.8% | |||
| Net revenue from subscription services and equipment rental | 426.4 | 17.0% | 371.0 | 25.2% | 1,296.3 | 18.8% | 663.8 | 22.5% | |||
| Financial income | 1,251.6 | 49.9% | 607.7 | 41.4% | 3,306.4 | 48.0% | 1,016.5 | 34.4% | |||
| Other financial income | 152.7 | 6.1% | 54.3 | 3.7% | 440.5 | 6.4% | 156.2 | 5.3% | |||
| Total revenue and income | 2,508.4 | 100.0% | 1,469.6 | 100.0% | 70.7% | 6,882.8 | 100.0% | 2,950.7 | 100.0% | 133.3% | |
| Cost of services | (671.3) | (26.8%) | (525.6) | (35.8%) | (1,971.8) | (28.6%) | (1,067.7) | (36.2%) | |||
| Administrative expenses | (283.9) | (11.3%) | (359.8) | (24.5%) | ( | (794.2) | (11.5%) | (599.2) | (20.3%) | ||
| Selling expenses | (385.4) | (15.4%) | (308.2) | (21.0%) | (1,105.1) | (16.1%) | (694.1) | (23.5%) | |||
| Financial expenses, net | (940.3) | (37.5%) | (330.7) | (22.5%) | (2,603.2) | (37.8%) | (580.8) | (19.7%) | |||
| Mark-to-market on equity securities designated at FVPL | 111.5 | 4.4% | (1,341.2) | (91.3%) | n.m | (738.6) | (10.7%) | (500.0) | (16.9%) | ||
| Other income (expenses), net | (91.3) | (3.6%) | (29.1) | (2.0%) | (193.5) | (2.8%) | (134.8) | (4.6%) | |||
| Loss on investment in associates | (1.2) | (0.0%) | (2.8) | (0.2%) | ( | (3.2) | (0.0%) | (9.2) | (0.3%) | ( | |
| Profit before income taxes | 246.5 | 9.8% | (1,427.8) | (97.2%) | n.m | (526.7) | (7.7%) | (635.2) | (21.5%) | (17.1%) | |
| Income tax and social contribution | (49.4) | (2.0%) | 167.6 | 11.4% | n.m | (78.5) | (1.1%) | 59.3 | 2.0% | n.m | |
| Net income for the period | 197.1 | 7.9% | (1,260.2) | (85.7%) | n.m | (605.2) | (8.8%) | (575.9) | (19.5%) | 5.1% | |
Table 6: Statement of Profit or Loss (Adjusted13)
Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our Adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For that reason, we have included below our historical numbers according to adjustment criteria adopted as from 2Q22. See table 16 for historical metrics with and without the bond adjustment.
| Adjusted Statement of Profit or Loss (R$mn) | 3Q22 | % Rev. | 3Q21 | % Rev. | Δ % | 9M22 | % Rev. | 9M21 | % Rev. | Δ % | |
| Net revenue from transaction activities and other services | 677.8 | 27.0% | 436.7 | 29.7% | 1,839.6 | 26.7% | 1,114.2 | 37.8% | |||
| Net revenue from subscription services and equipment rental | 426.4 | 17.0% | 371.0 | 25.2% | 1,296.3 | 18.8% | 663.8 | 22.5% | |||
| Financial income | 1,251.6 | 49.9% | 607.7 | 41.4% | 3,306.4 | 48.0% | 1,016.5 | 34.4% | |||
| Other financial income | 152.7 | 6.1% | 54.3 | 3.7% | 440.5 | 6.4% | 156.2 | 5.3% | |||
| Total revenue and income | 2,508.4 | 100.0% | 1,469.6 | 100.0% | 70.7% | 6,882.8 | 100.0% | 2,950.7 | 100.0% | 133.3% | |
| Cost of services | (671.3) | (26.8%) | (525.6) | (35.8%) | (1,971.8) | (28.6%) | (1,067.7) | (36.2%) | |||
| Administrative expenses | (251.8) | (10.0%) | (193.8) | (13.2%) | (698.2) | (10.1%) | (414.3) | (14.0%) | |||
| Selling expenses | (385.4) | (15.4%) | (308.2) | (21.0%) | (1,105.1) | (16.1%) | (694.1) | (23.5%) | |||
| Financial expenses, net | (932.2) | (37.2%) | (328.3) | (22.3%) | (2,579.9) | (37.5%) | (570.0) | (19.3%) | |||
| Other income (expenses), net | (55.8) | (2.2%) | (29.6) | (2.0%) | (124.7) | (1.8%) | (69.1) | (2.3%) | |||
| Loss on investment in associates | (1.2) | (0.0%) | (2.8) | (0.2%) | ( | (3.2) | (0.0%) | (9.2) | (0.3%) | ( | |
| Adj. Profit before income taxes | 210.7 | 8.4% | 81.3 | 5.5% | 159.0% | 399.9 | 5.8% | 126.2 | 4.3% | 216.8% | |
| Income tax and social contribution | (48.2) | (1.9%) | 4.0 | 0.3% | n.m | (109.2) | (1.6%) | (9.0) | (0.3%) | ||
| Adjusted Net Income | 162.5 | 6.5% | 85.3 | 5.8% | 90.5% | 290.8 | 4.2% | 117.3 | 4.0% | 147.9% | |
Total Revenue and Income
Total Revenue and Income in 3Q22 was R
Total Revenue and Income is composed of (i) R
Financial Services segment revenue grew
Software revenue growth was
Net Revenue from Transaction Activities and Other Services
Net Revenue from Transaction Activities and Other Services was R
Net Revenue from Subscription Services and Equipment Rental
Net Revenue from Subscription Services and Equipment Rental was R
Financial Income
Financial Income in 3Q22 was R
Other Financial Income
Other Financial Income was R
Costs and Expenses
Cost of Services
Cost of Services were R
Compared with 2Q22, Cost of Services increased
Cost of Services reduced as a percentage of revenues both year over year and quarter over quarter, despite strong growth in our client base, which has a direct impact in Cost of Services, as this line includes upfront costs related to acquisition of new clients.
