Earnings

Adyen POS Processes Volumes Up 120 Pct YOY In 1H

Just a few months after an initial public offering (IPO) that was notable in the payments processing space, and a first day of trading that saw the stock go up 92 percent, Adyen’s first results as a publicly traded company released on Tuesday (Aug. 21) showed traction on core transaction processing and other lines of business.

In terms of headline numbers, revenues were up 67 percent versus last year, to 256.4 million euros, outpaced by net income’s growth, at 48 million euros and 74 percent growth.

Reports noted that the pace quickened through the first half of the year and that the absolute numbers show testament to growth as well. The site stated that “for some context,” the company logged revenues of 218 million euros in all of 2017, which in turn was up 38 percent from 2016.

“In other words,” said the site, “Adyen has already made more [so far in 2018] than it did in all of the year before.”

Drilling down a bit into the numbers, the company’s growth rate in processed transactions stood at 70 billion euros, up 43 percent year on year, with volumes up 50 percent, if annualized for the full year.

Reuters noted that the company has continued to add to its roster of customers, with additions including eBay and Dunkin’ Donuts. The company’s Chief Executive Pieter van der Does stated that the existing client base has spurred higher payments volumes, too, through both online and in-store conduits.

Growth should continue, as guidance was maintained for medium-term average sales growth between mid-20s and low-30s percentage points.

“We often see that when we sign up one customer in a certain sector, others follow,” Van der Does said in a telephone interview with Reuters. “We benefit from our growing brand name. We are becoming a logical partner in places where we were once considered an odd choice.”

The executive further told the newswire that Adyen is gaining presence in verticals such as hotels and supermarkets, a flurry seen as the company has been able to move to embrace new payment methods with ease. “We design platforms that are interesting for all companies in a sector,” the CEO said. “We put everything into one system, so that all customers benefit from our new developments.” And with a nod toward forecasts, he said “our guidance is a minimum level we expect to achieve. We take a long-term view and don’t see any reason to change our forecasts.”

Delving into the shareholder letter, the firm stated that “unified commerce continues to be a major growth driver for us. POS processed volume has increased to 6.6 billion euros (9.4 percent of total processed volume) in the first half of 2018, up 120 percent year-on-year.”

Further, the company said in that letter that “net revenue growth was well balanced geographically in the first half of 2018, with year-on-year growth across Europe (51.9 percent), North America (142.9 percent), Latin America (58.7 percent) and Asia Pacific (147.5 percent). We saw net revenue growth across the width of the merchant base.”

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