Stone presents plans for more than doubling profitability over the next four years

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Stone (Nasdaq: STNE, B3: STOC31) Announces Ambitious Growth Plans at Investor Day Event in New York. The company aims to more than double profitability over 4 years, exceeding an adjusted net income of R$ 4.3 billion. By 2027, Stone plans to exceed R$ 600 billion in TPV and a take rate above 2.70% in MSMB, exceed R$ 14 billion in client deposits, and achieve a credit portfolio above R$ 5.5 billion. The company's strategy is based on growing in the MSMB market, increasing engagement of its base, and gaining operational efficiency. Stone will prioritize four verticals on its software platform - retail, food, pharma, and gas stations - aiming to consolidate itself as the one-stop-shop for its customers. The arrival of the new CEO, Pedro Zinner, has led to a restructuring to accelerate integration of financial services solutions with software assets.

Positive

• The company's ambitious growth plans and focus on efficiency could lead to significant profitability and market expansion. The addition of 316 thousand new active clients in the quarter and the tripled adjusted net income compared to last year demonstrate strong momentum and growth potential.

Negative

• None.

The announcement was made during the Investor Day held in New York, for presenting the company's medium- and long-term plans

SÃO PAULO, Nov. 15, 2023 /PRNewswire/ -- During the Investor Day event held in New York on Wednesday (15), Stone (Nasdaq: STNE, B3: STOC31) announced the company's projections for the coming years. With a business model focused on growth and efficiency gains, the expectation is for more than doubling profitability over 4 years, hoping to exceed an adjusted net income of R$ 4.3 billion. In 2027, Stone plans to exceed R$ 600 billion in TPV and a take rate above 2.70% in MSMB, exceed R$ 14 billion in client deposits, and achieve a credit portfolio above R$ 5.5 billion.

The company presented a strategy based on three priority pillars: growing in the Micro, Small, and Medium Enterprise (MSMB) market, increasing engagement of its base by expanding the offering of financial services and integration with software, and increasingly gaining more operational efficiency to grow with low incremental investment.

Four verticals - retail, food, pharma, and gas stations - will be prioritized on the software platform from now on. The objective is for Stone to consolidate itself as the one-stop-shop for its customers, integrating its solutions to help them sell more, manage better, and make their businesses thrive.

After the arrival of the company's new CEO, Pedro Zinner, in April this year, StoneCo. announced a restructuring for directing the company in its market strategies by customer segment, aiming to accelerate integration of financial services solutions with software assets. "Throughout our trajectory, we have developed a powerful growth engine that has enabled us to scale quickly. We have built a profitable and cash-generating business model. Now, we have many opportunities for using efficiency to improve profitability, as we have historically prioritized speed of growth", Zinner explains.

Last Friday (10), StoneCo. released its results for the third quarter of 2023. Adjusted net income more than tripled compared to last year and closed the period at R$ 435 million. Stone expanded its base to 3.3 million active payments customers with the addition of 316 thousand new active clients in the quarter. Net revenue for the quarter was R$ 3.1 billion, and Adjusted EBT was R$ 545 million.

More information about Stone's Investor Day can be found at https://investors.stone.co/

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SOURCE Stone

FAQ

What are Stone's growth projections for the coming years?

Stone aims to more than double profitability over 4 years, exceeding an adjusted net income of R$ 4.3 billion. By 2027, the company plans to exceed R$ 600 billion in TPV and a take rate above 2.70% in MSMB, exceed R$ 14 billion in client deposits, and achieve a credit portfolio above R$ 5.5 billion.

What is Stone's strategy based on?

Stone's strategy is based on growing in the MSMB market, increasing engagement of its base, and gaining operational efficiency. The company will prioritize four verticals on its software platform - retail, food, pharma, and gas stations - aiming to consolidate itself as the one-stop-shop for its customers.

What changes have occurred at Stone after the arrival of the new CEO?

After the arrival of the new CEO, Pedro Zinner, StoneCo. announced a restructuring to accelerate integration of financial services solutions with software assets.