StoneCo Ltd (NASDAQ: STNE) stock rose over 22% on 19^th March, 2019 (As of 11:10 am GMT-4; Source: Google finance) after the company in the fourth quarter of FY18 has reported 113.7% rise in the total revenue and Income and 106.0% in fiscal year 2018 compared to fiscal year 2017, to R$1,579.2 million in the year. 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.  The company posted the adjusted Net Income of R$155.9 million in the fourth quarter of 2018, compared to R$20.9 million in the fourth quarter of 2017, an increase of 646.3%. Adjusted Net Margin in the fourth quarter of 2018 improved 21.0 percentage points year over year to 29.5%, compared to 8.4% in the fourth quarter of 2017. Profit before Income Taxes was R$179.3 million in the fourth quarter of 2018, with a pre-tax margin of 33.9% compared to a negative margin of 5.6% in the fourth quarter of 2017. The Company generated R$304.2 million of Adjusted Free Cash Flow in 2018, compared to negative R$29.6 million in 2017.

Moreover, in the fourth quarter of 2018, the Total Payment Volume (TPV) was R$26.6 billion, which is an increase of 73.8% from R$15.3 billion in the fourth quarter of 2017. The incremental TPV in the fourth quarter of 2018 was R$4.8 billion from 3Q18, 39.6% higher than the R$3.4 billion incremental TPV in the fourth quarter of 2017 versus the third quarter of 2017. In fiscal year 2018, TPV reached R$83.4 billion, 71.8% above 2017. This increase is in-line with the Company’s strategy of further penetrating the SMB merchants in Brazil.

The company had ended 2018 with 267.9 thousand active clients, up 104.1% compared to the previous year, when it had 131.2 thousand clients. The net addition of active clients in the fourth quarter was 33.5 thousand, which is an improvement in net addition per sales force working day compared to the third quarter of 2018 by approximately 10%.

Additionally, as of December 31, 2018, the company´s Adjusted Net Cash position was of R$4,480.0 million, compared to R$202.7 million on December 31, 2017, which is an increase of R$4,277.3 million. The main reason for the increase was the capital increase of R$4,229.2 million, primarily due to the IPO, as well as the Adjusted Free Cash Flow of R$304.2 million.