StoneCo Ltd.

Good evening, everyone. Thank you for standing by. Welcome to StoneCo's 3rd 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 appears 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 actual results to differ materially from the company's expectation. 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 file with the Securities and Exchange Commission, which is available at www.scc.gov. Joining the call today is Stone's CEO, Pedro Zinner, the CFO and IRO, Mateus Scherer, the Strategy and Marketing Officer, Lia Matos, and the Head of IR, Roberta Noronha. I would now like to turn the conference over to your host, Pedro Zinner. Please proceed.

Thank you, Operator, and good evening, everyone. Today, we will present our results for the third quarter of 2024 and provide an updated outlook for our business. I'd like to begin by highlighting some of the key milestones from our third quarter, a period marked by solid performance and significant business improvements, bringing us closer to achieving our annual targets, if not already meeting some of them. Upon reviewing the quarter, I can confidently state that we maintain committed to executing our strategies across various areas of our financial service segment. On the payment side, we continue to observe encouraging trends in a healthy competitive environment. MSNB total payment volume grew by 20% year over year. reaching R$114 billion and serving 4 million MSNB clients, all while maintaining healthy unit economics, a key priority for us. In banking, demand deposits amounted to R$6.7 billion, representing a 50% increase compared to the previous year. Having made significant strides in scaling our payments and banking bundles for clients, our current focus is on enhancing client engagement. To achieve this, we're improving our clients' experience by developing additional solutions, such as our savings product, which despite being in its initial stages, has already shown positive results. Regarding credit, We are pleased to announce that we have surpassed our annual guidance, ending the quarter with a portfolio of 923 million euros, an impressive growth of nearly 30% part of our quarter. This portfolio is performing better than expected in terms of NPL levels, indicating that our credit offerings are aligned with our internal expectations and risk appetite. Our specialized credit desk, which commenced operations at the beginning of the year, has delivered promising results in generating new deals and enhancing our distribution. Additionally, we have successfully executed our roadmap for loan products, making advancements in credit cards and launching Giro Fácil, a revolving credit facility. We also continue to refine the experience our clients have throughout their credit cycle with us. In light of the performances I have just outlined, I'm proud to report that our MSNB take rate has reached a record of 2.58% in the quarter, setting a positive trajectory toward achieving our annual guidance of 2.49% and indicating sustained strong results in payments. In terms of software, we continue to see significant progress in cross-selling our financial services solutions to our software clients. Card TPV growth among these clients has exceeded twice the growth observed in MSNB volumes on a quarter-over-quarter basis. In addition, we are fully committed to executing our efficiency and cash generating initiatives. As a result, our EBITDA margin increased by 1.6 percentage points sequentially, now surpassing 18%. Given our commitment to acting in the best interest of our shareholders, we are currently evaluating options to maximize value, which I will discuss further in the end of this call. Finally, on the efficiency front, we have seen our adjusted administrative expenses decrease by 7% year to date compared to last year, positioning us well to meet our 2024 guidance, which implies a 7% growth. I would also like to highlight that we have nearly completed our 1 billion share repurchase program in the third quarter. we recognize that we currently have excess capital, leaving us with a strong balance sheet position. We continuously evaluate the optimal use of capital to maximize shareholder returns and are now developing a more structured decision-making framework in consultation with our board. We expect to provide further visibility over the coming quarters. As a result of our adjusted net income growth of 35%, and the execution of our buyback program, our adjusted basic earnings per share increased significantly by 43% year-over-year. Now, I'd like to turn the floor over to Lia, who will discuss our performance for the third quarter of 2024. Lia?

