2025 reflects a year of solid double-digit growth, margin resilience above 50%, strong cash generation, and continued investment in product, infrastructure, and financial services expansion.
- Net revenue: €2,364.2 million, up 21% YoY on a constant currency basis (18% reported), driven primarily by increased share of wallet with existing customers.
- Processed volume: €1,394.3 billion, up 8% YoY, or 21% excluding one large-volume customer referenced previously.
- Take rate: Increased to 17.1 basis points in H2 2025, reflecting changes in merchant mix.
- EBITDA: €1,245.7 million, up 26% YoY.
- EBITDA margin: 53% for the full year, demonstrating continued operating leverage while investing in growth.
- Net income: €1,062.5 million, up 15% YoY, with growth partially constrained by the interest rate environment.
- Free cash flow: €1,081.3 million, up 26% YoY, with a strong free cash flow conversion ratio of 86%–88% range during the year.
- CapEx: €116.8 million, representing 5% of net revenue, strong financial discipline, and is primarily related to data center investments to support scale.
Adyen is not trying to grow by layering features onto a payments business. Instead, it is methodically evolving the foundations of its platform so it can solve more complex problems for customers, and in doing so, embed itself more deeply into how global commerce actually works.
At the heart of this evolution are three reinforcing layers. The first two have long defined Adyen: a single, global technology stack and its own banking licenses. Unlike many competitors that stitch together acquisitions and third-party infrastructure, Adyen built its platform end to end. That control reduces friction, eliminates intermediaries, and allows funds to move securely and reliably across borders and channels. It also means that when customers scale globally, Adyen scales with them without the fragmentation that often creeps in with patchwork systems.
But the company is now adding a third foundational layer: Dynamic Identification. This is more than an incremental fraud tool. It represents a shift from static, document-based checks to a real-time intelligence layer trained on trillions of interactions across both online and in-person transactions. Instead of treating each payment in isolation, Adyen can assess identity, behavior, and risk dynamically, adapting decisions in the moment. The result is a system that tightens security while simultaneously reducing friction for legitimate customers, a rare combination in payments.
This intelligence layer powers Adyen Uplift, its suite of optimization and risk products. A standout addition in 2025 was “Personalize,” a module designed to tackle a familiar merchant dilemma: how to reduce payment costs without hurting conversion. Lower-cost payment methods are often available, but pushing them indiscriminately can cause shoppers to abandon checkout. With Dynamic Identification, Adyen can guide individual shoppers toward preferred, cost-efficient options only when data suggests they are likely to complete the purchase. In pilots, merchants saw conversion increase by up to 6% while reducing transaction costs by up to 3%. Instead of forcing a trade-off between growth and efficiency, Adyen is using intelligence to improve both at once.
Dynamic Identification is also being applied beyond traditional fraud into the murkier area of policy abuse, such as excessive refunds or repeated exploitation of promotions. These patterns often look legitimate when viewed transaction by transaction. By linking activity at the identity level, Adyen helps merchants uncover repeat behaviors that would otherwise remain hidden. Early pilots revealed cases where individual shoppers had received thousands of euros in refunds over time, or where the majority of transactions from a single customer were refunded. By surfacing these insights, Adyen enables targeted intervention rather than blunt policy changes that risk alienating honest customers. It’s another example of precision replacing friction.
Looking further ahead, Adyen sees this identity layer as critical infrastructure for “agentic commerce”, a world in which AI agents initiate transactions on behalf of users. In that environment, traditional identity signals become less reliable. Trust will need to be anchored in behavioral context, infrastructure, and adaptive risk models. Rather than creating a separate track for agent-led transactions, Adyen is extending its existing platform so these become just another channel governed by the same controls and standards. By collaborating with ecosystem players such as OpenAI, Google, Visa, and Mastercard, the company is positioning itself at the center of how this next wave of commerce is structured.
Running in parallel with this intelligence evolution is Adyen’s continued expansion of Unified Commerce. The company does not treat in-person payments as a side business; it views the physical point of sale as a critical source of data and performance. By connecting online and offline transactions on a single platform, Adyen allows merchants to recognize shoppers consistently across channels and act on that data in real time. During Black Friday and Cyber Monday, this architecture processed hundreds of millions of transactions with near-perfect uptime while recognizing the vast majority of unique shoppers across environments. Peak events serve as stress tests, and proof points, that the unified model works at global scale.
