Why StoneCo Shares Are Soaring After Hours Today

StoneCo Ltd STNE reported fourth-quarter total Revenue and Income growth of 87% year-over-year in 4Q21 to R$1.9 billion.

• STNE added 377,700 net new clients in the quarter, reaching 1.8 million payment clients.
• TPV (ex-Coronavoucher) grew 55% YY, while the TPV from MSMBs grew 87% Y/Y for the quarter.
• Total subscribed software clients reached 199,700 (+59.4% Y/Y), with a total number of locations using Linx POS/ERP solutions growing 11.7% over the same period to 109,300.
• MSMB active payment clients reached 1,703,400, with a net addition of 367,300 clients in the quarter, 26.5% higher than in 3Q21. 
• MSMB Take Rate rose to 1.71% in 4Q21 from 1.66% in 3Q21 and has reached 2.02% in January 2022. 
• Adjusted Net Income was R$33.7 million, with a 1.8% net margin. Adjusted net cash from operating activities in 4Q21 was R$366.0 million, and total Capex was R$547.7 million.
• Adjusted diluted EPS was R$0.13 per share in 4Q21, compared with R$1.16 per share in 4Q20.
• Adjusted EBITDA was R$684.7 million, 30.1% higher than in 4Q20.
• Adjusted Free Cash Flow was negative R$181.7 million.
• StoneCo held Cash and Cash Equivalents plus Short-term Investments of R$6,488.7 million on December 31, 2021.
• STNE expects margins to start improving in 1Q22.
• “With a renewed focus on our core strengths, a streamlined organizational structure and a seasoned executive team, we are positioned to execute on our strategies, continue our strong growth and expand our margins in 2022,” commented Thiago Piau, CEO.
• Price Action: STNE shares are trading higher by 22.48% at $11.77 during the post-market session on Thursday.