Stone reports 2Q22 revenues of R$ 2.3 billion and consolidated TPV of R$ 91 billion, combined with solid profitability increase

Rhea-AI Summary

StoneCo Ltd. (Nasdaq: STNE) reported impressive 2Q22 results with net revenues of R$ 2.3 billion, exceeding guidance by 5%. This growth was fueled by a 101.5% YoY increase in Financial Services revenue, totaling R$ 1.9 billion, and a 23% rise in Software revenues. Adjusted net income surged to R$ 76 million, a 48% increase from the previous quarter. The total payment volume (TPV) grew 50% YoY to R$ 91 billion, while the active customer base expanded 94% YoY to over 2 million. Looking ahead, Stone expects revenue to exceed R$ 2.4 billion in 3Q22.

Positive

• Adjusted net income increased to R$ 76 million, 48% higher quarter-on-quarter.
• Net revenues of R$ 2.3 billion exceeded guidance by 5%.
• Financial Services segment revenue grew 101.5% YoY to R$ 1.9 billion.
• Total payment volume (TPV) grew 50% YoY, reaching R$ 91 billion.
• Active customer base increased 94% YoY, surpassing 2 million.

Negative

• None.

The company bet all quarterly guidance lines; Adjusted net income of R$ 76 million was 48% higher vs. previous quarter on a comparable basis

SÃO PAULO, Aug. 18, 2022 /PRNewswire/ -- Today, August 18, StoneCo Ltd. (Nasdaq: STNE) reported its financial results for the second quarter of 2022. The highlights are net revenues of R$ 2.3 billion, 5% above the guidance, and pre-tax earnings of R$ 107 million, 19% above the guidance. Revenue growth was driven by a 101.5% year on year rise in revenues from the Financial Services segment, which reached R$ 1.9 billion, combined with a 23% increase in revenues from the Software segment, which reached R$ 351 million. The company expects to continue consistently growing revenue and expanding margins throughout 2022.

Consolidated adjusted EBT (earnings before taxes) was R$ 107 million, up 29.4% vs. the first quarter of the year, and 19% above the guidance of R$ 90 million. The EBT improvement is related to continuous efforts to adjust the company's pricing policy to the new interest rates reality, combined with efficiency gains in terms of costs and expenses. Adjusted net income was R$ 76.5 million, while net margin improved to 3.3% in 2Q22. This compares to 1Q22 adjusted net income of R$ 51.7 million. Stone focus remains on balancing growth and profitability, mainly in micro, small and medium-sized businesses (MSMB) operations.

Total payment volume (TPV) grew 50% year on year, reaching R$ 91 billion in 2Q22. For MSMBs, the TPV was R$ 69.9 billion, a 78% increase YoY. Performance was driven by continued growth of the active payment solution's customer base, which grew 94% year on year and surpassed the 2 million-customer milestone. The take rate for MSMBs continues to expand, reaching 2.09% in 2Q22, against 2.06% in 1Q22 and 1.71% in 4Q21, as the company continued to adjust prices following recent interest rate increases in Brazil.

At its banking platform, Stone grew the client base by 55% year on year and reached 526,100 active customers. "Our average monthly revenue per active client (ARPAC) has tripled in one year. We recorded R$ 2.3 billion in deposits, a 170% increase year on year. Our clients use our ecosystem to pay bills, make transactions, accept Pix, make card payments, purchase insurance, or look for other solutions for their businesses", says Stone's CEO, Thiago Piau.

Scenario for 3Q22

For the third quarter, Stone expects to continue expand revenue and profitability:

• Total revenue should exceed R$ 2.4 billion, with a growth of over 63% year over year;
• MSMB TPV should continue to grow and remain between R$ 73 and R$ 74 billion;
• Adjusted EBT (earnings before taxes) is expected to exceed R$ 125 million, against R$ 107 million in the second quarter.

About Stone

Stone is a technology company that provides financial and software solutions, whose purpose is to improve the life of Brazilian entrepreneurs, helping them to sell through multiple channels, better manage their businesses, and grow.

View original content:https://www.prnewswire.com/news-releases/stone-reports-2q22-revenues-of-r-2-3-billion-and-consolidated-tpv-of-r-91-billion-combined-with-solid-profitability-increase-301608900.html

SOURCE StoneCo.

FAQ

What were StoneCo's net revenues for the second quarter of 2022?

StoneCo reported net revenues of R$ 2.3 billion for the second quarter of 2022.

How much did StoneCo's adjusted net income increase in 2Q22?

Adjusted net income for StoneCo increased to R$ 76 million, which is a 48% rise compared to the previous quarter.

What is the expected revenue for StoneCo in the third quarter of 2022?

StoneCo expects its total revenue to exceed R$ 2.4 billion in the third quarter of 2022.

How much did the total payment volume (TPV) grow for StoneCo?

Total payment volume (TPV) grew 50% year-on-year, reaching R$ 91 billion in 2Q22.

What was the growth percentage of StoneCo's Financial Services segment in 2Q22?

The Financial Services segment experienced a 101.5% year-on-year revenue increase in 2Q22.