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01/09 20:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with year-over-year growth in revenue and gross profit, along with optimistic guidance for future growth. The share repurchase program indicates confidence in the company's value. Despite some concerns about increased costs and regulatory risks, the company's strategic initiatives and market differentiation provide a positive outlook. The market cap suggests moderate sensitivity to news, supporting a positive stock price movement prediction.
Gross Profit R$X million, 19% growth year-over-year, driven by effective repricing execution and a reduction in average funding spreads.
Revenue R$X million, 19% growth year-over-year, attributed to successful repricing initiatives despite partial impact in the quarter.
Adjusted Net Income R$X million, 23% growth year-over-year, but decreased 17% quarter-over-quarter due to lower adjusted gross profit and higher investments in distribution channels.
Adjusted Basic EPS R$1.97 per share, 36% growth year-over-year, but 13% lower sequentially, reflecting commitment to returning excess capital to shareholders.
Total Client Deposits R$8.3 billion, 38% growth year-over-year, but down 5% sequentially due to seasonality.
Credit Portfolio R$1.4 billion, consistent growth, with 15-90 days NPLs at 2.61% and NPLs over 90 days at 4.57%.
Financial Services Segment Revenue 20% growth year-over-year, driven by repricing initiatives.
Software Segment Revenue 11% growth year-over-year, mainly from higher software recurring revenues.
Adjusted Net Cash Position R$3.8 billion, decreased R$0.9 billion sequentially due to share repurchases and investments in credit book.
Effective Tax Rate 19.7%, down from 20.6% year-over-year, due to higher benefits from tax incentives.
MSMB Payments Active Client Base: Increased 17% year-over-year and 4% quarter-over-quarter to 4.3 million clients.
MSMB TPV Growth: Grew 17% year-over-year despite repricing efforts.
Retail Deposits: Reached R$8.3 billion, 38% higher year-over-year.
Credit Portfolio Growth: Total credit portfolio reached R$1.4 billion.
Gross Profit Growth: Grew 19% year-over-year, driven by effective repricing execution.
Adjusted Net Income Growth: Grew 23% year-over-year.
Share Repurchase: R$843 million or 15.1 million shares repurchased during the quarter.
Cost of Services: Increased 15% year-over-year, but decreased as a percentage of revenues.
New Share Repurchase Program: Announced a new program of up to R$2 billion, replacing the previous one.
Cash Sweep Strategy: Expected to convert a significant portion of retail deposits into on-platform time deposits.
Macroeconomic Environment: The company is navigating a less favorable macroeconomic environment with interest rates trending higher, which poses challenges to profitability and growth.
Repricing Initiatives: The repricing efforts may lead to a deceleration in volume growth as profitability is prioritized over pure volume growth, impacting future revenues.
Cost of Services: Increased costs of services by 15% year-over-year, which could affect margins if not managed effectively.
Financial Expenses: Financial expenses increased by 23% year-over-year due to higher average CDI, which could impact overall profitability.
Regulatory Risks: The company mentioned potential risks associated with regulatory changes, particularly in relation to tax benefits and compliance.
Credit Portfolio Quality: The credit portfolio is maturing, leading to an increase in non-performing loans (NPLs), which could affect future provisions and profitability.
Annual Goals Reaffirmation: The company reaffirmed its annual goals and expressed satisfaction with first quarter performance, emphasizing disciplined execution and progress toward long-term objectives.
Price Adjustments: Executed a new cycle of price adjustments across the client base in response to yield curve increases.
Share Repurchase Program: Announced a new share repurchase program of up to R$2 billion, replacing the previous program, reaffirming commitment to capital allocation strategy.
Cash Sweep Strategy: Implemented a cash sweep strategy to convert retail deposits into on-platform time deposits, optimizing capital structure and reducing funding costs.
2025 Gross Profit Growth Guidance: First quarter gross profits grew by 19% year-over-year, exceeding the 14% annual growth outlined in guidance.
2025 EPS Growth Guidance: EPS accelerated to 36% year-over-year, significantly above the 18% growth implied in the full-year outlook.
Capital Allocation: R$3 billion in excess capital reached by the end of 2024, with R$1 billion returned through share repurchases year-to-date.
Credit Portfolio Growth: Total credit portfolio reached R$1.4 billion, with a focus on maintaining quality and managing provisions.
Effective Tax Rate: Effective tax rate was 19.7%, down from 20.6% in Q1 2024, aligning with guidance.
Share Repurchase Program: In Q1 2025, StoneCo repurchased R$843 million (approximately USD 162 million) or 15.1 million shares, including 5.7 million shares repurchased in March. Over the past 12 months, the total amount returned through share buybacks reached R$2.4 billion (approximately USD 470 million). A new share repurchase program of up to R$2 billion (approximately USD 392 million) was announced, replacing the previous program.
The company shows strong financial metrics, with significant EPS growth and upward revisions in net income guidance. Despite some concerns about TPV deceleration and NPL growth, management's focus on client value and profitability is reassuring. The strategic divestitures and shareholder returns through buybacks further bolster investor confidence. The market cap suggests moderate stock reaction, aligning with a positive outlook.
The earnings call summary highlights strong financial performance with significant growth in gross profit and EPS, a new share repurchase program, and a solid credit portfolio. The Q&A section shows management's confidence in achieving long-term targets despite macroeconomic challenges. The upward revision of net income guidance and sustainable financial income growth further support a positive sentiment. The market cap indicates a moderate reaction, leading to a prediction of a 2% to 8% stock price increase over the next two weeks.
The earnings call reveals strong financial performance with year-over-year growth in revenue and gross profit, along with optimistic guidance for future growth. The share repurchase program indicates confidence in the company's value. Despite some concerns about increased costs and regulatory risks, the company's strategic initiatives and market differentiation provide a positive outlook. The market cap suggests moderate sensitivity to news, supporting a positive stock price movement prediction.
The earnings call reveals strong financial performance, exceeding guidance in key areas like net income, credit portfolio, and take rate. Despite a slight miss in MSMB card TPV, the overall performance is robust, with significant growth in retail deposits and adjusted EPS. The Q&A highlights disciplined risk management and strategic pricing initiatives. The market cap suggests moderate sensitivity, and the positive financials and strategic outlook indicate a likely stock price increase of 2% to 8% over the next two weeks.
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