StoneCo Ltd., a leading financial technology company, reported its financial results for the second quarter of 2024 on August 14, 2024. The company, listed on Nasdaq as STNE, showcased a significant year-over-year growth in its financial metrics. Adjusted Earnings Before Taxes (EBT) rose to R$652.2 million, marking a 45.9% increase, while Adjusted Net Income climbed by 54.4% to R$497.1 million. The Adjusted Basic Earnings Per Share (EPS) also saw a substantial rise of 57.2%, reaching R$1.61. StoneCo's total revenue and income for the quarter reached R$3,205.9 million, an 8.5% increase from the previous year. The company's growth was driven by a 17.4% increase in MSMB Card Total Payment Volume (TPV), indicating market share gains. StoneCo also reported a 13% reduction in administrative expenses year-over...Show More

StoneCo Ltd., a leading financial technology company, reported its financial results for the second quarter of 2024 on August 14, 2024. The company, listed on Nasdaq as STNE, showcased a significant year-over-year growth in its financial metrics. Adjusted Earnings Before Taxes (EBT) rose to R$652.2 million, marking a 45.9% increase, while Adjusted Net Income climbed by 54.4% to R$497.1 million. The Adjusted Basic Earnings Per Share (EPS) also saw a substantial rise of 57.2%, reaching R$1.61. StoneCo's total revenue and income for the quarter reached R$3,205.9 million, an 8.5% increase from the previous year. The company's growth was driven by a 17.4% increase in MSMB Card Total Payment Volume (TPV), indicating market share gains. StoneCo also reported a 13% reduction in administrative expenses year-over-year, contributing to a more efficient cost structure. The company's credit portfolio expanded to R$712 million, with non-performing loans over 90 days at 2.6%, aligning with expectations. StoneCo continued to innovate, launching Giro Fácil, a short-term overdraft solution, and piloting interest-bearing products to enhance client offerings. The company's software initiatives, particularly in the gas station and retail verticals, have also progressed well, contributing to stronger card TPV growth among software clients. StoneCo remains committed to its business plan and investor day targets, having repurchased 9.67 million shares for R$724 million in early 3Q24, nearing the completion of its R$1 billion share repurchase program. Additionally, the company allocated $295 million to a tender offer for its 2028 bonds, achieving nearly 60% participation. StoneCo's outlook for 2024 remains on track, with the company well-positioned to meet its full-year guidance despite macroeconomic challenges and a ~R$120 million reduction in revenues due to changes in membership fee revenue recognition.