This same unified approach is winning business in industries where complexity is the norm. From luxury retail with LVMH, to high-traffic hospitality with Starbucks, to global airline operations with Lufthansa, customers are choosing Adyen because they can run digital and physical commerce on one platform rather than juggling multiple providers. The more complex the environment, the more valuable a single, integrated system becomes.
Beyond payments, Adyen is steadily expanding into financial infrastructure. What starts as payment acceptance increasingly evolves into issuing cards, providing working capital, managing business accounts, and orchestrating payouts. In 2025, issuing volumes grew eightfold year over year as platforms embedded cards directly into their workflows. Capital products more than doubled in volume, with strong repeat usage. New capabilities like instant payouts are scaling quickly. These are not standalone add-ons; they are modular building blocks that sit on the same underlying infrastructure.
This broader ambition culminates in what Adyen calls Intelligent Money Movement. Large enterprises often manage dozens of bank accounts and multiple providers across regions, leading to fragmented liquidity and limited visibility. By consolidating money-in, money management, and money-out flows on one platform, Adyen aims to reduce that fragmentation. Enterprises can collect funds, hold balances, manage liquidity, and execute payouts within a single operating environment. The strategy is consistent: remove intermediaries, unify flows, and give customers direct control over their money movement.
Across digital merchants, unified commerce players, and platforms serving SMBs, the pattern is similar. Adyen starts with payments, then deepens the relationship by solving adjacent problems (optimizing conversion, managing risk, enabling in-person acceptance, embedding financial products, and ultimately orchestrating the full lifecycle of funds). Growth is driven less by customer acquisition alone and more by expanding share of wallet within existing relationships.
Adyen is a company moving from being a high-performance payments processor to becoming core financial infrastructure for global commerce.
ADYEN partners with VISA - Trusted Agent Protocol in the Age of AI Commerce
Artificial intelligence is transforming how people shop and the numbers are staggering. According to Visa, AI-driven shopping activity has surged 4,700% year-over-year, as consumers increasingly rely on AI assistants and autonomous agents to search for deals, compare prices, and even complete purchases on their behalf.
But this rapid evolution has also brought new risks. Retailers are now inundated with malicious fraudulent bots. The challenge is no longer just detecting bots, but differentiating between good bots, the legitimate AI agents acting for real customers, and bad ones.
To address this, Visa has unveiled a groundbreaking new framework called the Trusted Agent Protocol (TAP). It's an open, agentic commerce standard designed to help merchants verify and interact securely with AI agents.
Developed in collaboration with Cloudflare and supported by major ecosystem partners including Microsoft, Shopify and Adyen, TAP functions much like HTTPS does for websites. It uses digital certificates and authentication layers to establish a “chain of trust” between merchants and AI agents.
In practice, this means that when an AI shopping agent initiates a transaction, merchants can instantly verify its legitimacy, confirming it’s operating on behalf of an authenticated human customer rather than a fraudster’s script. By embedding this verification into the core of digital commerce, TAP aims to protect both retailers and consumers while enabling a smoother, faster, and more secure AI-driven shopping experience.
Visa’s move signals the start of a broader shift toward agentic commerce, where AI systems autonomously transact, negotiate, and purchase within defined trust frameworks. It's encouraging to see Adyen at the forefront of technical evolution.
Adyen has deepened its partnership with LVMH, bringing unified payment systems to nearly 50 of the group’s brands and more than 1,000 stores worldwide. For Adyen, winning greater business from the world’s largest luxury group is a strong vote of confidence in its technology and global reach. For LVMH, the shift reflects a drive to standardize systems and boost efficiency across its sprawling portfolio.
Adyen ($ADYEN) reported second-quarter net revenues of €559 million on Thursday, growing 20% at constant currency.
E-commerce volumes increased 33% quarter-over-quarter, while point-of-sale volumes rose 42%.
For the first half of 2025, EBITDA increased 28% year-over-year to €544 million
EBITDA margins improved by 340 basis points to 50%
Free cash flow reached €475 million with a 43% margin, driving core cash to €4.43 billion.
The company added 114 full-time employees during the quarter, bringing total headcount to 4,568, and expects similar hiring pace in the second half of the year.
On a segment basis, Unified Commerce grew 33% to €101 billion. Platforms increased 18% to €50 billion (15% of total), or 59% excluding the drag of its largest platform customer eBay. Digital TPV decreased 10% year-over-year to €184 billion but this was more than offset by the growth of the other two segments.
