StoneCo Clocks 139% Revenue Growth In Q1, Shares Soar Afterhours

StoneCo Ltd STNE reported first-quarter revenue growth of 138.6% year-over-year to R$2.07 billion, above the mid-range of the company’s guidance of R$1.85 billion and R$1.9 billion.
Adjusted diluted EPS was R$0.43 per share, compared with R$0.60 in 1Q21.
Financial Services segment revenue grew 107.8% Y/Y, and Software revenue increased 26.9% Y/Y to R$326.6 million.
Financial income in was R$949.8 million, an increase of 157.5% Y/Y.
MSMB active payment clients reached 1,870,900, representing a net addition of clients of 167,500 in the quarter; and MSMB TPV was R$63.4 billion, up 93.3% Y/Y.
Adjusted EBITDA was R$817.3 million (+116.8% Y/Y), and the margin increased 2.9 percentage points sequentially to 39.5%.
STNE sold 21.5% of its stake in Banco Inter during the quarter through the cash-out option offered in their corporate restructuring.
Net cash provided by operating activities was R$795.2 million. As of March 31, 2022, StoneCo’s Adjusted Net Cash was R$2.41 billion
2Q22 Outlook: StoneCo expects total revenue and income of R$2.15 billion and R$2.2 billion. Adjusted EBT is expected to be above R$185 million in 2Q22.
It expects MSMB TPV of R$67.0 billion and R$68.0 billion (up 70.7% to 73.2% year over year).
Price Action: STNE shares are trading higher by 19.1% at $12.40 during the post-market session on Thursday.

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