Administrative Expenses
Administrative Expenses were R
Administrative Expenses in 3Q22 were
| Administrative Expenses in 3Q22 include -R |
Selling Expenses
Selling Expenses were R
Compared with 2Q22, Selling Expenses increased
Financial Expenses, Net
Financial Expenses, Net were R
Compared with the previous quarter, Financial Expenses, net were
| Financial Expenses include -R |
| For comparability purposes, based on adjustments criteria adopted from 2Q22 onwards, in which we do not adjust our results for bond expenses, Financial Expenses, net were R$328.3 million in 3Q21, R |
Mark-to-market on equity securities designated at FVPL
In 3Q22, we recognized R
| Mark-to-market on equity securities designated at FVPL is fully adjusted in our Adjusted Income Statement (see table 15 in Appendix for the Adjustments by P&L line). |
Other Income (Expenses), Net
Other Expenses, Net were R
Compared with 2Q22, Other Expenses, net were R
| Other Expenses, net include -R |
Income Tax and Social Contribution
During 3Q22, the Company recognized income tax and social contribution expenses of R
| Income Tax and Social Contribution include -R |
EBITDA
Adjusted EBITDA was R
Table 7: Adjusted EBITDA Reconciliation
| EBITDA Bridge (R$mn) | 3Q22 | % Rev. | 3Q21 | % Rev. | Δ % | 9M22 | % Rev. | 9M21 | % Rev. | Δ % | |
| Profit before income taxes | 246.5 | 9.8% | (1,427.8) | (97.2%) | n.m | (526.7) | (7.7%) | (635.2) | (21.5%) | (17.1%) | |
| (+) Financial expenses, net | 940.3 | 37.5% | 330.7 | 22.5% | 184.3% | 2,603.2 | 37.8% | 580.8 | 19.7% | 348.2% | |
| (-) Other financial income | (152.7) | (6.1%) | (54.3) | (3.7%) | (440.5) | (6.4%) | (156.2) | (5.3%) | |||
| (+) Depreciation and amortization | 203.8 | 8.1% | 214.0 | 14.6% | ( | 585.6 | 8.5% | 395.8 | 13.4% | ||
| EBITDA | 1,237.9 | 49.4% | (937.3) | (63.8%) | n.m | 2,221.5 | 32.3% | 185.2 | 6.3% | 1099.4% | |
| (+) Non-recurring share-based compensation expenses (a) | 44.4 | 1.8% | (1.7) | (0.1%) | n.m | 88.9 | 1.3% | 65.4 | 2.2% | ||
| (+) Gain on previously held interest in associate | 0.0 | 0.0% | (3.8) | (0.3%) | ( | 0.0 | 0.0% | (15.8) | (0.5%) | ( | |
| (+) Mark-to-market related to the investment in Banco Inter | (111.5) | (4.4%) | 1,341.2 | 91.3% | n.m | 738.6 | 10.7% | 500.0 | 16.9% | ||
| (+) Other Expenses (b) | (17.2) | (0.7%) | 75.0 | 5.1% | n.m | (20.8) | (0.3%) | 97.7 | 3.3% | n.m | |
| Adjusted EBITDA | 1,153.7 | 46.0% | 473.3 | 32.2% | 143.7% | 3,028.3 | 44.0% | 832.5 | 28.2% | 263.8% | |
(a) Consists of expenses related to grants in connection to one-time pre-IPO pool of share-based compensation as well as non-recurring long term incentive plans. For additional details, please refer to our press release “StoneCo Announces New Incentive Plan Pool” as of June 2, 2022.
(b) Consists of the fair value adjustment related to associates call option, M&A and Bond issuance expenses, earn-out interests related to acquisitions, gains/losses in the sale of companies, dividends from Linx and organizational restructuring expenses.
EBITDA was R
Net Income (Loss) and EPS
Adjusted Net Income was R
Adjusted Net Income was
Net Income in 3Q22 was R
On a comparable basis (not adjusting for bond expenses), Adjusted diluted EPS for the Company was R
Table 8: Adjusted Net Income Reconciliation
Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For that reason, we have included below our historical numbers according to adjustment criteria adopted as from 2Q22. See table 16 for historical metrics with and without the bond adjustment.
| Net Income Bridge (R$mn) | 3Q22 | % Rev. | 3Q21 | % Rev. | Δ % | 9M22 | % Rev. | 9M21 | % Rev. | Δ % | ||||||||||||
| Net income for the period | 197.1 | 7.9 | % | (1,260.2 | ) | (85.7 | %) | n.m | (605.2 | ) | (8.8 | %) | (575.9 | ) | (19.5 | %) | 5.1 | % | ||||
| Non-recurring share-based compensation expenses (a) | 44.4 | 1.8 | % | (1.7 | ) | (0.1 | %) | n.m | 88.9 | 1.3 | % | 65.4 | 2.2 | % | 36.0 | % | ||||||
| Amortization of fair value adjustment (b) | 32.2 | 1.3 | % | 98.5 | 6.7 | % | (67.3 | %) | 103.6 | 1.5 | % | 114.2 | 3.9 | % | (9.2 | %) | ||||||
| Gain on previously held interest in associate | 0.0 | 0.0 | % | (3.8 | ) | (0.3 | %) | (100.0 | %) | 0.0 | 0.0 | % | (15.8 | ) | (0.5 | %) | (100.0 | %) | ||||
| Mark-to-market from the investment in Banco Inter (c) | (111.5 | ) | (4.4 | %) | 1,341.2 | 91.3 | % | n.m | 738.6 | 10.7 | % | 500.0 | 16.9 | % | 47.7 | % | ||||||
| Other expenses (d) | (0.9 | ) | (0.0 | %) | 75.0 | 5.1 | % | n.m | (4.5 | ) | (0.1 | %) | 97.7 | 3.3 | % | n.m | ||||||
| Tax effect on adjustments | 1.3 | 0.1 | % | (163.6 | ) | (11.1 | %) | n.m | (30.7 | ) | (0.4 | %) | (68.2 | ) | (2.3 | %) | (55.0 | %) | ||||
| Adjusted net income (as reported) | 162.5 | 6.5 | % | 85.3 | 5.8 | % | 90.5 | % | 290.8 | 4.2 | % | 117.3 | 4.0 | % | 147.9 | % | ||||||
| IFRS basic EPS (e) | 0.65 | n.a. | (4.05 | ) | n.a. | n.m | (1.92 | ) | n.a. | (1.83 | ) | n.a. | 5.1 | % | ||||||||
| Adjusted diluted EPS (as reported) (f) | 0.52 | n.a. | 0.30 | n.a. | 70.5 | % | 0.96 | n.a. | 0.42 | n.a. | 128.8 | % | ||||||||||
| Basic Number of shares | 312.4 | n.a. | 308.9 | n.a. | 1.1 | % | 311.6 | n.a. | 308.9 | n.a. | 0.9 | % | ||||||||||
| Diluted Number of shares | 323.9 | n.a. | 308.9 | n.a. | 4.9 | % | 311.6 | n.a. | 308.9 | n.a. | 0.9 | % | ||||||||||
(a) Consists of expenses related to grants in connection to one-time pre-IPO pool of share-based compensation as well as non-recurring long term incentive plans. For additional details, please refer to our press release “StoneCo Announces New Incentive Plan Pool” as of June 2, 2022.