Regional performance in the first half showed EMEA leading with 21% growth, followed by North America at 20%, Latin America at 17%, while APAC slowed to 15%.
Adyen has lowered its 2025 guidance, now expecting second-half growth to match first-half levels at approximately 21% constant currency. The company attributed this reduction to macro-headwinds changing market dynamics around US tariff policies affecting APAC-based e-commerce retailers.
There is nothing fundamentally wrong with a business growing at this rate, even in the face of macro headwinds.
Against that backdrop - the share price has opened down 18%.
Is Mr Market throwing up another wonderful entry opportunity?
Net revenue was €534.7 million, up 22% year-over-year (“YoY”) (up 21% on a constant currency basis).
Processed volume was €314.8 billion, up 6% YoY, or up 25% YoY excluding the previously referenced single large-volume customer.
Unified Commerce net revenue reached €158.8 million, up 31% YoY, showing strong growth fueled by an increasingly diversified customer base across different verticals.
Platforms net revenue reached €55.5 million, up 63% YoY, reflecting strong underlying momentum in the SaaS segment.
Digital net revenue reached €320.4 million, up 13% YoY, driven by solid momentum in verticals such as content & subscriptions.
Despite these strong numbers, the share price was down 5% in early trade - the company had performed well, but not quite as well as analysts had anticipated - go figure!
“Our results so far this year underscore the strength of our strategy and the value we deliver to our customers. We saw solid momentum across regions and pillars, with continued wallet share gains from a broader, more diversified customer base, reflecting the effectiveness of our commercial strategy and execution ... While increased uncertainty in the broader macro environment plays a role, we’re focused on what we can control: deepening relationships with existing customers and onboarding new ones. We’re confident in our ability to navigate this dynamic landscape and deliver on our long-term goals.” said Ethan Tandowsky, CFO.
>>> AWESOME RESULTS - INVESTMENT THESIS VERY MUCH STILL IN TACT <<<
AMSTERDAM, February 13, 2025 — Adyen (AMS: ADYEN) announced financial results for the half year ending December 31, 2024.
H2 2024 key metrics
- Net revenue* was €1,082.7 million, up 22% year-on-year.
- Processed volume was €666.4 billion, up 22% year-on-year, 28% excluding a single large volume customer.
- Of these volumes, total point-of-sale volumes were €137.1 billion, up 48% year-on-year.
- EBITDA* was €569.2 million, up 35% year-on-year, with EBITDA margin* landing at 53%.
- Free cash flow conversion ratio* was 88%, with CapEx* at 5% of net revenue.
Full-year 2024 key metrics
- Net revenue* was €1,996.1 million, up 23% year-on-year.
- Processed volume was €1,285.9 billion, up 33% year-on-year, 27% excluding a single large volume customer.
- Of these volumes, point-of-sale volumes were €232.7 billion, up 46% for the full year.
- EBITDA* was €992.3 million, up 34% year-on-year, with EBITDA margin* landing at 50% for the full year, compared to 46% in 2023.
- Free cash flow conversion ratio* was 87%, with CapEx* at 5% of net revenue for the full year, compared to 4% in 2023.
Ethan Tandowsky, CFO:
“We are proud to have delivered a strong year of growth further cementing our position as the trusted partner of choice for global businesses. Once again, expanding our relationships with existing customers was a key driver of our growth, reinforcing the vast opportunity that remains.
“Strengthening these partnerships contributed to net revenue growth reaching 22% for H2 and 23% for the full year, a true testament to the significant value we continue to provide. As we continue to build Adyen for the long-term, we are pleased with our performance in 2024, and remain confident about delivering on our financial objectives in the years ahead.”
ADYEN and PayPal collaboration ~ 20 August 2024 update
Adyen has become PayPal's first Fastlane distribution partner. Many people shopping on line like to 'check out as guest' without logging in to the vendor's platform. However, doing so typically takes longer, which consumers dislike and often results in the customer failing to complete the purchase, which is bad for the merchant.
Fastlane is designed to tackle this problem. Fastlane is a service offered by PayPal which facilitates a more streamlined guest checkout process, using the PayPal email ID set up, which promises to reduce the time to check out by 32% compared to a traditional guest checkout and to deliver an 80% conversion rate into completed sales, which is a big step up.
Adyen will offer Fastlane to accelerate guest checkout flows for its enterprise and marketplace customers in the U.S., with plans to extend this offering globally in the future.
