Stone reports R$ 526 million in adjusted net income in 2022 and reinforces its execution strength

Rhea-AI Summary

StoneCo Ltd. (NASDAQ: STNE) reported a remarkable performance in its 4Q22 and 2022 financial results. Total revenue in 4Q22 reached R$ 2.7 billion, a 44.5% year-over-year increase, while adjusted net income soared by 520% to R$ 525.5 million. The company's MSMB client base expanded by 48.3% to 2.5 million active clients, and total payment volume (TPV) hit R$ 100 billion. In 1Q23, Stone anticipates total revenue exceeding R$ 2.6 billion, showcasing a projected 25.6% growth year-over-year. The leadership transition is set with Thiago Piau stepping down as CEO on March 31.

Positive

• Adjusted net income increased by 520% to R$ 525.5 million in 2022.
• Total revenue doubled in 2022, reaching R$ 9.6 billion.
• MSMB client base grew 48.3% to 2.5 million clients.
• Adjusted EBT for 4Q22 was R$ 316 million, exceeding guidance by 26.6%.

Negative

• Leadership transition may create uncertainty during CEO change.

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• Adjusted net income for 2022 grew by 520% and total revenue doubled to R$ 9.6 billion;
• Adjusted EBT was R$ 316 million in 4Q22, 26.6% above guidance and 50.2% higher quarter over quarter;
• MSMB client base grew 48.3% reaching 2.5 million active clients; TPV reached R$ 100 billion in 4Q22; and adjusted net cash increased R$ 1.2 billion in 2022;

SÃO PAULO, March 14, 2023 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE) total revenue grew 44.5% YoY in 4Q22 reaching R$ 2.7 billion, with R$ 316 million of adjusted EBT, 26.6% exceeding guidance and 50.2% higher than 3Q22. EBT margin was 11.7%, 3.3 percentage points higher compared to 3Q22. In 2022, doubled its total revenue over 2021, reaching R$ 9.6 billion and multiplied its adjusted net income by 6.2x to R$ 525.5 million.

The company also increased its MSMB active client base by 48.3% compared with 2021, adding 823 thousand clients reaching 2.5 million clients. The Financial Services segment grew 49.3% YoY in 4Q22 to R$ 2.3 billion, while software segment grew 20.8% reaching R$ 376 million.

"As we continue with our strategy of growth with increased margins, we delivered another quarter with solid results in terms of revenue, profitability, cash generation, and market share gains. Our banking strategy continues to evolve consistently with total deposits reaching R$ 4 billion at the end of the quarter. Additionally, we had positive results with operating margin gains in our Software platform", says Stone CEO, Thiago Piau. "We will continue to grow with focus on profitability and evolving our solutions to continue to support Brazilian entrepreneurs in their businesses", he adds.

In 4Q22, the banking platform reached 693 thousand active clients, up 40.9% versus 4Q21, and expanding the volume of deposits by almost R$ 1 billion quarter over quarter. With products such as Pix, payment slips and other payment methods, deposits reached R$ 3.6 billion in MSMB, up 84.1% from 4Q21. With the launch of the new "Super Conta Ton" for micro-entrepreneurs, banking results are expected to continue accelerating.

For MSMBs, TPV was R$ 81.9 billion in 4Q22, up 22.8% compared to 4Q21, 4% above guidance, and 2x the industry growth, according to ABECS data. Take rate remains stable quarter over quarter at 2.21% and 0.5 percentage point above 4Q21.

Stone's leadership is still in transition, as announced in November. On March 31, Thiago Piau will step down as CEO and will remain on the Board and in the financial committee, while Pedro Zinner, a board member since March 2022, will take over as Stone CEO.

Outlook for 1Q23

• Total Revenue above R$ 2.6 billion in 1Q23, a 25.6% growth YoY.
• MSMB TPV volumes between R$ 77 and R$ 78 billion versus R$ 63.4 billion in 1Q22, a growth between 21.5% and 23.1%.
• Considering stock compensation as expenses in P&L, Stone expects adjusted EBT above R$ 265 million versus R$ 68.8 million in 1Q22.

View original content:https://www.prnewswire.com/news-releases/stone-reports-r-526-million-in-adjusted-net-income-in-2022-and-reinforces-its-execution-strength-301772250.html

SOURCE StoneCo.

FAQ

What were StoneCo's total revenues in 4Q22?

In 4Q22, StoneCo's total revenue reached R$ 2.7 billion.

How much did StoneCo's adjusted net income grow in 2022?

StoneCo's adjusted net income grew by 520% to R$ 525.5 million in 2022.

What is StoneCo's outlook for 1Q23?

StoneCo expects total revenue above R$ 2.6 billion in 1Q23, reflecting a 25.6% growth year-over-year.

How many active clients does StoneCo have in the MSMB segment?

StoneCo's MSMB client base grew to 2.5 million active clients as of 2022.

What was StoneCo's total payment volume in 4Q22?

The total payment volume (TPV) reached R$ 100 billion in 4Q22.