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StoneCo (NASDAQ: STNE)
Q3 2024 Earnings Name
Nov 12, 2024, 5:00 p.m. ET
Contents:
- Ready Remarks
- Questions and Solutions
- Name Members
Ready Remarks:
Operator
Good night, everybody. Thanks for standing by. Welcome to StoneCo’s third quarter 2024earnings convention name By now, everybody ought to have entry to our earnings launch.
The corporate additionally posted a presentation to go together with its name. All materials might be discovered on-line at traders.stone.co. All through this convention name, the corporate shall be presenting non-IFRS monetary data, together with adjusted web revenue and adjusted web money. These are essential monetary measures for the corporate however will not be monetary measures as outlined by IFRS.
Reconciliations of the corporate’s non-IFRS monetary data to the IFRS monetary data seems in at this time’s press launch. Lastly, earlier than we start our formal remarks, I want to remind everybody that at this time’s dialogue could embrace forward-looking statements. These forward-looking statements will not be ensures of future efficiency and due to this fact, you shouldn’t put undue reliance on them. These statements are topic to quite a few dangers and uncertainties that might trigger precise outcomes to vary materially from the corporate’s expectation.
Please confer with the forward-looking statements disclosure within the firm’s earnings press launch. As well as, most of the dangers concerning the enterprise are disclosed within the firm’s Type 20-F filed with the Securities and Trade Fee, which is offered at www.sec.gov. Becoming a member of the decision at this time is Stone’s CEO, Pedro Zinner; the CFO and IRO, Mateus Scherer; the technique and advertising and marketing officer, Lia Matos; and the top of IR, Roberta Noronha. I’d now like to show the convention over to your host, Pedro Zinner.
Please proceed.
Pedro Zinner — Chief Government Officer
Thanks, operator, and good night, everybody. Right now, we’ll current our outcomes for the third quarter of 2024 and supply an up to date outlook for our enterprise. I would like to start by highlighting among the key milestones from our third quarter, a interval marked by strong efficiency and important enterprise enhancements, bringing us nearer to reaching our annual targets, if not already assembly a few of them. Upon reviewing the quarter, I can confidently state that we preserve dedicated to executing our methods throughout varied areas of our Monetary Service phase.
On the Cost facet, we proceed to look at encouraging tendencies in a wholesome aggressive surroundings. MSMB complete fee quantity grew by 20% yr over yr, reaching BRL 114 billion and serving 4 million MSMB purchasers, all whereas sustaining wholesome unit economics, a key precedence for us. In banking, demand deposits amounted to BRL 6.7 billion, representing a 50% improve in comparison with the earlier yr. Having made important strides in scaling our funds and banking bundles for purchasers, our present focus is on enhancing consumer engagement.
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To attain this, we’re bettering our purchasers’ expertise by growing further options reminiscent of our financial savings product, which, regardless of being in its preliminary phases, has already proven constructive outcomes. Concerning credit score, we’re happy to announce that we’ve surpassed our annual steering, and within the quarter, we’ve a portfolio of BRL 923 million, a formidable development of almost 30% quarter over quarter. This portfolio is performing higher than anticipated when it comes to NPL ranges, indicating that our credit score choices are aligned with our inside expectations and threat urge for food. Our specialised credit score desk, which commenced operations in the beginning of the yr has delivered promising leads to producing new offers and enhancing our distribution.
Moreover, we’ve efficiently executed our roadmap for mortgage merchandise, making developments in bank cards and launching Giro Facil, a revolving credit score facility. We additionally proceed to refine the expertise our purchasers have all through their credit score cycle with us. In gentle of the performances I’ve simply outlined, I am proud to report that our MSMB take charge has reached a file of two.58% within the quarter, setting a constructive trajectory towards reaching our annual steering of two.49% and indicating sustained robust leads to funds. When it comes to software program, we proceed to see important progress in cross-selling our monetary service options to our software program purchasers.
Card TPV development amongst these purchasers has exceeded twice the expansion noticed in MSMB volumes on a quarter-over-quarter foundation. As well as, we’re totally dedicated to executing our effectivity and cash-generating initiatives. Consequently, our EBITDA margin elevated by 1.6 share factors sequentially, now surpassing 18%. Given our dedication to appearing in the perfect curiosity of our shareholders, we’re presently evaluating choices to maximise worth, which I’ll focus on additional in the long run of this name.
Lastly, on the effectivity entrance, we’ve seen our adjusted administrative bills decreased by 7% yr so far in comparison with final yr, positioning us properly to satisfy our 2024 steering, which suggests a 7% development. I’d additionally like to spotlight that we’ve almost accomplished our 1 billion share repurchase program within the third quarter. We acknowledge that we presently have extra capital, leaving us with a robust steadiness sheet place. We constantly consider the optimum use of capital to maximise shareholder returns and at the moment are growing a extra structured decision-making framework in session with our board.
We count on to offer additional visibility over the approaching quarters. On account of our adjusted web revenue development of 35% and the execution of our buyback program, our adjusted fundamental earnings per share elevated considerably by 43% yr over yr. Now, I would like to show the ground over to Lia, who will focus on our efficiency for the third quarter of 2024. Lia?
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks, Pedro, and good night, everybody. As Pedro talked about, we’re proud of our efficiency within the third quarter and with how we have been capable of drive worth to purchasers with our options and repair. As introduced on Slide 4, we noticed good traction in our consolidated monetary outcomes. Our complete income and revenue grew 7% yr over yr or 8% after we disregard the change in our inside accounting methodology for membership charges revenues held within the first quarter of ’24.
This development is principally a results of our efficiency within the MSMB phase, the place we proceed to develop consumer base and improve monetization. Our adjusted EBIT and web revenue each grew 35% yr over yr, with margin up 4.5 and three.6 share factors, respectively, to 21.8% and 17.5%. This enchancment in margins was pushed primarily by the mixture of our top-line development and decrease monetary bills. Combining our adjusted web revenue development with the numerous repurchase of shares within the quarter, our adjusted fundamental EPS grew 43% yr over yr to achieve BRL 1.97 per share.
Now, let’s dive additional into our Monetary Companies phase efficiency. Beginning with Funds on Slide 5. Our MSMB consumer base reached nearly 4 million lively purchasers, a 21% development yr over yr. The implied deceleration within the web addition of purchasers within the quarter outcomes from various factors: first, as a result of phasing out of selling investments made within the first half of the yr; and second, because of a much bigger give attention to the standard of purchasers onboarded with wholesome unit economics, in addition to allocating capital towards consumer engagement moderately than purely growing our base.
