GEORGE TOWN, Grand Cayman - StoneCo Ltd. (NASDAQ: STNE), a leading provider of financial technology solutions, reported fourth-quarter earnings that surpassed analyst expectations, but a revenue shortfall sent the stock down 12.65%.
The company posted adjusted earnings per share (EPS) of R$1.76, which was R$0.33 higher than the R$1.43 analysts had predicted. Still, revenue for the quarter was R$3.25 billion, falling short of the consensus estimate of R$3.42 billion.
The company's financial performance for the quarter was marked by significant year-over-year (YoY) growth, with adjusted EBT (Earnings Before Taxes) climbing 132% to R$638 million, and adjusted net income soaring 177% to R$564 million.
This robust growth was primarily driven by a 20% increase in MSMB TPV (Total Payment Volume) growth, underscoring the company's continued expansion in the market.
Despite the impressive growth in earnings, the revenue miss against analyst estimates has cast a shadow on the company's stock performance. The market's reaction, as evidenced by the sharp decline in share price, reflects investor concerns over the company's ability to meet revenue targets.
StoneCo's CEO, Pedro Zinner, expressed gratitude for shareholder support and highlighted the company's strategic milestones over the past year. He noted the company's ability to quickly adapt and rebound from a challenging 2021, which included a 'perfect storm' of registry system failures, adverse macroeconomic conditions, and credit portfolio stresses.
Zinner also emphasized the company's strategic focus on winning in the MSMB segment, driving engagement, and scaling through platforms.
Looking ahead, StoneCo remains committed to its long-term goals and believes it is uniquely positioned to drive strong shareholder returns. The company's guidance for the upcoming year reflects this optimism, with expectations for continued growth in MSMB TPV, client deposits, and an expanding credit portfolio.
Investors will be closely monitoring StoneCo's progress as it navigates the competitive fintech landscape and strives to meet its ambitious targets for the future.
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