The company beat guidance with pretax earnings 16% ahead of guidance and 10 times higher than the previous quarter
SÃO PAULO, June 2, 2022 /PRNewswire/ — StoneCo Ltd (Nasdaq: STNE) total sales have been achieved BRL 2.07 billion in the first quarter of 2022, an increase of 138.6% compared to the same period in 2021. The numbers were beaten BRL 1.85 to BRL 1.90 billion Forecast based on a 107.8% revenue increase in financial services BRL 1.7 billion in the period and 955.6% increase in software BRL326.6 million in this quarter.
Adjusted EBT (Earnings Before Taxes) climbed out 17.2 million BRL in the fourth quarter 163.1 million BRL in the first quarter of 2022. The positive development results from the combination of a strong increase in total revenues despite seasonality and effective cost and expenditure control. Adjusted net income for the first quarter was BRL132.2 millionfour times higher than 33.7 million BRL reported in the previous quarter.
“The pricing initiatives have gained traction and we have increased the quality of our customer base. We are at a turning point for the company with significant improvement in profitability,” says Stone CEO, Thiago Piau.
The company reported the results of its financial services and software businesses separately. “This separation is in line with our business strategy and provides more clarity and transparency about our performance in each segment,” he adds.
Stone saw a 63.1% increase in total payment volume (TPV) in the first quarter BRL 83.2 billion, with a focus on micro, small and medium-sized enterprises (MSMEs), which grew 93.3% in the first quarter on an increase in subscriber base, reaching 1.9 million users in Q122, and an average increase in TPV per subscriber. The take rate increased from 1.71% to 2.06% in the quarter.
Stone forecasts total sales of BRL 2.15 billion to BRL 2.2 billion in Q222 with a growth of 148% to 154% compared to Q221 (pro forma for Linx). The estimate states that MSME TPV will be BRL 67 billion BRL 68 billion in Q222 by 71% to 73% year-on-year and pre-tax profit growth 163 million BRL of adjusted EBT 185 million BRL before bond financing expenses or from BRL82 million too over 90 million BRL.
In order to further develop the company, improve its corporate governance and achieve higher levels of efficiency, Stone announces the arrival of new professionals. Markus Fontoura takes over the position of Chief Technology Officer (CTO) after positions at Microsoft, Google, Yahoo and IBM. Thomas Gregorycurrently on maternity leave, has more than 30 years of experience in the financial services sector as Risk Director for small and medium-sized companies at Santander Brasil, will become Head of Credit in the second half of the year. Osmar Castellani assumes the position of VP of Finance in the Software Division. He has extensive investment banking experience, having held positions at Goldman Sachs and Credit Suisse.