As you may also bear in mind, we normally begin the connection with our purchasers with a funds and banking bundle, which opens the door for increased engagement with our a number of funds, banking, and credit score options. We’re proud to see that our give attention to bettering such bundles and merchandise to our purchasers has pushed constructive outcomes illustrated by our heavy person metric, which exhibits the proportion of MSMB purchasers with greater than three merchandise with us. Heavy customers have been rising persistently, going from 21% a yr in the past to 34% this quarter. Concerning fee volumes, MSMB TPV grew 20% yr over yr to achieve BRL 114 billion within the quarter.
This development consists of a 12.4% development in Card TPV and a 2.4 instances development in PIX QR code volumes as PIX continues to realize floor and cannibalize on debit volumes with web constructive financial advantages for us and for our purchasers. On account of a secure aggressive surroundings in funds, permitting for wholesome take charges, our give attention to rising with good unit economics, and the elevated engagement of our purchasers with extra options, we’ve reached a file take charge for MSMBs of two.58% within the third quarter, 9 foundation factors increased yr over yr and three foundation factors increased than the second quarter of ’24. Transferring to Slide 6, we spotlight our banking efficiency within the quarter. Our banking lively consumer base grew 47% yr over yr to 2.8 million purchasers.
As Pedro talked about, our efforts to promote bundled banking and fee options to new purchasers has achieved maturity degree because the majority of latest purchasers at this time on board with a funds and banking provide. Thus, our focus has shifted towards growing engagement inside our ecosystem. Consequently, complete deposits from purchasers reached BRL 6.8 billion within the quarter, 53% increased yr over yr. Our financier license obtained in the beginning of the yr has allowed us to broaden the array of options that we are able to provide to our purchasers.
Of the BRL 6.8 billion complete retail deposits within the quarter, BRL 6.7 billion referred to demand deposits, and BRL 121 million pertains to on-platform time deposits from our financial savings merchandise, which we have not actively marketed but. Although nonetheless in its early stage, we have been fastidiously managing the steadiness between tightened deposits and demand deposits and we’ve seen accretive outcomes whereas providing our purchasers a brand new various to handle their cash inside our ecosystem. Along with on-platform time deposits, that are directed to our purchasers, we’re additionally issuing time deposits distributed in third-party platforms exterior our ecosystem, which we’re calling off-platform time deposits. These deposits have proven robust development within the quarter, reaching BRL 1.7 billion in funding for the corporate.
Now, let’s transfer to credit score on Slide 7. Now we have BRL 923 million in credit score excellent with our purchasers, which is already 15% above our annual steering with nonetheless one quarter left to go. Out of this portfolio, BRL 864 million is expounded to Service provider Options, which presently includes our working capital answer and our revolving credit score facility answer Giro Facil launched at first of this quarter. The opposite BRL 59 million relate to our bank card provide, which we’re presently specializing in scaling inside micro purchasers because it is a crucial a part of the credit score worth proposition for this phase.
Once we take a look at provisions, we’ve been slowly converging the supply of the working capital answer to achieve ranges nearer to the anticipated loss in our fashions. Thus, provision associated to the working capital portfolio has been reducing from 20% at first of the yr to 14% within the third quarter. On account of this convergence and since working capital continues to be our most related credit score answer by far, complete provision bills have diminished to just about zero this quarter in contrast with BRL 19 million one yr in the past and BRL 18 million within the second quarter of ’24, contributing positively to our outcomes when in comparison with earlier intervals. Concerning NPLs, the NPL 90 days for Service provider Options continues to extend as anticipated, whereas the portfolio matures, reaching 3.7% within the quarter in contrast with 2.6% for the earlier quarter.
The lower noticed within the NPL 15 to 90 within the quarter was as a result of higher vintages in comparison with the second quarter. Lastly, on Slide 8, we summarize the efficiency of our Monetary Companies phase. The robust evolution of our fundamental strategic drivers coupled with a secure aggressive surroundings in funds has led to a strong monetary efficiency. As such, monetary providers income reached BRL 3 billion, 8% increased yr over yr, with an EBT margin of twenty-two.8%, 5.1 share factors increased over the identical interval.
Now, let’s discuss briefly about our software program efficiency on Slide 9. We see constructive tendencies from our cross-selling initiative of providing monetary providers to our software program consumer base, the strategic focus for the software program phase. This may be seen by the Card TPV of our purchasers that use each our monetary providers options and software program options, which has reached BRL 5.8 billion within the quarter, rising greater than twice the sequential development seen in our MSMB Card TPV. This outcome was boosted by our monetary providers specialist workforce, which has been doing a terrific job driving this cross-sell to strategic verticals inside our software program phase.
Concerning software program revenues, we’ve seen comparatively secure efficiency yr over yr, rising 2.5% sequentially. On the underside line, software-adjusted EBITDA reached BRL 72 million within the quarter with a margin of 18.3%, 1.6 share factors increased quarter over quarter as we proceed to handle the enterprise for effectivity and money technology. Now, I need to move it over to Mateus to debate in additional element a few of our key monetary metrics. Mateus?
Mateus Scherer — Chief Monetary Officer
Thanks, Lia, and good night, everybody. I want to begin on Slide 10, the place we focus on the quarter-over-quarter evolution of our prices and bills on an adjusted foundation. Price of providers decreased as a share of income from 26.2% within the second quarter of ’24 to 25.6% within the third quarter of ’24 as a result of discount in mortgage loss provisions. Excluding credit score provisions, the prices remained comparatively secure as a share of income.
Administrative bills elevated 5% yr over yr or 9% quarter over quarter, leading to a sequential improve of 30 bps as a share of revenues. This improve was primarily attributed to increased provisions for variable compensation, that are seasonally increased within the second half of the yr. Promoting bills elevated 13% yr over yr and decreased 5% quarter over quarter or 150 foundation factors as a share of revenues. This decline was primarily pushed by diminished advertising and marketing bills contemplating that within the first half of the yr, we sponsored a actuality TV present, which ended within the second quarter.