(b) Related to acquisitions. Consists of expenses resulting from the changes of the fair value adjustments as a result of the application of the acquisition method.
(c) From 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our Adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For comparability purposes, we have included in this line only the mark-to-market from the investment in Banco Inter in both our current and historical numbers, thus not adjusting the bond expenses.
(d) Consists of the fair value adjustment related to associates call option, M&A and Bond issuance expenses, earn-out interests related to acquisitions, gains/losses in the sale of companies, dividends from Linx and organizational restructuring expenses.
(e) Calculated as Net income attributable to owners of the parent (Net Income reduced by Net Income attributable to Non-Controlling interest) divided by basic number of shares. For more details on calculation, please refer to Note 16 of our Unaudited Interim Condensed Consolidated Financial Statements, September 30th, 2022.
(f) Calculated as Adjusted Net income attributable to owners of the parent (Adjusted Net Income reduced by Adjusted Net Income attributable to Non-Controlling interest) divided by diluted number of shares.
Adjusted Net Cash
Our Adjusted Net Cash, a non-IFRS metric, consists of the items detailed in Table 9 below:
Table 9: Adjusted Net Cash
| Adjusted Net Cash (R$mn) | 3Q22 | 2Q22 | 4Q21 |
| Cash and cash equivalents | 2,343.2 | 3,786.8 | 4,495.6 |
| Short-term investments | 2,716.1 | 2,488.0 | 1,993.0 |
| Accounts receivable from card issuers | 18,887.5 | 17,667.7 | 19,286.6 |
| Financial assets from banking solution | 3,074.1 | 2,856.9 | 2,346.5 |
| Derivative financial instrument (b) | 5.0 | 1.5 | 210.3 |
| Adjusted Cash | 27,025.8 | 26,801.0 | 28,332.0 |
| Obligations with banking customers (c) | (3,144.1) | (2,705.0) | (2,201.9) |
| Accounts payable to clients | (14,779.5) | (14,608.2) | (15,726.5) |
| Loans and financing (a) | (4,456.1) | (4,935.0) | (5,861.8) |
| Obligations to FIDC quota holders | (1,291.8) | (1,605.7) | (2,227.2) |
| Derivative financial instrument (b) | (250.1) | (192.8) | (23.2) |
| Adjusted Debt | (23,921.6) | (24,046.6) | (26,040.5) |
| Adjusted Net Cash | 3,104.2 | 2,754.4 | 2,291.5 |
(a) Loans and financing were reduced by the effects of leases liabilities recognized under IFRS 16.
(b) Refers to economic hedge.
(c) Includes deposits from banking customers and values transferred by our banking clients to third parties but not yet settled, which from 3Q22 onwards are recognized in Other Liabilities in our Balance Sheet.
Starting this quarter, we have adjusted our Adjusted Net Cash metric to include our Financial Assets from Banking Solution in our Adjusted Cash and our Obligations with Banking Customers in our Adjusted Debt. This change was done retrospectively for comparability purposes.
Accounts Receivable from Card Issuers are accounted for at their fair value in our balance sheet.
As of September 30, 2022, the Company’s Adjusted Net Cash was R
- R
$391.9 million of cash net income, which is our net income plus non-cash income and expenses as reported in our statement of cash flows; - -R
$140.3 million of interest and income tax paid; - R
$67.8 million of net collections from our credit business; - R
$201.1 million from changes in taxes payable and recoverable taxes; - -R
$109.3 million of capex; - -R
$20.8 million of M&A; and - -R
$40.6 million from other effects.
In the nine months ended 2022, the Company increased its Adjusted Net Cash position by R
Cash Flow
Our cash flow in the quarter was explained by:
- Net cash used in operating activities was R
$169.1 million in 3Q22, explained by R$391.9 million of Net Income after non-cash adjustments and -R$561.0 million from working capital variation. Working capital is composed of (i) R$67.8 million of cash net inflows from our credit business; (ii) R$666.7 million from the following working capital changes: taxes payable (R$259.5 million ), labor and social security liabilities (R$91.2 million ), trade accounts receivable, banking solutions and other assets excluding cash inflow from credit product (R$92.7 million ) and trade accounts payable and other liabilities (R$223.3 million ); (iii) -R$1,136.4 million of changes related to accounts receivable from card issuers, accounts payable to clients and interest income received, net of costs; (iv) -R$140.3 million from payment of interest and taxes and (iv) -R$18.8 million of other working capital changes. - Net cash used in investing activities was R
$276.7 million in 3Q22, explained by (i) R$109.3 million capex, of which R$47.0 million related to property and equipment and R$62.2 million related to development of intangible assets; (ii) R$20.8 million of M&A and (iii) R$152.1 million of acquisition of short-term investments. These were partially offset by R$5.4 million from disposal of non-current assets and equity securities. - Net cash used in financing activities was R
$991.9 million , explained by (i) R$990.4 million payment of debt mostly related to the full amortization of the Company’s debenture, partial amortization of FIDC AR III and amortization of CCBs (“Cédula de Crédito Bancário”); and (ii) R$1.5 million cash outflow from capital events related to non-controlling interests.
Other Information
Conference Call
Stone will discuss its 3Q22 financial results during a teleconference today, November 17, 2022, at 5:00 PM ET / 7:00 PM BRT. The conference call can be accessed at +1 (412) 317 6346 or +1 (844) 204 8586 (US), or +55 (11) 3181 8565 (Brazil), or +44 (20) 3795 9972 (UK).
The call will also be broadcast simultaneously on Stone’s Investor Relations website at https://investors.stone.co/. Following the completion of the call, a recorded replay of the webcast will be available on Stone’s Investor Relations website at https://investors.stone.co/.
About Stone Co.
Stone Co. is a leading provider of financial technology and software solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses.
