StoneCo stock dips even after Q4 earnings and revenue rise; board changes announced

StoneCo (NASDAQ:STNE) stock slid as much as 11.3% in Monday after-hours trading even after the Brazilian fintech firm turned in Q4 earnings and revenue that increased from the previous quarter, thanks to continued strength in its micro-merchant, small, medium (MSMB) segment.

Q4 total revenue and income of R$3.25B ($646.9M) advanced from R$3.14B in Q3 and R$2.71B in the year-earlier period.

Likewise, adjusted EPS of R$1.76 rose from R$1.32 in Q3 and R$0.63 a year before.

The company subsequently announced changes to its board. Founder André Street has decided not to seek re-election at the upcoming Annual General Meeting, which will take hold by the end of April. Similarly, vice chairman Conrado Engel and Patricia Verderesi Schindler will also not seek re-election, having completed their two-year commitment to the company.

As such, the proposal is to appoint Mauricio Luchetti as the new chairman, and Gilberto Caldart as the vice chairman of the Board, subject to the vote of the majority of shareholders. Additionally, José Scheinkman is expected to be nominated to join the board.

Q4 total payment volume was R$113.5B, up 9.2% Q/Q and 13.3% Y/Y.

MSMB TPV rose 10.0% sequentially and 20.2% from a year ago to R$98.5B. MSMB net additions were 192.2K in Q4 compared with 317.2K in Q3. The company attributed the Q/Q decrease in net adds to Q4 seasonality.

Adjusted EBITDA came in at R$1.56B, up from R$1.51B in Q3 and R$1.17B in Q4 2022.

Conference call at 5:00 p.m. ET.

Earlier, StoneCo (STNE) non-GAAP EPS of R$1.76, revenue of R$3.25B.