Anúncios
In addition to the machine: Stone’s strategy to double profits in four years.
The Stone Company recently unveiled its new strategy to double profits in four years, and one of the key elements of this strategy is the integration with Linx. By integrating with Linx, Stone aims to attract new customers through its software business and expand its reach in the market.
The company’s latest move has taken the market by surprise, as the Stone Company beat third-quarter expectations and surpassed the market’s predictions. The management of the company is optimistic about its future and believes that investors should keep their optimism as well.
Anúncios
The ambitious goal of the Stone Company is to achieve an annual profit of a certain amount by the year 2024, which will then increase to triple the bottom line by the year 2027. This goal was announced at the company’s Investor Day in New York, where the company’s management outlined its strategic plans for the future.
The CEO of the company, Pedro Zinner, explained that historically, the company has prioritized growth speed. However, now there are many opportunities to use efficiency to improve profitability, and hence the company has built a profitable cash flow business strategy.
Anúncios
The Stone Company has always given priority to micro, small, and medium-sized enterprises (MPMEs), and this group’s importance has been further strengthened in the company’s new strategy. The company aims to grow faster than the industry average and handle payments worth more than a certain amount by the year 2027.
In an interview with EXAME Invest, Zinner emphasized that the goal is not to change the strategy but rather to clarify its implementation and focus on the most lucrative opportunities. While the main business of the company is in acquiring transactions, Stone wants to go beyond just providing card machines and integrate into the financial services and software business.
The company’s growth strategy will be fueled by the synergy between its various businesses. The plan is to supply financial products to the customers of the software company, and there will be four main focuses for Stone: grocery stores, restaurants, pharmacies, and petrol stations. The aim is to solidify Stone as a one-stop-shop solution for its MPME clientele.
Zinner stated, “We’re letting the market know which verticals have the greatest potential for value extraction by combining financial services and software.”
The integration strategy of Stone with Linx’s software business has been a much-awaited move, and the announcement has weakened the speculation surrounding it. In October, Stone announced its restructuring plans to include Linx into its core business. This move was demanded by the market for clearer signs of business combination ever since the acquisition of Linx in 2020.
Financial services have been identified as the main revenue driver for the company. Stone’s financial services platform, which started with a focus on payments and has now expanded to include banking and credit solutions, is currently in an expansion phase. The chief strategist of Stone, Lia Matos, believes that the company’s greatest potential for monetizing its customer base lies in the software business, which serves as a differentiator for the company.
As the year began, Stone saw an opportunity to resume lending and strengthen its banking vertical. The company faced a major setback in 2021 due to the wave of insolvency, but now, two years later, it sees room to cautiously resume its operations.
Stone’s CFO, Mateus Scherer, stated, “We’ve restarted production this year and have a certain amount available in credit. Our goal is to reach a certain amount next year and to surpass a certain amount in card transactions by the end of 2027.”
Apart from credit, Stone plans to expand its other financial services as well. The company currently has a certain amount in deposits and aspires to grow to a certain amount next year and to a specific amount by 2027.
Overall, Stone’s new strategy to double profits in four years is driven by the integration with Linx, the focus on MPMEs, the expansion of financial services, and the synergy between its various businesses. With its clear goals and optimistic outlook, the Stone Company is poised for growth and success in the coming years.
(Data is not provided in the original text, please fill in the figures to reach the desired word count)
