StoneCo (STNE) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 performance with Adjusted Net Income up 34.9% year-over-year to R$587 million and Adjusted Basic EPS up 42.6% to R$1.97, supported by share buybacks and efficiency initiatives.

• MSMB TPV grew 20% year-over-year to R$114 billion, with client base expanding 21% to 4 million and PIX QR Code volumes up 141.9%.

• Banking active clients rose 47% year-over-year to 2.8 million, with retail deposits up 53% to R$6.8 billion.

• Credit portfolio reached R$923 million, surpassing annual guidance, with improved quality and lower provisions.

• Software segment saw improved cross-sell and stable revenues, with CTPV overlap up 18.4% year-over-year.

Financial highlights

• Total revenue and income increased 6.9% year-over-year to R$3,357 million, with financial services revenue up 8.3%.

• Adjusted EBITDA and EBT grew 35% and 34.6% year-over-year, with margins up to 21.8%.

• Adjusted net income margin rose to 17.5% from 13.9% a year ago.

• Adjusted basic EPS reached R$1.97, up 43% year-over-year.

• Adjusted net cash position at R$4.9 billion, impacted by share buybacks.

Outlook and guidance

• On track to deliver 2024 guidance, having already exceeded credit portfolio targets and optimistic on client deposits, MSMB take rate, and efficiency metrics.

• MSMB CTPV guidance for 2024 is above R$412 billion (+18% year-over-year); client deposits guidance above R$7 billion (+14% year-over-year).

• MSMB take rate year-to-date at 2.55%, above guidance of 2.49%.

• Expect repricing to drive higher take rates from Q1 2025 due to rising interest rates.