Monetary bills decreased 13% yr over yr and elevated 7% sequentially or 50 foundation factors as a share of revenues. The sequential improve was pushed by increased funding wants because of TPV development, decrease share of fairness in our funding combine following important share buybacks this quarter, and the next variety of working days. These results had been partially offset by decrease common funding spreads. This quarter, our proactive legal responsibility administration performed a key position in optimizing our funding prices as we repurchased 60% of our 2021 bond issuance, our most costly debt instrument, and refinanced at considerably decrease spreads by way of the issuance of latest monetary payments.
Our different bills line elevated by 12% yr over yr however remained comparatively secure sequentially. As our revenues grew, different bills as a share of revenues decreased by 20 foundation factors. Lastly, our tax charge was 20% within the quarter, down from 23.8% in Q2. This discount was primarily as a result of repurchase of roughly 60% of our bonds and the switch of the remaining portion to a neighborhood entity, permitting us to learn from a tax defend on the related curiosity expense.
This operation had a partial influence in Q3 and is anticipated to additional profit the corporate from This fall onwards. Turning to Slide 11. Our adjusted web money place reached BRL 4.9 billion by the tip of the quarter, a lower of BRL 0.3 billion on a sequential foundation. The primary cause for the discount was the execution of our 1 billion share buyback program, with an outflow of BRL 742 million within the third quarter and BRL 979 million yr so far.
Lastly, let’s transfer to Slide 12 to debate our steering. We’re very happy with our efficiency in these 9 months of 2024. On the monetary entrance, I really feel we’re properly positioned to ship our steering regardless of components that impacted our P&L like our resolution to make a large share buyback, the interior adjustments within the methodology of membership charges, and macroeconomic headwinds with the sudden rise of the yield curve. On the working facet, I am excited to share that we’ve already met our steering for the credit score portfolio whereas sustaining NPLs fully below management and inside our expectations are even higher.
On the banking entrance, the enterprise can be evolving as anticipated with purchasers participating with our options and protecting their deposits inside our ecosystem, inserting us on the best path to achieve our targets. On the fee facet, MSMB CTPV continues to be essentially the most difficult KPI. Because it continues to develop at a sooner tempo than anticipated, we’re nonetheless seeing the influence on our debit volumes. Whereas that is accretive to our P&L, it exhibits a unfavorable influence on our CTPV metric.
Moreover, because the outlook for rates of interest considerably modified this quarter, we determined to prioritize on the facet of profitability versus development. Whereas this will penalize our short-term CTPV development, we proceed to consider in our skill to develop above market long term as we proceed to strengthen our price proposition towards a whole answer to our purchasers. Concerning business development, we proceed to see important development alternatives within the Brazilian market. Now we have a really dynamic and modern surroundings, and we see digital fee strategies increasing properly past personal consumption.
Whereas the tempo of development could differ from earlier years, by participating our purchasers with a broader suite of options, we set up a strong basis for reaching our long-term targets. To that finish, on monetization, our year-to-date outcomes mirror an MSMB take charge of two.55%, exceeding our steering of two.49% with important contributions from banking credit and continued wholesome pricing, significantly in funds. Now we have efficiently bundled our merchandise and preserve the dynamic pricing technique, permitting us to extend the extent of engagement with our options whereas bettering our goal returns. It is essential to notice that our banking and credit score options are already enjoying an essential position in our P&L, offering us with extra instruments to interact and monetize the connection with our purchasers.
With that stated, we posted yet one more quarter of constant outcomes and proceed to give attention to the strategic priorities set forth in our Investor Day. Earlier than we wrap up, I want to hand it over to Pedro to debate what we see for the software program enterprise forward.
Pedro Zinner — Chief Government Officer
Thanks, Mateus. Earlier than we transfer into the Q&A session, I need to take a second to handle some current developments by sharing our perspective on our software program enterprise, our outlook for this asset, and our strategic selections as we transfer ahead. As we’ve persistently communicated, we’re totally executing our technique, targeted on cross-selling monetary providers to our software program purchasers in precedence verticals. Our strategy additionally emphasizes effectivity and money technology and we firmly consider this technique not solely creates substantial worth for our purchasers but in addition drives long-term success for us.
We stay steadfastly dedicated to this technique, and I am happy to report that we’re on observe with its execution. Our efforts are ensuing within the development of bundled software program and monetary providers options that deal with crucial consumer ache factors inside key strategic verticals. Whereas we’ve made important strides with our monetary providers specialist distribution channel, we acknowledge the chance for additional engagement with the Linx gross sales power. The success of our execution is mirrored in our unwavering steering and the strategic framework we established throughout our Investor Day, each of which stay firmly in place.
On the core of our mission is the target to maximise shareholder worth. And we strategy this with an open thoughts towards modern methods. A key space we’re exploring is whether or not we are able to obtain our cross-selling goals by way of a industrial partnership as a substitute of immediately proudly owning the software program property. This strategy would enable for a lighter asset footprint and higher allocation of our capital.
To that finish, we’ve engaged advisors who’re diligently analyzing and exploring potential options for our software program enterprise. I need to emphasize that there isn’t any set timeframe or predetermined final result at this stage. We’re thoughtfully contemplating all choices with our shareholders’ finest curiosity as our high precedence. We’re dedicated to maintain you knowledgeable about our progress as we navigate this evaluation.
Earlier than we start our Q&A, I need to specific my honest gratitude to every of you to your ongoing assist. We’re enthusiastic about our long-term targets and our dedication to delivering worth for our shareholders. With that, operator, might you please open the decision for questions?
Questions & Solutions:
Operator
OK. Right now, we’re going to open it up for questions and solutions. [Operator instructions] Our first query comes from Tito Labarta with Goldman Sachs.
Tito Labarta — Analyst
Hello. Good night. Thanks for the decision and taking my questions. A few questions, if I’ll.
First, simply to assume in your TPV, a really robust development on the QR code, on the PIX QR code, offsetting possibly a bit slower development on the Card TPV than you had initially guided for. How do you consider that persevering with to evolve each the expansion within the Card TPV and the PIX QR code? As a result of additionally you had a really good enchancment within the take charge. We’d assume the PIX QR code ought to have a decrease take charge. So, simply assist us perceive how that is impacting the take charge after which I’ve a second query after that.
Thanks.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Hello, Tito. Lia right here. Thanks to your query. So, concerning TPV tendencies and the way PIX influence that, so we proceed to see PIX development forward of anticipated.
And now we are able to say that there’s seen cannibalization from debit volumes. However as we have stated many instances earlier than, that is accretive for us as a result of PIX substitutes debit and substitutes bodily cash. So, it is accretive each from the attitude of funds monetization, but in addition elevated deposits and more cash inside the ecosystem. We count on this development to proceed.