Investor Contact
Investor Relations
investors@stone.co
Consolidated Statement of Profit or Loss
Table 10: Consolidated Statement of Profit or Loss
| Statement of Profit or Loss (R$mn) | 3Q22 | 3Q21 | 9M22 | 9M21 | |
| Net revenue from transaction activities and other services | 677.8 | 436.7 | 1,839.6 | 1,114.2 | |
| Net revenue from subscription services and equipment rental | 426.4 | 371.0 | 1,296.3 | 663.8 | |
| Financial income | 1,251.6 | 607.7 | 3,306.4 | 1,016.5 | |
| Other financial income | 152.7 | 54.3 | 440.5 | 156.2 | |
| Total revenue and income | 2,508.4 | 1,469.6 | 6,882.8 | 2,950.7 | |
| Cost of services | (671.3) | (525.6) | (1,971.8) | (1,067.7) | |
| Administrative expenses | (283.9) | (359.8) | (794.2) | (599.2) | |
| Selling expenses | (385.4) | (308.2) | (1,105.1) | (694.1) | |
| Financial expenses, net | (940.3) | (330.7) | (2,603.2) | (580.8) | |
| Mark-to-market on equity securities designated at FVPL | 111.5 | (1,341.2) | (738.6) | (500.0) | |
| Other income (expenses), net | (91.3) | (29.1) | (193.5) | (134.8) | |
| Loss on investment in associates | (1.2) | (2.8) | (3.2) | (9.2) | |
| Profit before income taxes | 246.5 | (1,427.8) | (526.7) | (635.2) | |
| Income tax and social contribution | (49.4) | 167.6 | (78.5) | 59.3 | |
| Net income for the period | 197.1 | (1,260.2) | (605.2) | (575.9) | |
Consolidated Balance Sheet Statement
Table 11: Consolidated Balance Sheet Statement
| Balance Sheet (R$mn) | 30-Sep-22 | 31-Dec-21 |
| Assets | ||
| Current assets | 27,999.7 | 29,944.5 |
| Cash and cash equivalents | 2,343.2 | 4,495.6 |
| Short-term investments | 2,716.1 | 1,993.0 |
| Financial assets from banking solution | 3,074.1 | 2,346.5 |
| Accounts receivable from card issuers | 18,842.2 | 19,286.6 |
| Trade accounts receivable | 469.1 | 886.1 |
| Recoverable taxes | 144.3 | 214.8 |
| Prepaid expenses | 109.0 | 169.6 |
| Derivative financial instruments | 51.4 | 219.3 |
| Other assets | 250.4 | 332.9 |
| Non-current assets | 11,729.6 | 12,152.6 |
| Trade accounts receivable | 38.7 | 59.6 |
| Accounts receivable from card issuers | 45.3 | 0.0 |
| Receivables from related parties | 6.0 | 4.7 |
| Deferred tax assets | 742.6 | 580.5 |
| Prepaid expenses | 127.8 | 214.1 |
| Other assets | 124.3 | 141.7 |
| Long-term investments | 329.8 | 1,238.5 |
| Investment in associates | 73.4 | 66.5 |
| Property and equipment | 1,642.8 | 1,569.5 |
| Intangible assets | 8,598.9 | 8,277.5 |
| Total Assets | 39,729.3 | 42,097.0 |
| Liabilities and equity | ||
| Current liabilities | 22,070.2 | 22,789.8 |
| Deposits from banking customers | 2,944.7 | 2,201.9 |
| Accounts payable to clients | 14,760.3 | 15,723.3 |
| Trade accounts payable | 459.6 | 372.5 |
| Loans and financing | 1,833.9 | 2,578.8 |
| Obligations to FIDC quota holders | 666.8 | 1,294.8 |
| Labor and social security liabilities | 466.1 | 273.3 |
| Taxes payable | 303.1 | 176.5 |
| Derivative financial instruments | 250.1 | 23.2 |
| Other liabilities | 385.5 | 145.5 |
| Non-current liabilities | 4,896.8 | 5,679.9 |
| Accounts payable to clients | 19.2 | 3.2 |
| Loans and financing | 2,828.0 | 3,556.5 |
| Obligations to FIDC quota holders | 625.0 | 932.4 |
| Deferred tax liabilities | 578.9 | 629.9 |
| Provision for contingencies | 198.9 | 181.8 |
| Labor and social security liabilities | 27.2 | 32.7 |
| Other liabilities | 619.7 | 343.4 |
| Total liabilities | 26,967.0 | 28,469.8 |
| Equity attributable to owners of the parent | 12,682.8 | 13,536.4 |
| Issued capital | 0.1 | 0.1 |
| Capital reserve | 13,659.2 | 14,541.1 |
| Treasury shares | (69.1) | (1,065.2) |
| Other comprehensive income | (405.3) | (35.8) |
| Retained earnings | (502.1) | 96.2 |
| Non-controlling interests | 79.5 | 90.8 |
| Total equity | 12,762.3 | 13,627.2 |
| Total liabilities and equity | 39,729.3 | 42,097.0 |
Consolidated Statement of Cash Flows
Table 12: Consolidated Statement of Cash Flows
| Cash Flow (R$mn) | 3Q22 | 3Q21 | 9M22 | 9M21 | |
| Net income (loss) for the period | 197.1 | (1,260.2) | (605.2) | (575.9) | |
| Adjustments on Net Income: | |||||
| Depreciation and amortization | 203.8 | 214.0 | 585.6 | 395.8 | |
| Deferred income tax and social contribution | (44.4) | (210.2) | (167.7) | (186.5) | |
| Loss on investment in associates | 1.2 | 2.8 | 3.2 | 9.2 | |
| Interest, monetary and exchange variations, net | (138.5) | (151.7) | (359.9) | (643.2) | |
| Provision for contingencies | 6.8 | 1.4 | 8.4 | 4.8 | |
| Share-based payments expense | 52.4 | 40.7 | 129.3 | 91.9 | |
| Allowance for expected credit losses | 23.8 | 20.5 | 75.2 | 39.4 | |
| Loss on disposal of property, equipment and intangible assets | 1.4 | 44.7 | 25.4 | 84.2 | |
| Effect of applying hyperinflation | 1.0 | 1.3 | 2.5 | 1.3 | |
| Loss on sale of subsidiary | 0.0 | 0.0 | 0.0 | 12.7 | |
| Fair value adjustment in financial instruments at FVPL | (16.3) | 1,566.5 | 1,120.8 | 1,642.7 | |
| Fair value adjustment in derivatives | 103.5 | 90.2 | 168.4 | 85.4 | |
| Remeasurement of previously held interest in subsidiary acquired | 0.0 | (3.8) | 0.0 | (15.8) | |
