Business
StoneCo Reports Second Quarter 2020 Financial Results
GEORGE TOWN, Grand Cayman, Aug. 11, 2020 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”), a leading provider of financial
About this update from Stoneco Ltd.
[{"type":"text","content":"GEORGE TOWN, Grand Cayman, Aug. 11, 2020 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, today reports its financial results for its second quarter ended June 30, 2020.\n To our shareholders: \"As the world continues to face the public health and economic challenges caused by the COVID-19 crisis, Stone remains focused on our mission – and we continue to find ways to help merchants to thrive through the offering of best-in-class service and products delivered by an amazing and talented team of hard-working people who always put our clients at the center of everything we do. Our Business is Strong and Fairly Resilient In the second quarter of 2020, our business began to rebound and return to pre-COVID levels across all of our business lines. We gained an incremental R$500 million in TPV in the quarter and our year-over-year growth rates improved each month – culminating in nearly 47% growth in June and 129% growth in July. Our HUB volumes and client net adds are re-accelerating and we were able to maintain our normalized take rates and Net Margin relatively flat at 1.77% and 22.5%, respectively. As a result, our free cash flow was strong, improving by R$264 million over 1Q20. Throughout the quarter, we have also maintained our high-quality level of customer service – which is even more important and differentiated in a crisis. Strong Performance in Digital Commerce Not surprisingly, the strongest performing part of our business was in Digital Commerce, where we have made significant investments over the past 12 months. This strategy has served us well during the crisis. Our online TPV grew 80% year-over-year in 2Q20 and continues to trend favorably - with over 94% growth in July 2020 (excluding the favorable, but likely temporary impact of Coronavoucher). Our eCommerce revenues from SMBs have grown nearly 100% since the beginning of the year driven by the mix shift from physical storefront sales to eCommerce, which we have helped our clients manage. Similarly, our software investments have performed very well. Our software revenues reached an annualized run-rate of over R$100mm in 2Q20, driven by a 126% increase in our software client base since the beginning of the year –...