So, no cause for us to consider that PIX will not proceed to realize floor, particularly as efforts even inside the Central Financial institution roadmap to enhance usability of PIX will in all probability even enhance adoption sooner or later. However as we — if you happen to had been to think about the influence of PIX in our total TPV, naturally take charges can be smaller. However once more, it is essential to spotlight that that is all accretive as a result of not solely that is substitutes debit, but it surely’s additionally incremental as a result of it substitutes bodily cash.
Tito Labarta — Analyst
Nice. Thanks, Lia. After which simply my second query, simply need to perceive the provisioning on the credit score portfolio since you talked about it is like close to zero. I do know the — you talked about that the anticipated credit score losses improved, and we see that early NPLs improved, however the 90-day NPLs are going up.
I feel possibly you are still rising the mortgage portfolio fairly a bit. I imply, 30% quarter-over-quarter development. So, I am unsure I fully perceive why provisions would go to zero within the quarter while you’re doing that sort of development even when the anticipated losses could also be bettering.
Mateus Scherer — Chief Monetary Officer
Hey, Tito. Mateus right here. Thanks for the query. So, I feel we have talked about this in a few quarters in the past, however after we resumed our credit score providing, we began to provision 20%, regardless that our expectations for anticipated credit score losses had been within the 10% vary.
What we’re seeing proper now’s that because the outcomes are evolving in accordance with our expectation, we’re lowering this entry when it comes to provisioning. So, we’re mainly converging the extent of provisions with our anticipated credit score losses. And the best way to have a look at that’s that final quarter we had 18% of the portfolio provisions and now we’re attending to 14% this quarter and that is an ongoing course of. So, over the approaching quarters, we’ll proceed to have these conversions of each fashions and that is why you see a low provision within the quarter.
Tito Labarta — Analyst
OK. So, this low degree ought to in all probability proceed as you proceed to regulate to get nearer to that 10%.
Mateus Scherer — Chief Monetary Officer
Sure. That is right.
Tito Labarta — Analyst
OK. Nice. Thanks, Mateus.
Operator
Thanks, Tito. Our subsequent query comes from Daniel Vaz with Safra.
Daniel Vaz — Safra — Analyst
Hello, everybody. Hello, Pedro, Lia, Mateus. Congrats on the outcomes, and thanks for the chance to ask questions. I needed to get your view on the Card TPV for 2025.
I used to be trying into the brand new Stone Retail Index Knowledge for September and October. And it seems like physicals sort of struggling to point out related development month after month. So, is that any concern in your facet? I see the digital rising properly, however in all probability have a decrease breakdown in your early revenues. So, how can we cross that information from the Stone Index to your expectations for 2025 on the Card, particularly on the Card TPV for 2025? Thanks.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Hello, Daniel. Lia right here. So, thanks for the query. We’re not going to level out numbers for ’25 at this level.
However when it comes to tendencies, what we are able to say is that we see the expansion ranges that we’re at proper now at 20% as very wholesome. Naturally, there may be this shift between debit volumes and PIX volumes and that shift for us from an economics perspective is accretive as we have talked about a number of instances earlier than. And what’s essential for us to spotlight is so long as we are able to preserve this wholesome and strong tempo of development in purchasers and TPV that is actually the driving power for the monetization cycle inside our enterprise because it drives not solely funds monetization but in addition deposit development and engagement with our total banking and credit score. So, as a lot as we proceed to see this shift between PIX and debits, we do not assume that that is going to go away, as I simply talked about.
And we’ll take that under consideration after we discuss 2025 TPV steering as a result of do not forget that after we set the steering final yr for TPV, we had been at a really completely different place when it comes to PIX penetration within the total business. So, PIX is right here to remain. We’ll take that under consideration in our — after we discuss 2025 however that is forward and that is what we are able to say proper now.
Daniel Vaz — Safra — Analyst
OK. Thanks. And if I’ll observe up, you talked about a shift within the panorama of PIX penetration, however we even have a shift within the macroeconomic surroundings. So, how does that influence your possibly gross sales power capability that you simply added? Like, advertising and marketing bills are nonetheless on a excessive degree.
So, any adjustments in the best way you need to run your enterprise in 2025 as a result of macroeconomic deterioration in Brazil?
Mateus Scherer — Chief Monetary Officer
Thanks for the query, Daniel. So, when it comes to gross sales power planning, it would not actually change the outlook. The way in which that we plan gross sales power internally is extra towards a bottoms-up strategy. So, trying on the markets at a really granular degree and ensuring that we’ve the time to handle.
However after we discuss concerning the change within the yield curve, I feel the opposite facet of it’s the pricing facet. And to that finish, I feel we have been emphasizing this in a few quarters as properly, however pricing has turn out to be much more dynamic inside the firm, that means that we constantly consider the profitability of our cohorts after which we modify costs accordingly. And with the brand new rate of interest surroundings, what we’ll do is mainly we’ll regularly incorporate this new yield curve in our decision-making and consider the economics of passing by way of these shifts to our purchasers. So, it ought to be a pure progress.
The one essential word right here is that we have a tendency to not make massive value actions within the 4Q given the robust seasonality. So, I feel these waves of passing by way of the brand new yield curve ought to be stronger from the primary quarter of ’25 onwards.
Daniel Vaz — Safra — Analyst
OK. Thanks. Very, very clear. Thanks once more for the chance.
Mateus Scherer — Chief Monetary Officer
Thanks.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks.
Operator
Our subsequent query comes from Mario Pierry with Financial institution of America.
Mario Pierry — Financial institution of America Merrill Lynch — Analyst
Hey, guys. Good night. Congratulations on the quarter. I needed to discover slightly bit extra precisely on the take charge and I feel you answered a part of that query — within the earlier query.
However mainly, after we take a look at your MSMB take charges proper such as you had been operating at 2.58%, you had been guiding for two.49%. The combo has been weaker than anticipated given PIX. So, why is your take charge increased than what you had been anticipating? Is it since you already began to implement increased costs to your purchasers? You stated lots, proper, that the aggressive surroundings could be very rational, or is it as a result of the banking product is extra worthwhile for you?
Mateus Scherer — Chief Monetary Officer
Mario, thanks for the query. Mateus right here. So, while you take a look at the delta between the take charges that we’re reporting, the two.58% and the two.49% that was the steering. Principally, the entire delta is defined by the next penetration of each credit score and banking.