| Working capital adjustments: | |||||
| Accounts receivable from card issuers | (632.2) | (1,867.9) | 2,007.6 | (2,423.4) | |
| Receivables from related parties | 9.0 | 0.2 | 15.3 | (0.4) | |
| Recoverable taxes | (58.4) | (27.2) | (95.6) | (71.2) | |
| Prepaid expenses | 32.8 | (42.6) | 146.8 | (274.4) | |
| Trade accounts receivable, banking solutions and other assets | 160.5 | 94.8 | 625.5 | (37.8) | |
| Accounts payable to clients | (1,042.6) | 2,915.6 | (4,181.0) | 3,878.4 | |
| Taxes payable | 259.5 | 27.3 | 443.4 | 123.3 | |
| Labor and social security liabilities | 91.2 | 43.6 | 184.2 | 28.8 | |
| Provision for contingencies | (2.2) | (2.6) | (5.1) | (7.9) | |
| Trade Accounts Payable and Other Liabilities | 223.3 | (42.3) | 239.5 | 0.2 | |
| Interest paid | (72.8) | (91.8) | (324.9) | (180.9) | |
| Interest income received, net of costs | 538.3 | 436.8 | 1,452.9 | 1,121.7 | |
| Income tax paid | (67.5) | (21.4) | (154.1) | (90.6) | |
| Net cash provided by (used in) operating activity | (169.1) | 1,778.9 | 1,340.6 | 3,011.9 | |
| Investing activities | |||||
| Purchases of property and equipment | (47.0) | (86.3) | (352.6) | (611.0) | |
| Purchases and development of intangible assets | (62.2) | (63.7) | (215.3) | (140.0) | |
| Acquisition of subsidiary, net of cash acquired | (7.5) | (4,727.9) | (69.8) | (4,737.4) | |
| Proceeds from (acquisition of) short-term investments, net | (152.1) | 1,920.8 | (557.0) | 5,078.3 | |
| Acquisition of equity securities | 0.0 | 0.0 | (15.0) | (2,480.0) | |
| Disposal of short and long-term investments - equity securities | 2.9 | 0.0 | 183.5 | 209.3 | |
| Proceeds from the disposal of non-current assets | 2.5 | (1.4) | 23.1 | (1.3) | |
| Acquisition of interest in associates | (13.3) | (2.9) | (34.9) | (41.5) | |
| Net cash used in investing activities | (276.7) | (2,961.4) | (1,038.1) | (2,723.6) | |
| Financing activities | |||||
| Proceeds from borrowings | 500.0 | 700.0 | 3,250.0 | 5,985.4 | |
| Payment of borrowings | (1,143.1) | (1,581.1) | (4,741.7) | (3,089.4) | |
| Payment to FIDC quota holders | (312.5) | (733.3) | (937.5) | (2,353.3) | |
| Proceeds from FIDC quota holders | 0.0 | 0.0 | 0.0 | 584.2 | |
| Payment of leases | (34.7) | (17.6) | (80.2) | (62.8) | |
| Repurchase of own shares | 0.0 | 0.0 | 53.4 | (988.8) | |
| Acquisition of non-controlling interests | (0.3) | (0.3) | (1.0) | (0.9) | |
| Transaction with non-controlling interests | 0.0 | 0.0 | 0.0 | 230.5 | |
| Dividends paid to non-controlling interests | (1.2) | (0.7) | (2.1) | (1.7) | |
| Cash proceeds from non-controlling interest | 0.0 | 0.0 | 0.0 | 0.9 | |
| Net cash provided by (used in) financing activities | (991.9) | (1,633.1) | (2,459.1) | 304.1 | |
| Effect of foreign exchange on cash and cash equivalents | (6.0) | (15.1) | 4.0 | 2.4 | |
| Change in cash and cash equivalents | (1,443.7) | (2,830.8) | (2,152.5) | 594.9 | |
| Cash and cash equivalents at beginning of period | 3,786.8 | 5,872.7 | 4,495.6 | 2,447.0 | |
| Cash and cash equivalents at end of period | 2,343.2 | 3,041.9 | 2,343.2 | 3,041.9 | |
Stone and Linx Proforma Historical P&L
Table 13: Stone and Linx Pro-forma Historical P&L (Accounting)
| Accounting P&L - Stone and Linx Proforma (R$mn) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Net revenue from transaction activities and other services | 346.4 | 390.3 | 436.7 | 512.7 | 554.9 | 606.9 | 677.8 |
| Net revenue from subscription services and equipment rental | 343.1 | 365.0 | 371.0 | 408.1 | 432.2 | 437.8 | 426.4 |
| Financial income | 372.0 | 43.5 | 607.7 | 861.2 | 949.8 | 1,105.0 | 1,251.6 |
| Other financial income | 44.5 | 66.9 | 54.3 | 91.1 | 133.4 | 154.4 | 152.7 |
| Total revenue and income | 1,106.0 | 865.7 | 1,469.6 | 1,873.0 | 2,070.3 | 2,304.1 | 2,508.4 |
| Cost of services | (359.2) | (454.9) | (525.6) | (646.1) | (674.4) | (626.2) | (671.3) |
| Administrative expenses | (178.7) | (237.8) | (359.8) | (214.1) | (238.2) | (272.0) | (283.9) |
| Selling expenses | (205.9) | (269.8) | (308.2) | (318.4) | (383.7) | (335.9) | (385.4) |
| Financial expenses, net | (107.4) | (173.8) | (330.7) | (688.2) | (708.2) | (954.7) | (940.3) |
| Mark-to-market on equity securities designated at FVPL | 0.0 | 841.2 | (1,341.2) | (764.2) | (323.0) | (527.1) | 111.5 |
| Other income (expenses), net | (44.4) | (100.9) | (29.1) | (51.1) | (31.8) | (70.3) | (91.3) |
| Loss on investment in associates | (3.6) | (2.8) | (2.8) | (1.2) | (0.7) | (1.3) | (1.2) |
| Profit before income taxes | 206.7 | 466.8 | (1,427.8) | (810.4) | (289.8) | (483.4) | 246.5 |
| Income tax and social contribution | (55.3) | (48.0) | 167.6 | 8.9 | (23.2) | (5.9) | (49.4) |
| Net income for the period | 151.4 | 418.8 | (1,260.2) | (801.5) | (313.0) | (489.3) | 197.1 |
Table 14: Stone and Linx Pro-forma Historical P&L (Adjusted17)
Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For that reason, we have included below our historical numbers according to adjustment criteria adopted as from 2Q22. See table 16 for historical metrics with and without the bond adjustment.