Adyen and PayPal have collaborated for several years, allowing Adyen's clients to offer PayPal's payment options, including PayPal, Venmo, and PayPal's Buy Now, Pay Later solutions. The Fastlane collaboration is the next step in this journey.
"The expanded partnership with PayPal further strengthens Adyen's ability to provide global enterprises with seamless payment flows and top-quality guest shopping experiences," said Pieter van der Does, co-founder and co-CEO, Adyen. "PayPal is a payment brand name that shoppers trust, and we're excited to take our collaboration another step further in the US, utilizing our combined expertise to raise the bar for our customers.''
It should be remembered that after 15 years of PayPal serving as the eBay payment method, its services were terminated in favour of Adyen. This was driven by a desire for greater control over the checkout experience and the ability to offer more diverse payment options to its global customer base. The move was expected to provide cost savings for sellers, increase revenue for eBay, and simplify the user experience by keeping transactions on-site. Additionally, eBay aimed to gain a competitive advantage in the evolving ecommerce landscape and improve its data collection capabilities, which aligns it to other major online marketplaces like Amazon and Alibaba.
Gracious in defeat, PayPal is now looking to leverage Adyen's superior payments infrastructure to distribute its own niche product offerings. This looks like being a win/win for both parties.
The Adyen investment thesis goes from strength to strength.
“As planned, H2 saw us gradually slow our hiring as we brought the company to its next stage of maturity. We now have the team equipped with the skills required to execute on our key growth ambitions, and to do so at scale....As previously communicated, the tempering of our hiring will allow our operating leverage to again become visible in our financials. Though this process will begin in 2024, the operational impact will be less visible as 2023 hires annualize, followed by more material leverage in 2025 and 2026....Growth is not always linear, and the importance of zooming out to the long-term trajectory cannot be overstated” Peter van der Does, CEO
Adyen publishes H2 2023 financial results. It delivered a period of profitable growth as the company finished its accelerated investment phase of growing its global team.
H2 2023 figures
Processed volume was €544.1 billion, up 29% year-on-year. Of these volumes, total point-of-sale volumes were €92.9 billion, up 37% year-on-year.
Net revenue was €887.0 million, up 23% year-on-year.
EBITDA was €423.0 million, up 14% year-on-year, with EBITDA margin landing at 48%. This figure was primarily impacted by team growth, which tempered as the accelerated investment initiative came to a close.
Free cash flow conversion ratio was 93%, with CapEx at 2% of net revenue.
Full-year 2023 figures
Processed volume was €970.1 billion, up 26% year-on-year. Of these volumes, point-of-sale volumes were €159.9 billion, up 42% for the full year.
Net revenue was €1,626.1 million, up 22% year-on-year.
EBITDA of €743.0 million, up 2% year-on-year.
EBITDA margin was 46% for the full year, compared to 55% in 2022.
CapEx was 4% of net revenue for the full year, compared to 7% in 2022.
Following my analysis a few weeks ago, I enjoyed a very impressive Investor Day on 8th November. If you didn't see it, try to find the recording. The team is very strong. But more than that, the business is run exactly as a business should be (it's rare). Costs are very carefully contained (CAPEX it pegged at 5% of revenue for example). Everything is built in house, so no dependencies on third parties. It is not a managerial bureaucracy, but instead operates on a decentralized basis where employees are empowered to take ownership of their area of responsibility (no micro-management). It has very high operating leverage - should hit 50+% EBITDA margin by 2026 and targets 65% beyond that. It has a very unique offering which is unmatched by anyone else (strong moat). It has an enormous TAM to grow into. Not only does it benefit from recurring revenues, but customers scale up consumption year on year creating a compounding effect. It has a pristine balance sheet with a large cash surplus. It has a banking license which opens doors to all sorts of ancillary services in future.
What's not to like?
No surprise the stock is up 33% at the open.
This is a buy and hold for a very long time. Anyone who saw the success of American Express, MasterCard or Visa will know how these financial businesses can compound at very good rates over the long term.
Very happy to be a shareholder. I'll still be a shareholder in a decade or two for sure!
ADYEN FY2025
2025 reflects a year of solid double-digit growth, margin resilience above 50%, strong cash generation, and continued investment in product, infrastructure, and financial services expansion.
