Adyen reported its processed volume for the first quarter of 2020 rose by 38 percent year-on-year, with an extension of historical growth trends over the first two months of the year. The payment firm said in an earnings release that it hasn’t changed its medium- to long-term guidance, and has not put forward short-term guidance for the year “in line with our long-term focus.”
“At Adyen, we build everything for the long-term. The COVID-19 pandemic does not change that. Notwithstanding, where we have traditionally shied away from providing short-term updates, we felt it sensible to provide additional transparency to our shareholders during these unprecedented times,” CFO Ingo Uytdehaage said in the release. “For us, we continue to focus on our merchants to help them navigate this new environment, albeit from a distance.”
Net revenue was higher by 34 percent year-on-year for the first quarter. EBITDA margin fells as the company kept investing in long-term growth when it comes to marketing and headcount as it also faced the impact of net revenue affected by the coronavirus last month. The free cash flow conversion ratio was 93 percent in the first quarter of the year.
The drop in in-store retail volume because of lockdown efforts is “very visible” per the release with many retail shops shuttered. But online retail volume, for the most part, makes up for the drop in in-store volume. The company also reports that it has seen a rise in some types of integrations, with the inclusion of its Pay by Link product.
In January, news surfaced that Adyen will help process payments for Subway, the quick-service restaurant (QSR) chain, in the United States and Canada. The Dutch-based payment firm has already started processing some payments and will eventually assist Subway in over 20,000 stores per an executive in a past report. It provides online and in-store services, processing merchant payments in many nations and currency denominations.