StoneCo Ltd. (Nasdaq: STNE, B3: STOC31) (“Stone” or the “Company”)
today reports its financial results for its second quarter ended
June 30, 2023.
Operating and Financial Highlights for 2Q23
Note about our non-IFRS Adjusted P&L
metrics: as anticipated in our 4Q22 Earnings announcement,
from 1Q23 onwards we no longer adjust the expenses related to
share-based compensation, which may affect the comparability of our
current Adjusted results to our Adjusted numbers prior to 1Q23. To
allow for better understanding of our business performance trends,
the tables in this Earnings Release will make reference to our
Adjusted P&L metrics including share-based compensation
expenses (i.e. not adjusting those expenses out), both in 1Q23 and
in prior periods for comparability purposes.
MAIN CONSOLIDATED FINANCIAL METRICS
Table 1: Main Consolidated Financial
Metrics
Main Consolidated Financial Metrics (R$mn) |
2Q23 |
1Q23 |
2Q22 |
Δ y/y % |
Δ q/q % |
|
1H23 |
1H22 |
y/y % |
Total Revenue and Income |
2,954.8 |
2,711.7 |
2,304.1 |
28.2% |
9.0% |
|
5,666.4 |
4,374.4 |
29.5% |
Adjusted EBITDA |
1,498.8 |
1,251.4 |
1,026.5 |
46.0% |
19.8% |
|
2,750.2 |
1,830.1 |
50.3% |
Adjusted EBT |
447.0 |
324.0 |
75.8 |
489.3% |
38.0% |
|
771.0 |
144.7 |
433.0% |
Adjusted Net Income |
322.0 |
236.6 |
55.8 |
476.9% |
36.1% |
|
558.6 |
98.4 |
467.8% |
Adjusted Net Cash |
4,327.2 |
3,988.8 |
2,754.4 |
57.1% |
8.5% |
|
4,327.2 |
2,754.4 |
57.1% |
|
|
|
|
|
|
|
|
|
|
- Total
Revenue and Income reached R$2,954.8 million, growing 28.2% year
over year. This was primarily driven by (i) 32.0% increase
in financial services platform revenues, which reached R$2,551.2
million mainly due to above-market TPV growth in our MSMB segment
and higher take rate; and (ii) 9.2% increase in software platform
revenues, which reached R$382.9 million due to organic growth in
our Core POS and ERP solutions.
- Adjusted
EBITDA in 2Q23 was R$1,498.8 million, up 46.0% year over
year and 19.8% quarter over quarter. Adjusted EBITDA
Margin increased 4.6 percentage points sequentially to 50.7% mainly
due to higher sequential Total Revenue and Income, excluding other
financial income and continued realization of operating leverage
across costs and expenses.
- Adjusted
EBT in 2Q23 was R$447.0 million, up 489.3% year over year
and 38.0% quarter over quarter, with adjusted EBT
margin increasing 3.2 percentage points sequentially to 15.1%. This
higher margin was primarily driven by consolidated revenue growth
and costs improvements, aided by operating leverage across all
expenses lines. These effects were partially offset by increased
financial expenses as percentage of revenues.
- Adjusted
Net Income in 2Q23 was R$322.0 million, 476.9%
higher year over year, with adjusted net margin of 10.9%.
This compares with R$236.6 million and a margin of 8.7% in 1Q23.
Sequential margin improvement was driven by the same factors that
impacted Adjusted EBT margin, and partially offset by a higher
effective tax rate in the quarter.
- Adjusted
Net Cash position was R$4,327.2 million in 2Q23, increasing 57.1%
year over year or 8.5% quarter over quarter. The
sequential increase of R$338.4 million was driven by (i) R$647.0
million of cash net income (net income plus non-cash income and
expenses as reported in our statement of cash flows), (ii) plus a
R$67.3 million inflow from labor and social security liabilities,
and (iii) partially offset by R$332.2 million of capex and R$28.7
million from M&A expenses. Other effects contributed negatively
with R$14.9 million.
SEGMENT REPORTING
Below, we provide our main financial metrics
broken down into our two reportable segments and non-allocated
activities.
Table 2: Financial metrics by
segment1
Segment Reporting (R$mn Adjusted) |
2Q23 |
% Rev1 |
1Q23 |
% Rev1 |
2Q22 |
% Rev |
Δ y/y % |
Δ q/q % |
Total Revenue and Income |
2,954.8 |
100.0% |
2,711.7 |
100.0% |
2,304.1 |
100.0% |
28.2% |
9.0% |
Financial Services |
2,551.2 |
100.0% |
2,335.9 |
100.0% |
1,932.6 |
100.0% |
32.0% |
9.2% |
Software |
382.9 |
100.0% |
358.2 |
100.0% |
350.7 |
100.0% |
9.2% |
6.9% |
Non-Allocated |
20.7 |
100.0% |
17.5 |
100.0% |
20.8 |
100.0% |
(0.5%) |
18.1% |
Adjusted EBITDA |
1,498.8 |
50.7% |
1,251.4 |
46.1% |
1,026.5 |
44.5% |
46.0% |
19.8% |
Financial Services |
1,427.5 |
56.0% |
1,209.0 |
51.8% |
989.9 |
51.2% |
44.2% |
18.1% |
Software |
66.5 |
17.4% |
39.9 |
11.1% |
53.1 |
15.1% |
25.1% |
66.7% |
Non-Allocated |
4.9 |
23.4% |
2.5 |
14.2% |
(16.6) |
(79.6%) |
n.m |
94.7% |
Adjusted EBT |
447.0 |
15.1% |
324.0 |
11.9% |
75.8 |
3.3% |
489.3% |
38.0% |
Financial Services |
398.2 |
15.6% |
306.0 |
13.1% |
53.3 |
2.8% |
646.5% |
30.1% |
Software |
45.5 |
11.9% |
16.9 |
4.7% |
39.9 |
11.4% |
14.0% |
169.6% |
Non-Allocated |
3.4 |
16.2% |
1.2 |
6.7% |
(17.4) |
(83.5%) |
n.m |
186.2% |
|
|
|
|
|
|
|
|
|
FINANCIAL SERVICES SEGMENT PERFORMANCE
HIGHLIGHTS
Table 3: Financial Services Main Operating and Financial
Metrics23
Main Financial Services Metrics |
2Q23 |
1Q23 |
2Q22 |
Δ y/y % |
Δ q/q % |
Financial Metrics (R$mn) |
|
|
|
|
|
Total Revenue and Income |
2,551.2 |
2,335.9 |
1,932.6 |
32.0% |
9.2% |
Adjusted EBITDA |
1,427.5 |
1,209.0 |
989.9 |
44.2% |
18.1% |
Adjusted EBT |
398.2 |
306.0 |
53.3 |
646.5% |
30.1% |
Adjusted EBT margin (%) |
15.6% |
13.1% |
2.8% |
12.8 p.p. |
2.5 p.p. |
|
|
|
|
|
|
TPV (R$bn) |
97.4 |
93.5 |
90.7 |
7.4% |
4.2% |
MSMB |
83.3 |
78.9 |
69.9 |
19.3% |
5.6% |
Key Accounts |
14.1 |
14.6 |
20.9 |
(32.5%) |
(3.5%) |
|
|
|
|
|
|
Monthly Average TPV MSMB ('000) |
9.2 |
9.5 |
11.8 |
(22.5%) |
(3.3%) |
|
|
|
|
|
|
Active Payments Client Base
('000)2 |
3,014.7 |
2,818.1 |
2,122.3 |
42.0% |
7.0% |
MSMB2 |
2,962.0 |
2,758.1 |
2,066.4 |
43.3% |
7.4% |
Key Accounts |
62.6 |
67.6 |
61.2 |
2.2% |
(7.4%) |
|
|
|
|
|
|
Net Adds ('000)2 |
196.6 |
234.0 |
196.1 |
0.2% |
(16.0%) |
MSMB2 |
203.9 |
231.9 |
195.5 |
4.3% |
(12.1%) |
Key Accounts |
(5.0) |
2.6 |
1.0 |
n.m |
n.m |
|
|
|
|
|
|
Take Rate |
|
|
|
|
|
MSMB |
2.48% |
2.39% |
2.09% |
0.38 p.p. |
0.09 p.p. |
Key Accounts |
1.14% |
1.15% |
0.86% |
0.28 p.p. |
(0.00 p.p.) |
|
|
|
|
|
|
Banking |
|
|
|
|
|
MSMB Active Banking Client Base ('000) |
1,672.0 |
1,253.0 |
526.1 |
217.8% |
33.4% |
Client Deposits (R$mn) |
3,918.6 |
3,902.2 |
2,705.0 |
44.9% |
0.4% |
MSMB Banking ARPAC3 |
25.3 |
36.7 |
39.0 |
(35.1%) |
(31.0%) |
|
|
|
|
|
|
-
Financial Services segment Revenue reached
R$2,551.2 million in 2Q23, a 32.0% increase year over
year. Segment growth was driven by strong performance in our MSMB
client segment, attributed mainly to (i) a 19.3% year over year TPV
growth - in line with guidance and above overall industry of 5.2%,
(ii) a higher take rate of 2.48% in 2Q23, up 38 basis points year
over year, and (iii) a robust client base expansion of 43.3% year
over year. The ongoing strength of our MSMB client segment
continues to offset our strategic de-emphasis on Key Accounts.
-
Financial Services segment Adjusted EBT grew
646.5% year over year and 30.1% quarter over quarter to
R$398.2 million in 2Q23. Adjusted EBT margin
reached 15.6%, an improvement of 2.5 percentage points sequentially
from 13.1% in 1Q23. This increase was driven by the compounding
effect of strong segment revenue growth combined with the continued
operating leverage within segment operations, including (i) reduced
cost of services and other operating expenses, (ii) efficiency
gains in administrative and selling expenses, and partially offset
by higher financial expenses as a percentage of revenues quarter
over quarter.