- Net revenue: €2,364.2 million, up 21% YoY on a constant currency basis (18% reported), driven primarily by increased share of wallet with existing customers.
- Processed volume: €1,394.3 billion, up 8% YoY, or 21% excluding one large-volume customer referenced previously.
- Take rate: Increased to 17.1 basis points in H2 2025, reflecting changes in merchant mix.
- EBITDA: €1,245.7 million, up 26% YoY.
- EBITDA margin: 53% for the full year, demonstrating continued operating leverage while investing in growth.
- Net income: €1,062.5 million, up 15% YoY, with growth partially constrained by the interest rate environment.
- Free cash flow: €1,081.3 million, up 26% YoY, with a strong free cash flow conversion ratio of 86%–88% range during the year.
- CapEx: €116.8 million, representing 5% of net revenue, strong financial discipline, and is primarily related to data center investments to support scale.
Adyen is not trying to grow by layering features onto a payments business. Instead, it is methodically evolving the foundations of its platform so it can solve more complex problems for customers, and in doing so, embed itself more deeply into how global commerce actually works.
At the heart of this evolution are three reinforcing layers. The first two have long defined Adyen: a single, global technology stack and its own banking licenses. Unlike many competitors that stitch together acquisitions and third-party infrastructure, Adyen built its platform end to end. That control reduces friction, eliminates intermediaries, and allows funds to move securely and reliably across borders and channels. It also means that when customers scale globally, Adyen scales with them without the fragmentation that often creeps in with patchwork systems.
But the company is now adding a third foundational layer: Dynamic Identification. This is more than an incremental fraud tool. It represents a shift from static, document-based checks to a real-time intelligence layer trained on trillions of interactions across both online and in-person transactions. Instead of treating each payment in isolation, Adyen can assess identity, behavior, and risk dynamically, adapting decisions in the moment. The result is a system that tightens security while simultaneously reducing friction for legitimate customers, a rare combination in payments.
This intelligence layer powers Adyen Uplift, its suite of optimization and risk products. A standout addition in 2025 was “Personalize,” a module designed to tackle a familiar merchant dilemma: how to reduce payment costs without hurting conversion. Lower-cost payment methods are often available, but pushing them indiscriminately can cause shoppers to abandon checkout. With Dynamic Identification, Adyen can guide individual shoppers toward preferred, cost-efficient options only when data suggests they are likely to complete the purchase. In pilots, merchants saw conversion increase by up to 6% while reducing transaction costs by up to 3%. Instead of forcing a trade-off between growth and efficiency, Adyen is using intelligence to improve both at once.
Dynamic Identification is also being applied beyond traditional fraud into the murkier area of policy abuse, such as excessive refunds or repeated exploitation of promotions. These patterns often look legitimate when viewed transaction by transaction. By linking activity at the identity level, Adyen helps merchants uncover repeat behaviors that would otherwise remain hidden. Early pilots revealed cases where individual shoppers had received thousands of euros in refunds over time, or where the majority of transactions from a single customer were refunded. By surfacing these insights, Adyen enables targeted intervention rather than blunt policy changes that risk alienating honest customers. It’s another example of precision replacing friction.
Looking further ahead, Adyen sees this identity layer as critical infrastructure for “agentic commerce”, a world in which AI agents initiate transactions on behalf of users. In that environment, traditional identity signals become less reliable. Trust will need to be anchored in behavioral context, infrastructure, and adaptive risk models. Rather than creating a separate track for agent-led transactions, Adyen is extending its existing platform so these become just another channel governed by the same controls and standards. By collaborating with ecosystem players such as OpenAI, Google, Visa, and Mastercard, the company is positioning itself at the center of how this next wave of commerce is structured.
Running in parallel with this intelligence evolution is Adyen’s continued expansion of Unified Commerce. The company does not treat in-person payments as a side business; it views the physical point of sale as a critical source of data and performance. By connecting online and offline transactions on a single platform, Adyen allows merchants to recognize shoppers consistently across channels and act on that data in real time. During Black Friday and Cyber Monday, this architecture processed hundreds of millions of transactions with near-perfect uptime while recognizing the vast majority of unique shoppers across environments. Peak events serve as stress tests, and proof points, that the unified model works at global scale.
This same unified approach is winning business in industries where complexity is the norm. From luxury retail with LVMH, to high-traffic hospitality with Starbucks, to global airline operations with Lufthansa, customers are choosing Adyen because they can run digital and physical commerce on one platform rather than juggling multiple providers. The more complex the environment, the more valuable a single, integrated system becomes.
