Stone Doubles Customer Base and Points to Increased Profitability in 2022
Stone Co Ltd. (Nasdaq: STNE) recorded growth acceleration in the 4th quarter of 2021. Revenue grew by 87% compared to the last quarter of 2020, reaching R$ 1.9 billion. The Company invested in expanding its base and closed 2021 with 1.8 million active customers – 2.3 times more than in 2020.
Margin was impacted by higher financial expenses, and adjusted net income was R$ 34 million in the quarter. The company has successfully implemented its repricing strategy and expects to increase profitability in the first quarter of 2022.
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“The fundamentals of the business remain solid. We are gaining customers, gaining market share and expanding our presence for the company’s continued expansion”, says Stone CEO Thiago Piau.
With the price revision, the take rate in Micro, Small and Medium Enterprises increased from 1.71% in Q421 to 2.02% in January – surpassing the 1.68% rate (ex-credit) in Q420. MSME TPV growth has already increased by more than 80% in January and February, pointing to a balance between growth and margin.
With investments in products and operations, the expectation is that total revenue will be close to R$ 1.9 billion in the first quarter, up 119%; and the TPV of MSMEs could reach R$ 60 billion, with an up to 83% increase. Adjusted earnings before taxes are expected to exceed R$ 140 million in Q122.
The last quarter of 2021 also saw growth in banking, which closed the year with 491,500 active customers and more than R$ 2 billion in deposits.
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In Software, revenue rose by 16% over the last quarter of 2020, and revenue from core POS and ERP solutions increased by 26%. Linx reached 109,300 establishments with POS/ERP solutions, in an 11.7% increase in the quarter.
To provide greater focus on executing its strategies, Stone reorganized the company into two segments: Financial Services and Software. Each unit will have a dedicated COO, who will look for cross-selling and integration opportunities.
The company will continue to expand its customer base and is focused on relaunching the credit product, which is key to its mission of supporting Brazilian entrepreneurs.
