Stone doubles customer base and points to increased profitability in 2022

SÃO PAULO, March 18, 2022

Guidance for Q122 points to increasing profitability and total revenue

SÃO PAULO, March 18, 2022 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE) recorded growth acceleration in the 4^th 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.

"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.