Stone's growth accelerates; company delivered its best first quarter ever, with adjusted net income of BRL237 million

• The Company beat all lines of its 1Q23 guidance.
• Net revenue reached BRL 2.7 billion, 31% higher compared to 1Q22
• TPV for Micro, Small, and Medium Enterprises (MSME) reached BRL 78.9 billion, 25% higher compared to 1Q22
• Adjusted EBT (earnings before taxes) of BRL 324 million, 371% higher compared to 1Q22, and 22% above guidance

SÃO PAULO, May 17, 2023 /PRNewswire/ -- StoneCo Ltd. (Nasdaq: STNE) reported its best first quarter ever, with adjusted profit of BRL 237 million, up 456% over 1Q22. Revenue reached BRL 2.7 billion in 1Q23, up 31% year-on-year, exceeding the guidance by 4%. Cash generation was also a record, with BRL 4 billion in adjusted net cash, a BRL 499.2 million increase vs. previous quarter. Of the factors that contributed to the company's growth with profitability, we highlight the increase in the acquiring client's customer base, reaching 2.8 million, the increase of customer's engagement with the company's banking account, which reached 1.3 million active customers, strong MSME customers monetization, with a Take Rate of 2.39%, and increased operational efficiency, with costs and expenses growing less than revenues.

"These results consolidate our execution capacity. We are building a financial services platform with integrated solutions for our customers, which goes far beyond acquiring", says Stone CEO, Pedro Zinner. "The five priorities that the company set as a guide for 2023 - growth with profitability, cash generation, expanding financial services, evolving the software area, and optimizing costs and expenses - advanced in 1Q23, and we will maintain our focus throughout the year", he adds.

The active customer base in the MSME segment grew by 47.4% in the annual comparison and 9.2% compared to 4Q22, with the addition of 231.9 thousand customers, reaching 2.758 million. The result was driven by Stone's offers for small and medium-sized businesses, and Ton, a solution for micro and small businesses. The total payments volume (TPV) for the segment was BRL 78.9 million in 1Q23, a 25% increase year on year, growing 2 times above the industry, according to data from ABECS (Brazilian Association of Companies of Credit Cards and Services).

On the banking platform, the highlight was the launch of "Super Conta Ton", with multiple benefits aimed at entrepreneurs and the self-employed, including money transferring via Pix, bill payments, acquisition of mobile phone credits, prepaid cards, and more, which improved customer's experience and enable Stone to be the primary banking provider for its customers.

Outlook for 2Q23:

• Total Revenue above BRL 2.875 billion in 2Q23, annual growth above 24.8%
• MSME TPV between BRL 83 and BRL 84 billion in 2Q23, annual growth between 18.8% and 20.2%
• Adjusted EBT above BRL 375 million in 2Q23, growth of over 15.7% compared to 1Q23, and over 394% compared to 2Q22

About Stone
Stone is a financial technology company with a platform of complete solutions, whose purpose is to improve the life of Brazilian entrepreneurs, helping them to sell more, manage their business better, and always grow. Through technology and innovation, it contributes to strengthening and evolving the market. With customers spread across Brazil, it develops a close and personalized relationship with each of the shopkeepers it serves.

SOURCE Stone