StoneCo reports Q1 adjusted EPS R$1.42 vs. R$0.75 last year

Reports Q1 revenue R$3.08B vs. R$ 2.71B last year. The company said, “1Q24 represented continuous business growth, delivering on our strategic priorities. In financial services, Stone performed well in all client offerings. Starting with payments, we posted strong continued TPV growth (including PIX) with an almost flat sequential growth rate. The quarter highlight was the launch of instant settlement to Ton clients – fulfilling a key request from our micro merchant clients. In banking, we continued to show progress in onboarding new and existing clients to our bundled banking and payments solution, and today, approximately 80% of our payments active client base has our bundled offering. And finally, our credit solution continues to grow according to plan. We maintain our conservative approach but are testing different client profiles to grow while balancing our credit models. We have set up a specialized desk to offer credit to larger clients, which is just getting underway. Regarding the software business, its performance showed progress. Revenue growth was modest, with verticals software (priority verticals + other verticals) revenues growing two digits purely organic, mitigated by enterprise software – which remained a revenue detractor. Our efficiency efforts continue to increase profitability in the segment. As discussed in our investor day, the strategic focus continues to be cross-selling financial solutions to our priority verticals’ clients and evolving on financial services and software bundles. In 2024, we are focusing on retail and gas station verticals – the latter being a highlight in the quarter.”