Adyen Share Price Tumbles as Earnings Miss Estimates

Shares of Adyen plunged as much as 14.5% in trading on Thursday (Aug. 18) after the global payments firm reported first-half results 3% below consensus.

The price is still considerably higher than Adyen’s stock market debut but is down an estimated 30% this year, Financial Times reported. Ayden trades on Amsterdam’s Euronext exchange under the ticker ADYEN and debuted on June 13, 2018 with a market value of more than €13 billion. The company is now valued at over  €50 billion.

See also: Adyen on Leveraging Unified Commerce to Meet Consumers Where They Are

While the payments processing firm posted a 60% increase in transaction volume year-on-year to €345.8 billion, overhead associated with the surge, along with other expenses, ate into profit margins, according to a press release on Thursday.

Of those transactions, point-of-sale (POS) volumes were up 97% year-on-year to €44.9 billion. The increase in transaction volume was mostly due to pandemic travel restrictions being lifted in most parts of the world. 

“The lifting of lockdown restrictions throughout the period impacted our volume mix, fueling the diversification of our net revenue contributions across industries. Most noteworthy is the growth of travel volumes during the first half of the year. This was reflected in our full-stack volumes as well, as we typically do not offer acquiring to airlines,” according to the statement. 

Read more: Can Payments-as-a-Service Crack EU’s Cross-Border Payments Complexity?

The Amsterdam-headquartered firm also expanded its workforce by 400, increasing wages by 37% from 2021 to €135 million.

“When we launched Adyen for Platforms in 2017, we solely focused on online payments. Now, we are building out Adyen for Platforms into a single integration that offers unified commerce strategies, a full-fledged embedded financial product suite, and compliance and onboarding services,” Adyen said in its letter to shareholders. “This all plays to the broader trend of platform businesses looking to further capitalize on the revenue opportunity the relationships with their users brings.” 

For the first time, Adyen has designed its own payments hardware and is releasing two new terminals, the NYC1 and the AMS1, the company announced in a separate statement on Thursday (Aug. 18). 

The in-person POS devices run on Adyen’s single platform to enable end-to-end control and tailored payment flows that can be integrated and customized within a merchant’s own app.