| Adjusted P&L - Stone and Linx Proforma (R$mn) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Net revenue from transaction activities and other services | 346.4 | 390.3 | 436.7 | 512.7 | 554.9 | 606.9 | 677.8 |
| Net revenue from subscription services and equipment rental | 343.1 | 365.0 | 371.0 | 408.1 | 432.2 | 437.8 | 426.4 |
| Financial income | 372.0 | 43.5 | 607.7 | 861.2 | 949.8 | 1,105.0 | 1,251.6 |
| Other financial income | 44.5 | 66.9 | 54.3 | 91.1 | 133.4 | 154.4 | 152.7 |
| Total revenue and income | 1,106.0 | 865.7 | 1,469.6 | 1,873.0 | 2,070.3 | 2,304.1 | 2,508.4 |
| Cost of services | (366.6) | (436.3) | (525.6) | (646.1) | (674.4) | (626.2) | (671.3) |
| Administrative expenses | (159.3) | (175.2) | (193.8) | (230.5) | (214.8) | (231.6) | (251.8) |
| Selling expenses | (205.9) | (269.8) | (308.2) | (318.4) | (383.7) | (335.9) | (385.4) |
| Financial expenses, net | (103.2) | (169.6) | (328.3) | (676.8) | (702.1) | (945.6) | (932.2) |
| Mark-to-market on equity securities designated at FVPL | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Other income (expenses), net | (17.6) | (23.2) | (29.6) | (49.0) | (12.1) | (56.8) | (55.8) |
| Loss on investment in associates | (3.6) | (2.8) | (2.8) | (1.2) | (0.7) | (1.3) | (1.2) |
| Adj. Profit before income taxes | 249.8 | (211.2) | 81.3 | (49.1) | 82.5 | 106.7 | 210.7 |
| Income tax and social contribution | (67.1) | 52.5 | 4.0 | 16.5 | (30.8) | (30.2) | (48.2) |
| Adj. Net income for the period | 182.7 | (158.8) | 85.3 | (32.5) | 51.7 | 76.5 | 162.5 |
Adjustments to Net Income by P&L Line
Table 15: Adjustments to Net Income by P&L Line (as reported)
| Adjustments to Net Income by P&L line (R$mn) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Cost of services | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Administrative expenses | 9.3 | 9.7 | 166.0 | (16.4) | 23.5 | 40.4 | 32.1 |
| Selling expenses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Financial expenses, net | 4.2 | 9.2 | 49.8 | 77.6 | 86.7 | 9.1 | 8.0 |
| Bond expenses | 0.0 | 5.0 | 47.3 | 66.2 | 80.6 | 0.0 | 0.0 |
| Other Financial Expenses adjustments | 4.2 | 4.2 | 2.4 | 11.4 | 6.1 | 9.1 | 8.0 |
| Mark-to-market on equity securities designated at FVPL | 0.0 | (841.2) | 1,341.2 | 764.2 | 323.0 | 527.1 | (111.5) |
| Other operating income (expense), net | 24.2 | 42.0 | (0.5) | 2.1 | 19.7 | 13.5 | 35.5 |
| Gain (loss) on investment in associates | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Profit before income taxes | 37.6 | (780.3) | 1,556.4 | 827.5 | 452.9 | 590.1 | (35.8) |
| Income tax and social contribution | (8.5) | 103.8 | (163.6) | 7.6 | (7.6) | (24.3) | 1.3 |
| Net income for the period | 29.1 | (676.5) | 1,392.9 | 835.1 | 445.3 | 565.8 | (34.5) |
Table 16: Adjusted EBT and Adjusted Net Income with and without the bond adjustment
Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For that reason, we have included below our historical numbers according to adjustment criteria adopted as from 2Q22. See table 16 for historical metrics with and without the bond adjustment.
| Profitability with and without bond adjustments (R$mn) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 9M21 | 9M22 | |||
| Consolidated | ||||||||||||
| Adjusted EBT | ||||||||||||
| Reported | 247.6 | (197.7 | ) | 128.7 | 17.2 | 163.1 | 106.7 | 210.7 | 178.6 | 480.5 | ||
| Not Adjusting for the bond | 247.6 | (202.7 | ) | 81.3 | (49.1 | ) | 82.5 | 106.7 | 210.7 | 126.2 | 399.9 | |
| Adjusting for the bond | 247.6 | (197.7 | ) | 128.7 | 17.2 | 163.1 | 202.1 | 315.7 | 178.6 | 680.8 | ||
| Adjusted Net Income | ||||||||||||
| Reported | 187.4 | (150.5 | ) | 132.7 | 33.7 | 132.2 | 76.5 | 162.5 | 169.6 | 371.3 | ||
| Not Adjusting for the bond | 187.4 | (155.5 | ) | 85.3 | (32.5 | ) | 51.7 | 76.5 | 162.5 | 117.3 | 290.8 | |
| Adjusting for the bond | 187.4 | (150.5 | ) | 132.7 | 33.7 | 132.2 | 171.9 | 267.6 | 169.6 | 571.7 | ||
| Adjusted Diluted EPS | ||||||||||||
| Reported | 0.60 | (0.47 | ) | 0.46 | 0.13 | 0.43 | 0.25 | 0.52 | 0.59 | 1.21 | ||
| Not Adjusting for the bond | 0.60 | (0.48 | ) | 0.30 | (0.08 | ) | 0.17 | 0.25 | 0.52 | 0.42 | 0.96 | |
| Adjusting for the bond | 0.60 | (0.47 | ) | 0.46 | 0.13 | 0.43 | 0.56 | 0.84 | 0.59 | 1.86 | ||
| Financial Services Segment | ||||||||||||
| Adjusted EBT | ||||||||||||
| Reported | 250.2 | (197.5 | ) | 151.7 | 35.2 | 146.4 | 84.0 | 177.6 | 204.3 | 408.1 | ||
| Not Adjusting for the bond | 250.2 | (202.6 | ) | 104.3 | (31.0 | ) | 65.9 | 84.0 | 177.6 | 152.0 | 327.5 | |
| Adjusting for the bond | 250.2 | (197.5 | ) | 151.7 | 35.2 | 146.4 | 179.4 | 282.6 | 204.3 | 608.4 | ||
| Adjusted Net Income | ||||||||||||
| Reported | 191.4 | (148.2 | ) | 160.4 | 53.2 | 125.9 | 66.9 | 148.1 | 203.5 | 340.9 | ||
| Not Adjusting for the bond | 191.4 | (153.2 | ) | 113.1 | (13.0 | ) | 45.4 | 66.9 | 148.1 | 151.2 | 260.4 | |
| Adjusting for the bond | 191.4 | (148.2 | ) | 160.4 | 53.2 | 125.9 | 162.2 | 253.1 | 203.5 | 541.3 | ||
| Bond Expenses | 0.0 | 5.0 | 47.3 | 66.2 | 80.6 | 95.3 | 105.0 | 52.3 | 280.9 | |||
Historical Segment Reporting
Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we will no longer adjust the financial expenses related to our bond, which may affect the comparability of our adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. For that reason, we have included below our historical numbers according to adjustment criteria adopted as from 2Q22. See table 16 for historical metrics with and without the bond adjustment.