Beyond payments, Adyen is steadily expanding into financial infrastructure. What starts as payment acceptance increasingly evolves into issuing cards, providing working capital, managing business accounts, and orchestrating payouts. In 2025, issuing volumes grew eightfold year over year as platforms embedded cards directly into their workflows. Capital products more than doubled in volume, with strong repeat usage. New capabilities like instant payouts are scaling quickly. These are not standalone add-ons; they are modular building blocks that sit on the same underlying infrastructure.
This broader ambition culminates in what Adyen calls Intelligent Money Movement. Large enterprises often manage dozens of bank accounts and multiple providers across regions, leading to fragmented liquidity and limited visibility. By consolidating money-in, money management, and money-out flows on one platform, Adyen aims to reduce that fragmentation. Enterprises can collect funds, hold balances, manage liquidity, and execute payouts within a single operating environment. The strategy is consistent: remove intermediaries, unify flows, and give customers direct control over their money movement.
Across digital merchants, unified commerce players, and platforms serving SMBs, the pattern is similar. Adyen starts with payments, then deepens the relationship by solving adjacent problems (optimizing conversion, managing risk, enabling in-person acceptance, embedding financial products, and ultimately orchestrating the full lifecycle of funds). Growth is driven less by customer acquisition alone and more by expanding share of wallet within existing relationships.
Adyen is a company moving from being a high-performance payments processor to becoming core financial infrastructure for global commerce.
ADYEN partners with VISA - Trusted Agent Protocol in the Age of AI Commerce
Artificial intelligence is transforming how people shop and the numbers are staggering. According to Visa, AI-driven shopping activity has surged 4,700% year-over-year, as consumers increasingly rely on AI assistants and autonomous agents to search for deals, compare prices, and even complete purchases on their behalf.
But this rapid evolution has also brought new risks. Retailers are now inundated with malicious fraudulent bots. The challenge is no longer just detecting bots, but differentiating between good bots, the legitimate AI agents acting for real customers, and bad ones.
To address this, Visa has unveiled a groundbreaking new framework called the Trusted Agent Protocol (TAP). It's an open, agentic commerce standard designed to help merchants verify and interact securely with AI agents.
Developed in collaboration with Cloudflare and supported by major ecosystem partners including Microsoft, Shopify and Adyen, TAP functions much like HTTPS does for websites. It uses digital certificates and authentication layers to establish a “chain of trust” between merchants and AI agents.
In practice, this means that when an AI shopping agent initiates a transaction, merchants can instantly verify its legitimacy, confirming it’s operating on behalf of an authenticated human customer rather than a fraudster’s script. By embedding this verification into the core of digital commerce, TAP aims to protect both retailers and consumers while enabling a smoother, faster, and more secure AI-driven shopping experience.
Visa’s move signals the start of a broader shift toward agentic commerce, where AI systems autonomously transact, negotiate, and purchase within defined trust frameworks. It's encouraging to see Adyen at the forefront of technical evolution.
intersting
Adyen has deepened its partnership with LVMH, bringing unified payment systems to nearly 50 of the group’s brands and more than 1,000 stores worldwide. For Adyen, winning greater business from the world’s largest luxury group is a strong vote of confidence in its technology and global reach. For LVMH, the shift reflects a drive to standardize systems and boost efficiency across its sprawling portfolio.
Adyen ($ADYEN) reported second-quarter net revenues of €559 million on Thursday, growing 20% at constant currency.
E-commerce volumes increased 33% quarter-over-quarter, while point-of-sale volumes rose 42%.
For the first half of 2025, EBITDA increased 28% year-over-year to €544 million
EBITDA margins improved by 340 basis points to 50%
Free cash flow reached €475 million with a 43% margin, driving core cash to €4.43 billion.
The company added 114 full-time employees during the quarter, bringing total headcount to 4,568, and expects similar hiring pace in the second half of the year.
On a segment basis, Unified Commerce grew 33% to €101 billion. Platforms increased 18% to €50 billion (15% of total), or 59% excluding the drag of its largest platform customer eBay. Digital TPV decreased 10% year-over-year to €184 billion but this was more than offset by the growth of the other two segments.
Regional performance in the first half showed EMEA leading with 21% growth, followed by North America at 20%, Latin America at 17%, while APAC slowed to 15%.
