Brazil-based StoneCo Ltd. swung to a net profit in the fourth quarter of 2018, as the company recorded strong results from its revenue sources and contained growth in expenses.
The company, which operates payment processing company Stone Pagamentos SA, booked net income of 127.1 million reais for the three-month period, compared to a net loss of 14.3 million reais in the year-ago period. Fourth-quarter adjusted net income came to 155.9 million reais, surging 646.3% from 20.9 million reais a year ago.
The company's total net revenue and income climbed 113.7% year over year to 529.4 million reais. Financial income grew 98.4% to 255.8 million reais, while other financial income surged 371.8% to 29.6 million reais.
Net revenue from transaction activities and other services more than doubled to 174.4 million reais from 83.4 million reais a year ago. Net revenue from subscription services and equipment rental also soared to 69.5 million reais from 29.2 million reais.
Administrative expenses grew 17.2% annually to 73.4 million reais. Cost of services, meanwhile, reached 101.3 million reais, up 37.7%.
At the end of the fourth quarter, StoneCo had 267,900 active clients, doubling from its number last year.
The company, which launched an IPO in October 2018, saw net income of 305.2 million reais for full year 2018, recovering from a net loss of 105.0 million reais in 2017.
As of March 15, US$1 was equivalent to 3.81 Brazilian reais.