The stock price of StoneCo Ltd. (NASDAQ: STNE) has increased significantly after the release of its most recent earnings report, rising 15.63% to $11.39. This increasing momentum on the charts demonstrates STNE’s ongoing tenacity in a changing industry.
Strong Financial Performance Fuels Growth
StoneCo’s success in 2024 marked a major turning point for the company due to its capacity to adapt to shifting industry constraints. The year saw the implementation of strategic realignment, which strengthened the core business and supported its development trajectory.
Over the last two years, StoneCo has seen a 12 percentage point rise in its margin and a 14% compound annual growth rate (CAGR) in both income and total revenue. Together with an exceptional 92% CAGR in profits per share (EPS), there was a notable 20 percentage point improvement in return on equity (ROE).
Growth in Revenue and Clientele Drives Expansion
StoneCo’s overall revenue and income for the fourth quarter of 2024 (4Q24) was R$3,609.4 million, representing an 11.1% increase from the previous year. The financial services segment’s 11.2% growth in revenues, which was fueled by improved monetization and a growing clientele, was the main driver of this gain.
This achievement was largely due to active client growth, especially among MSMBs and Key Accounts. Adjusted Net Income increased by 18.1% to R$665.6 million in 4Q24, while Adjusted EBT increased by 21.9% to R$778.1 million.
Strategic Projects and Product Development
Despite a difficult macroeconomic environment, StoneCo is well-positioned for long-term development because to its strategic objectives. With noteworthy achievements in the MSMB industry, STNE’s 2024 focus was on improving customer interaction and growing through new platforms.
The quick adoption of PIX caused the card transaction value to slightly miss its projections, but StoneCo beat the market with an 18% year-over-year increase in transaction value, hitting R$516 billion.
Additionally, the company’s retail deposits exceeded forecasts and reached R$8.7 billion, a 42% year-over-year growth. In order to broaden its offers, STNE also added new credit card and revolving loan products, virtually quadrupling its credit portfolio to R$1.2 billion.