Enhanced Investments - Financial Portal

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

Published: 2023-03-14 21:54:00 ET

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.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.