-
Consolidated TPV grew 7.4% year over year to
R$97.4 billion in 2Q23, as a result of 19.3% growth in the MSMB
segment and partially offset by a decrease of 32.5% in Key
Accounts’ TPV.
- Total
Payments Active Client base reached 3.0
million4 representing a total quarterly
net addition of 196,600 active clients.
- MSMB
(Micro and SMB clients)
- MSMB
Active Payment Clients grew 43.3% year over year. Net Adds
was 203,900, increasing 4.3% year over year to reach 2,962,0005
Active MSMB clients, with positive trends across all MSMB tiers in
2Q23. The net additions for the quarter were slightly lower than
the 231,900 reported in the previous quarter, largely due to the
conclusion of a specific marketing campaign in 1Q23.
- MSMB TPV
was R$83.3 billion, up 19.3% year over year and 3.7x above
industry growth, driven primarily by the growth in our MSMB active
payment client base. MSMB TPV was in-line with our guidance range
of between R$83 to R$84 billion.
- MSMB
Average Monthly TPV per client decreased 22.5% year over
year. Consistent with previous quarters, this decline is
primarily due to the mix shift in the composition of our MSMB TPV,
as a result of the rapid growth in the adoption of our Ton solution
for micro-merchants, which have a lower average TPV compared to our
SMB merchants, which predominantly use our Stone and Pagar.me
solutions.
- MSMB
Take Rate was 2.48% in 2Q23, up from 2.39% in 1Q23, mainly
explained by (i) higher monetization of clients, including the
effect from the interchange cap regulation for prepaid and debit
cards (effective as of April 2023), and (ii) stronger growth in
micro and small clients, which have higher take rates. Year over
year, MSMB take rate increased 38 bps explained by the same factors
abovementioned for the sequential evolution, combined with (i)
adjustments in our commercial policy and (ii) contribution from our
banking solution, mainly floating and PIX revenues.
- Banking
solutions6
- Banking
client base has consistently increased, reaching almost 1.7
million, 217.8% higher year over year and 33.4% quarter
over quarter, driven by (i) the strong increase in the number of
Ton clients with our full banking solution, following the launch of
our “Super Conta Ton” in 1Q23 and (ii) the continued activation of
new banking accounts within our Stone payments client base.
- Total
deposits grew slightly to R$3,918.6 million in the
quarter, despite an unusual negative impact of R$286.0
million (with no impact to P&L). This was associated with a
shift in our chargeback and cancellation collection process for
Ton, following client migration to Super Conta TON. Adjusting for
this impact, overall deposits would have grown 7.8% sequentially,
compared to 5.6% growth in MSMB TPV, illustrating the continued
increase in client engagement within our banking solution.
- Banking
ARPAC7 (average revenue per active
client) decreased 35.1% year over year and 31.0%
quarter over quarter to reach R$25.3 per client per month. As
explained in previous earnings announcements, the decrease in ARPAC
reflects the mix effect of selling more banking into our Ton client
base, with positive impacts to our number of accounts and overall
banking revenues, despite lower average revenue per active client,
as micro-merchants have naturally smaller revenue
contribution.
- Credit
Solutions:
- New
Credit Product Disbursement - As of July 31, 2023, we
disbursed a total of R$26.0 million of the new credit product to
approximately 850 clients, with an outstanding balance of R$23.5
million at month-end.
- Key
Accounts Clients
- Key
Accounts TPV of R$14.1 billion, 32.5% lower year over year
and 3.5% lower quarter over quarter, in-line with our expectations
as we continued to de-emphasize and offboard low margin
sub-acquirer volumes.
- Key
Accounts take rate was 1.14% in 2Q23, relatively flat
sequentially and 28 basis points higher than in 2Q22. The year over
year variation is mainly driven by a positive mix shift within our
Key Accounts portfolio due to the roll-off of lower margin clients
and volumes, combined with higher prices and partially compensated
by lower prepayment penetration in Key Account clients.
SOFTWARE PERFORMANCE
HIGHLIGHTS
Table 4: Software Main Operating and Financial
Metrics
Main Software Metrics (R$mn) |
2Q23 |
1Q23 |
2Q22 |
Δ y/y % |
Δ q/q % |
Financial Metrics |
|
|
|
|
|
Total Revenue and Income |
382.9 |
358.2 |
350.7 |
9.2% |
6.9% |
Adjusted EBITDA |
66.5 |
39.9 |
53.1 |
25.1% |
66.7% |
Adjusted EBITDA Margin |
17.4% |
11.1% |
15.1% |
2.2 p.p. |
6.2 p.p. |
Adjusted EBT |
45.5 |
16.9 |
39.9 |
14.0% |
169.6% |
|
|
|
|
|
|
- Software
segment Revenue and Income grew 9.2% year over year in 2Q23 to
R$382.9 million. This growth was driven by continued
organic active store expansion in our Core POS and ERP business,
mainly concentrated in the SMB segment. The main reasons for the
deceleration in revenue growth in software compared with previous
quarters were: (i) lower average inflation (e.g. average IGPM of
-4.5% in 2Q23, compared with 1.9% in 1Q23 and 12.0% in 2Q22), which
affects annual price adjustments in software and; (ii) weaker
performance of transactional revenues within our digital
business.
- Software
Segment Adjusted EBITDA reached R$66.5 million in 2Q23, up
25.1% year over year, with a margin of 17.4%. This
compares with R$53.1 million and a margin of 15.1% in 2Q22, and
R$39.9 million and 11.1% margin for 1Q23. The 6.2 percentage points
margin growth over 1Q23 can be attributed to: (i) the higher
revenue during the period, (ii) increased capitalization of R&D
projects, and (iii) reduced share-based compensation expenses.
These gains were partially offset by (iv) increased selling
expenses from investments in the sales team and marketing, and (v)
severance costs amounting to R$6.5 million, as the company reduced
headcount in 2Q23 in line with our integration plans within
StoneCo.
- Software
Segment Adjusted EBT was R$45.5 million in 2Q23, up 14.0%
compared with 2Q22. Compared with 1Q23, Adjusted EBT increased
169.6% from R$16.9 million to R$45.5 million in 2Q23, with Adjusted
EBT Margin increasing from 4.7% to 11.9%. The increase in Adjusted
EBT quarter over quarter is a result of the combination of higher
revenues and lower costs and expenses as explained above for
Adjusted EBITDA.
- Our
Core7 Software business revenue
increased 10.8% year over year. This increase was mainly
driven by a higher number of active stores, especially in smaller
clients.
- Our
Digital8 business revenue
decreased -4.4% year over year mainly due to lower
transactional revenues.
RECENT DEVELOPMENTS
Management and board changes
On May 26, the Company issued a press release
announcing the appointment of Mateus Scherer Schwening to the role
of Chief Financial Officer effective as of July
1st, 2023, a position previously held by interim
CFO Silvio Morais. The Company also announced the retirement of
President Augusto Lins from full-time responsibilities,
transitioning to a part-time senior advisory role.
In addition, the Board of Directors’ Finance
& Risk committee was split into two separate committees. Silvio
Morais has returned to his role on the Board of Directors and now
leads the Finance committee, which also includes Thiago Piau and
Diego Fresco. The Risk committee is comprised of Patricia Schindler
as Head of the committee, Luciana Aguiar and Conrado Engel.
Furthermore, on June 23, the Company announced
changes in Investor Relations, with Rafael Martins Pereira, VP of
Finance and Investor Relations Officer, departing from the Company
effective July 31, 2023. Mateus Scherer, who was recently appointed
CFO, has also assumed the role of Investor Relations Officer.
OUTLOOK FOR 3Q23
The outlook below constitutes forward-looking
information within the meaning of applicable securities laws and is
based on a number of assumptions and subject to a number of risks.
Actual results could vary materially as a result of numerous
factors, including certain risk factors, many of which are beyond
StoneCo´s control. Please see “Forward-looking Statements” below.
In view of these factors, we expect the following:
- Total Revenue
and Income is expected to be above R$3,075 million in 3Q23, or a
year over year growth of above 22.6%.
- Adjusted EBT
(not adjusting for share-based compensation expenses) is expected
to be above R$470 million in 3Q23, compared with R$447.0 million in
2Q23.
- MSMB TPV is
expected to be between R$87 billion and R$88 billion in 3Q23 (up
16.4% to 17.8% year over year).
