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Adyen share tumble on H1 results

Adyen share tumble on H1 results

Shares in Adyen fell by more than 10% in morning trading as strong first half revenue growth was offset by squeezed profit margins. Separately, the Dutch payments processor has unveiled its own range of in-house designed terminals.

For the first half, Adyen reported net revenue of €608.5 million, a 37% year-on-year rise, and Ebitda of €356.3 million, up 31%.

However, Ebitda margin was lower than analyst estimates at 59%, in part due to a post-pandemic jump in travel and event costs.

Shares plunged by more than 14% in morning trading before settling at about 11% down by mid-afternoon.

The company is now investing "heavily" in unified commerce, unveiling its first in-house payment terminals.

Derk Busser, VP, product, in-person payments, Adyen, says: "By taking ownership of the terminal design, Adyen is assuring we put customer needs at the heart of their functionality.

"Our goal is to continuously reduce friction within the consumer journey. By designing highly mobile devices, we're empowering businesses to collect payments not only when behind a checkout counter - but anywhere."

Comments: (1)

A Finextra member
A Finextra member 18 August, 2022, 15:51Be the first to give this comment the thumbs up 0 likes

Going into the hardware business is a bold move - and is not risk free.....  Terminals can be expensive to buy, deploy, service and recover....  battery life can be problematic, open architecture can be dangerous,  locked down firmware stops merchants integrating their own apps.....  There are LOTS of reasons that going into the hardware business is NOT a good thing for acquirers.... I have seen a proprietary terminal strategy suffer many if not all of the above issues..... which took 18months to 2 years to fix....   Good luck Adyen... I hope future results are not impacted too negatively by your terminal roll out....

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