StoneCo Ltd.

Good evening, ladies and gentlemen. Thank you for standing by. Welcome to the StoneCo third quarter 2023 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with its call. All material can be found online at investors.stone.co. Throughout this conference call, the company will be presenting non-IFRS financial information, including adjusted net income and adjusted net cash. These are important financial measures for the company but are not financial measures as defined by IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information appear in today's press release. Finally, before we begin our formal remarks, I would like to remind everyone that today's discussion might include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the company's expectations. In addition, many of the risks regarding the business are disclosed in the company's Form 20-F, filed with the Securities and Exchange Commission, which is available at www.sec.gov. I would now like to turn the conference over to your host, Roberta Noronha, Head of Investor Relations at StoneCo. Please proceed.

Thank you, operator, and good evening, everyone. Joining me today on the call is our CEO, Pedro Zinner, our Chief Financial and Investor Relations Officer, Matheus Scherer, and our Chief Strategy and Marketing Officer, Lia Matos. Today, we will present our third quarter 2023 results, discuss some recent trends, and provide an updated outlook for our business. I will now pass it over to Pedro so he can share some highlights of our performance. Pedro?

Thank you, Roberta, and good evening, everyone. Overall, I was very pleased with the results delivered and the improvement we made within the organization. As I did in the previous quarters, I want to begin by making a brief evaluation of our performance related to the priorities set for the quarter. In our first priority, to grow with efficiency, we once again had very positive results. Total revenue increased 25% year over year to reach R$ 3.1 billion, exceeding our guidance by 2%. Combined with top line improvement, adjusted EBIT increased 3.3 times year over year, reaching R$ 545 million and surpassing our guidance by 16%. As a result, adjusted net income grew four times year over year to reach 435 million reais, the highest bottom line figure in our history. Our second priority was to generate cash. Adjusted net cash increased by 1.8 billion reais year over year and R$530 million quarter over quarter, reaching R$4.9 billion. Part of this excess cash was allocated in the repurchase program, as approved by the Board in September 2023, and totaled R$300 million. In our third priority, to expand financial services business, MSMB TPV continued to grow consistently at a strong pace, increasing 20% year over year and more than twice the industry rate. Combined with this, we have also presented a healthy client base increase and an improvement in monetization. Our MSNB client base increased 42% year over year, with a client net addition of 317,000 quarter over quarter, reaching almost 3.3 million merchants using our payment solutions. And at the same time, our MSNB take rate increased 28 pips year over year to reach 2.49%. We have also evolved in our banking and credit solutions. Banking active clients increased to 1.9 million with 4.5 billion reais in deposits, demonstrating the successful strategy on the development of our platform and client engagement with our solutions. And lastly, we have expanded our credit portfolio reaching R$ 113 million in this quarter and concluded the testing of many features in line with our expectations. In our fourth priority, to evolve our software business, we continue to improve our results, focusing on increasing efficiency as we promised. Software revenues reached R$388 million, with adjusted EBITDA increasing significantly to R$79 million, reaching a margin of 20.5%. This bottom-line evolution is a result of our continuous focus on improving operational leverage and integration plans with StoneCo. Lastly, we have recently taken important steps towards building our fit for purpose organization. In October, we announced our new management structure to better align the company around specific go-to-market strategies per client segment and to accelerate the integration of our software and financial solutions. We will further detail our strategic priorities in our investor day on November 15th, providing a better understanding on how the new organizational design will support us in executing our strategy. Before passing it over to Lia, I would like to say that I'm looking forward to meeting investors in our investor day in a few days from now. I believe it will be a great opportunity for us to share our views on the business and our long-term plans. Now, I'd like to pass it over to Lia to discuss our third quarter 2023 performance and strategic updates.