Thank you, Pedro, and good evening, everyone. As Pedro mentioned, we're happy with our performance in the third quarter and with how we've been able to drive value to clients with our solutions and service. As presented on slide four, we saw good traction in our consolidated financial results. Our total revenue and income grew 7% year over year, or 8% when we disregard the change in our internal accounting methodology for membership fees revenues held in the first quarter of 24. This growth is mainly a result of our performance in the MS&B segments, where we continue to grow client base and increase monetization. Our adjusted EBT and net income both grew 35% year over year with margin up 4.5 and 3.6 percentage points respectively to 21.8% and 17.5%. This improvement in margins was driven mainly by the combination of our top line growth and lower financial expenses. Combining our adjusted net income growth with the significant repurchase of shares in the quarter, our adjusted basic EPS grew 43% year over year to reach 1.97 reais per share. Now let's dive further into our financial services segment performance. Starting with payments on slide five, our MSNB client base reached almost 4 million active clients, a 21% growth year over year. The implied deceleration in the net addition of clients in the quarter results from different factors. First, to the phasing out of marketing investments made in the first half of the year. And second, due to a bigger focus on the quality of clients onboarded with healthy unit economics, as well as allocating capital towards client engagement rather than purely increasing our base. As you might also remember, we usually start the relationship with our clients with a payment and banking bundle, which opens the door for higher engagement with our multiple payments, banking and credit solutions. We're proud to see that our focus on improving such bundles and products to our clients has driven positive results illustrated by our heavy user metric, which shows the percentage of MSNB clients with more than three products with us. Heavy users have been growing consistently, going from 21% a year ago to 34% this quarter. Regarding payment volumes, MSNB TPV grew 20% year-over-year to reach R$114 billion in the quarter. This growth is composed of a 12.4% growth in card TPV and a 2.4x growth in PIX QR code volumes, as PIX continues to gain ground and cannibalize on debit volumes with net positive economic benefits for us and for our clients. As a result of a stable competitive environment in payments allowing for healthy take rates, our focus on growing with good unit economics, and the increased engagement of our clients with more solutions, we have reached a record take rate for MSNBs of 2.58% in the third quarter, nine basis points higher year over year, and three basis points higher than the second quarter of 24. Moving to slide six, we highlight our banking performance in the quarter. Our banking active client base grew 47% year over year to 2.8 million clients. As Pedro mentioned, our efforts to sell bundled banking and payment solutions to new clients has achieved a good maturity level since the majority of new clients today on board with a payments and banking offer. Thus, our focus has shifted towards increasing engagement within our ecosystem. As a result, total deposits from clients reached 6.8 billion reais in the quarter, 53% higher year over year. Our Financera license, received at the beginning of the year, has allowed us to expand the array of solutions that we can offer to our clients. Of the R$ 6.8 billion total retail deposits in the quarter, R$ 6.7 billion refer to demand deposits and R$ 121 million relate to on-platform time deposits from our savings products, which we haven't actively marketed yet. Though still in its early stage, we've been carefully managing the balance between time deposits and demand deposits, and we have seen accretive results while offering our clients a new alternative to manage their money within our ecosystem. In addition to on-platform time deposits, which are directed to our clients, we're also issuing time deposits distributed in third-party platforms outside our ecosystem, which we're calling off-platform time deposits. Those deposits have shown strong growth in the quarter, reaching 1.7 billion reais in funding for the company. Now let's move to credit on slide seven. We have 923 million reais in credit outstanding with our clients, which is already 15% above our annual guidance, with still one quarter left to go. Out of this portfolio, 864 million is related to merchant solutions, which currently comprises our working capital solution and our revolving credit facility solution, Giro Fácil, launched in the beginning of this quarter. The other 59 million reais relate to our credit card offer, which we're currently focusing on scaling within micro clients, as it is an important part of the credit value proposition for this segment. When we look at provisions, we have been slowly converging the provision of the working capital solution to reach levels closer to the expected loss in our models. Thus, provision related to the working capital portfolio has been decreasing from 20% in the beginning of the year to 14% in the third quarter. As a result of this convergence, and since working capital is still our most relevant credit solution by far, total provision expenses have reduced to virtually zero this quarter, compared with R$19 million one year ago and R$18 million in the second quarter of 24, contributing positively to our results when compared to previous periods. Regarding NPLs, the NPL 90 days for merchant solutions continues to increase as expected, while the portfolio matures, reaching 3.7% in the quarter compared with 2.6% for the previous quarter. The decrease observed in the NPL 15 to 90 in the quarter was due to the better vintages when compared with the second quarter. finally on slide 8 we summarize the performance of our financial services segment the strong evolution of our main strategic drivers coupled with a stable competitive environment in payments has led to a solid financial performance as such financial services revenue reached three billion reais eight percent higher year over year with an ABT margin of 22.8%, 5.1 percentage points higher over the same period. Now let's talk briefly about our software performance on slide 9. We see positive trends from our cross-selling initiative of offering financial services to our software client base, the strategic focus for the software segment. This can be seen by the Card TPV of our clients that use both our financial services solutions and software solutions, which has reached 5.8 billion reais in the quarter, growing more than twice the sequential growth seen in our MSNB Card TPV. This result was boosted by our financial services specialist team, which has been doing a great job driving this cross-sell to strategic verticals within our software segment. Regarding software revenues, we have seen relatively stable performance year over year, growing 2.5% sequentially. On the bottom line, software adjusted EBITDA reached 72 million reais in the quarter with a margin of 18.3%, 1.6 percentage points higher quarter over quarter as we continue to manage the business for efficiency and cash generation. Now, I want to pass it over to Mateus to discuss in more detail some of our key financial metrics. Mateus?