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stoneco StoneCo Reports Second Quarter of 2021 Financial Results August 30 , 2021 GEORGE TOWN , Grand Cayman , Aug. 30 , 2021 ( GLOBE NEWSWIRE ) -- StoneCo Ltd. ( Nasdaq : STNE ) ( " Stone " or the " Company " ) , a leading provider of financial technology solutions that empowers merchants to conduct commerce seamlessly across multiple channels , today reports its financial results for its second quarter ended June 30 , 2021 . " Dear Shareholders , CO . Despite strong underlying growth in our core business and evolution of our strategic roadmap , we had some mixed results this quarter primarily driven by a challenging short - term scenario in our credit product , which was strongly affected by industry problems with the credit receivables registry system and the resulting actions we took to address them , which we discussed in our August 25 , 2021 press release ( New Dynamics of Registration of Receivables in Brazil ) . Our core business is very strong . During the quarter we accelerated the growth of our SMB business , reaching over 1 million SMB clients and growing SMB TPV by 104 % year over year . This accelerating growth was achieved with healthy unit economics , with TPV per client and revenue per client excluding credit both increasing quarter over quarter . Our TON product has moved from being an experiment and optionality to becoming a proven and high growth solution that added over 140,000 new clients in the quarter . Also , the engagement of our SMB clients within our digital banking platform showed a significant improvement in the quarter , with prepaid card TPV , banking money - in and money - out volumes , and total banking accounts balance all growing between 4 and 5.5 times . Overall , our consolidated Total Revenue and Income increased by 68 % year over year when we exclude credit revenues . Our credit business remains in the early stages and we made some mistakes in our execution , especially not foreseeing how the malfunctioning of the registry system could harm our business . So we decided to take a cautious approach and implemented some prudent actions , like temporarily stopping the disbursement of credit and increasing coverage for potential future losses , which impacted our reported results for the quarter . While conservative , we think this was the best course of action to try to deal with the issue head - on . We will wait for the system to be fixed , all parties to begin playing by the same rules and turnaround our execution before resuming our operations , which we think could take three to six months . We have learned a lot in the past two years of building our credit product and we remain very excited about the long - term opportunity and the material benefits to our clients . Also , we closed the acquisition of Linx on July 1st , when we started managing the company . We remain very excited with the opportunity to integrate software , payments and financial solutions . We see Linx as a rare asset built over decades with very sticky client relationships and high switching costs . Linx has an unparalleled level of data from retailers that is very granular for each vertical , which we think we can use more aggressively to identify great cross - sell or up - sell opportunities . We see a number of avenues to create value with Linx and are focused on executing on the combination of the businesses . We have continued to make sizeable investments in the growth of our business focused on areas such as technology , distribution and customer service operation . We believe that the incredible learnings from this quarter will take us to a new phase of our business . We are even more convinced of the opportunities ahead and we keep our devotion to making our clients happy and to the evolution of our team . " Thiago Piau , CEO Operating and Financial Highlights 2Q21 Total Payment Volume ( TPV ) R $ 60.4¹ BN Up 58.6 % year over year , or R $ 58.6 billion excluding Coronavoucher , an increase of 62.7 % year over year Total Revenue and Income R $ 613.4 MM A decrease of 8.1 % year over year , explained by R $ 397.2 million negative revenue contribution from credit , mainly due to adjustments in credit fair value and significantly lower credit disbursements . Total Revenue and Income excluding our credit product2 grew 68 % year over year . Adjusted Net Income R $ ( 150.5 ) MM Impacted by credit fair value adjustments , lower credit disbursement , strong investments in the operation and higher financial expenses Take Rate 0.91 % Impacted by R $ 397.2 million negative revenue contribution from credit product , mainly due to higher provision for losses . Excluding credit , take rate was 1.57 % , + 7bps² year over year Take Rate ex - Coronavoucher was 0.94 % SMB Net Addition of Clients 188,0003 leading to an SMB Active Client base of 1.05 million² . Adjusted EPS ( diluted ) R $ ( 0.47 ) per share Compared with R $ 0.54 in the prior year - period