Adyen has lowered its 2025 guidance, now expecting second-half growth to match first-half levels at approximately 21% constant currency. The company attributed this reduction to macro-headwinds changing market dynamics around US tariff policies affecting APAC-based e-commerce retailers.
There is nothing fundamentally wrong with a business growing at this rate, even in the face of macro headwinds.
Against that backdrop - the share price has opened down 18%.
Is Mr Market throwing up another wonderful entry opportunity?
ADYEN Trading update
Highlights for the first quarter of 2025
Net revenue was €534.7 million, up 22% year-over-year (“YoY”) (up 21% on a constant currency basis).
Processed volume was €314.8 billion, up 6% YoY, or up 25% YoY excluding the previously referenced single large-volume customer.
Unified Commerce net revenue reached €158.8 million, up 31% YoY, showing strong growth fueled by an increasingly diversified customer base across different verticals.
Platforms net revenue reached €55.5 million, up 63% YoY, reflecting strong underlying momentum in the SaaS segment.
Digital net revenue reached €320.4 million, up 13% YoY, driven by solid momentum in verticals such as content & subscriptions.
Despite these strong numbers, the share price was down 5% in early trade - the company had performed well, but not quite as well as analysts had anticipated - go figure!
“Our results so far this year underscore the strength of our strategy and the value we deliver to our customers. We saw solid momentum across regions and pillars, with continued wallet share gains from a broader, more diversified customer base, reflecting the effectiveness of our commercial strategy and execution ... While increased uncertainty in the broader macro environment plays a role, we’re focused on what we can control: deepening relationships with existing customers and onboarding new ones. We’re confident in our ability to navigate this dynamic landscape and deliver on our long-term goals.” said Ethan Tandowsky, CFO.
>>> AWESOME RESULTS - INVESTMENT THESIS VERY MUCH STILL IN TACT <<<
AMSTERDAM, February 13, 2025 — Adyen (AMS: ADYEN) announced financial results for the half year ending December 31, 2024.
H2 2024 key metrics
- Net revenue* was €1,082.7 million, up 22% year-on-year.
- Processed volume was €666.4 billion, up 22% year-on-year, 28% excluding a single large volume customer.
- Of these volumes, total point-of-sale volumes were €137.1 billion, up 48% year-on-year.
- EBITDA* was €569.2 million, up 35% year-on-year, with EBITDA margin* landing at 53%.
- Free cash flow conversion ratio* was 88%, with CapEx* at 5% of net revenue.
Full-year 2024 key metrics
- Net revenue* was €1,996.1 million, up 23% year-on-year.
- Processed volume was €1,285.9 billion, up 33% year-on-year, 27% excluding a single large volume customer.
- Of these volumes, point-of-sale volumes were €232.7 billion, up 46% for the full year.
- EBITDA* was €992.3 million, up 34% year-on-year, with EBITDA margin* landing at 50% for the full year, compared to 46% in 2023.
- Free cash flow conversion ratio* was 87%, with CapEx* at 5% of net revenue for the full year, compared to 4% in 2023.
Ethan Tandowsky, CFO:
“We are proud to have delivered a strong year of growth further cementing our position as the trusted partner of choice for global businesses. Once again, expanding our relationships with existing customers was a key driver of our growth, reinforcing the vast opportunity that remains.
“Strengthening these partnerships contributed to net revenue growth reaching 22% for H2 and 23% for the full year, a true testament to the significant value we continue to provide. As we continue to build Adyen for the long-term, we are pleased with our performance in 2024, and remain confident about delivering on our financial objectives in the years ahead.”
Earnings video conference will take place at 3 pm CET (Central European Time) on February 13, 2025 : https://investors.adyen.com/events/earnings-call-h2-2024
ADYEN and PayPal collaboration ~ 20 August 2024 update
Adyen has become PayPal's first Fastlane distribution partner. Many people shopping on line like to 'check out as guest' without logging in to the vendor's platform. However, doing so typically takes longer, which consumers dislike and often results in the customer failing to complete the purchase, which is bad for the merchant.
Fastlane is designed to tackle this problem. Fastlane is a service offered by PayPal which facilitates a more streamlined guest checkout process, using the PayPal email ID set up, which promises to reduce the time to check out by 32% compared to a traditional guest checkout and to deliver an 80% conversion rate into completed sales, which is a big step up.
