StoneCo Ltd. (NASDAQ:STNE) shares are trading lower after it reported first-quarter FY24 results.

Revenue and Income of R$3.08 billion missed the consensus of R$3.09 billion.

Revenue grew 13.8% Y/Y, led by a 16.0% Y/Y increase in financial services revenues, aided by active client base growth and higher monetization from clients in the MSMB (Micro and SMB clients) segment.

Consolidated Total Payment Volume (TPV), including PIX P2M transactions, grew 17.9% Y/Y to R$114.3 billion in the quarter, led by the MSMB segment's TPV (+18.4% Y/Y) and a 147.7% Y/Y increase in PIX P2M volumes.

Monthly Average TPV MSMB fell 12.7% Y/Y in the first quarter of FY24. Clients Deposits stood at R$6.0 billion, up 53.4% Y/Y, in the quarter.

Adjusted EBITDA increased 20.8% Y/Y to R$1.51 billion, with a margin of 49.0% (up 2.9ppt Y/Y). Adjusted EPS of R$1.42 missed the consensus of R$1.44.

Adjusted net cash position stood at R$5.14 billion in the first quarter of FY24, increasing 28.9% Y/Y.

Outlook: For FY24, the company expects MSMB TPV to be >R$412 billion in FY24 and >R$600 billion in FY27.

Investors can gain exposure to the stock via Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:GABF) and First Trust Brazil AlphaDEX Fund (NASDAQ:FBZ).

Price Action: STNE shares are down 9.88% at $15.01 at the last check Tuesday.