Income Statement Table
5: Statement of Profit or Loss (IFRS, as Reported)
Statement of Profit or Loss (R$mn) |
2Q23 |
% Rev. |
2Q22 |
% Rev. |
Δ % |
1H23 |
% Rev. |
1H22 |
% Rev. |
Δ % |
Net revenue from transaction activities and other services |
840.1 |
28.4% |
606.9 |
26.3% |
38.4% |
1,573.1 |
27.8% |
1,161.8 |
26.6% |
35.4% |
Net revenue from subscription services and equipment rental |
457.3 |
15.5% |
437.8 |
19.0% |
4.5% |
902.5 |
15.9% |
870.0 |
19.9% |
3.7% |
Financial income |
1,462.6 |
49.5% |
1,105.0 |
48.0% |
32.4% |
2,837.6 |
50.1% |
2,054.7 |
47.0% |
38.1% |
Other financial income |
194.8 |
6.6% |
154.4 |
6.7% |
26.1% |
353.2 |
6.2% |
287.9 |
6.6% |
22.7% |
Total revenue and income |
2,954.8 |
100.0% |
2,304.1 |
100.0% |
28.2% |
5,666.4 |
100.0% |
4,374.4 |
100.0% |
29.5% |
Cost of services |
(685.3) |
(23.2%) |
(626.2) |
(27.2%) |
9.4% |
(1,406.6) |
(24.8%) |
(1,300.5) |
(29.7%) |
8.2% |
Administrative expenses |
(303.9) |
(10.3%) |
(272.0) |
(11.8%) |
11.7% |
(601.9) |
(10.6%) |
(510.3) |
(11.7%) |
18.0% |
Selling expenses |
(411.9) |
(13.9%) |
(335.9) |
(14.6%) |
22.6% |
(801.8) |
(14.2%) |
(719.7) |
(16.5%) |
11.4% |
Financial expenses, net |
(1,073.8) |
(36.3%) |
(954.7) |
(41.4%) |
12.5% |
(1,997.5) |
(35.3%) |
(1,663.0) |
(38.0%) |
20.1% |
Mark-to-market on equity securities designated at FVPL |
0.0 |
0.0% |
(527.1) |
(22.9%) |
(100.0%) |
30.6 |
0.5% |
(850.1) |
(19.4%) |
n.m |
Other income (expenses), net |
(56.7) |
(1.9%) |
(70.3) |
(3.1%) |
(19.3%) |
(158.3) |
(2.8%) |
(102.1) |
(2.3%) |
54.9% |
Loss on investment in associates |
(0.8) |
(0.0%) |
(1.3) |
(0.1%) |
(37.6%) |
(1.8) |
(0.0%) |
(2.0) |
(0.0%) |
(7.6%) |
Profit before income taxes |
422.3 |
14.3% |
(483.4) |
(21.0%) |
n.m |
729.1 |
12.9% |
(773.2) |
(17.7%) |
n.m |
Income tax and social contribution |
(115.1) |
(3.9%) |
(5.9) |
(0.3%) |
1863.9% |
(196.2) |
(3.5%) |
(29.1) |
(0.7%) |
575.3% |
Net income for the period |
307.2 |
10.4% |
(489.3) |
(21.2%) |
n.m |
532.9 |
9.4% |
(802.3) |
(18.3%) |
n.m |
|
|
|
|
|
|
|
|
|
|
|
Table 6: Statement of Profit or Loss
(Adjusted9) From 1Q23
onwards, we stopped adjusting share-based compensation expenses in
our adjusted results. Those changes may affect the comparability of
our adjusted results between different quarters. For that reason,
we have included below our historical numbers on a comparable
basis, not adjusting for share-based compensation expenses,
according to our current adjustment criteria.
Adjusted Statement of Profit or Loss (R$mn) |
2Q23 |
% Rev. |
2Q22 |
% Rev. |
Δ % |
1H23 |
% Rev. |
1H22 |
% Rev. |
Δ % |
Net revenue from transaction activities and other services |
840.1 |
28.4% |
606.9 |
26.3% |
38.4% |
1,573.1 |
27.8% |
1,161.8 |
26.6% |
35.4% |
Net revenue from subscription services and equipment rental |
457.3 |
15.5% |
437.8 |
19.0% |
4.5% |
902.5 |
15.9% |
870.0 |
19.9% |
3.7% |
Financial income |
1,462.6 |
49.5% |
1,105.0 |
48.0% |
32.4% |
2,837.6 |
50.1% |
2,054.7 |
47.0% |
38.1% |
Other financial income |
194.8 |
6.6% |
154.4 |
6.7% |
26.1% |
353.2 |
6.2% |
287.9 |
6.6% |
22.7% |
Total revenue and income |
2,954.8 |
100.0% |
2,304.1 |
100.0% |
28.2% |
5,666.4 |
100.0% |
4,374.4 |
100.0% |
29.5% |
Cost of services |
(685.3) |
(23.2%) |
(626.2) |
(27.2%) |
9.4% |
(1,406.6) |
(24.8%) |
(1,300.5) |
(29.7%) |
8.2% |
Administrative expenses |
(269.1) |
(9.1%) |
(231.6) |
(10.1%) |
16.2% |
(531.6) |
(9.4%) |
(446.4) |
(10.2%) |
19.1% |
Selling expenses |
(411.9) |
(13.9%) |
(335.9) |
(14.6%) |
22.6% |
(801.8) |
(14.2%) |
(719.7) |
(16.5%) |
11.4% |
Financial expenses, net |
(1,059.7) |
(35.9%) |
(945.6) |
(41.0%) |
12.1% |
(1,968.5) |
(34.7%) |
(1,647.7) |
(37.7%) |
19.5% |
Other income (expenses), net |
(81.0) |
(2.7%) |
(87.6) |
(3.8%) |
(7.6%) |
(185.1) |
(3.3%) |
(113.4) |
(2.6%) |
63.1% |
Loss on investment in associates |
(0.8) |
(0.0%) |
(1.3) |
(0.1%) |
(37.6%) |
(1.8) |
(0.0%) |
(2.0) |
(0.0%) |
(7.6%) |
Adj. Profit before income taxes |
447.0 |
15.1% |
75.8 |
3.3% |
489.3% |
771.0 |
13.6% |
144.7 |
3.3% |
433.0% |
Income tax and social contribution |
(125.0) |
(4.2%) |
(20.0) |
(0.9%) |
524.0% |
(212.4) |
(3.7%) |
(46.3) |
(1.1%) |
358.9% |
Adjusted Net Income |
322.0 |
10.9% |
55.8 |
2.4% |
476.9% |
558.6 |
9.9% |
98.4 |
2.2% |
467.8% |
|
|
|
|
|
|
|
|
|
|
|
Total Revenue and Income
Net Revenue from Transaction Activities
and Other Services
Net Revenue from Transaction Activities and
Other Services was R$840.1 million in 2Q23, an increase of 38.4%
compared with 2Q22. This increase was mostly due to (i) 7.4% year
over year consolidated TPV growth; (ii) higher net MDRs, as a
result of our commercial policy adjustment efforts and changes in
the regulation of interchange cap for debit and prepaid cards;
(iii) revenue streams from other solutions, mainly PIX; and (iv)
higher revenue from membership fees. The latter contributed R$78.7
million to our transaction activities and other services revenue in
the quarter, compared with R$57.5 million in 2Q22. Revenues from
TAG, our registry business, contributed R$27.9 million to our
transaction activities and other services revenue in the quarter,
compared with R$41.6 million in 2Q22.
Net Revenue from Subscription Services
and Equipment Rental
Net Revenue from Subscription Services and
Equipment Rental was R$457.3 million in 2Q23, 4.5% higher than 2Q22
due to a higher software revenue from our Core POS and ERP
business.
Financial Income
Financial Income in 2Q23 was R$1,462.6 million,
an increase of 32.4% year over year, mostly due to (i) higher
prepaid volumes, (ii) continued adjustments in our commercial
policy amid changes in CDI on a year over year basis; and (iii)
floating revenue from our banking solution.
Other Financial Income
Other Financial Income was R$194.8 million in
2Q23 compared with R$154.4 million in 2Q22 mainly due to higher
yield on cash & equivalents which was mostly a result of the
higher base rate in Brazil year over year, and a higher average
cash balance in the period. On a quarter over quarter basis, Other
Financial Income increased 23.0% explained mostly by a higher
average cash balance and a more efficient yield on our cash &
equivalents.
Costs and Expenses
Cost of Services
Cost of Services were R$685.3 million in 2Q23, a
9.4% increase year over year. This increase was primarily due to
(i) higher D&A costs as we continue to expand our client base;
(ii) increased expenses for datacenter, cloud services and
operational software, and (iii) investments in technology and
logistics. These costs were partially offset by higher
capitalization of R&D projects in the quarter, which includes
an unusual positive effect of R$21.0 million in 2Q23 related to the
reassessment of some projects. As a percentage of revenues, Cost of
Services reduced from 27.2% in 2Q22 to 23.2 % in 2Q23.
Compared with 1Q23, Cost of Services decreased
by 5.0%, primarily due to (i) higher capitalization of R&D
projects, as previously mentioned and (ii) changes in the
allocation of variable compensation between our costs and expenses
lines, which reduced allocation to Cost of Services. These factors
were partially offset by higher D&A as we continue to grow our
client base. As a percentage of revenues, Cost of Services
decreased sequentially from 26.6% to 23.2%, largely due to the
aforementioned factors, along with efficiency gains in our
business, including reduced unit costs for logistics and customer
support.
Administrative Expenses
Administrative Expenses reached R$303.9 million,
an 11.7% increase year over year. This increase was primarily
attributable to higher personnel expenses, including an increase in
provisions for variable compensation due to changes in the
allocation between our costs and expenses lines, which led to a
higher allocation to Administrative Expenses. Partially offsetting
these factors were (i) decreased costs from third-party services
and travel within our Financial Services segment, and (ii) a
reduction in the amortization of fair value adjustments tied to
acquisitions. Measured against Total Revenue and Income,
Administrative Expenses fell from 11.8% in 2Q22 to 10.3% in
2Q23.
Administrative Expenses in 2Q23 were 2.0% higher
than in 1Q23, primarily due to similar factors as those described
for the year over year variation. However, the amortization of fair
value adjustments related to acquisitions remained relatively
stable quarter over quarter. As a percentage of total revenues,
Administrative Expenses decreased from 11.0% in 1Q23 to 10.3% in
2Q23.
|
Administrative Expenses in 2Q23 include R$34.8 million of expenses
that are adjusted in our Adjusted Income Statement, related to
amortization of fair value adjustments on acquisitions, mostly
related to the Linx and other software companies’ acquisitions (see
table 13 in Appendix for the Adjustments by P&L line).
Adjusting for those effects, Administrative Expenses were R$231.6
million in 2Q22, R$262.5 million in 1Q23 and R$269.1 million in
2Q23. As a percentage of Total Revenue and Income, Administrative
Expenses were 10.1% in 2Q22, 9.7% in 1Q23 and 9.1% in 2Q23. Both on
a year over year basis and on a quarter over quarter basis, the
decrease in Administrative Expenses as a percentage of revenues is
a result of operating leverage in our operation, with efficiency
gains in some administrative functions. |
|
|
|
|
Selling Expenses
Selling Expenses were R$411.9 million in the
quarter, up 22.6% year over year. This increase was primarily due
to (i) higher investments in our distribution channels, including
increased expenses for partner commissions and salespeople, and was
partially offset by (ii) lower marketing expenses during the period
and (iii) changes in the allocation of variable compensation
between our costs and expenses lines, which reduced the allocation
to Selling Expenses year over year. As a percentage of revenues,
Selling Expenses decreased from 14.6% in 2Q22 to 13.9% in 2Q23.
