Some investors were selling their shares of StoneCo (STNE 6.96%) today after the company reported disappointing results for its second quarter late yesterday.
The fintech stock was down by 4.8% as of 2:11 p.m. EDT.
While there were some bright spots in the quarter, StoneCo's non-GAAP loss per share of $0.09 was far lower than the consensus estimate of $0.18 earnings per share.
StoneCo's management said that the company surpassed 1 million small and midsize business accounts in the quarter and that the total payment volume (TPV) for these accounts grew by 104% from the year-ago quarter.
But the company faced some problems that investors appeared to be concerned about.
"Despite strong underlying growth in our core business and evolution of our strategic roadmap, we had some mixed results this quarter primarily driven by a challenging short-term scenario in our credit product," StoneCo CEO Thiago Piau said in a press release.
Piau also mentioned that StoneCo's credit business is still in its early stages and that "we made some mistakes in our execution" particularly when it came to handling a malfunction of its registry system.
It's clear that investors are still concerned about StoneCo's business, and with today's share price drop the company's stock is down 44% year to date.
Piau is optimistic about StoneCo's future and said, "We believe that the incredible learnings from this quarter will take us to a new phase of our business." But it's unclear whether or not investors believe the company is on the right track for more growth.