Stone: growth with profitability reaching R$ 322 million adjusted net income in 2Q23

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• The Company reported a R$ 3 billion net revenue, 28% higher than 2Q22;
• Adjusted EBT grew 489% compared to 2Q22 totaling R$ 447 million;
• TPV of Micro, Small, and Medium size Businesses (MSMB) had a 19.3% annual increase, 3.7 times above the industry's;

SÃO PAULO, Aug. 16, 2023 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE, B3: STOC31) maintained its growth trajectory, with results consistently above market projections in 2Q23. Adjusted EBT was R$ 447 million, 489% higher compared to 2Q22. Net revenue closed the quarter at R$ 3 billion, up 28% YoY. The Financial Services segment grew 32.0% in the annual comparison with a R$ 2.6 billion revenue, and 9.2% in Software revenue to R$ 383 million.

Adjusted net income was R$ 322 million, up 477% from 2Q22, with a 10.9% adjusted net margin, against 8.7% in 1Q23. Adjusted net cash reached R$ 4.3 billion, 57.1% higher in the year and 8.5% in the quarter. The active payment customer base reached 3 million, with 196.6 thousand new customers.

The result was driven by strong performance in the MSMB segment, whose active base increased 43.3% YoY, with the processed payment volume (TPV) growing 19.3% in the year, reaching R$ 83.3 billion. Stone's MSMB TPV grew 3.7 times above the industry, according to Brazilian Association of Credit Card and Services Companies data. The MSMB Take Rate rose to 2.48%, in a 38 basis points increase in the year.

The banking platform maintained consistent growth, reaching almost 1.7 million customers - a 217.8% increase in the year and 33.4% in the quarter, driven by increasing number of Ton customers, after the "Super Conta Ton" was launched in 1Q23. In credit operations, from January to July, the company loaned close to R$ 26.0 million to approximately 850 customers, maintaining the gradual evolution strategy, testing and consolidating the implemented processes.

"The second quarter results achieved reflect our focus and continued dedication to sustainable growth, excellence in financial services and software, and evolving our platform for serving Brazilian entrepreneurs. Over the long term, our goal is to build an end-to-end solution for our customers, and our software business is an integral part of this strategic vision. We have a lot of work ahead of us, but we are heading in the right direction. StoneCo's commitment to innovation and transparency drives us to face challenges and pursue opportunities with confidence. We will continue to walk the path of success, offering our customers and partners increasingly robust and sustainable solutions", says CEO, Pedro Zinner.

3Q23 Outlook:

• Total Revenue above R$ 3.075 billion, annual growth above 22.6%.
• MSME TPV between R$ 87 and R$ 88 billion, annual growth between 16.4% and 17.8%.
• Adjusted EBT above R$ 470 million.

About Stone. A Financial technology company with a platform of complete solutions, whose purpose is to improve the life of Brazilian entrepreneurs, helping them to sell more, manage their business better, and always grow. Through technology and innovation, it contributes to strengthening and evolving the market. With customers spread across Brazil, it develops a close and personalized relationship with each of the shopkeepers it serves.

SOURCE Stone