Slide 1: Earnings Presentation 4Q23
Earnings Presentation 4Q23
Slide 2: Disclaimer
4Q23 DISCLAIMER This presentation and the information contained herein does not constitute an offer for sale or solicitation of an offer to buy any securities of the issuer. This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section
Slide 3: Leading to our strategic priorities
4Q23 2024-2027 2023 Leading to our strategic priorities: ✓ Reorganized ourselves to deliver solutions more effectively Win in the across different client segments MSMB Market ✓ Sharpened our strategic focus on the following fronts: • Software business integration focusing on 4 key verticals • Levera
Slide 4: Our Strategic Priorities Highlights
4Q23 Win in the MSMB1 Market Drive Engagement Scale through platforms GROWTH MONETIZATION EFFICIENCY MSMB TPV MSMB Take Rate Adj Adm Expenses6 R$98bn 4Q23 | +20% y/y or 2.43% 4Q23 | +22 bps y/y R$277mn 4Q23 | -6% y/y Our +25% y/y including PIX 2.45% 2023 | +30 bps y/y R$1,052mn 2023 | +6% y/y Strate
Slide 5: Consolidated Results: Growth with efficiency
4Q23 Total Revenue Adjusted EBT1 Adjusted Net Income2 R$bn R$mn R$mn +20.1% +2.3x +2.8x X3.2 638 X 3.1 X 564 3.0 0.4 X2.7 545 Consolidated 2.7 0.4 0.4 447 435 Results 0.4 0.4 19.6% 322 Growth with 276 X 324 17.3% 237 17.4% efficiency 2.3 2.3 2.6 2.7 2.9 15.1% 204 X 13.9% 11.9% 10.2% 10.9% 8.7% 7.5%
Slide 6: Payments: Sustained growth with improved mix
4Q23 MSMB1 Payments Client Base MSMB1 Payments Net Adds MSMB Active Payments Clients2 (‘000) Quarterly MSMB Payments Net Adds (‘000) +37.4% -9.2% X 317 3,471 X Payments 3,279 Sustained X 2,526 X 212 growth with X 192 improved mix X 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 Note 1. MSMB is composed of TON, Stone
Slide 7: Payments: Strong TPV growth with pricing discipline
4Q23 MSMB1 TPV MSMB Take Rate4 R$bn % More than 2x the industry growth2 +20.2% +22 bps +24.8% X Payments X X 106.1 2.49% X 2.43% 98.5 7.6 Strong TPV 89.6 95.1 5.5 2.21% growth with X 81.9 85.0 3.1 pricing discipline 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 MSMB PIX QR Code 3 Note 1. MSMB is composed of TON, St
Slide 8: Payments: Continued positive mix shift driving take rate
4Q23 Key Accounts1 TPV Key Accounts1 Take Rate R$bn % -17.6% +11 bps Payments X 18.2 Continued X X 15.0 X X 1.28% positive mix 14.4 X 1.17% 1.13% shift driving take rate y/y growth 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 8 Note 1. Key Accounts refers to operations in which Pagar.me acts as a fintech infrastru
Slide 9: Banking: Increased engagement
4Q23 Client Deposits1 Banking Active Clients2 R$bn (‘000) +52.1% +3.0x Higher engagement and X Banking seasonal effects X 6.1 1,932 2,096 X Increased 693 engagement 4.5 4Q22 3Q23 4Q23 by offering a X 4.0 more robust 6.2% Banking ARPAC3 payment 4.9% 5.0% R$/month per client workflow Impacted by new m
Slide 10: Credit: Expanding our offer while maintaining risk standards
4Q23 Working Capital Portfolio1 Loan Loss Provision Expenses R$mn R$mn +2.7x +2.1x 309 X X 113 X 10.8 X 39 Credit 19 3.7 4 19 0.7 Expanding our 2Q23 Portfolio 3Q23 4Q23 Credit Contracts ('000) 2Q23 3Q23 4Q23 offer while maintaining our credit Ratio % NPLs3 risk standards 20% 20% 20% 0.31% 0.40% 1.96
Slide 11: Financial Services: Revenue growth with margin expansion
