StoneCo Ltd (NASDAQ: STNE) the Brazilian fintech firm that began trading in New York last month, drew mixed ratings from analysts initiating coverage on the stock as they balance the company’s modern products aimed at driving growth with the rising competition that’s keeping optimism in check. StoneCo’s initial public offering came at a moment when Brazilian prepayment processors are lowering prices in order to gain market share, amid new entrants in the market.

On the other hand, total net revenue and income was R$414.1 million for the three months ended September 30, 2018, an increase of 121.4% from R$187.1 million for the three months ended September 30, 2017. Total net revenue and income growth was driven primarily by an increase in TPV and an increase in the number of SMBs as a proportion of Stone’s total client base. TPV for the third quarter of 2018 was R$21.8 billion, an increase of 83.7% from R$11.9 billion for the third quarter of 2017. Stone’s take rate improved by 38 basis points, to 1.87% for the third quarter of 2018 from 1.49% for the third quarter of 2017.

Net revenue from transaction activities and other services was R$136.1 million for the third quarter of 2018, an increase of 187.1% from R$47.4 million in the third quarter of 2017. This increase was primarily attributable to (i) the R$9.9 billion growth in TPV year-over-year, which translated to an increase of R$39.7 million in net revenue from transaction activities and other services, and (ii) an improvement in rates, mainly driven by a mix shift in the Company’s client base, with a greater proportion of SMBs, accounting for an increase in revenue from transaction activities and other services of R$49.0 million.

Net revenue from subscription services and equipment rental was R$59.2 million for the third quarter of 2018, an increase of R$32.7 million or 123.7% from R$26.5 million in the third quarter of 2017. This increase was primarily attributable to the increased number of active clients that rent equipment from Stone.

The company has posted Adjusted Net Income, a non-IFRS metric, of R$89.3 million, compared with R$5.7 million in the third quarter of 2017.

During the quarter, the Company exercised an option to purchase the control of Equals, a company that provides receivables reconciliation solutions, and upon consummation of our initial public offering on October 25, 2018, the Company acquired the remaining 44% stake it did not own, resulting in 100% ownership of the company.