Compared with 1Q23, Selling Expenses increased
by 5.6%, primarily due to the expansion of our distribution
channels and changes in the allocation of variable compensation
across our costs and expenses lines. This was partially offset by
reduced investments in marketing. As a percentage of revenues,
Selling Expenses saw a sequential decrease from 14.4% in 1Q23 to
13.9% in 2Q23.
Financial Expenses, Net
Financial Expenses, Net were R$1,073.8 million
in 2Q23, a 12.5% increase compared with 2Q22.
This increase can be primarily attributed to
higher prepaid volumes and an uptick in the country's interest rate
during the period, which saw an increase from an average of 12.38%
in 2Q22 to 13.65% in 2Q23.
Compared with the previous quarter, Financial
Expenses, Net were 16.3% higher in 2Q23. This was predominantly due
to an increase in prepaid volumes, and also our strategic decision
to maintain a larger average cash position during this period as a
conservative measure.
|
Financial Expenses include R$14.2million of expenses that are
adjusted in our Adjusted Income Statement related to effects from
(i) earn out interests on business combinations and (ii) financial
expenses from fair value adjustments on acquisitions (see table 13
in Appendix for the Adjustments by P&L line). Adjusting for
those effects, Financial Expenses, net were R$945.6 million in
2Q22, R$908.9 million in 1Q23 and R$1,059.7 million in 2Q23 or
41.0%, 33.5% and 35.9% as a percentage of Total Revenue and Income,
respectively. Such year over year and quarter over quarter
variations are explained by the same reasons mentioned above for
the accounting numbers. |
|
|
|
|
Mark-to-market on equity securities
designated at FVPL
In 1Q23, we divested our stake in Banco Inter.
As a result, from 2Q23 onwards, our profit & loss statement no
longer includes mark-to-market gains or losses associated with this
investment. This compares with a R$30.6 million gain in 1Q23 and a
R$527.1 million loss in 2Q22.
|
Mark-to-market on equity securities designated at FVPL is fully
adjusted in our Adjusted Income Statement (see table 13 in Appendix
for the Adjustments by P&L line). |
|
|
|
|
Other Income (Expenses),
Net
Other Expenses, Net were R$56.7 million in 2Q23,
representing a decrease of R$13.6 million year over year. This
decline was primarily due to (i) the reversion of earnout
provisions, and (ii) the reversion of the write-off of a non-core
asset due to resumption of use. These reductions were partially
offset by (iii) higher expenses with fair value adjustments related
to call options in acquired entities.
Compared with 1Q23, Other Expenses, net were
44.1% lower. This decrease can mostly be attributed to (i) a
positive effect of R$19.6 million in our share-based compensation
expenses mainly as a result of lower tax provisions, (ii) reversal
of earnout provisions, (iii) the reversion of the write-off of a
non-core asset due to resumption of use and (iv) reduced expenses
with fair value adjustments related to call options in acquired
entities. These reductions were partly counteracted by higher civil
contingency costs.
|
Other Expenses, net include R$24.2 million gains that are excluded
in our Adjusted Income Statement, including call options related to
acquisitions, earn-out interests, loss of control of subsidiary and
reversal of litigation of Linx (see table 13 in Appendix for the
Adjustments by P&L line). Until 4Q22, we used to also adjust
our numbers for share-based compensation expenses related to the
one-time IPO grant and non-recurring long term incentive plans,
which we stopped doing from 1Q23 onwards. For comparability
purposes, based on adjustments criteria adopted from 1Q23 onwards,
in which we do not adjust our results for share-based compensation
expenses, and adjusting for the factors above, Other Expenses, net,
were R$87.6 million in 2Q22, R$104.1 million in 1Q23 and R$81.0
million in 2Q23 or 3.8%, 3.8% and 2.7% as a percentage of Total
Revenue and Income, respectively. The year over year variation is
mostly explained by item (ii) from the accounting explanation above
and the quarter over quarter variation is mostly explained by items
(i) and (iii) from its respective accounting explanation. |
|
|
|
|
Income Tax and Social
Contribution
During 2Q23, the Company recognized income tax
and social contribution expenses of R$115.1 million over a profit
before income taxes of R$422.3 million, implying an effective tax
rate of 27.2%. The difference to the statutory rate is mainly
explained by gains from entities not subject to the payment of
income taxes.
|
The Income Tax and Social Contribution in our Adjusted Income
Statement includes an additional R$10.0 million relating to taxes
from the adjusted items (see table 13 in Appendix for the
Adjustments by P&L line). Adjusting for those effects our
Income Tax and Social Contribution was R$125.0 million with an
effective tax rate in 2Q23 of 28.0%, higher than the statutory rate
mostly as a result of gains from entities not subject to the
payment of income taxes. |
|
|
|
|
EBITDA
Adjusted EBITDA was R$1,498.8 million in the
quarter, compared with R$1,026.5 million in 2Q22. This higher
figure is mainly explained by higher Total Revenue and Income,
excluding Other Financial Income, which was mainly due to the
growth of our operations and adjustments in our commercial policy
throughout 2022. Adjusted EBITDA Margin was 50.7% in the quarter,
compared with 44.5% in 2Q22 and 46.1% in 1Q23. The sequential
improvement in Adjusted EBITDA margin in 2Q23 compared with 1Q23
was mainly due to our consolidated revenue growth and realization
of operating leverage in our costs and expenses lines, with lower
cost of services and other operating expenses.
Table 7: Adjusted EBITDA Reconciliation
EBITDA Bridge (R$mn) |
2Q23 |
% Rev. |
2Q22 |
% Rev. |
Δ % |
1H23 |
% Rev. |
1H22 |
% Rev. |
Δ % |
Profit (Loss) before income taxes |
422.3 |
14.3% |
(483.4) |
(21.0%) |
n.m |
729.1 |
12.9% |
(773.2) |
(17.7%) |
n.m |
(+) Financial expenses, net |
1,073.8 |
36.3% |
954.7 |
41.4% |
12.5% |
1,997.5 |
35.3% |
1,663.0 |
38.0% |
20.1% |
(-) Other financial income |
(194.8) |
(6.6%) |
(154.4) |
(6.7%) |
26.1% |
(353.2) |
(6.2%) |
(287.9) |
(6.6%) |
22.7% |
(+) Depreciation and amortization |
221.7 |
7.5% |
196.9 |
8.5% |
12.6% |
434.2 |
7.7% |
381.7 |
8.7% |
13.7% |
EBITDA |
1,523.0 |
51.5% |
513.8 |
22.3% |
196.4% |
2,807.5 |
49.5% |
983.6 |
22.5% |
185.4% |
(+) Mark-to-market related to the investment in Banco Inter |
0.0 |
0.0% |
527.1 |
22.9% |
(100.0%) |
(30.6) |
(0.5%) |
850.1 |
19.4% |
n.m |
(+) Other Expenses (a) |
(24.2) |
(0.8%) |
(14.4) |
(0.6%) |
68.7% |
(26.8) |
(0.5%) |
(3.6) |
(0.1%) |
644.3% |
Adjusted EBITDA |
1,498.8 |
50.7% |
1,026.5 |
44.5% |
46.0% |
2,750.2 |
48.5% |
1,830.1 |
41.8% |
50.3% |
|
|
|
|
|
|
|
|
|
|
|
(a) Consists of the fair value
adjustment related to associates call option, earn-out and earn-out
interests related to acquisitions, loss of control of subsidiaries
and reversal of litigation at Linx.
EBITDA was R$1,523.0 million in the quarter,
higher than R$513.8 million in the prior year period, mostly as a
result of (i) the increase in Total Revenue and income, excluding
Other Financial Income and (ii) no effect from mark-to market from
the investment in Banco Inter in 2Q23 as we sold the totality of
our stake in 1Q23, compared with a negative effect of R$527.1
million in 2Q22. These effects were partially offset by higher
selling expenses, administrative expenses and cost of services,
excluding D&A.
Net Income (Loss) and EPS
Adjusted Net Income was R$322.0 million in 2Q23
with a margin of 10.9%, compared with R$55.8 million of Adjusted
Net Income reported in 2Q22 and a margin of 2.4% on a comparable
basis (not adjusting for share based compensation expenses). This
increase in Adjusted Net Income can primarily be attributed to (i)
a 39.5% year over year growth in total revenue and income net of
financial expenses, in conjunction with (ii) operating leverage in
cost of services (up +9.4% year over year), selling expenses (up
+22.6% year over year), administrative expenses (up +16.2% year
over year), and other operating expenses (down 7.6% year over
year).
Adjusted Net Income was up 36.1% quarter over
quarter, with Adjusted Net Margin improving sequentially from 8.7%
to 10.9%. This improvement is primarily due to higher total revenue
and income, as well as improvements in our cost and expenses lines,
with lower cost of services and other operating expenses. In
addition, we saw efficiency gains in administrative and selling
expenses.
Net Income in 2Q23 was R$307.2 million, compared
with a Net Loss of R$489.3 million in 2Q22, mostly as a result of
mark-to-market effects from the investment in Banco Inter, which
represented a loss of R$527.1 million in 2Q22 compared with zero
for 2Q23, as well as the same factors explained above for the
variation in Adjusted Net Income.
On a comparable basis (not adjusting for share
based compensation expenses), Adjusted diluted EPS was R$0.94 per
share in 2Q23, compared with R$0.18 per share in 2Q22, and R$0.73
per share in 1Q23, mostly explained by the higher Adjusted Net
Income.
