StoneCo Ltd.

Good evening, everyone. Thank you for standing by. Welcome to StoneCo second quarter 2024 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 may 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 results to differ materially from the company's expectations. Please refer to the forward-looking statements disclosure in the company's earnings press release. 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, Peter Zinner. our Chief Financial and Investment Relations Officer, Mateus Scherer, and our Chief Strategy and Marketing Officer, Lia Matos. Today, we will present our second quarter 2024 results 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. After reviewing our second-party results and our performance at mid-year, I am pleased with our progress across our strategic priorities and believe we are on schedule to meet our 2024 goals. In payments, we continue to win in the MS&B market and take more market share. Our client base grew 30% year-over-year, TPV grew 25% and Card TPV increased over 17%. We are also executing on our pricing and bundling strategies to enhance client engagement, as we discussed during our Investors Day. As a result, our MSNB take rates also continue to expand. year over year to reach 2.54%. We believe these strong results arrive from our competitive advantages in distribution, superior service, and our growing ability to provide more comprehensive solutions to our clients. In banking, we are making similar progress. Our client base grew 62% year over year, and client deposits increased 65% as our team continues to cross-sell effectively. We now have 2.7 million active banking clients and 6.5 billion reais in deposits, which are approaching our 2024 targets. We have also started to pilot interest-bearing projects, such as time deposits, which I believe is being well received by our clients and could be an exciting new area for us. In credit, we're also evolving well towards our goals, even above set targets. Our total credit portfolio increased 32% quarter over quarter to reach 712 million reais. Within that, our working capital portfolio grew over 28%, reaching 682 million reais this quarter, with strong quality, as shown with our NP help over 90 days, still at 2.6%, very much in line with our expectations. I'm also excited with some new initiatives underway. Our specialized credit desk, which is focused on addressing the opportunity within our larger SMB client base, successfully completed its first disbursement this past quarter, and we finalized the structuring of our GiroPasso product. This is a short-term overdraft solution designed to address the immediate capital needs of our clients, which is set to launch in the third quarter. In our software business, we are making progress on our cross-sell initiatives. and we are improving the quality mix of our business towards more recurring revenues. Total software and vertical software revenue growth remain modest, but we are seeing underlying signs of improvement. For example, we are getting better cross-sell traction in our gas station and retail vertical. and we generated stronger Card TPV growth from our software clients in priority verticals than our overall MSNB Card TPV growth rate. We still have a lot of work to do in our software business over the long term, as I have mentioned, but I'm seeing some encouraging trends from our efforts. We have also maintained our focus on efficiency gains and the streamlining of administrative expenses, which decreased by 13% year over year. In the quarter, we achieved a 180 basis point reduction in administrative expenses as a percentage of revenues when compared to the second quarter of 2023. As a result of these positive developments, our adjusted basic EPS demonstrated strong growth, reaching R$1.61. As I mentioned earlier, we remain committed to our business plan and the targets established during our investor day. In light of this commitment and considering short-term market fluctuations, we allocated capital to repurchase an additional 9.67 million shares, totaling R$724 million. bringing us closer to completing the R$1 billion share repurchase program announced in November 2023. Additionally, as part of our liability management strategy, we allocated $295 million to the tender offer for our 2028 bonds, achieving nearly 60% participation. In summary, I'm very satisfied with the trajectory of our results for the second quarter of 2024, and I have full confidence in our team's execution. Now, I'd like to pass the floor to Lia, who will discuss our second part of the 2024 performance and strategic updates. Lia?