Table 17: Adjusted Historical Financial Services P&L
| Segment Reporting - Financial Services (R$mn Adjusted) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Total revenue and income | 828.4 | 564.2 | 1,152.5 | 1,545.9 | 1,721.3 | 1,932.6 | 2,121.5 |
| Cost of services | (224.9) | (279.6) | (358.7) | (465.1) | (499.0) | (468.6) | (495.9) |
| Administrative expenses | (89.8) | (91.4) | (112.9) | (145.6) | (131.1) | (145.5) | (160.2) |
| Selling expenses | (159.7) | (215.3) | (248.6) | (263.5) | (323.0) | (267.3) | (318.8) |
| Financial expenses, net | (88.8) | (158.9) | (304.4) | (657.8) | (693.0) | (931.0) | (917.2) |
| Other operating income (expense), net | (14.6) | (21.3) | (23.4) | (45.0) | (9.3) | (36.2) | (51.8) |
| Gain (loss) on investment in associates | (0.5) | (0.4) | (0.1) | 0.0 | 0.0 | 0.0 | 0.0 |
| Profit before income taxes | 250.2 | (202.6) | 104.3 | (31.0) | 65.9 | 84.0 | 177.6 |
| Income tax and social contribution | (58.9) | 49.3 | 8.7 | 18.0 | (20.5) | (17.1) | (29.5) |
| Net income for the period | 191.4 | (153.2) | 113.1 | (13.0) | 45.4 | 66.9 | 148.1 |
Table 18: Adjusted Historical Software P&L
| Segment Reporting - Software (R$mn Adjusted) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Total revenue and income | 30.9 | 42.8 | 301.1 | 311.4 | 326.6 | 350.7 | 366.2 |
| Cost of services | (12.3) | (19.5) | (162.4) | (176.7) | (172.5) | (154.5) | (171.9) |
| Administrative expenses | (14.9) | (17.5) | (72.4) | (76.1) | (74.5) | (75.0) | (81.3) |
| Selling expenses | (1.2) | (6.0) | (55.5) | (51.8) | (56.6) | (63.5) | (61.2) |
| Financial expenses, net | (0.2) | (0.3) | (17.6) | (18.9) | (8.6) | (14.6) | (14.9) |
| Other operating income (expense), net | (1.8) | (0.2) | (4.9) | (3.1) | (1.8) | (2.9) | (3.0) |
| Gain (loss) on investment in associates | 0.0 | (0.1) | (0.0) | 0.0 | (0.4) | (0.3) | (0.2) |
| Profit before income taxes | 0.6 | (0.7) | (11.6) | (15.2) | 12.3 | 40.0 | 33.7 |
| Income tax and social contribution | (1.3) | (2.2) | (3.1) | (0.4) | (10.1) | (13.1) | (18.3) |
| Net income for the period | (0.7) | (3.0) | (14.8) | (15.6) | 2.2 | 26.9 | 15.4 |
Table 19: Adjusted Historical Non-Allocated P&L
| Segment Reporting - Non-Allocated (R$mn Adjusted) | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
| Total revenue and income | 8.3 | 6.5 | 16.0 | 15.7 | 22.4 | 20.8 | 20.8 |
| Cost of services | (2.5) | (3.3) | (4.6) | (4.3) | (2.9) | (3.0) | (3.5) |
| Administrative expenses | (3.7) | (3.3) | (8.5) | (8.9) | (9.2) | (11.2) | (10.3) |
| Selling expenses | (1.9) | (1.9) | (4.1) | (3.1) | (4.2) | (5.1) | (5.4) |
| Financial expenses, net | 0.7 | 5.7 | (6.4) | (0.1) | (0.5) | (0.1) | (0.1) |
| Other operating income (expense), net | (1.0) | (0.7) | (1.3) | (0.9) | (1.0) | (17.7) | (1.0) |
| Gain (loss) on investment in associates | (3.2) | (2.4) | (2.6) | (1.2) | (0.2) | (1.0) | (1.1) |
| Profit before income taxes | (3.2) | 0.6 | (11.4) | (2.8) | 4.3 | (17.3) | (0.6) |
| Income tax and social contribution | (0.0) | 0.1 | (1.6) | (1.1) | (0.2) | 0.0 | (0.4) |
| Net income for the period | (3.2) | 0.7 | (13.0) | (3.9) | 4.2 | (17.3) | (1.0) |
Glossary of Terms
- “Banking”: refers to our digital bank solution and includes insurance products.
- “Financial Services” segment: This segment is comprised of our financial services solutions serving both MSMBs and Key Accounts. Includes mainly our payments solutions, digital banking and credit.
- “Key Accounts”: refers to operations in which Pagar.me acts as a fintech infrastructure provider for different types of clients, especially larger ones, such as mature e-commerce and digital platforms, commonly delivering financial services via APIs. We breakdown Key Accounts into sub-acquirer clients and platform service clients.
- “MSMB Active Payments Client Base”: refers to SMBs (online and offline) and micro-merchants, from our Stone, Pagar.me and Ton products. Considers clients that have transacted at least once over the preceding 90 days, except for Ton active clients which consider clients that have transacted once in the preceding 12 months. Does not consider TapTon clients starting 3Q22.
- “MSMBs”: the combination of SMBs and micro-merchant clients, from our Stone, Pagar.me and Ton products.
- “Omni OMS”: our OMS solution offers multi-channel purchasing processes that integrate stores, franchisees, and distribution centers, thereby providing a single channel for retailers.
- “Non-allocated”: Comprises other smaller businesses which are not allocated in our Financial Services or Software segments.
- “Platform Services”: Included in Key Accounts, encompasses a wide range of business models, including marketplaces, e-commerce platforms, software companies and omnichannel retailers.
- “Revenue”: refers to Total Revenue and Income.
- “Software” segment: This segment is comprised of: (i) Core, comprised of POS/ERP solutions, TEF and QR Code gateways, reconciliation and CRM and (ii) Digital, which includes OMS, e-commerce platform, engagement tool, ads solution and marketplace hub.
