Company beats forecast with pre-tax profit 16% higher than forecast and 10 times higher than the previous quarter
SAO PAULO, June 2, 2022 /PRNewswire/ — StoneCo Ltd (Nasdaq: STNE) total revenue reached R$2.07 billion in the first quarter of 2022, an increase of 138.6% compared to the same period in 2021. The figures exceeded BRL1.85 at R$1.90 billion forecast due to a 107.8% increase in Financial Services revenue to R$1.7 billion over the period, and 955.6% increase in software to R$326.6 million in this neighbourhood.
Adjusted EBT (earnings before tax) went from R$17.2 million in the fourth quarter for R$163.1 million in the first quarter of 2022. The positive performance results from the combination of a strong increase in total revenue, despite seasonality, and effective control of costs and expenses. Adjusted net earnings for the first quarter were R$132.2 millionfour times greater than R$33.7 million announced in the previous quarter.
“Pricing initiatives have gained momentum and we have improved the quality of our customer base. We are in an inflection period for the business, with significant improvement in profitability,” says Stone’s CEO, Thiago Piau.
The company released results for its Financial Services and Software businesses separately. “This separation is in line with our business strategy and provides more clarity and transparency on our performance in each segment,” he adds.
Stone saw a 63.1% increase in total payment volume (TPV) in the first quarter, to R$83.2 billion, with a focus on micro, small and medium-sized enterprises (MSMEs), which grew 93.3% in the first quarter due to an increase in the customer base, reaching 1.9 million users in the first quarter. T122, and an average increase in POS per customer. The participation rate increased from 1.71% to 2.06% during the quarter.
Stone projects total revenue of R$2.15 billion at R$2.2 billion in Q222, with a growth of 148% to 154% compared to Q221 (pro-forma for Linx). The estimate is that the POS for MSMEs will be BRL 67 billion for R$68 billion in Q222, up 71% to 73% year-on-year, and pre-tax profit growth of R$163 million of EBT adjusted to R$185 million before financial charges on bonds or R$82 million to end 90 million BRL.
To continue to evolve the company, improve its governance and achieve higher levels of efficiency, Stone announces the arrival of new professionals. Marcus Fontoura takes over as Chief Technology Officer (CTO), after stints at Microsoft, Google, Yahoo and IBM. Thomas Gregoirecurrently on garden leave, has more than 30 years of experience in financial services as risk director for small and medium enterprises at Santander Brasil, will be responsible for credit in the second half. Osmar Castellani takes over as vice president of finance for the software division. He has extensive experience in investment banking, with stints at Goldman Sachs and Credit Suisse.