StoneCo Ltd. (NASDAQ:STNE) Q3 2022 Earnings Call Transcript

Thiago Piau: I’m sorry, Nicolas. Just to complement and trying to summarize a little bit. In the end of last year, during the third quarter and fourth quarter when our margins decreasing, we decided to increase our cash position in order to give comfort for our debt holders. And I think that that was a very good strategy, but in the other way, we created some inefficient carrying a very big cash position. We decided to better manage and better balance this at this quarter. So we are very comfortable with the level of cash and the capital structure we have. And actually what is happening today as our results are improving is that the spreads that debtholders and the liability lines we have today, they’re decreasing. So I think that as the results of the company are improving, we are accessing more lines with better prices and that’s why we are comfortable to decrease a little bit the cash position and better balance to carry too much inefficiency on our treasury.

But it’s a very conservative approach.

Nicolas Riva: Just one follow-up then, if I may. As you pay down some of this debt in the quarter, was there any thought given to buying back some of the 28s given they’re trading at R$0.75?

Thiago Piau: Not yet. We are paying attention to the opportunities regarding our bonds, but we are not €“ we didn’t started to buy back our bonds yet.

Nicolas Riva: Okay. Thanks very much Thiago.

Thiago Piau: Thank you very much Nicolas.

Operator: This concludes our question-and-answer session. I’d like to turn the conference back over to Thiago for any closing remarks.

Thiago Piau: Hello, everyone. Thiago here. I’d just like to say thank you very much for your support. I’m very happy to see the evolution of our business. And today, I would like to pass the final remarks to Lia. Lia?

Lia Matos: Thank you, Thiago. I want to say thank you for everyone for listening in. Big thank you to our investors for their continued support. And I just want to say that the team is happy with the results this quarter and really looking ahead for a great 2023. Thank you, everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.