With market gain and profitability, Stone closed the third quarter with R$ 435 million adjusted net earnings

Rhea-AI Summary

StoneCo Ltd. (Nasdaq: STNE, B3: STOC31) exceeded projections in 3Q23, reporting R$ 3.1 billion net revenue, a 25.2% annual growth, and R$ 545 million adjusted EBT, a 228% increase year-on-year. The Financial Services segment saw a 29% revenue growth, and the active payments customer base reached 3.3 million. The MSME segment experienced a 20% TPV increase, reaching R$ 89.6 billion. The company also implemented a share buyback program and reorganized its management structure for better market alignment.

Positive

• StoneCo reported impressive results in 3Q23, with a net revenue of R$ 3.1 billion and a 25.2% annual growth, exceeding projections.
• The Financial Services segment experienced a significant 29% revenue growth, reaching R$ 2.7 billion, and the active payments customer base expanded to 3.3 million.
• The MSME segment demonstrated strong growth with a 20% increase in TPV, totaling R$ 89.6 billion, reflecting the company's positive performance in the market.
• The implementation of a share buyback program and the reorganization of the management structure indicate strategic initiatives aimed at enhancing shareholder value and market alignment.

Negative

• None.

• The result was more than three times greater than for the same period in 2022;
• The company reported R$ 3.1 billion net revenue, and 25.2% annual growth;
• Adjusted EBT totals R$ 545 million, a 228% increase year-on-year, 16% above guidance;
• TPV in the Micro, Small and Medium Entrepreneurs (MSME) segment had a 20% annual increase;

SÃO PAULO, Nov. 10, 2023 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE, B3: STOC31), closed the third quarter with strong growth, exceeding projections and with significant evolution across all products. Adjusted EBT (earnings before taxes) was R$ 545 million, a 228% increase year-on-year, and 21.9% compared to the previous quarter. Net revenue closed 3Q23 at R$ 3.1 billion, with a 25.2% growth year on year.

In the Financial Services segment, revenue grew by 29%, reaching R$ 2.7 billion. The Banking platform reached 1.9 million customers, with a 244.2% annual increase, closing the quarter with R$ 4.5 billion in deposits, above 51.1% in the annual comparison. In the credit operation, 3Q23 marked the end of the testing phase, with a portfolio of R$ 113 million. The company plans to continue expanding supply cautiously and observing market conditions.

The software segment continues to improve the EBITDA margin, with efficiency gains in the integration of back-office processes, which resulted in a 6 p.p. increase in margin, reaching 20.5%. Revenue grew by 5.9% year-on-year, totaling R$ 388 million.

Maintaining the trajectory of evolution and profitability, adjusted net earnings reached R$ 435 million, a 302% increase in the year, with an adjusted net margin of 13.9%, compared to 10.9% in 2Q23. Adjusted net cash closed at R$ 4.9 billion, up 56.5% YoY and 12.3% in the quarter, with a R$ 530 million increase.

The active payments customer base reached 3.3 million, with the addition of 316 thousand customers, and the MSME segment growing 41.7% year-on-year, exceeding 3.2 million. The volume of processed payments (TPV) in MSMEs grew by 20% in the year, totaling R$ 89.6 billion, more than double the market. This growth was also linked to the evolution of the Take Rate, which rose to 2.49%, a 28 percentage points increase year over year.

"This quarter's strong results demonstrate discipline and focus in deploying our strategy. We grew consistently and with quality. We are looking to the future to consolidate the integration of our services for delivering the best and most complete solutions to our customers", says CEO Pedro Zinner.

Share buyback 
On Sep 21, Stone's Board of Directors approved a repurchase program of R$ 300 million in outstanding Class A common shares. The program was concluded in November.

Management structure reorganization 
On Oct 9, the company announced organizational changes in the management structure for better aligning the company with specific market entry strategies by customer segment, and accelerating the integration of its segments.

About Stone. 
Stone is a financial technology company that has a complete solutions platform, whose purpose is to improve the lives of Brazilian entrepreneurs, helping them to sell more, manage their business better, and grow steadily. Through technology and innovation, it contributes to strengthening and evolving the market. With customers spread across Brazil, it develops a close and personalized relationship with each of the retailers it serves.

View original content:https://www.prnewswire.com/news-releases/with-market-gain-and-profitability-stone-closed-the-third-quarter-with-r-435-million-adjusted-net-earnings-301985122.html

SOURCE Stone

FAQ

What were StoneCo's net revenue and adjusted EBT in 3Q23?

In 3Q23, StoneCo reported R$ 3.1 billion in net revenue and R$ 545 million in adjusted EBT, marking a significant 25.2% annual growth and a 228% increase year-on-year, respectively.

How many active payments customers did StoneCo have in 3Q23?

StoneCo's active payments customer base reached 3.3 million in 3Q23, with a notable addition of 316 thousand customers.

What was the growth percentage of the MSME segment's TPV in 3Q23?

The MSME segment experienced a 20% increase in TPV in 3Q23, totaling R$ 89.6 billion, reflecting strong performance in the market.

What strategic initiatives did StoneCo implement in 3Q23?

In 3Q23, StoneCo implemented a share buyback program and reorganized its management structure for better market alignment and accelerating the integration of its segments.