- “Take Rate (MSMB)”: Managerial metric that considers the sum of revenues from financial services solutions offered to MSMBs, excluding Ton’s membership fee and other non-allocated revenues, divided by MSMB TPV.
- “Take Rate (Key Accounts)”: Managerial metric that considers revenues from financial services solutions offered to Key Account clients, excluding non-allocated revenues, divided by Key Accounts TPV.
- “Total Account Balance”: accounts balance from our SMBs (online and offline) and micro-merchants in their stone accounts.
- “Total Active Payment Clients”: refers to SMBs (online and offline), micro-merchants and Key Accounts. Considers clients that have transacted at least once over the preceding 90 days, except for Ton product active clients which consider clients that have transacted once in the preceding 12 months. Does not consider TapTon clients starting 3Q22.
- “TPV”: Total Payment Volume. Up to the fourth quarter of 2020, refers to processed TPV. From the first quarter of 2021 onwards, reported TPV figures consider all volumes settled by StoneCo.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. These statements identify prospective information and may include words such as “believe”, “may”, “will”, “aim”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “forecast”, “plan”, “predict”, “project”, “potential”, “aspiration”, “objectives”, “should”, “purpose”, “belief”, and similar, or variations of, or the negative of such words and expressions, although not all forward-looking statements contain these identifying words.
Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Stone’s control.
Stone’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: more intense competition than expected, lower addition of new clients, regulatory measures, more investments in our business than expected, and our inability to execute successfully upon our strategic initiatives, among other factors.
About Non-IFRS Financial Measures
To supplement the financial measures presented in this press release and related conference call, presentation, or webcast in accordance with IFRS, Stone also presents non-IFRS measures of financial performance, including: Adjusted Net Income, Adjusted EPS (diluted), Adjusted Net Margin, Adjusted Net Cash / (Debt), Adjusted Profit (Loss) Before Income Taxes, Adjusted Pre-Tax Margin, EBITDA and Adjusted EBITDA.
A “non-IFRS financial measure” refers to a numerical measure of Stone’s historical or future financial performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS in Stone’s financial statements. Stone provides certain non-IFRS measures as additional information relating to its operating results as a complement to results provided in accordance with IFRS. The non-IFRS financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with IFRS. There are significant limitations associated with the use of non-IFRS financial measures. Further, these measures may differ from the non-IFRS information, even where similarly titled, used by other companies and therefore should not be used to compare Stone’s performance to that of other companies.
Stone has presented Adjusted Net Income to eliminate the effect of items from Net Income that it does not consider indicative of its continuing business performance within the period presented. Stone defines Adjusted Net Income as Net Income (Loss) for the Period, adjusted for (1) non-cash expenses related to the grant of share-based compensation in connection to one-time pre-IPO pool as well as non-recurring long term incentive plans and the fair value (mark-to-market) adjustment for share-based compensation classified as a liability, (2) amortization of intangibles related to acquisitions, (3) one-time impairment charges, (4) unusual income and expenses and (5) tax expense relating to the foregoing adjustments. Adjusted Net Margin is calculated by dividing Adjusted Net Income by Total Revenue and Income. Adjusted EPS (diluted) is calculated as Adjusted Net income attributable to owners of the parent (Adjusted Net Income reduced by Net Income attributable to Non-Controlling interest) divided by diluted number of shares.
Stone has presented Adjusted Profit Before Income Taxes and Adjusted EBITDA to eliminate the effect of items that it does not consider indicative of its continuing business performance within the period presented. Stone adjusts these metrics for the same items as Adjusted Net Income, as applicable.
Stone has presented Adjusted Net Cash metric in order to adjust its Net Cash / (Debt) by the balances of Accounts Receivable from Card Issuers and Accounts Payable to Clients, since these lines vary according to the Company’s funding source together with the lines of (i) Cash and Cash Equivalents, (ii) Short-term Investments, (iii) Debt balances and (iv) Derivative Financial Instruments related to economic hedges of short term investments in assets, due to the nature of Stone’s business and its prepayment operations. In addition, it also adjusts by the balances of Financial Assets from Banking Solutions and Deposits from Banking Customers.
A PDF accompanying this release is available at:
1 See table 16 for historical metrics with and without the bond adjustment.
2 See table 16 for historical metrics with and without the bond adjustment.
3 Margins are calculated by dividing by the revenue of each segment.
4 ARPAC means average revenue per active client and considers our banking and insurance revenues divided by our active banking client base.
5 From 3Q22 onwards, does not include clients that use only TapTon.
6 From 3Q22 onwards, does not include clients that use only TapTon.
7 From 3Q22 onwards, does not include clients that use only TapTon.
8 Does not consider banking accounts from Pagar.me or Ton, except for Total Accounts Balance metric and Stone Card TPV.
9 Banking ARPAC includes card interchange fees, floating revenue, insurance and transactional fees.
10 Volumes related to prepaid cards issued by Stone.
11 Comprises (i) our POS/ERP solutions across different retail and service verticals, which includes Linx and the portfolio of POS/ERP solutions in which we invested over time; (ii) our TEF and QR Code gateways; (iii) our reconciliation solution; and (iv) CRM.
12 Comprises (i) our omnichannel platform (OMS); (ii) our e-commerce platform (Linx Commerce); (iii) engagement tools (Linx Impulse and mlabs); (iv) our ads solution; and (v) marketplace hub.
13 Our adjusted P&L includes the same adjustments made for our Adjusted Net Income but broken down into each P&L line. The purpose of showing it is to make it easier to understand the underlying evolution of our Costs & Expenses, disregarding some non-recurring events associated with each line item.
14 According to IFRS 15, subscription revenue is accounted over the expected life of merchants on a linear basis. As part of the annual assessment of assumptions for linearization of subscription revenue, life of merchants was revised downwards, having a negative impact on subscription revenue in the quarter.
15 Following the partial sale of our stake in Banco Inter, from 2Q22 onwards we no longer adjust the financial expenses related to our bond, which may affect the comparability of our Adjusted results between our numbers from 2Q22 onwards and our numbers from prior periods. See table 16 for historical metrics with and without the bond adjustment.
16 Evolution of Administrative according to our Adjusted P&L (please refer to Table 6). IFRS Administrative expenses have decreased
17 Our adjusted P&L includes the same adjustments made for our Adjusted Net Income but broken down into each P&L line. The purpose of showing it is to make it easier to understand the underlying evolution of our Costs & Expenses, disregarding some non-recurring events associated with each line item.
PDF available: http://ml.globenewswire.com/Resource/Download/8fc62095-ea1c-4bfb-b14e-138782fdeeb1
FAQ
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