4Q23 Financial Services Revenue Financial Services Adjusted EBT1 R$bn R$mn +24.4% +2.5x Financial X 2.9 X X 604 Services 2.7 X2.3 485 Revenue 21.0% growth with 17.7% margin X expansion 246 10.7% 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 Adjusted EBT Adjusted EBT Margin Note 1. Our adjusted numbers no longer adj
Slide 12: Software: Unlock value through the creation of bundles
4Q23 MSMB TPV Overlap1 Cross-sell Priorities R$bn +19.3% ✓ Set up our go-to-market strategy and Stone scale our distribution model for combined MSMB TPV software and financial services offerings Potential Software X X TPV in Software Unlock value X through the 5.8 ✓ Enhance the product value proposi
Slide 13: Software: Lower revenue impacted by the Enterprise segment
4Q23 Software Revenue1 Software Adjusted EBITDA2 R$mn % Impacted by one- time restructuring costs of R$11.5mn -3.5% -1.6% XX376 388 XX 79 X363 y/y Software X -54.7% X X 26% 60 Lower revenue 25% 29% +11.3% y/y 59 impacted by the Enterprise 27% 24% 24% -16.2% y/y 20.5% segment 15.8% 16.2% y/y 46% 46%
Slide 14: Costs & Expenses
4Q23 Costs & Expenses Adjusted Costs & Expenses – Consolidated1 q/q highlights R$mn 4Q22 1Q23 2Q23 3Q23 4Q23 Δ% y/y Δ% q/q 1 Remained flat despite higher provisions for loan Total Revenue 2,706.1 2,711.7 2,954.8 3,139.9 3,248.7 20.1% 3.5% losses and investments in technology. Excluding 1 Cost of ser
Slide 15: Cash Generation
4Q23 Cash Generation Adjusted Net Cash Position R$bn q/q highlights +R$1.6bn Adjusted net cash1 position increased by R$1.6bn or +44.8% y/y, with a positive evolution of +R$196mn or +4.0% q/q. The quarterly +R$1.9bn y/y or R$489mn q/q +R$196mn when excluding the buyback of evolution is mostly explai
Slide 16: Paving the way for the next chapter
4Q23 Paving the way for the next chapter1 BOARD OF DIRECTORS COMMITTEES People and Compensation Audit Proposed Board of Directors (upon approval in the upcoming AGM) Mauricio Luchetti Diego Fresco CHAIRMAN CHAIRMAN Mauricio Luchetti NEW CHAIRMAN Silvio Morais NEW Luciana Aguiar Gilberto Caldart NEW
Slide 17: Guidance
4Q23 Guidance 2023 Δ % y/y 2024 Δ % y/y 2027 CAGR 24-27 MSMB TPV (R$bn) 350 +21% > 412 > +18% > 600 13% Client Deposits (R$bn) 6.1 +52% > 7.0 > +14% > 14.0 26% GROWTH ↑ Credit Portfolio (R$bn) 0.3 n.a. > 0.8 > +2.6x > 5.5 90% MSMB Take Rate (%) 2.45% +30bps > 2.49% > +4bps > 2.70% - MONETIZATION ↑ A
Slide 18: Summary Statement of Profit and Loss
4Q23 Statement of Profit and Loss Adjusted Statement of Profit and Loss1 Δ% Δ% R$mn 4Q23 % Rev 4Q22 % Rev 4Q23 % Rev 4Q22 % Rev y/y y/y Net revenue from transaction activities 868.1 26.7% 777.8 28.7% 11.6% 868.1 26.7% 777.8 28.7% 11.6% and other services Net revenue from subscription services 459.1
Slide 19: Adjusted Net Income Reconciliation and EPS
4Q23 Net Income Bridge (R$mn)1 4Q22 4Q23 2022 2023 Net income (loss) for the period 78.8 656.2 (526.4) 1,600.4 Amortization of fair value adjustment 2 35.0 (15.8) 138.6 92.4 APPENDIX Mark-to-market related to the investment in Banco Inter 3 114.5 0.0 853.1 (30.6) Adjusted Net Other expenses 4 (13.4)
Slide 20: Historical Accounting Statement of Profit or Loss
4Q23 Statement of Profit or Loss (R$mn) 4Q22 1Q23 2Q23 3Q23 4Q23 Δ% y/y 2022 2023 Δ% y/y Net revenue from transaction activities and other services 777.8 733.1 840.1 868.5 868.1 11.6% 2,617.4 3,309.8 26.5% Net revenue from subscription services and equipment 464.6 445.1 457.3 463.4 459.1 (1.2%) 1,76
Slide 21: Thank you
Thank you 4Q23 Investor Relations investors@stone.co