Primarily, after all, we’ll begin to have the influence of the yield curve over the deposits. However while you take a look at the precise degree of deposits, we’re additionally forward of steering, proper? And when it comes to credit, once more, within the 3Q, we already met the steering. So, the contribution that we’re seeing within the P&L is greater than what we anticipated. So, I feel it has much less to do with the combo of PIX versus Card TPV and extra to do with the penetration of latest options within the firm.
Mario Pierry — Financial institution of America Merrill Lynch — Analyst
OK. That is clear. And based mostly in your earlier reply then, regardless that we’re nonetheless seeing increased charges in Brazil, that you can implement that we’ll see, proper, a shift in your pricing to mirror this increased yield curve. So, what you are saying mainly is that the take charge ought to be going increased from these ranges, right?
Mateus Scherer — Chief Monetary Officer
Sure, that is proper. So, while you take a look at 3Q, you do not see but a huge impact from repricing as a result of the yield curve is anticipated to rise from This fall onwards. So, this may in all probability happen from the primary quarter of ’25 onwards after which that is right. So, the take charge ought to go up because of these repricing waves.
Mario Pierry — Financial institution of America Merrill Lynch — Analyst
Good. And let me ask you a second query unrelated. We noticed proper that the bank card portfolio is rising at a sooner tempo. I feel I learn someplace that you simply stated that you simply elevated the attractiveness of the bank card product.
Are you able to clarify what do you imply by that? What adjustments have you ever made to the bank card product?
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Hello, Mario. Lia right here. So, basically, the message right here is we’re nonetheless in the beginning of scaling our bank card merchandise. We have launched it now for each Ton and Stone.
We do consider that bank card has a robust worth proposition for the micro phase. And we’re taking the same strategy right here when it comes to fastidiously growing our provide in accordance with what we observe when it comes to efficiency, ensuring that we preserve a conservative strategy with reference to threat. So, fairly just like what we did in the beginning of the scaling of our working capital answer. We’re nonetheless fine-tuning from the attitude of the provide.
So, mainly, what’s the proper worth proposition for bank cards inside SMBs versus micro? We all know it’s completely different. They’ve completely different wants. These are completely different segments that behave in a different way. So, the message right here is that it’s totally a lot in the beginning of the expansion of this product and we’re nonetheless sort of studying with these early phases.
And naturally, as we evolve, we’ll present extra visibility as we proceed to scale.
Mario Pierry — Financial institution of America Merrill Lynch — Analyst
Good. Thanks very a lot.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks, Mario.
Operator
Our subsequent query comes from Neha Agarwala with HSBC.
Neha Agarwala — HSBC — Analyst
Hello. Congratulations on the outcomes, and thanks for taking my query. Should you can dive a bit into PIX. Proper now, you talked about that the take charge that you simply get from PIX is fairly just like what you’ve got on the debit playing cards.
So, technically cannibalization of debit playing cards does not likely have an effect in your total take charge. Do you count on this dynamic to alter? Would you see count on as PIX good points prevalence, would you see competitors when it comes to pricing amongst your friends, which results in decrease pricing for PIX and makes it a bit much less enticing? And on that we’ve extra new options approaching PIX, proper? Now we have the automated and the recurring PIX funds. What’s your expectation as these new merchandise are launched and adopted? Would you assume that this might cannibalize bank cards as properly? And in that case, what are the ways in which it might influence your enterprise? So, if you happen to can simply begin with that first. Thanks.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Hello, Neha. Lia right here. So, let me elaborate slightly bit additional on PIX QR code and our views on monetization. So, it is vitally clear that PIX QR code, the dynamic QR code built-in to the POS machine is a really completely different person expertise, particularly for SMB purchasers as a result of it permits reconciliation.
There is a massive distinction when it comes to fraud. We all know that PIX P2P, so the sorts of static QR code or different seize strategies in PIX that aren’t dynamic, they have a tendency to have a a lot increased degree of fraud. So, we firmly consider that that is sort of a value-add when it comes to providing a brand new fee answer for our purchasers and that’s right here to remain, proper? So, PIX NFC is simply one other step in that route. We do consider that as PIX NFC improves the person expertise, particularly on the facet of the patron, that is going to probably speed up the development the place PIX cannibalizes on debit volumes.
We don’t see PIX cannibalizing on credit score volumes. I feel ABEX information on Card TPV development sort of factors to that route, proper? We proceed to see wholesome development in bank card TPV. Inside our base, we don’t see any proof of PIX cannibalizing on credit score volumes, particularly due to the character of installments, proper? So, we have not seen this as a related development in any respect inside our base. Our base case situation is de facto PIX persevering with to develop in adoption versus debit volumes.
And since it is a value-added answer that we provide purchasers when it comes to all of the options related to any fee methodology, we do not consider that monetization is more likely to change. However then once more, a vital side of PIX for us is that it substitutes money, and that is all accretive, proper? So, extra deposits inside our ecosystem, the whole lot I’ve already stated. However that sort of summarizes the image when it comes to how we see PIX.
Neha Agarwala — HSBC — Analyst
And you are not seeing any stress out of your friends when it comes to pricing for PIX processing?
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
No, no information round that.
Mateus Scherer — Chief Monetary Officer
And on that entrance, if I’ll add, Lia, do not forget that how we value PIX these days is nearer to the dynamics of web MDRs to debits. And if you consider the pricing of debit transaction, it was a price that was speculated to cowl the distribution prices, the reconciliation options, and so forth and so forth. And that pricing is secure for fairly some time now available in the market. So, we’re not likely frightened about these tendencies or these challenges when it comes to pricing per PIX.
I feel it is fairly an secure surroundings these days.
Neha Agarwala — HSBC — Analyst
Nice. Two extra questions. First, on the take charge, in the important thing account phase, there was a giant 14 foundation factors quarter-on-quarter soar. So, if you happen to might simply clarify what led to that enchancment within the take charge for key accounts? And my second query is on the credit score ebook.
