Q2 2024 StoneCo Ltd Earnings Call Transcript
Key Points
- StoneCo Ltd (STNE) reported a 30% year-over-year growth in its client base in the MSMB market.
- Total Payment Volume (TPV) grew by 25% year-over-year, with current TPV increasing over 17%.
- The company's banking client base grew 62% year-over-year, with client deposits increasing by 65%.
- StoneCo Ltd (STNE) achieved a 13% year-over-year reduction in administrative expenses.
- Adjusted net income increased by 54% year-over-year, with adjusted basic EPS reaching R$1.61.
- The company experienced a slight increase in Non-Performing Loans (NPLs) over 90 days, reaching 2.6%.
- Software segment revenues remained flat year-over-year, with adjusted EBITDA decreasing by 4%.
- Selling expenses increased by 27% year-over-year, indicating higher costs for client acquisition.
- The company faces challenges in maintaining its MSMB Card TPV growth due to higher PIX QR Code penetration.
- Financial expenses are expected to increase in the second half of the year due to rising interest rates.
Good evening, everyone. Thank you for standing by. Welcome to the StoneCo second-quarter 2024 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with its call. All material can be found online at investors.stone.co.
Throughout this conference call, the company will be presenting non-IFRS financial information including adjusted net income and adjusted net cash. These are important financial measures for the company but are not financial measures as defined by IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information appears in today's press release.
Finally, before we begin our formal remarks, I would like to remind everyone that today's discussion might include forward-looking statements. These forward-looking statements are not guarantees of future performances and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause results to differ materially from the company's
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