Adyen Updates Financial Objectives Amid Investor Scrutiny

Adyen has “evolved its financial objectives in order to specify timelines around growth expectations,” the FinTech platform said Wednesday (Nov. 8) in a press release issued in conjunction with its Investor Day.

The firm wants to specify its expectations for the coming three years while maintaining that its long-term opportunity remains unchanged, Adyen said Wednesday in a Q3 2023 Business Update.

Adyen’s updated objectives include annual net revenue growth in percentages between the low 20s and high 20s through 2026, an EBITDA margin improved to levels above 50% and a sustainable capital expenditure level of up to 5% of its net revenue, the firm said in the update.

“These updated objectives reflect the growth potential and operating leverage inherent to Adyen’s single platform,” the company said in the update.

The sales target announced Wednesday is lower than its previously forecast growth between the mid-20s and low 30s, Reuters reported Wednesday.

Analysts praised the new forecast, saying it is more realistic at a time when the digital payments sector is struggling in the face of consumers spending less money and regulators scrutinizing the industry, the report said. Adyen has lost about half its market value this year.

It was reported Tuesday (Nov. 7) that investors were calling for a “clear blueprint” showing Adyen can right itself after the massive price drop earlier this year. At the time of its half-year earnings report in August, the FinTech company said it had fallen short of its internal targets due to hiring costs and lagging growth in the United States.

In the Business Update released Wednesday, Adyen said it is in the final months of its accelerated investment phase, having added 175 full-time equivalents (FTEs) to its team in the third quarter as it continued to focus on global expansion and scaling its tech teams.

“We are now deliberately and gradually slowing down,” Adyen said in the update. “In Q4, we anticipate bringing on at maximum Q3’s number of FTEs.”

Along with these updated objectives, Adyen reported Wednesday that in the third quarter, year over year, its processed volume was up 21% and its net revenue was up 22%. By business segments, its digital volumes were up 21%, its Unified Commerce processed volumes were up 25% and its platform volumes were up 15%, according to the update.