You talked about that you simply count on a few 10% anticipated loss and that is why you need to carry the reserves as share of your mortgage ebook to round 10%, which is presently 14%. After I take a look at some gamers like for example MercadoLibre, who sort of breaks down it by phase, they usually do credit score to retailers each on and off platform, their reserves as share of mortgage ebook is round 30%, 40%. So, is there a distinction within the sort of retailers? What are you seeing that makes you assume that to have reserves of 10%? Why not? I imply, provided that Brazil is a tough market, and it is your first time doing nice, why not preserve the next degree of provisioning than what you count on simply to have some safeguard? Thanks a lot.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
OK. Neha, I am going to take the shortly the important thing accounts query after which move it over to Mateus to elaborate on NPL dynamics. So, inside our key accounts, it was an 11.3% sequential discount in TPV. That is mainly as a result of we misplaced bear in mind that there’s quantity focus inside the phase.
So, we misplaced a major quantity from one particular sub-acquirer and evidently as a result of it is a massive participant that counts positively towards shift combine when it comes to take charges. So, this transfer was — additionally occurred with an noticed take charge enchancment of 14 foundation factors. So, it is merely a mixture impact. So, Mateus, you need to elaborate slightly bit on NPLs?
Mateus Scherer — Chief Monetary Officer
Yeah, for certain. So, on the query of why we’re speaking about 10% as a degree of anticipated credit score losses when different friends are reporting on the 30% degree, I feel we’re speaking a few completely different mixture of purchasers right here. So, if you happen to take a look at the common ticket of our present credit score portfolio, we’re speaking about BRL 30,000 in common mortgage measurement. Should you take a look at the friends, we’re speaking about possibly 10 instances decrease.
And I feel if you happen to had been to have a look at the profile of purchasers that these different gamers are concentrating on, it might be extra just like a micro service provider and never an SMB retailers. In fact, we’ve initiatives to check and study on that phase. However after we discuss our present working capital providing, it is principally targets inside SMB. So, that is the distinction.
Neha Agarwala — HSBC — Analyst
Understood. Thanks a lot, Lia and Mateus. Very useful.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks, Neha.
Mateus Scherer — Chief Monetary Officer
Thanks.
Operator
Subsequent query from Jamie Friedman with SIG.
Jamie Friedman — Analyst
Hello. Congratulations, guys. I’ve one for Mateus and one for Lia. The primary one is, how ought to we take into consideration monetary bills going ahead as a result of these had been slightly bit beneath Mateus what we had been anticipating on a sequential foundation.
After which Lia when it comes to the bundling technique is that truly impacting service provider development, bundling technique, and service provider development? Thanks.
Mateus Scherer — Chief Monetary Officer
Hey, Jamie. So, I am going to begin with the monetary bills query after which move it over to Lia. So, when it comes to monetary bills, when you consider the drivers of that line, there are mainly 4 fundamental components. Our funding wants are the primary one.
The combo of funding sources, funding from third events versus fairness, the extent of rates of interest, and the funding spreads, proper? While you take a look at the 3Q, monetary bills rose by 7% quarter over quarter mainly given the next impacts. So, first, we had a rise within the variety of working days within the quarter, which had been 5% increased. Second, it is associated to the funding wants piece. So, we had rising TPV and due to this fact greater funding wants.
And third, we did a large buyback within the quarter as properly. So, our mixture of fairness versus debt, after all, was decrease. Alternatively, we’re speaking lots concerning the new monetary devices that we’re issuing due to the financier license. And what we’re seeing total in our monetary bills is a discount within the funding spreads.
So, that is the offsetting issue right here that bridges the hole. Now, after we look forward, I feel the one distinction that we’ll see beginning within the 4Q is that rates of interest ought to begin to rise, proper, in accordance with the yield curve. So, after we take into consideration the dynamics of economic bills in relation to revenues, I feel that is the massive shift. So, we must always have a tougher situation when it comes to monetary expense, solely as a result of yield curves, however all the opposite components, I feel they’re on a constructive development.
So, we’ll proceed to generate money. Funding spreads are additionally displaying a constructive development and funding wants are mainly a results of TPV development. So, these are the principle components there. Lia?
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Yeah. Jamie, so simply taking your query on bundling and bundling methods and the way that has affected client-based development. So, there’s not a direct relationship. So, our web provides and the dynamics of client-based development is known as a results of two fundamental components.
First, what Mateus talked about, that’s the impact of the sponsorship and our advertising and marketing investments and the sponsorship within the actuality present that occurred within the first half of the yr phasing out. So, there’s a seasonal influence when it comes to client-based development. And second, our resolution to actually weigh on the facet of profitability versus development. So, actually paying consideration on the standard of the purchasers versus the precise variety of purchasers that we onboard.
Talking extra broadly, after we take into consideration bundling, I feel there’s two barely completely different dynamics there. Primary is bundling after we discuss cross-selling monetary providers to our software program purchasers. We disclosed the cross-sell TPV metric. I feel that is information of that evolution.
It would not influence a lot consumer base development due to a mixture impact. Principally, these are bigger purchasers, proper, the character of these software program purchasers is medium purchasers inside SMBs. So, in precise variety of purchasers, it isn’t that related, however it’s important when it comes to TPV development and we’re seeing fairly good efficiency of our specialist gross sales channel inside monetary providers. Cross-selling monetary providers bundled to software program — to our software program purchasers.
So, that is one a part of the technique. We’re proud of the evolutions there. And after we take into consideration our micro and SMB consumer base, each with Stone and Ton choices, we’re mainly on the level now that the overwhelming majority of purchasers already on board with a funds and banking bundle. That is been the fact for some time.
I’d say that that a part of the technique of bundling funds and banking, that is already reached relative maturity and that is actually pushed a giant a part of the deposits development up to now. Now, naturally, that is going to be extra about participating additional with the banking and the credit score, and so forth. However I’d say that these bundling methods, they’ll proceed to evolve naturally as our roadmap evolves. However that is not what’s driving the dynamics when it comes to client-based development.
Jamie Friedman — Analyst
Bought it. Thanks each a lot.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks, Jamie.
Mateus Scherer — Chief Monetary Officer
Thanks.
Operator
Subsequent query from Guilherme Grespan with JPMorgan.
Guilherme Grespan — JPMorgan Chase and Firm — Analyst
Good night, everybody. Thanks for the Q&A. My query goes to be on capital allocation. I feel Zinner began the decision speaking slightly bit that you simply guys are finding out slightly bit extra the necessities of allocation to the enterprise and possibly you’ve got extra money, and I feel it is a honest dialogue.
We mentioned lots. You mainly you had been sitting at 5 billion extra money, you generate nearly 2 billion web money per yr. And after we focus on right here, we mainly see two restrictions, I feel, to the capital distribution. The primary one can be capital.
