StoneCo Q2 earnings, revenue top consensus on strong payment volume

StoneCo (NASDAQ:STNE) posted on Wednesday Q2 earnings and revenue that exceeded the average analyst estimate as the Brazilian payment technology company recorded strong payment volume growth.

Q2 total revenue and income of R$3.21B (US$586.4M), surpassing the consensus of R$3.09B, increased from R$3.08B in Q1 and R$3.0B in last year’s Q2. The 8.5% Y/Y increase was mostly driven by a 10.6% increase in financial services revenues, mainly as a result of consistent active client base growth and higher client monetization.

Adjusted EPS of R$1.61, topping the average analyst estimate of R$1.48, rose from R$1.42 in the previous quarter and R$0.98 in the year-ago period.

(STNE) edged up 0.4% in after-hours trading.

Q2 total payment volume of R$126.1B gained 7.5% Q/Q and 21.6% Y/Y. MSMB segment TPV of R$109.3B increased 7.2% Q/Q and 24.6% from a year earlier. MSMB net additions were 184K in Q2 vs. 204.9K in Q1 and 203.9K in Q2 2023.

StoneCo (STNE) raised its 2024 guidance for adjusted net income to more than R$1.9B in 2024 (vs. prior guidance of R$1.125B). The company reaffirmed its full-year outlooks for MSMB card TPV of over R$412B.

Adjusted EBITDA of R$1.59B climbed from R$1.51B in the previous quarter and R$1.50B in last year’s Q2. Adjusted EBITDA margin widened to 49.5% from 49.0% in Q1 and 50.7% in Q2 2023.