IFRS basic EPS was R$0.98 per share in 2Q23,
compared with a negative R$1.56 in the prior-year period. This
difference was mainly due to the higher Net Income, with no impact
from mark-to-market from Banco Inter in 2Q23 compared with a
negative impact of R$527.1 million in 2Q22.
Table 8: Adjusted Net Income Reconciliation
From 1Q23 onwards, we stopped adjusting share-based compensation
expenses in our adjusted results. Those changes may affect the
comparability of our adjusted results between different quarters.
For that reason, we have included below our historical numbers on a
comparable basis, not adjusting for share-based compensation
expenses, according to our current adjustment criteria.
Net Income Bridge (R$mn) |
2Q23 |
% Rev. |
2Q22 |
% Rev. |
Δ % |
1H23 |
% Rev. |
1H22 |
% Rev. |
Δ % |
Net income for the period |
307.2 |
10.4% |
(489.3) |
(21.2%) |
n.m |
532.9 |
9.4% |
(802.3) |
(18.3%) |
n.m |
Amortization of fair value adjustment (a) |
35.7 |
1.2% |
46.5 |
2.0% |
(23.2%) |
69.4 |
1.2% |
71.4 |
1.6% |
(2.9%) |
Mark-to-market from the investment in Banco Inter (b) |
0.0 |
0.0% |
527.1 |
22.9% |
(100.0%) |
(30.6) |
(0.5%) |
850.1 |
19.4% |
n.m |
Other expenses (c) |
(11.0) |
(0.4%) |
(14.4) |
(0.6%) |
(23.6%) |
3.1 |
0.1% |
(3.6) |
(0.1%) |
n.m |
Tax effect on adjustments |
(10.0) |
(0.3%) |
(14.2) |
(0.6%) |
(29.8%) |
(16.3) |
(0.3%) |
(17.2) |
(0.4%) |
(5.8%) |
Adjusted net income (as reported) |
322.0 |
10.9% |
55.8 |
2.4% |
476.9% |
558.6 |
(0.3%) |
98.4 |
(0.4%) |
467.8% |
|
|
|
|
|
|
|
|
|
|
|
IFRS basic EPS (d) |
0.98 |
n.a. |
(1.56) |
n.a. |
n.m |
1.70 |
n.a. |
(2.57) |
n.a. |
n.m |
Adjusted diluted EPS (as reported) (e) |
0.94 |
n.a. |
0.18 |
n.a. |
408.3% |
1.85 |
n.a. |
0.32 |
n.a. |
475.1% |
Basic Number of shares |
313.1 |
n.a. |
312.2 |
n.a. |
0.3% |
312.9 |
n.a. |
311.2 |
n.a. |
0.5% |
Diluted Number of shares |
340.9 |
n.a. |
312.2 |
n.a. |
9.2% |
339.6 |
n.a. |
311.2 |
n.a. |
9.1% |
|
|
|
|
|
|
|
|
|
|
|
(a) Related to acquisitions. Consists of
expenses resulting from the changes of the fair value adjustments
as a result of the application of the acquisition method.(b) In
1Q23, we have sold our stake in Banco Inter.(c) Consists of the
fair value adjustment related to associates call option, earn-out
and earn-out interests related to acquisitions, loss of control of
subsidiaries and reversal of litigation of Linx.(d) Calculated as
Net income attributable to owners of the parent (Net Income reduced
by Net Income attributable to Non-Controlling interest) divided by
basic number of shares. For more details on calculation, please
refer to Note 13 of our Consolidated Financial Statements, June 30,
2023.(e) Calculated as Adjusted Net income attributable to owners
of the parent (Adjusted Net Income reduced by Adjusted Net Income
attributable to Non-Controlling interest) divided by diluted number
of shares.
Adjusted Net Cash
Our Adjusted Net Cash, a non-IFRS metric,
consists of the items detailed in Table 9 below:
Table 9: Adjusted Net Cash
Adjusted Net Cash (R$mn) |
2Q23 |
1Q23 |
4Q22 |
Cash and cash equivalents |
2,202.7 |
1,855.6 |
1,512.6 |
Short-term investments |
3,493.4 |
3,257.3 |
3,453.8 |
Accounts receivable from card issuers |
18,573.4 |
18,940.0 |
20,748.9 |
Financial assets from banking solution |
4,099.3 |
4,026.5 |
3,960.9 |
Derivative financial instrument (b) |
7.6 |
13.1 |
12.4 |
Adjusted Cash |
28,376.5 |
28,092.5 |
29,688.5 |
|
|
|
|
Deposits from banking customers (c) |
(3,918.6) |
(3,902.2) |
(4,023.7) |
Accounts payable to clients |
(15,555.8) |
(15,568.6) |
(16,614.5) |
Loans and financing (a) |
(3,916.5) |
(3,756.5) |
(4,375.7) |
Obligations to FIDC quota holders |
(318.0) |
(634.7) |
(975.2) |
Derivative financial instrument (b) |
(340.2) |
(241.8) |
(209.7) |
Adjusted Debt |
(24,049.2) |
(24,103.6) |
(26,198.9) |
|
|
|
|
Adjusted Net Cash |
4,327.2 |
3,988.8 |
3,489.6 |
|
|
|
|
(a) Refers to economic hedge.(b) Includes
deposits from banking customers and values transferred by our
banking clients to third parties but not yet
settled.(c) Loans and financing were reduced by the
effects of leases liabilities recognized under IFRS 16.
Accounts Receivable from Card Issuers are accounted for at their
fair value in our balance sheet.
As of June 30, 2023, the Company’s Adjusted Net
Cash was R$4,327.2 million, R$338.4 million higher compared with
1Q23, mostly explained by:
-
R$647.0 million of cash net income, which is our net income plus
non-cash income and expenses as reported in our statement of cash
flows;
- R$67.3
million from labor and social security liabilities;
-
-R$332.2 million of capex;
-
-R$28.7 million from M&A;
-
-R$14.9 million from other effects.
Capital expenditures in property and equipment
for 2Q23 saw a 42.4% reduction quarter over quarter. This decrease
was anticipated due to a significant marketing campaign we launched
in 1Q23 on the reality TV show Big Brother Brazil (BBB), which we
knew would positively increase net additions in the MSMB
segment.
Cash Flow
Our cash flow in the quarter was explained
by:
- Net cash
provided by operating activities was R$832.5 million in 2Q23,
explained by R$647.0 million of Net Income after non-cash
adjustments and R$185.5 million from working capital variation.
Working capital is composed of (i) R$396.6 million of changes
related to accounts receivable from card issuers, accounts payable
to clients and interest income received, net of costs; (ii) R$322.6
million from payment of interest and taxes; (iii) R$96.8 million
from the following working capital changes: labor and social
security liabilities (R$67.3 million), prepaid expenses (R$19.8
million) and receivables from related parties (R$ 9.7 million) and
(iv) R$14.8 million of other working capital changes.
- Net
cash used in investing activities was R$508.1 million in 2Q23,
explained by (i) R$332.2 million capex, of which R$196.2 million
related to property and equipment and R$136.0 million related to
purchases and development of intangible assets; (ii) R$147.2
million from acquisition of short-term investments and (iii) R$28.7
million from acquisition of interest in associates.
- Net
cash provided by financing activities was R$15.4 million, explained
by (i) R$16.2 million net proceeds from borrowings, mostly related
to the issuance of new CCBs (“Cédula de Crédito Bancário”), which
more than offset the partial amortization of FIDC AR III and
maturing CCBs and (ii) R$0.8 million cash outflow from capital
events related to non-controlling interests.
Other
Information
Conference Call
Stone will discuss its 2Q23 financial results
during a teleconference today, August 16, 2023, at 5:00 PM ET /
6:00 PM BRT. The conference call can be accessed at +1 (412) 317
6346 or +1 (844) 204 8586 (US), or +55 (11) 3181 8565 (Brazil), or
+44 (20) 3795 9972 (UK).
The call will also be broadcast simultaneously
on Stone’s Investor Relations website at
https://investors.stone.co/. Following the completion of the call,
a recorded replay of the webcast will be available on Stone’s
Investor Relations website at https://investors.stone.co/.
About Stone Co.
Stone Co. is a leading provider of financial
technology and software solutions that empower merchants to conduct
commerce seamlessly across multiple channels and help them grow
their businesses.
