SAO PAULO, March 18 (Reuters) - Brazilian payments

processor StoneCo ( STNE ) reported on Monday a 177% increase in

its fourth-quarter adjusted net profit from a year earlier,

driven by its small and medium business segment, while the

firm's cofounder stepped down as chairman.

The firm posted a 563.8 million real ($112.21 million)

adjusted net profit for the quarter ended in December, over an

estimate of 483 million reais for the period by analysts polled

by LSEG.

Revenues rose 20% year-on-year to 3.25 billion reais in the

quarter, which the firm attributed to higher revenues from its

financial services business, with active client growth and

higher monetization, particularly in its small and medium

business segment. However, revenues came in under the LSEG

estimate of 3.40 billion reais.

StoneCo ( STNE ) said its total payments volume grew 13.3% to

113.5 billion reais, with payments from its micro-, small- and

medium-business (MSMB) segment rising 20.2%.

The company also announced that founder and chairman

Andre Street will not run for reelection at its the next

shareholders meeting, scheduled for April. Mauricio Luchetti,

who currently holds a position on the board, will be recommended

for the position, it added.

"Despite stepping down, Andre remains deeply connected

to the company as its reference shareholder, bolstered by

special protections under our shareholders' agreement and

articles of association", StoneCo ( STNE ) said in its earnings release.

The company, which also provides software and banking

services, late last year

released estimates

to multiply yearly net profits eightfold through the end of

2027, compared to 2022.

($1 = 5.0247 reais)