Business
StoneCo Reports Third Quarter 2022 Results
Revenue of R$2,508 million, +71% year over year and above guidance of over R$2,400 million; Adj EBT of R$211 million, significantly above guidance and +97%
About this update from Stoneco Ltd.
[{"type":"text","content":"Revenue of R$2,508 million, +71% year over year and above guidance of over R$2,400 million; Adj EBT of R$211 million, significantly above guidance and +97% higher quarter over quarter; Acceleration in net addition of MSMB clients to 248,000 in 3Q22 GEORGE TOWN, Grand Cayman, Nov. 17, 2022 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”) today reports its financial results for its third quarter ended September 30, 2022. “Dear Shareholders, I am pleased to report to you that this quarter we had strong growth with market share gains, doubled our profits sequentially, accelerated net addition of clients and generated strong liquidity with improving Adjusted Net Cash balance. Our profitability recovery continues to gain more momentum. On the top-line, we continued to perform well with nearly 71% year over year growth in our Total Revenue and Income, which was driven by 84% annual growth in our Financial Services segment and nearly 22% in our Software segment. We expected our growth to remain strong because we continue to see solid sales execution in our HUBs and Digital channels, successful cross-sales of new banking accounts and a rebound in our take rates. We were able to beat our top line guidance by about 4.5%, which I believe indicates that we had a good line of sight on our performance, and we were able to execute on our plan for the quarter. On the bottom-line our earnings grew materially faster than we were expecting for the quarter because our repricing initiatives proved to be a little more successful than we were conservatively expecting internally, we gained some incremental operating leverage and our financial expenses as a percentage of our Total Revenue and Income began to normalize after an uptick in the second quarter (a positive trend we continue to see going forward). As a result, our Adjusted EBT of R$210.7 million was well ahead of our guidance for the quarter and our Adjusted EBT margin increased 380 basis points quarter-over-quarter to reach 8.4% in 3Q22. We expect to continue to increase our margins. We keep focused and working hard to balance strong growth with increasing profitability, grow our banking platform, expand and integrate our Software business and rebuild our credit products. Overall, I think we had a good quarter and I am pleased with our results, but we still have plent...