Investor Contact
Investor Relationsinvestors@stone.co
Consolidated Statement of Profit or
LossTable 10: Consolidated Statement of Profit or
Loss
Statement of Profit or Loss (R$mn) |
2Q23 |
2Q22 |
1H23 |
1H22 |
Net revenue from transaction activities and other services |
840.1 |
606.9 |
1,573.1 |
1,161.8 |
Net revenue from subscription services and equipment rental |
457.3 |
437.8 |
902.5 |
870.0 |
Financial income |
1,462.6 |
1,105.0 |
2,837.6 |
2,054.7 |
Other financial income |
194.8 |
154.4 |
353.2 |
287.9 |
Total revenue and income |
2,954.8 |
2,304.1 |
5,666.4 |
4,374.4 |
Cost of services |
(685.3) |
(626.2) |
(1,406.6) |
(1,300.5) |
Administrative expenses |
(303.9) |
(272.0) |
(601.9) |
(510.3) |
Selling expenses |
(411.9) |
(335.9) |
(801.8) |
(719.7) |
Financial expenses, net |
(1,073.8) |
(954.7) |
(1,997.5) |
(1,663.0) |
Mark-to-market on equity securities designated at FVPL |
0.0 |
(527.1) |
30.6 |
(850.1) |
Other income (expenses), net |
(56.7) |
(70.3) |
(158.3) |
(102.1) |
Loss on investment in associates |
(0.8) |
(1.3) |
(1.8) |
(2.0) |
Profit before income taxes |
422.3 |
(483.4) |
729.1 |
(773.2) |
Income tax and social contribution |
(115.1) |
(5.9) |
(196.2) |
(29.1) |
Net income for the period |
307.2 |
(489.3) |
532.9 |
(802.3) |
|
|
|
|
|
Consolidated Balance Sheet Statement
Table 11: Consolidated Balance Sheet
Statement
Balance Sheet (R$mn) |
30-Jun-23 |
31-Dec-22 |
Assets |
|
|
Current assets |
29,390.1 |
30,659.2 |
Cash and cash equivalents |
2,202.7 |
1,512.6 |
Short-term investments |
3,493.4 |
3,453.8 |
Financial assets from banking solution |
4,099.3 |
3,960.9 |
Accounts receivable from card issuers |
18,503.1 |
20,694.5 |
Trade accounts receivable |
440.9 |
484.7 |
Recoverable taxes |
220.1 |
151.0 |
Prepaid expenses |
126.8 |
129.3 |
Derivative financial instruments |
22.0 |
36.4 |
Other assets |
281.8 |
236.1 |
|
|
|
Non-current assets |
11,360.6 |
11,586.2 |
Trade accounts receivable |
33.2 |
37.3 |
Accounts receivable from card issuers |
70.3 |
54.3 |
Receivables from related parties |
12.0 |
10.1 |
Deferred tax assets |
558.1 |
680.0 |
Prepaid expenses |
57.3 |
101.4 |
Other assets |
91.8 |
105.1 |
Long-term investments |
33.1 |
214.8 |
Investment in associates |
107.2 |
109.8 |
Property and equipment |
1,700.4 |
1,641.2 |
Intangible assets |
8,697.2 |
8,632.3 |
|
|
|
Total Assets |
40,750.7 |
42,245.4 |
|
|
|
Liabilities and equity |
|
|
Current liabilities |
23,107.2 |
25,174.1 |
Deposits from banking customers |
3,918.6 |
4,023.7 |
Accounts payable to clients |
15,530.2 |
16,578.7 |
Trade accounts payable |
423.4 |
596.0 |
Loans and financing |
1,591.3 |
1,847.4 |
Obligations to FIDC quota holders |
318.0 |
975.2 |
Labor and social security liabilities |
468.0 |
468.6 |
Taxes payable |
382.8 |
329.1 |
Derivative financial instruments |
340.2 |
209.7 |
Other liabilities |
134.6 |
145.6 |
|
|
|
Non-current liabilities |
3,889.6 |
4,121.3 |
Accounts payable to clients |
25.6 |
35.8 |
Loans and financing |
2,527.5 |
2,728.5 |
Obligations to FIDC quota holders |
0.0 |
0.0 |
Deferred tax liabilities |
504.9 |
500.2 |
Provision for contingencies |
212.5 |
210.4 |
Labor and social security liabilities |
14.1 |
35.8 |
Other liabilities |
604.9 |
610.6 |
|
|
|
Total liabilities |
26,996.8 |
29,295.4 |
|
|
|
Equity attributable to owners of the parent |
13,697.9 |
12,893.9 |
Issued capital |
0.1 |
0.1 |
Capital reserve |
13,888.8 |
13,818.8 |
Treasury shares |
(15.8) |
(69.1) |
Other comprehensive income |
(283.9) |
(432.7) |
Retained earnings |
108.8 |
(423.2) |
|
|
|
Non-controlling interests |
56.0 |
56.1 |
|
|
|
Total equity |
13,753.9 |
12,950.0 |
|
|
|
Total liabilities and equity |
40,750.7 |
42,245.4 |
|
|
|
Consolidated Statement of Cash Flows
Table 12: Consolidated Statement of Cash
Flows
Cash Flow (R$mn) |
2Q23 |
2Q22 |
1H23 |
1H22 |
Net income (loss) for the period |
307.2 |
(489.3) |
532.9 |
(802.3) |
|
|
|
|
|
Adjustments on Net Income: |
|
|
|
|
Depreciation and amortization |
221.7 |
196.9 |
434.2 |
381.7 |
Deferred income tax and social contribution |
40.9 |
(78.7) |
78.4 |
(123.3) |
Loss on investment in associates |
0.8 |
1.3 |
1.8 |
2.0 |
Interest, monetary and exchange variations, net |
(44.3) |
(113.0) |
(175.8) |
(221.5) |
Provision for contingencies |
5.1 |
1.6 |
5.1 |
1.6 |
Share-based payments expense |
50.4 |
49.8 |
120.5 |
77.0 |
Allowance for expected credit losses |
21.6 |
29.0 |
32.5 |
51.4 |
Loss on disposal of property, equipment and intangible assets |
30.1 |
28.5 |
45.1 |
24.0 |
Effect of applying hyperinflation |
(0.0) |
0.4 |
1.2 |
1.5 |
Loss on sale of subsidiary |
1.2 |
0.0 |
1.2 |
0.0 |
Fair value adjustment in financial instruments at FVPL |
8.2 |
666.9 |
94.0 |
1,137.2 |
Fair value adjustment in derivatives |
4.0 |
(7.1) |
8.6 |
64.9 |
|
|
|
|
|
Working capital adjustments: |
|
|
|
|
Accounts receivable from card issuers |
1,284.8 |
1,382.6 |
3,900.8 |
2,639.8 |
Receivables from related parties |
9.7 |
2.5 |
11.6 |
6.3 |
Recoverable taxes |
(9.4) |
(24.3) |
(60.1) |
(37.2) |
Prepaid expenses |
19.8 |
45.4 |
46.6 |
114.1 |
Trade accounts receivable, banking solutions and other assets |
7.9 |
147.1 |
(10.5) |
465.1 |
Accounts payable to clients |
(1,427.1) |
(1,479.3) |
(3,794.5) |
(3,138.4) |
Taxes payable |
18.5 |
90.6 |
92.6 |
184.0 |
Labor and social security liabilities |
67.3 |
14.7 |
(7.6) |
92.9 |
Provision for contingencies |
1.1 |
1.9 |
(16.9) |
(2.9) |
Trade Accounts Payable and Other Liabilities |
(3.3) |
6.7 |
(2.1) |
16.2 |
Interest paid |
(303.7) |
(143.4) |
(437.1) |
(252.2) |
Interest income received, net of costs |
538.9 |
425.8 |
1,145.7 |
914.6 |
Income tax paid |
(18.9) |
(42.0) |
(47.3) |
(86.6) |
|
|
|
|
|
Net cash provided by (used in) operating
activity |
832.5 |
714.6 |
2,000.9 |
1,509.8 |
|
|
|
|
|
Investing activities |
|
|
|
|
Purchases of property and equipment |
(196.2) |
(168.8) |
(536.5) |
(305.6) |
Purchases and development of intangible assets |
(136.0) |
(48.0) |
(212.1) |
(153.1) |
Acquisition of subsidiary, net of cash acquired |
0.0 |
(20.5) |
0.0 |
(62.4) |
Proceeds from (acquisition of) short-term investments, net |
(147.2) |
75.7 |
106.3 |
(404.9) |
Acquisition of equity securities |
0.0 |
(15.0) |
0.0 |
(15.0) |
Disposal of short and long-term investments - equity
securities |
0.0 |
180.6 |
218.1 |
180.6 |
Proceeds from the disposal of non-current assets |
0.0 |
0.2 |
0.2 |
20.6 |
Acquisition of interest in associates |
(28.7) |
(14.5) |
(32.6) |
(21.6) |
|
|
|
|
|
Net cash used in investing activities |
(508.1) |
(10.3) |
(456.4) |
(761.4) |
|
|
|
|
|
Financing activities |
|
|
|
|
Proceeds from borrowings |
1,748.2 |
1,250.0 |
2,798.2 |
2,750.0 |
Payment of borrowings |
(1,400.6) |
(2,028.8) |
(2,981.2) |
(3,598.6) |
Payment to FIDC quota holders |
(312.5) |
(312.5) |
(645.0) |
(625.0) |
Payment of leases |
(18.9) |
(19.3) |
(40.8) |
(45.4) |
Repurchase of own shares |
0.0 |
53.4 |
0.0 |
53.4 |
Sale of own shares |
0.0 |
(53.4) |
0.0 |
0.0 |
Acquisition of non-controlling interests |
(0.3) |
(0.4) |
(1.2) |
(0.7) |
Dividends paid to non-controlling interests |
(0.5) |
(0.1) |
(1.9) |
(0.9) |
|
|
|
|
|
Net cash provided by (used in) financing
activities |
15.4 |
(1,111.1) |
(871.8) |
(1,467.2) |
|
|
|
|
|
Effect of foreign exchange on cash and cash equivalents |
7.3 |
24.1 |
17.5 |
10.0 |
|
|
|
|
|
Change in cash and cash equivalents |
347.1 |
(382.8) |
690.1 |
(708.8) |
|
|
|
|
|
Cash and cash equivalents at beginning of period |
1,855.6 |
4,169.6 |
1,512.6 |
4,495.6 |
Cash and cash equivalents at end of period |
2,202.7 |
3,786.8 |
2,202.7 |
3,786.8 |
|
|
|
|
|
Adjustments to Net Income by P&L Line
Table 13: Adjustments to Net Income by P&L
Line
Adjustments to Net Income by P&L line
(R$mn) |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
Cost of services |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Administrative expenses |
9.3 |
9.7 |
166.0 |
(16.4) |
23.5 |
40.4 |
32.1 |
30.6 |
35.6 |
34.8 |
Selling expenses |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Financial expenses, net |
4.2 |
4.2 |
2.4 |
11.4 |
6.1 |
9.1 |
8.0 |
8.1 |
14.8 |
14.2 |
Mark-to-market on equity securities designated at FVPL |
0.0 |
(841.2) |
1,341.2 |
764.2 |
323.0 |
527.1 |
(111.5) |
114.5 |
(30.6) |
0.0 |
Other operating income (expense), net |
3.5 |
(4.5) |
1.2 |
0.6 |
6.0 |
(17.3) |
(8.9) |
(17.1) |
(2.6) |
(24.2) |
Gain (loss) on investment in associates |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Profit before income taxes |
16.9 |
(831.7) |
1,510.8 |
759.8 |
358.7 |
559.3 |
(80.2) |
136.1 |
17.2 |
24.7 |
Income tax and social contribution |
(1.9) |
119.3 |
(163.9) |
8.1 |
(3.1) |
(14.2) |
(8.5) |
(11.1) |
(6.3) |
(10.0) |
Net income for the period |
15.0 |
(712.4) |
1,346.9 |
767.9 |
355.6 |
545.1 |
(88.7) |
125.0 |
10.9 |
14.8 |
|
|
|
|
|
|
|
|
|
|
|
Table 14: Adjusted EBT and Adjusted Net Income with and
without share-based compensation adjustmentsFollowing the
partial sale of our stake in Banco Inter, from 2Q22 onwards we no
longer adjust the financial expenses related to our bond in our
adjusted numbers. In addition, from 1Q23 onwards, we also stopped
adjusting share-based compensation expenses in our adjusted
results. Those changes may affect the comparability of our adjusted
results between different quarters. For that reason, we have
included below our historical numbers on a comparable basis, not
adjusting for both the bond and share-based compensation expenses,
according to our current adjustment criteria.