However after we do our math right here, you had been already sitting in our estimates greater than 40% capital ratio in Brazil. And the second can be the working capital funding want, which in our impression is that the securitization market in Brazil, it is already pretty developed. So, my query to you is mainly out of the 5 billion that we’re sitting in extra money, the interior evaluation that you simply guys are carrying, how a lot you assume you may distribute or out of the two billion web money that you simply generate per yr, how a lot are you able to distribute? And the second query is mainly the administration incentive to that. I feel a part of the alignment right here come from the KPIs.
If we’re planning to alter the administration KPI from nominal revenue to ROE or at the very least TPS revenue per share? Thanks.
Mateus Scherer — Chief Monetary Officer
Thanks, Grespan. So, I am going to take the primary a part of the query concerning the framework of capital allocation. So, I feel usually your view is the best one. So, after we take a look at the capital construction of the corporate these days.
We expect that we’re sustaining a strong and conservative capital construction with room for optimization. And I feel we are able to see that not solely by the adjusted web money place that you simply talked about, but in addition, when you consider capitalization ranges and the extent of diversification in our funding sources, we’re in a good condition these days. Such as you talked about, I feel the corporate continues to generate money every quarter, even after accounting for the expansion of the credit score ebook. And based mostly on these components, once more, we expect that we’ve some extra of capital.
And our mindset right here is to not accumulate capital inside the firm. If we choose that we’ve capital in extra of what we have to execute the plan, the thought is to develop a framework to distribute that to shareholders in in some way. As for these particular figures, provided that we’re nonetheless ending this framework, we’re not going to be sharing proper now what number of biddings we expect which are out there to be distributed or so on and so forth. However like Pedro talked about within the name, I feel the thought is to offer this visibility to the market within the coming quarters.
So, we’re engaged on that proper now. And on the motivation query, do you need to take this one, Pedro?
Pedro Zinner — Chief Government Officer
Yeah. On the motivation facet, I feel you reached a good level. And I feel it is a part of the entire framework when it comes to the dialogue on how we’ll allocate capital and make the choices over time. I feel the dialogue is as of at this time is de facto centered, as you talked about, extra on the EPS facet moderately than ROE itself.
But it surely’s a part of the entire framework dialogue that we’re having. And I feel we’ll be offering extra visibility on the primary quarter of subsequent yr.
Guilherme Grespan — JPMorgan Chase and Firm — Analyst
OK. Thanks.
Operator
Our subsequent query comes from Renato Meloni with Autonomous Analysis.
Renato Meloni — Autonomous Analysis — Analyst
Hello, everybody. Thanks for the decision right here and taking the questions. So, my first query was on the software program enterprise. And considering right here of Pedro’s feedback final name, it appeared that he was nonetheless, I would say, extra convicted on proudly owning the asset to learn from the cross-selling alternatives.
So, I’m wondering right here what drove the technique change right here now that you simply’re contemplating potential sale on the asset? After which if you happen to enable me for a fast second query, simply questioning what you count on to be the recurring efficient tax charge now that you simply might need some advantages right here on the bond repurchase? Thanks.
Pedro Zinner — Chief Government Officer
Hello, Renato. Thanks for the query. I feel we stay assured that providing software program to our purchasers is a key pillar of our technique as we highlighted in Investor Day presentation. However now the product integrations are established, we consider that we are able to drive cross-selling alternatives by way of industrial partnerships with out essentially proudly owning the asset.
And I feel that is what I attempted to spotlight within the name. So, whereas we’re very assured when it comes to our skill to execute our technique that means, any transaction will solely be pursued if it’ll add shareholder worth. And we consider that, sorry, we consider that there isn’t any massive change within the technique in any respect. I feel the best way we need to transfer is de facto when it comes to a extra asset-light technique utilizing industrial contracts to really revamp our steadiness sheet in some methods and enhance our capital allocation.
So, the technique stays just about the identical.
Mateus Scherer — Chief Monetary Officer
And when it comes to the tax charge query, I feel we have talked about up to now that we see the vary for our tax charge has been between 20% to 25%. And naturally, it is a wide array, proper? I feel what the change that we’ve now with the bond buyback does is mainly take us to the decrease finish of that vary. However I feel when it comes to expectations going forward, that is still fairly the identical. In fact, you might do not forget that we even have some seasonality on the tax charge.
So, 4Q tends to be decrease than the rest of the yr. However as a benchmark, I feel the 20% to 25% vary stays in place, however we ought to be on the decrease finish of that.
Renato Meloni — Autonomous Analysis — Analyst
That is good. Thanks.
Pedro Zinner — Chief Government Officer
If I would — yeah. Sorry. And if I would come again, simply to strengthen, I feel the core message that I needed to convey is on our perception that we’ve a novel software program asset, proper? However whereas we’re assured in our skill to execute the technique with out essentially proudly owning the asset, we actually consider that the transaction would add shareholder worth.
Renato Meloni — Autonomous Analysis — Analyst
Thanks. That is good.
Operator
Our subsequent query comes from Kaio Da Prato with UBS.
Kaio Da Prato — Analyst
Whats up, everybody. Good night. Thanks for the Q&A. I’ve two on my facet, please.
The primary one, I need to contact base once more in your Card TPV development and particularly for the MSMBs. I perceive the shift from playing cards to PIX, but when we take a look at the quarter-on-quarter, your development was barely beneath the playing cards business that was out a number of days in the past. So, simply want to perceive in your view why we noticed this implied market share loss if it was associated to some particular phase or no. And what’s your expectation going ahead eager about market share particularly as you in all probability have one of many largest gross sales power within the MSMB business these days? And the second, simply following up from Grespan’s query on capital allocation.
And the final one, given your analysis concerning the potential choice for the software program enterprise, engagement with advisors, and so forth. Is it honest to imagine that if you happen to resolve for a sale of the principle choice to maximise shareholder worth at this time can be precisely distributing this capital? Or if you’re searching for any particular allocation in a particular product or undertaking, please. Thanks.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Hello, Kaio. Lia right here. Let me discuss slightly bit about TPV dynamics and your query concerning our development versus business. So, after we take into consideration market share, we desire to have a look at our market share dynamics in an extended time horizon than solely on a quarter-over-quarter foundation.
