FinTech: Dutch Payments Giant Adyen Disappoints On Earnings

August 18, 2022 | FinTech, News
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Shares of Adyen fell over 15% to a low of 1544.2 EUR after the earnings report.

Shares of payments technology provider Adyen NV (AMS: ADYEN) plunged by over 15% to a low of 1544.20 EUR after its earnings report for the first half underwhelmed against market expectations. The company reported revenues of 609 million EUR against expectations of 615 million EUR. Net income was 9.09 EUR per share against a consensus of 9.11 EUR. Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at 356.3 million EUR versus the FactSet consensus. (MarketWatch)

However, ADYEN shares had recovered somewhat to 1685.00 EUR by the time of writing. Nevertheless, in a reflection of the tech sector’s rate-related travails, the shares have plunged over 28% this year to date.

To give due credit, revenues though off estimates, rose 37% on year, and transaction volume at 345.8 billion EUR handily beat estimates of 329.9 billion EUR.

Chief financial officer Ingo Uytdehaage shrugged off the consensus misses saying instead: “We have a group of investors that are very much long-term focused. That’s why we’re not focused on consensus numbers, we understand that this a long-term play.”

However, the company’s profit margin on transactions (“take rate”) has steadily deteriorated and came in at 17.6% in the first half of 2022, compared with 18.6% in the second half of 2021, and 20.6% in the first half of 2021.

Operating expenses rose by 47%, mainly due to accelerated hiring and the addition of 395 employees during the reporting period.

The company maintained its current guidance.

“We’ve not seen any developments in the business over the first half of 2022 that would lead us to updating our guidance,” Adyen said.

Related Story: Amazon Japan Selects Adyen To Process Payments

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