Please refer to CryptoNote CNS006 for an explanation
https://cryptonote.org/cns/cns006.txtPlease note that stealth addresses do not afford anonymity but rather forward privacy (they obfuscate where funds are being sent to). Recipients also must scan the blockchain to decipher if any outputs belong to them (and so thin clients become a bit more difficult, because they can no longer simply poll a server for an address balance).