StoneCo Ltd (NASDAQ:STNE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 21, 2019 • 05:00 pm ET


StoneCo Ltd (NASDAQ:STNE) Q3 2019 Earnings Conference Call - Final Transcript


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Thiago Dos Santos Piau

with the best value proposition.

We have been able to grow, while maintaining our differentiated service levels in sales, logistics and customer service. In logistics, our Green Angels delivered a POS on average in less than one day, with a 99% service level agreements. In customer service, we have been able to answer our calls on average in less than five seconds, with 95% of calls rated as excellent, and we solve our clients issues in the first call in 82% of the cases.

We keep our team 100% driven by obsession over clients, and as our results demonstrate this mentality pays off. We have also seen significant advancements in our solution beyond payments. We have already disbursed over BRL185 million in credit to over 13,000 clients, offering clients are fully transparent solution and without unnecessary bureaucracy.

In banking, we have reached a total of 29,000 open accounts, having recently launched a marketing campaign, introducing the prepaid card in addition to the digital accounts. The integration of our financial solutions, acquiring banking and credit in a unified platform is already in pilot mode and is expected to be launched in the first quarter of next year.

Finally, our software solution client base has reached the mark of over 100,000 clients in the third quarter, compared to approximately 70,000 in July, having added over 30,000 clients organically in just two months.

Added to that, Recruta, our landmark recruiting program has reached almost 110,000 applications in 2019, making it one of the largest recruitment process in Brazil. Regarding our partnership with Grupo Globo, we have made great progress in many fronts in pre-operational aspects of the business. We have already defined a new brand to operate in the micro merchant space and expect to start operation in the first quarter of 2020. We remain very excited to address this opportunity.

Going on to Slide 4. We have just celebrated one-year anniversary of our IPO. We are very proud of the accomplishment of our team, who have helped our company not only grow, but become better every day. We have scaled fast, growing our client base by 83% surpassing BRL115 billion in TPV over the last 12 months.

Combined with growth, we have also improved our profitability reaching an adjusted net income of BRL738 million in the last 12 months. We an adjusted net margin of over 30% compared to adjusted net income of BRL208 million and a margin of 16% in the last 12 months prior to our IPO. Finally, our take rate improved by 11 basis points to 1.87% in the last 12 months, as we continue to grow our SMB client base.

As you can see in Slide 5, over the last year, we have had a continued focus on three areas. The first area is developing new solutions to our clients that go way beyond merchant acquiring. We had no credit offering and now we have BRL185 million disbursed. We multiplied the number of software clients by more than