Profitability with and without share-based compensation
adjustments (R$mn) |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
Consolidated |
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
247.6 |
(202.7) |
81.3 |
(49.1) |
82.5 |
106.7 |
210.7 |
316.5 |
324.0 |
447.0 |
Adjusted Net Income |
187.4 |
(155.5) |
85.3 |
(32.5) |
51.7 |
76.5 |
162.5 |
234.8 |
236.6 |
322.0 |
Not Adjusting for Share-based Compensation |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
226.9 |
(249.1) |
83.0 |
(50.6) |
68.8 |
75.8 |
166.3 |
275.6 |
324.0 |
447.0 |
Adjusted Net Income |
173.3 |
(186.4) |
86.7 |
(33.5) |
42.6 |
55.8 |
108.3 |
203.8 |
236.6 |
322.0 |
|
|
|
|
|
|
|
|
|
|
|
Financial Services |
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
250.2 |
(202.6) |
104.3 |
(31.0) |
65.9 |
84.0 |
177.6 |
285.6 |
306.0 |
398.2 |
Adjusted Net Income |
191.4 |
(153.2) |
113.1 |
(13.0) |
45.4 |
66.9 |
148.1 |
214.2 |
226.9 |
279.7 |
Not Adjusting for Share-based Compensation |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
229.6 |
(248.7) |
105.7 |
(32.6) |
52.2 |
53.3 |
135.0 |
246.1 |
306.0 |
398.2 |
Adjusted Net Income |
177.3 |
(183.9) |
114.1 |
(14.0) |
36.3 |
46.3 |
95.1 |
184.1 |
226.9 |
279.7 |
|
|
|
|
|
|
|
|
|
|
|
Software |
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
0.6 |
(0.7) |
(11.6) |
(15.2) |
12.3 |
40.0 |
33.7 |
31.8 |
16.9 |
45.5 |
Adjusted Net Income |
(0.7) |
(3.0) |
(14.8) |
(15.6) |
2.2 |
26.9 |
15.4 |
22.4 |
8.5 |
39.0 |
Not Adjusting for Share-based Compensation |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
0.6 |
(1.0) |
(11.4) |
(15.2) |
12.3 |
39.9 |
31.9 |
30.5 |
16.9 |
45.5 |
Adjusted Net Income |
(0.7) |
(3.2) |
(14.6) |
(15.6) |
2.2 |
26.8 |
14.2 |
21.5 |
8.5 |
39.0 |
|
|
|
|
|
|
|
|
|
|
|
Non-Allocated |
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
(3.2) |
0.6 |
(11.4) |
(2.8) |
4.3 |
(17.3) |
(0.6) |
(1.0) |
1.2 |
3.4 |
Adjusted Net Income |
(3.2) |
0.7 |
(13.0) |
(3.9) |
4.2 |
(17.3) |
(1.0) |
(1.8) |
1.2 |
3.4 |
Not Adjusting for Share-based Compensation |
|
|
|
|
|
|
|
|
|
|
Adjusted EBT |
(3.3) |
0.6 |
(11.3) |
(2.8) |
4.3 |
(17.4) |
(0.6) |
(1.0) |
1.2 |
3.4 |
Adjusted Net Income |
(3.3) |
0.7 |
(12.9) |
(3.9) |
4.1 |
(17.3) |
(1.0) |
(1.8) |
1.2 |
3.4 |
|
|
|
|
|
|
|
|
|
|
|
Historical Segment Reporting
Following the partial sale of our stake in Banco
Inter, from 2Q22 onwards we no longer adjust the financial expenses
related to our bond in our adjusted numbers. In addition, from 1Q23
onwards, we also stopped adjusting share-based compensation
expenses in our adjusted results. Those changes may affect the
comparability of our adjusted results between different quarters.
For that reason, we have included below our historical numbers on a
comparable basis, not adjusting for both the bond and share-based
compensation expenses, according to our current adjustment
criteria.
Table 15: Adjusted Historical Financial Services
P&L
Segment Reporting - Financial Services (R$mn
Adjusted) |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
Total revenue and income |
828.4 |
564.2 |
1,152.5 |
1,545.9 |
1,721.3 |
1,932.6 |
2,121.5 |
2,308.2 |
2,335.9 |
2,551.2 |
Cost of services |
(224.9) |
(279.6) |
(358.7) |
(465.1) |
(499.0) |
(468.6) |
(495.9) |
(524.0) |
(555.3) |
(520.0) |
Administrative expenses |
(89.8) |
(91.4) |
(112.9) |
(145.6) |
(131.1) |
(145.5) |
(160.2) |
(204.0) |
(170.9) |
(180.4) |
Selling expenses |
(159.7) |
(215.3) |
(248.6) |
(263.5) |
(323.0) |
(267.3) |
(318.8) |
(336.2) |
(314.8) |
(324.3) |
Financial expenses, net |
(88.8) |
(158.9) |
(304.4) |
(657.8) |
(693.0) |
(931.0) |
(917.2) |
(884.9) |
(895.0) |
(1,047.8) |
Other operating income (expense), net |
(35.1) |
(67.4) |
(22.0) |
(46.6) |
(23.0) |
(66.9) |
(94.3) |
(112.6) |
(92.6) |
(78.8) |
Gain (loss) on investment in associates |
(0.5) |
(0.4) |
(0.1) |
0.0 |
0.0 |
0.0 |
0.0 |
(0.4) |
(1.3) |
(1.7) |
Profit before income taxes |
229.6 |
(248.7) |
105.7 |
(32.6) |
52.2 |
53.3 |
135.0 |
246.1 |
306.0 |
398.2 |
Income tax and social contribution |
(52.3) |
64.8 |
8.4 |
18.6 |
(16.0) |
(7.0) |
(39.9) |
(61.9) |
(79.1) |
(118.5) |
Net income for the period |
177.3 |
(183.9) |
114.1 |
(14.0) |
36.3 |
46.3 |
95.1 |
184.1 |
226.9 |
279.7 |
|
|
|
|
|
|
|
|
|
|
|
Table 16: Adjusted Historical Software
P&L
Segment Reporting - Software (R$mn Adjusted) |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
Total revenue and income |
30.9 |
42.8 |
301.1 |
311.4 |
326.6 |
350.7 |
366.2 |
376.3 |
358.2 |
382.9 |
Cost of services |
(12.3) |
(19.5) |
(162.4) |
(176.7) |
(172.5) |
(154.5) |
(171.9) |
(171.2) |
(164.2) |
(164.8) |
Administrative expenses |
(14.9) |
(17.5) |
(72.4) |
(76.1) |
(74.5) |
(75.0) |
(81.3) |
(83.5) |
(83.5) |
(79.5) |
Selling expenses |
(1.2) |
(6.0) |
(55.5) |
(51.8) |
(56.6) |
(63.5) |
(61.2) |
(63.8) |
(69.0) |
(79.4) |
Financial expenses, net |
(0.2) |
(0.3) |
(17.6) |
(18.9) |
(8.6) |
(14.6) |
(14.9) |
(18.1) |
(13.6) |
(11.6) |
Other operating income (expense), net |
(1.8) |
(0.4) |
(4.7) |
(3.1) |
(1.8) |
(3.0) |
(4.8) |
(8.7) |
(11.0) |
(2.6) |
Gain (loss) on investment in associates |
0.0 |
(0.1) |
(0.0) |
0.0 |
(0.4) |
(0.3) |
(0.2) |
(0.4) |
(0.1) |
0.5 |
Profit before income taxes |
0.6 |
(1.0) |
(11.4) |
(15.2) |
12.3 |
39.9 |
31.9 |
30.5 |
16.9 |
45.5 |
Income tax and social contribution |
(1.3) |
(2.2) |
(3.1) |
(0.4) |
(10.1) |
(13.1) |
(17.7) |
(9.0) |
(8.4) |
(6.5) |
Net income for the period |
(0.7) |
(3.2) |
(14.6) |
(15.6) |
2.2 |
26.8 |
14.2 |
21.5 |
8.5 |
39.0 |
|
|
|
|
|
|
|
|
|
|
|
Table 17: Adjusted Historical Non-Allocated
P&L
Segment Reporting - Non-Allocated (R$mn
Adjusted) |
1Q21 |
2Q21 |
3Q21 |
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
Total revenue and income |
8.3 |
6.5 |
16.0 |
15.7 |
22.4 |
20.8 |
20.8 |
21.6 |
17.5 |
20.7 |
Cost of services |
(2.5) |
(3.3) |
(4.6) |
(4.3) |
(2.9) |
(3.0) |
(3.5) |
(2.7) |
(1.8) |
(0.5) |
Administrative expenses |
(3.7) |
(3.3) |
(8.5) |
(8.9) |
(9.2) |
(11.2) |
(10.3) |
(9.0) |
(8.1) |
(9.2) |
Selling expenses |
(1.9) |
(1.9) |
(4.1) |
(3.1) |
(4.2) |
(5.1) |
(5.4) |
(6.1) |
(6.1) |
(8.2) |
Financial expenses, net |
0.7 |
5.7 |
(6.4) |
(0.1) |
(0.5) |
(0.1) |
(0.1) |
(0.4) |
(0.2) |
(0.2) |
Other operating income (expense), net |
(1.1) |
(0.8) |
(1.2) |
(0.9) |
(1.1) |
(17.8) |
(1.1) |
(4.8) |
(0.4) |
0.5 |
Gain (loss) on investment in associates |
(3.2) |
(2.4) |
(2.6) |
(1.2) |
(0.2) |
(1.0) |
(1.1) |
0.5 |
0.4 |
0.4 |
Profit before income taxes |
(3.3) |
0.6 |
(11.3) |
(2.8) |
4.3 |
(17.4) |
(0.6) |
(1.0) |
1.2 |
3.4 |
Income tax and social contribution |
0.0 |
0.2 |
(1.6) |
(1.1) |
(0.2) |
0.0 |
(0.4) |
(0.8) |
0.0 |
(0.0) |
Net income for the period |
(3.3) |
0.7 |
(12.9) |
(3.9) |
4.1 |
(17.3) |
(1.0) |
(1.8) |
1.2 |
3.4 |
|
|
|
|
|
|
|
|
|
|
|
Glossary of Terms
-
“Adjusted Net Cash”: is a non-IFRS financial
metric and consists of the following items: (i) Adjusted Cash: Cash
and cash equivalents, Short-term investments, Accounts receivable
from card issuers, Financial assets from banking solution and
Derivative financial instrument; minus (ii) Adjusted Debt:
Obligations with banking customers, Accounts payable to clients,
Loans and financing, Obligations to FIDC quota holders and
Derivative financial instrument.
