Stone's Inflection Point: STNE Surpasses Guidance With Record BRL 2.07B in Q1 Revenue, Signaling Strategic Shift in Profitability

StoneCo Ltd (Nasdaq: STNE) has marked a critical turning point in its operational trajectory, delivering financial results that substantially outpaced market expectations in the first quarter of 2022. The company’s total revenues reached BRL 2.07 billion—a commanding 138.6% year-over-year surge—while surpassing its own guidance range of BRL 1.85 to BRL 1.90 billion. This performance represents more than just solid execution; it signals the effectiveness of Stone’s pricing strategy and its repositioning within Brazil’s fintech ecosystem.

The Numbers Behind the Momentum

The scale of growth becomes apparent when examining segment-level performance. Financial Services revenues jumped 107.8% to BRL 1.7 billion, while the Software division posted a striking 955.6% increase to BRL 326.6 million. This dual-engine growth has translated directly to the bottom line: adjusted earnings before taxes (EBT) surged to BRL 163.1 million in Q1, a dramatic leap from BRL 17.2 million in the previous quarter—roughly a 9x improvement in profitability over a single three-month period.

Adjusted net income climbed to BRL 132.2 million, quadrupling the BRL 33.7 million recorded in Q4 2021. CEO Thiago Piau attributed this inflection to a combination of factors: strong top-line growth despite seasonal headwinds, disciplined cost management, and crucially, an improved quality of Stone’s customer base through selective pricing initiatives.

Operational Metrics Reflect Underlying Health

Stone’s total payment volume (TPV) reached BRL 83.2 billion in Q1, reflecting a 63.1% increase year-over-year. The micro, small and medium-sized enterprise (MSME) segment—Stone’s core market focus—demonstrated particular strength with 93.3% growth, driven by customer acquisition reaching 1.9 million users and improved per-customer transaction volumes.

The company’s take rate, a critical measure of pricing power, expanded from 1.71% to 2.06% during the quarter, underscoring Stone’s enhanced ability to capture value from its merchant network. This metric is particularly significant for stone investor relations communications, as it demonstrates pricing traction independent of volume growth.

Strategic Transparency and Forward Guidance

Stone’s decision to report Financial Services and Software as distinct business units reflects a deliberate move toward greater operational transparency. This structural change, alongside enhanced corporate governance measures, positions the company to communicate more effectively with capital markets participants.

Looking ahead, Stone projects Q2 2022 total revenue between BRL 2.15 to BRL 2.2 billion, implying 148-154% growth versus Q2 2021 on a pro-forma basis (including Linx). MSME TPV is estimated at BRL 67-68 billion, representing 71-73% year-over-year expansion. Adjusted EBT guidance ranges from BRL 185 million pre-bond expenses, or BRL 90+ million after accounting for financial costs—sustaining the profitability momentum initiated in Q1.

Leadership Evolution

To accelerate execution across technology and credit operations, Stone announced key executive appointments. Marcus Fontoura assumes the Chief Technology Officer role, bringing experience from Microsoft, Google, Yahoo and IBM. Thomas Gregor will lead the Credit function beginning in H2 2022, leveraging over three decades in financial services risk management at Santander Brasil. Osmar Castellani joins as VP of Finance for the Software Division, drawing on investment banking credentials from Goldman Sachs and Credit Suisse.

These appointments signal Stone’s ambition to scale beyond its merchant payment origins into more sophisticated financial services offerings, supported by world-class technology infrastructure and credit risk expertise.