Thanks for the note. It just shows you have read what Mr. Market is wrong about.
The references you have tagged and started with chrome-extension need to be fixed. It should be URL directly; otherwise, it won't work. In addition, I do not have access to Tegus and hence cannot read the transcripts. Can you please share somewhere else? If not all, just a snippet of the exact text.
Few more things,
Software business-
I think you are underestimating synergy. The goal is to cross-sell Linx customers with STNE products and offer Linx to STNE customers.
Now this ERP, Restaurant/Store/Business management system is SaaS. It is high-margin recurring revenue.
On top of it, the e-comm integration further solidifies the databank into a stone cloud. This will bring analytics to all Linx/Stone customers and fully suit the capability to manage the multichannel store.
Stone processes brazil's 50% internet payments.
The value provided by the acquisition is unmatchable. It will also provide intelligence to Stone on how the customers are operating, what their business looks like overall, trends, their capital requirements, and how the category of business is doing overall.
This is also a healthy stretch on payroll and tax management. This will further bring an excellent cut on payment, SaaS subscription feature usage, etc.
Second,
Inter stake is quite essential. Please watch all three videos of Inter investor day 2021 by turning on captions and translating the caption to an English setting. You will realize why Stone is interested in Inter and what Inter is doing? Inter also has the intention to go on Nasdaq in 2022. I believe Stone is possibly going M&A there, but nothing confirmed.
I agree with valuation of base and bull scenario. If this do well for next 5 years, it will be rolling stone of a decade since switching cost, optionality in business, multiple revenue streams, stickiness via superior customer service and unparallelly distribution network will only build great moat.
Finally, Someone has read it well. Good one
Tanmay,
Thanks for the note. It just shows you have read what Mr. Market is wrong about.
The references you have tagged and started with chrome-extension need to be fixed. It should be URL directly; otherwise, it won't work. In addition, I do not have access to Tegus and hence cannot read the transcripts. Can you please share somewhere else? If not all, just a snippet of the exact text.
Few more things,
Software business-
I think you are underestimating synergy. The goal is to cross-sell Linx customers with STNE products and offer Linx to STNE customers.
Now this ERP, Restaurant/Store/Business management system is SaaS. It is high-margin recurring revenue.
On top of it, the e-comm integration further solidifies the databank into a stone cloud. This will bring analytics to all Linx/Stone customers and fully suit the capability to manage the multichannel store.
Stone processes brazil's 50% internet payments.
The value provided by the acquisition is unmatchable. It will also provide intelligence to Stone on how the customers are operating, what their business looks like overall, trends, their capital requirements, and how the category of business is doing overall.
This is also a healthy stretch on payroll and tax management. This will further bring an excellent cut on payment, SaaS subscription feature usage, etc.
Second,
Inter stake is quite essential. Please watch all three videos of Inter investor day 2021 by turning on captions and translating the caption to an English setting. You will realize why Stone is interested in Inter and what Inter is doing? Inter also has the intention to go on Nasdaq in 2022. I believe Stone is possibly going M&A there, but nothing confirmed.
https://www.youtube.com/playlist?list=PLuZu2Av0_IiPGxFxlzCSpzOsB7676ebGS
Last,
I agree with valuation of base and bull scenario. If this do well for next 5 years, it will be rolling stone of a decade since switching cost, optionality in business, multiple revenue streams, stickiness via superior customer service and unparallelly distribution network will only build great moat.
Feel free to reach me at - dipak8959@gmail.com
Excellent summary. Thanks a lot for this!