Home Stock Here is why StoneCo is down 25%

Here is why StoneCo is down 25%


StoneCo Ltd (NASDAQ: STNE), an industry leading provider of software solutions and financial technology that helps sellers conduct business seamlessly across several different channels, went down by 25% pre-market trading as it announced its third-quarter financials for 2021. 

What did top management say? 

StoneCo’s Chief Executive Officer, Thiago Piau, said:

“Since our IPO in 2018, we have built on our strengths to scale the business – growing our client base 5.9 times, increasing our revenue by 3.5 times and TPV by 3.4 times, and evolving our solutions beyond payments – reaching over 422,000 banking clients and over 200,000 software clients.”

Mr. Piau claims that they continue to sustain high levels of customer support and continue to attract exceptional talent. The CEO said that their purpose is to serve entrepreneurs in Brazil and help them turn their dreams into reality. The CEO continued to say:

“To fulfill our purpose and live by our values, we took on the challenge of building the best financial platform on top of the payments solution that brought us here, taking our relationship with our clients to the next level.”

Business operations and highlights  

With the recent Linx acquisition and its current variety of solutions for several different retail projects, the company is looking to create industry-leading workflow tools that offer efficiency to their sellers and help them do business via more channels. 

This third quarter was characterized by the substantial evolution toward StoneCo’s main strategic goals. First, to provide the best financial systems to sellers in Brazil and be the number one workflow tool in the same country. 

The third quarter of this financial year saw it record a total annualized revenue of about $5.9 billion, representing roughly 72%. It had a net addition of 293,000 clients in the quarter when it came to financial operating services. This gives the company a total of almost 1.4 million active clients. 

The increase of active clients led to the strong performance in its MSMB (Micro+SMB) segment. Within its MSMB clientele, it balanced accelerated growth with healthy monetization. 

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