Stoneco ( (STNE) ) has released its Q3 earnings. Here is a breakdown of the information Stoneco presented to its investors.
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StoneCo Ltd., a prominent provider of financial technology and software solutions, empowers merchants across various channels in the commerce sector.
In its third quarter of 2024, StoneCo reported a significant financial improvement, with a 34.9% increase in adjusted net income and a 42.6% rise in adjusted basic EPS. The company has successfully advanced its strategic goals, particularly in the financial services segment, and remains on track to meet its annual guidance.
Key highlights from StoneCo’s earnings include a total revenue and income growth of 6.9% year over year, driven by an 8.3% increase in financial services segment revenues. The company’s banking solutions gained substantial traction, with total retail deposits up by 53.2% year over year. StoneCo’s credit portfolio surpassed its annual guidance, reaching R$923 million, with improved portfolio quality and expanded credit offerings.
StoneCo’s software business also saw progress, with an 18% adjusted EBITDA margin and a focus on cross-selling financial services to software clients. The company’s strategic emphasis on efficiency and cash generation is reflected in a 7% reduction in administrative expenses year to date.
Looking ahead, StoneCo management remains optimistic about achieving its 2024 targets, despite challenges from the yield curve. The company continues to focus on enhancing client engagement and delivering bundled solutions that address critical client needs within key strategic verticals.