Adyen will offer Fastlane to accelerate guest checkout flows for its enterprise and marketplace customers in the U.S., with plans to extend this offering globally in the future.
Adyen and PayPal have collaborated for several years, allowing Adyen's clients to offer PayPal's payment options, including PayPal, Venmo, and PayPal's Buy Now, Pay Later solutions. The Fastlane collaboration is the next step in this journey.
"The expanded partnership with PayPal further strengthens Adyen's ability to provide global enterprises with seamless payment flows and top-quality guest shopping experiences," said Pieter van der Does, co-founder and co-CEO, Adyen. "PayPal is a payment brand name that shoppers trust, and we're excited to take our collaboration another step further in the US, utilizing our combined expertise to raise the bar for our customers.''
It should be remembered that after 15 years of PayPal serving as the eBay payment method, its services were terminated in favour of Adyen. This was driven by a desire for greater control over the checkout experience and the ability to offer more diverse payment options to its global customer base. The move was expected to provide cost savings for sellers, increase revenue for eBay, and simplify the user experience by keeping transactions on-site. Additionally, eBay aimed to gain a competitive advantage in the evolving ecommerce landscape and improve its data collection capabilities, which aligns it to other major online marketplaces like Amazon and Alibaba.
Gracious in defeat, PayPal is now looking to leverage Adyen's superior payments infrastructure to distribute its own niche product offerings. This looks like being a win/win for both parties.
The Adyen investment thesis goes from strength to strength.
Adyen Investment thesis firmly in tact:
“As planned, H2 saw us gradually slow our hiring as we brought the company to its next stage of maturity. We now have the team equipped with the skills required to execute on our key growth ambitions, and to do so at scale....As previously communicated, the tempering of our hiring will allow our operating leverage to again become visible in our financials. Though this process will begin in 2024, the operational impact will be less visible as 2023 hires annualize, followed by more material leverage in 2025 and 2026....Growth is not always linear, and the importance of zooming out to the long-term trajectory cannot be overstated” Peter van der Does, CEO
Adyen publishes H2 2023 financial results. It delivered a period of profitable growth as the company finished its accelerated investment phase of growing its global team.
H2 2023 figures
Processed volume was €544.1 billion, up 29% year-on-year. Of these volumes, total point-of-sale volumes were €92.9 billion, up 37% year-on-year.
Net revenue was €887.0 million, up 23% year-on-year.
EBITDA was €423.0 million, up 14% year-on-year, with EBITDA margin landing at 48%. This figure was primarily impacted by team growth, which tempered as the accelerated investment initiative came to a close.
Free cash flow conversion ratio was 93%, with CapEx at 2% of net revenue.
Full-year 2023 figures
Processed volume was €970.1 billion, up 26% year-on-year. Of these volumes, point-of-sale volumes were €159.9 billion, up 42% for the full year.
Net revenue was €1,626.1 million, up 22% year-on-year.
EBITDA of €743.0 million, up 2% year-on-year.
EBITDA margin was 46% for the full year, compared to 55% in 2022.
CapEx was 4% of net revenue for the full year, compared to 7% in 2022.
ADYEN
Following my analysis a few weeks ago, I enjoyed a very impressive Investor Day on 8th November. If you didn't see it, try to find the recording. The team is very strong. But more than that, the business is run exactly as a business should be (it's rare). Costs are very carefully contained (CAPEX it pegged at 5% of revenue for example). Everything is built in house, so no dependencies on third parties. It is not a managerial bureaucracy, but instead operates on a decentralized basis where employees are empowered to take ownership of their area of responsibility (no micro-management). It has very high operating leverage - should hit 50+% EBITDA margin by 2026 and targets 65% beyond that. It has a very unique offering which is unmatched by anyone else (strong moat). It has an enormous TAM to grow into. Not only does it benefit from recurring revenues, but customers scale up consumption year on year creating a compounding effect. It has a pristine balance sheet with a large cash surplus. It has a banking license which opens doors to all sorts of ancillary services in future.
What's not to like?
No surprise the stock is up 33% at the open.
This is a buy and hold for a very long time. Anyone who saw the success of American Express, MasterCard or Visa will know how these financial businesses can compound at very good rates over the long term.
Very happy to be a shareholder. I'll still be a shareholder in a decade or two for sure!
thanks a lot for the write up. I am doing my research on Adyen. Your deep dive analysis is really helpful.
please share your findings when they are ready. There is an investor day on 8th November. We should learn more then