Adyen's H1 2023 figures highlight growth, despite a drop in EBITDA.
Processed volume sees a YoY increase of 23%, with point-of-sale volumes rising by 49%.
Despite
nearly a fivefold decline in total revenue, the Amsterdam-based payments company
Adyen achieved higher net revenue in the first six months of 2023 than in the
same period of the previous year. Net profit also slightly increased, showcasing
the resilience of European fintech amidst the deteriorating condition of the
financial technology industry in recent months.
One of the
standout figures from the H1 2023 report is the processed volume, which reached
€426.0 billion, marking an increase of 23% compared to the previous year. In
addition, the total point-of-sale volumes soared to €67.0 billion, reflecting a
year-on-year (YoY) increase of 49%.
Even though
gross revenue fell from €3.95 billion to €854 million during the reported
period, drastically reduced costs allowed for an increase in net revenue. This
eventually settled at €739 million, growing by over €130 million YoY. As a
result, the net profit amounted to $283.17 million, compared to $283.14 million seen in the previous year.
However,
there was a notable decrease in EBITDA by 10% YoY. The primary reason behind
this decline is attributed to "increased wages and salaries stemming from
Adyen's continuous effort to scale its global team.” As a consequence of these
decisions, the EBITDA margin settled at 43%.
“We closed
H1 2023 with €739.1 million in net revenue, up 21% year-on-year. The EBITDA
margin landed at 43%,” Pieter van der Does, the Co-Founder and Co-CEO of Adyen,
stated in the shareholder letter. “We continued building Adyen for the long
term and made solid progress in attracting top talent, scaling our Platforms
offering, and driving growth in Unified Commerce.”
Diving
deeper into the finances, the free cash flow conversion ratio remained strong
at 77%. Meanwhile, the capital expenditure (CapEx) was recorded at 7.6% of the
net revenue.
Growth Despite Fintech
Industry Challenges
Adyen
maintained profitability at a time when the condition of the European fintech
industry was deteriorating. In the second half of 2022, fintech financing
amounted to 63.2 billion USD, spread across 2,885 transactions. However, there
was a decline in the first half of 2023, with funding dropping to 52.4 billion
USD from 2,153 transactions, according to the Pulse of Fintech report by KPMG.
Last year,
Adyen introduced several new solutions, including embedded financial
products. According to the press release, platforms and marketplaces can now
create tailored financial experiences for their users, such as small business
owners and individual sellers using these products. This solution was adopted,
among others, by the e-commerce company, Radial.
Meanwhile,
Adyen introduced the ‘Tap to Pay’ function for its US customers on Apple devices.
Adyen partnered with enterprise clients and commerce platforms, like Lightspeed
Commerce and NewStore, to make this feature accessible to as many businesses as
possible.
Despite
nearly a fivefold decline in total revenue, the Amsterdam-based payments company
Adyen achieved higher net revenue in the first six months of 2023 than in the
same period of the previous year. Net profit also slightly increased, showcasing
the resilience of European fintech amidst the deteriorating condition of the
financial technology industry in recent months.
One of the
standout figures from the H1 2023 report is the processed volume, which reached
€426.0 billion, marking an increase of 23% compared to the previous year. In
addition, the total point-of-sale volumes soared to €67.0 billion, reflecting a
year-on-year (YoY) increase of 49%.
Even though
gross revenue fell from €3.95 billion to €854 million during the reported
period, drastically reduced costs allowed for an increase in net revenue. This
eventually settled at €739 million, growing by over €130 million YoY. As a
result, the net profit amounted to $283.17 million, compared to $283.14 million seen in the previous year.
However,
there was a notable decrease in EBITDA by 10% YoY. The primary reason behind
this decline is attributed to "increased wages and salaries stemming from
Adyen's continuous effort to scale its global team.” As a consequence of these
decisions, the EBITDA margin settled at 43%.
“We closed
H1 2023 with €739.1 million in net revenue, up 21% year-on-year. The EBITDA
margin landed at 43%,” Pieter van der Does, the Co-Founder and Co-CEO of Adyen,
stated in the shareholder letter. “We continued building Adyen for the long
term and made solid progress in attracting top talent, scaling our Platforms
offering, and driving growth in Unified Commerce.”
Diving
deeper into the finances, the free cash flow conversion ratio remained strong
at 77%. Meanwhile, the capital expenditure (CapEx) was recorded at 7.6% of the
net revenue.
Growth Despite Fintech
Industry Challenges
Adyen
maintained profitability at a time when the condition of the European fintech
industry was deteriorating. In the second half of 2022, fintech financing
amounted to 63.2 billion USD, spread across 2,885 transactions. However, there
was a decline in the first half of 2023, with funding dropping to 52.4 billion
USD from 2,153 transactions, according to the Pulse of Fintech report by KPMG.
Last year,
Adyen introduced several new solutions, including embedded financial
products. According to the press release, platforms and marketplaces can now
create tailored financial experiences for their users, such as small business
owners and individual sellers using these products. This solution was adopted,
among others, by the e-commerce company, Radial.
Meanwhile,
Adyen introduced the ‘Tap to Pay’ function for its US customers on Apple devices.
Adyen partnered with enterprise clients and commerce platforms, like Lightspeed
Commerce and NewStore, to make this feature accessible to as many businesses as
possible.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Mastercard and Nigeria's Access Bank Partner to Launch New Cross-Border Payment Solution
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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