SAO PAULO – Brazilian fintech company StoneCo Ltd. (NASDAQ:STNE) reported second quarter results that fell short of revenue expectations, sending shares down 1.8% in after-hours trading on Wednesday.
The payment processor posted revenue of R$3.21 billion ($654 million) for the quarter ended June 30, slightly below analyst estimates of R$3.22 billion. However, adjusted earnings per share came in at R$1.61, beating expectations of R$1.56.
StoneCo’s total payment volume (TPV) grew 21.6% year-over-year to R$126.1 billion, driven by a 17.4% increase in card TPV from micro, small and medium-sized businesses (MSMB). The company’s MSMB active client base expanded 30.3% from the prior year to 3.86 million.
“Stone has made significant progress in the second quarter across our strategic priorities, advancing in critical areas as we work towards our 2024 and long-term targets,” said CEO Thiago Piau.
While revenue missed estimates, adjusted net income surged 54.4% year-over-year to R$497.1 million. The company’s adjusted EBITDA margin remained strong at 49.5%.
StoneCo reaffirmed it is on track to meet its full-year 2024 guidance targets, despite headwinds from changes in revenue recognition and a challenging macroeconomic environment.
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