StoneCo, a Brazilian provider of financial technology, announced an adjusted fourth-quarter net profit of 234.8 million reais ($44.70 million) on Tuesday, reversing a loss of 32.5 million reais from the prior year.
The company reported that during the period, its revenue increased by 44.5% to 2.706 billion reais, and that the growth was primarily due to an almost 50% increase in income from its financial services platform.
In addition to offering banking services outside of the payments industry, StoneCo has been undergoing organisational changes. A new chief executive, Pedro Zinner, is set to take over at the end of March.
The fourth quarter “consolidated a big turnaround that our business had over 2022,” according to Lia Matos, chief strategy officer of StoneCo.
EBITDA, or adjusted earnings before interest, taxes, depreciation, and amortisation, totaled 1.272 billion reais, up 85.8% over the previous year.
Notwithstanding overall higher general and administrative expenses in the quarter, adjusted EBITDA margin increased one percentage point from the prior quarter to 47%, according to the company. This was primarily because of cost of services and selling expense efficiency improvements.