Stone delivers a consistent quarter with strong TPV growth and advancements in credit and banking

Rhea-AI Summary

StoneCo (Nasdaq: STNE, B3: STOC31) reported strong Q2 2024 results, with adjusted net income of R$ 497 million, up 54% year-over-year. Total revenue reached R$ 3.2 billion, an 8% increase from the previous year. The company's financial services segment saw an 11% revenue growth to R$ 2.8 billion, with Total Payment Volume (TPV) from SMEs growing 25% year-over-year. The SME client base expanded by 30% to 3.9 million active payment clients. Stone's banking platform experienced significant growth, with a 62% increase in client base to 2.7 million and a 65% rise in deposits to R$ 6.5 billion. The credit portfolio grew 32% quarter-over-quarter to R$ 712 million. The software segment's revenue remained stable at R$ 384 million. Stone's CEO, Pedro Zinner, highlighted the company's progress in building a comprehensive ecosystem for Brazilian SMEs and the execution of a R$ 1 billion share buyback program.

Positive

• Adjusted net income increased by 54% year-over-year to R$ 497 million
• Total revenue grew by 8% to R$ 3.2 billion
• Total Payment Volume (TPV) from SMEs grew by 25% year-over-year
• SME client base expanded by 30% to 3.9 million active payment clients
• Banking platform client base grew by 62% to 2.7 million
• Deposits increased by 65% to R$ 6.5 billion compared to Q2 2023
• Credit portfolio grew by 32% quarter-over-quarter to R$ 712 million
• Executed nearly R$ 1 billion in share buybacks

Negative

• Software segment revenue remained flat year-over-year at R$ 384 million

• Adjusted net income was R$ 497 million, a 54% increase compared to the same period last year
• Adjusted EBT of R$ 652 million increased by 46% compared to the second quarter of 2023
• Total Payment Volume (TPV) of SMEs had an annual growth of 25%, also considering PIX transactions

SÃO PAULO, Aug. 15, 2024 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE, B3: STOC31) delivered a strong second quarter, marked by solid TPV growth and continued advancements in Credit and Banking. The company reported adjusted net income of R$ 497 million, a 54% increase over the same period last year. Total revenue reached R$ 3.2 billion, an 8% year-over-year growth. Adjusted net cash stood at R$ 5.3 billion, an increase of R$ 117 million in the quarter and R$ 900 million in the year. Adjusted EBT of R$ 652 million represents a 46% increase compared to 2Q23, with an adjusted EBT margin of 20.3%.

In the second quarter, financial services revenue reached R$ 2.8 billion, 11% higher than the previous year, with Total Payment Volume (TPV) from SME (small and medium-sized enterprises) clients growing by 25% year over year, including PIX QR Code processed volume. The segment showed a 7 bps increase in take rate year over year, and the SME client base grew by 30% annually, reaching 3.9 million active payment clients.

The Banking platform saw a 62% growth in its client base, reaching 2.7 million in the quarter, with deposits totaling R$ 6.5 billion, a 65% increase compared to the same period in 2023. In the credit solution, Working Capital and Credit Card products grew by 32% quarter over quarter, reaching a portfolio of R$ 712 million. In the software segment, revenue remained stable year over year at R$ 384 million, and Adjusted EBITDA reached R$ 64 million in 2Q24, with an adjusted margin of 16.7%.

"In 2Q24, we continued to advance our strategic priorities, building an increasingly comprehensive ecosystem of solutions for Brazilian small and medium-sized entrepreneurs. In light of our consistent results trajectory and long-term commitment, coupled with the more volatile dynamics of the capital markets, we allocated resources to execute nearly the entirety of the company's buyback program approved in 2023, totaling R$ 1 billion," said Pedro Zinner, CEO of Stone.

About Stone
A financial technology company offering a complete platform of solutions designed to improve the lives of Brazilian entrepreneurs by helping them sell more, manage their businesses better, and achieve continuous growth. Through technology and innovation, Stone contributes to the strengthening and evolution of the market. With clients across Brazil, the company fosters close and personalized relationships with each merchant it serves.

View original content:https://www.prnewswire.com/news-releases/stone-delivers-a-consistent-quarter-with-strong-tpv-growth-and-advancements-in-credit-and-banking-302223901.html

SOURCE StoneCo. Ltd

FAQ

What was StoneCo's (STNE) adjusted net income in Q2 2024?

StoneCo's adjusted net income in Q2 2024 was R$ 497 million, representing a 54% increase compared to the same period last year.

How much did StoneCo's (STNE) Total Payment Volume (TPV) from SMEs grow in Q2 2024?

StoneCo's Total Payment Volume (TPV) from SMEs grew by 25% year-over-year in Q2 2024, including PIX transactions.

What was the growth in StoneCo's (STNE) banking platform client base in Q2 2024?

StoneCo's banking platform client base grew by 62% in Q2 2024, reaching 2.7 million clients.

How much did StoneCo (STNE) spend on share buybacks?

StoneCo executed nearly the entirety of its R$ 1 billion share buyback program approved in 2023.