So, our long-term goal does indicate continued market share good points over the long term, albeit at a slower tempo than we had up to now naturally simply due to the dimensions of the enterprise, proper? On condition that we section advertising and marketing and gross sales investments in a different way all year long, this will imply that we barely lose share one quarter however acquire on the opposite to compensate for that. What’s essential for us is to keep up a constant tempo of development and market share good points in the long term. That can be implied in our total steering for TPV, proper, that we identified within the Investor Day. We do want to think about after we discuss TPV steering for 2025 and even long term, the dynamics of PIX as a result of that is performed out in a different way than we had anticipated final yr, however nothing adjustments when it comes to our perspective and our skill to proceed to win purchasers and acquire market share total.
Concerning shorter time period, proper, the current TPV development dynamics, nothing structurally completely different occurred this quarter aside from what we’ve already stated. So, PIX development forward of anticipated with seen cannibalization from debit volumes. Our resolution, as Mateus talked about, to prioritize on the facet of profitability versus development, which can have an effect in short-term Card TPV. And there is additionally some unfavorable seasonality within the quarter since we had a September with much less Saturdays than traditional.
So, I imply, these three had been the principle results shorter time period, however that — it would not change our perspective on the longer-term dynamics. And we see our third quarter development ranges at 20% yr over yr, contemplating PIX as very wholesome and driving the general monetization potentialities by way of banking and thru credit score sooner or later, all through the lifecycle of our purchasers. So, that is our tackle total dynamics of TPV.
Mateus Scherer — Chief Monetary Officer
And on the second query across the software program enterprise and a possible use of proceeds, I feel like Pedro talked about, initially, we’ve not even decided but on whether or not a transaction will happen or not. We’re evaluating choices. So, to that finish, I feel it is untimely to debate potential use of proceeds. However usually, like I discussed in my reply concerning capital allocation, we really feel good.
We really feel comfy when it comes to our capital construction these days. So, after all, if we’ve extra money from a possible transaction both shopping for again or distributing that extra money can be a believable choice that we’ll consider.
Kaio Da Prato — Analyst
OK. Thanks very a lot, Lia and Mateus.
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Thanks, Kaio.
Operator
Subsequent query from William Barranjard with Itau BBA.
William Barranjard — Itau BBA — Analyst
Thanks, everybody. Thanks to your time. My query right here is sort of quick frankly. So, concerning your software program slide concerning the doable gross sales of the asset, I simply needed to ask slightly bit into which gamers you can be taking a look at to promote it.
So, as you talked about that you’re trying right into a industrial partnership if the gross sales actually occur. So, can I exclude as potential consumers each participant that has buying capabilities or has already companions on the buying area?
Mateus Scherer — Chief Monetary Officer
Thanks for the query, William. So, take the primary half concerning the industrial agreements. So, I feel the thought right here is that after we take a look at our operational days, we presently collaborate with varied software program corporations by way of our companion program. And we’ve a few of these partnerships below exclusivity agreements as properly.
So, if we resolve to proceed with any transaction, certainly, sustaining these agreements can be a vital situation. And naturally, we’ll issue that into the decision-making course of. I feel the second query, if you happen to might repeat.
William Barranjard — Itau BBA — Analyst
I feel it is only one query, actually, concerning like potential consumers and if like routinely — if you happen to exclude routinely gamers that have already got like funds capabilities and so forth. However I suppose it is clear.
Pedro Zinner — Chief Government Officer
Yeah. I feel at this stage, we actually can not share the particular particulars. Nevertheless, what we are able to verify is there was a robust curiosity within the asset from a various group of greater than 20 gamers and that features each monetary traders and strategic corporations. So, at this level, it is actually, it is an open dialogue.
William Barranjard — Itau BBA — Analyst
Yeah. Good. Thanks.
Operator
Our subsequent query comes from John Coffey with Barclays.
John Coffey — Analyst
Thanks very a lot. That is John. I suppose one of many questions I had for you is on the influence of the SELIC charge in pricing. I feel we glance again various years in the past and SELIC began climbing to love I feel it was 13.75.
There have been some pricing adjustments that you simply made in a few of your opponents as properly. And I feel there was some concern later that when the charges began to say no that you’d really need to possibly scale back value. So, now that we appear to be in a little bit of a rising rate of interest surroundings in Brazil, what are your ideas on altering costs, elevating costs, possibly what you have achieved already in Q3, you probably have achieved any and going ahead possibly significantly as we get into 2025?
Mateus Scherer — Chief Monetary Officer
Thanks for the query, John. So, I feel I touched upon this on the opposite query, however I feel the emphasis right here is that pricing is de facto turning into a dynamic course of inside the firm these days. So, we actually consider the unit economics of the entire consumer base each single month. And we take plenty of components into that calculation, each product utilization and naturally, the macroeconomic circumstances.
After which we make a judgment on whether or not we’ll modify costs or not. In fact, now that we’re seeing rates of interest rising implied within the curve, that goes into the calculation, and what finally ends up occurring is that we’ll have most definitely the next degree of repricing and changes going ahead. And so, to reply your query, I feel the thought is certainly to move by way of among the improve that we’ll see. It is a course of that normally has some lag and takes some time.
So, if you happen to take a look at the numbers from 3Q and likewise 4Q, we should not see a huge impact from repricing waves. However as time goes by, I feel, the expectation is certainly to move by way of a few of these will increase.
John Coffey — Analyst
All proper. Thanks very a lot.
Operator
There aren’t any questions presently. This concludes the question-and-answer session. The questions that haven’t been answered on this convention name shall be addressed later by the StoneCo workforce. I’ll now flip over to Pedro Zinner, CEO at StoneCo, for last concerns.
Pedro Zinner — Chief Government Officer
Effectively, thanks very a lot for everybody for collaborating within the name, and hope to see you within the subsequent quarter. Thanks.
Operator
[Operator signoff]
Length: 0 minutes
Name contributors:
Pedro Zinner — Chief Government Officer
Lia Matos — Chief Advertising and marketing Officer and Chief Technique Officer
Mateus Scherer — Chief Monetary Officer
Tito Labarta — Analyst
Daniel Vaz — Safra — Analyst
Mario Pierry — Financial institution of America Merrill Lynch — Analyst
Neha Agarwala — HSBC — Analyst
Jamie Friedman — Analyst
Guilherme Grespan — JPMorgan Chase and Firm — Analyst
Renato Meloni — Autonomous Analysis — Analyst
Kaio Da Prato — Analyst
William Barranjard — Itau BBA — Analyst
John Coffey — Analyst
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