-
“Banking”: refers to our digital banking solution
and includes insurance products.
-
“Financial Services” segment: This segment is
comprised of our financial services solutions serving both MSMBs
and Key Accounts. Includes mainly our payments solutions, digital
banking and credit.
- “Key
Accounts”: refers to operations in which Pagar.me acts as
a fintech infrastructure provider for different types of clients,
especially larger ones, such as mature e-commerce and digital
platforms, commonly delivering financial services via APIs.
- “MSMB
Active Payments Client Base”: refers to SMBs (online and
offline) and micro-merchants, from our Stone, Pagar.me and Ton
products. Considers clients that have transacted at least once over
the preceding 90 days, except for Ton active clients which consider
clients that have transacted once in the preceding 12 months. As
from 3Q22, does not consider clients that use only TapTon.
-
“MSMBs”: the combination of SMBs and
micro-merchant clients, from our Stone, Pagar.me and Ton
products.
-
“Omni OMS”: our OMS solution offers multi-channel
purchasing processes that integrate stores, franchisees, and
distribution centers, thereby providing a single channel for
retailers.
-
“Non-allocated”: Comprises other smaller
businesses which are not allocated in our Financial Services or
Software segments.
-
“Revenue”: refers to Total Revenue and
Income.
-
“Software” segment: This segment is comprised of:
(i) Core, comprised of POS/ERP solutions, TEF and QR Code gateways,
reconciliation and CRM and (ii) Digital, which includes OMS,
e-commerce platform, engagement tool, ads solution and marketplace
hub.
- “Take
Rate (MSMB)”: Managerial metric that considers the sum of
revenues from financial services solutions offered to MSMBs,
excluding Ton’s membership fee and other non-allocated revenues,
divided by MSMB TPV.
- “Take
Rate (Key Accounts)”: Managerial metric that considers
revenues from financial services solutions offered to Key Account
clients, excluding non-allocated revenues, divided by Key Accounts
TPV.
- “MSMB
Client Deposits”: client deposits from MSMBs with our
banking solutions.
- “Total
Active Payment Clients”: refers to MSMBs and Key Accounts.
Considers clients that have transacted at least once over the
preceding 90 days, except for Ton product active clients which
consider clients that have transacted once in the preceding 12
months. As from 3Q22, does not consider clients that use only
TapTon.
-
“TPV”: Total Payment Volume. Up to the fourth
quarter of 2020, refers to processed TPV. From the first quarter of
2021 onwards, reported TPV figures consider all volumes settled by
StoneCo.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date they were first
issued and were based on current expectations, estimates, forecasts
and projections as well as the beliefs and assumptions of
management. These statements identify prospective information and
may include words such as “believe”, “may”, “will”, “aim”,
“estimate”, “continue”, “anticipate”, “intend”, “expect”,
“forecast”, “plan”, “predict”, “project”, “potential”,
“aspiration”, “objectives”, “should”, “purpose”, “belief”, and
similar, or variations of, or the negative of such words and
expressions, although not all forward-looking statements contain
these identifying words.Forward-looking statements are subject to a
number of risks and uncertainties, many of which involve factors or
circumstances that are beyond Stone’s control.Stone’s actual
results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including
but not limited to: more intense competition than expected, lower
addition of new clients, regulatory measures, more investments in
our business than expected, and our inability to execute
successfully upon our strategic initiatives, among other
factors.
About Non-IFRS Financial
Measures
To supplement the financial measures presented
in this press release and related conference call, presentation, or
webcast in accordance with IFRS, Stone also presents non-IFRS
measures of financial performance, including: Adjusted Net Income,
Adjusted EPS (diluted), Adjusted Net Margin, Adjusted Net Cash /
(Debt), Adjusted Profit (Loss) Before Income Taxes, Adjusted
Pre-Tax Margin, EBITDA and Adjusted EBITDA.A “non-IFRS financial
measure” refers to a numerical measure of Stone’s historical or
future financial performance or financial position that either
excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and
presented in accordance with IFRS in Stone’s financial statements.
Stone provides certain non-IFRS measures as additional information
relating to its operating results as a complement to results
provided in accordance with IFRS. The non-IFRS financial
information presented herein should be considered in conjunction
with, and not as a substitute for or superior to, the financial
information presented in accordance with IFRS. There are
significant limitations associated with the use of non-IFRS
financial measures. Further, these measures may differ from the
non-IFRS information, even where similarly titled, used by other
companies and therefore should not be used to compare Stone’s
performance to that of other companies.Stone has presented Adjusted
Net Income to eliminate the effect of items from Net Income that it
does not consider indicative of its continuing business performance
within the period presented. Stone defines Adjusted Net Income as
Net Income (Loss) for the Period, adjusted for (1) amortization of
intangibles related to acquisitions, (2) one-time impairment
charges, (3) unusual income and expenses and (4) tax expense
relating to the foregoing adjustments. Adjusted Net Margin is
calculated by dividing Adjusted Net Income by Total Revenue and
Income. Adjusted EPS (diluted) is calculated as Adjusted Net income
attributable to owners of the parent (Adjusted Net Income reduced
by Net Income attributable to Non-Controlling interest) divided by
diluted number of shares. Stone has presented Adjusted Profit
Before Income Taxes and Adjusted EBITDA to eliminate the effect of
items that it does not consider indicative of its continuing
business performance within the period presented. Stone adjusts
these metrics for the same items as Adjusted Net Income, as
applicable.Stone has presented Adjusted Net Cash metric in order to
adjust its Net Cash / (Debt) by the balances of Accounts Receivable
from Card Issuers and Accounts Payable to Clients, since these
lines vary according to the Company’s funding source together with
the lines of (i) Cash and Cash Equivalents, (ii) Short-term
Investments, (iii) Debt balances and (iv) Derivative Financial
Instruments related to economic hedges of short term investments in
assets, due to the nature of Stone’s business and its prepayment
operations. In addition, it also adjusts by the balances of
Financial Assets from Banking Solutions and Deposits from Banking
Customers.
________________________1 Margins are calculated by dividing by
the revenue of each segment. 2 From 3Q22 onwards, does not include
clients that use only TapTon.3 ARPAC means average revenue per
active client and considers our banking and insurance revenues
divided by our active banking client base.4 From 3Q22 onwards, does
not include clients that use only TapTon.5 From 3Q22 onwards, does
not include clients that use only TapTon.6 Except for Total
Accounts Balance, banking metrics do not include accounts from TON
or Pagar.me (except for Ton clients that have the full banking
solution "Super Conta Ton").7 Comprises (i) our POS/ERP solutions
across different retail and service verticals, which includes Linx
and the portfolio of POS/ERP solutions in which we invested over
time; (ii) our TEF and QR Code gateways; (iii) our reconciliation
solution, and (iv) CRM.8 Comprises (i) our omnichannel platform
(OMS); (ii) our e-commerce platform (Linx Commerce), (iii)
engagement tools (Linx Impulse and mlabs); (iv) our ads solution
and (v) marketplace hub.9 Our adjusted P&L includes the same
adjustments made for our Adjusted Net Income but broken down into
each P&L line. The purpose of showing it is to make it easier
to understand the underlying evolution of our Costs & Expenses,
disregarding some non-recurring events associated with each line
item.
A PDF accompanying this announcement is available
at http://ml.globenewswire.com/Resource/Download/8098b5aa-b064-4c07-b821-aa775db5d877
StoneCo (NASDAQ:STNE)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
StoneCo (NASDAQ:STNE)
Historical Stock Chart
Von Mai 2023 bis Mai 2024