Dutch payment technology giant Adyen NV reported stronger-than-expected third-quarter results, with net revenue climbing 21% at constant currency, highlighting the company's successful recovery from last year's challenges.

Adyen Posts 21% Revenue Growth as Platform Business Leads Expansion

The Amsterdam-based fintech firm (AMS: ADYEN) recorded net revenue of €498.3 million in the third quarter, marking a 20% increase from the previous year. Processing volumes surged to €320.6 billion, representing a robust 32% year-over-year growth, as the company continued to expand its market presence across various segments.

"The third quarter of 2024 marked a period of strong growth and continued innovation," said Ethan Tandowsky, Adyen's Chief Financial Officer. "Our net revenue growth of 21% at constant currency was driven by our ability to consistently execute on our land-and-expand strategy with our existing customers, in-line with the building blocks that we outlined in 2023."

The latest results mark a significant turnaround from August 2023, when Adyen's shares plummeted nearly 40% in a single day following disappointing first-half results. Overnight, the company’s valuation dropped by $20 billion.

Since the significant decline and subsequent low, the stock has rebounded over the past year by more than 132%. However, Thursday's session did not yield a positive response to the latest trading update, with shares on the Amsterdam Stock Exchange falling by 1.7%.

Platforms, Unified Commerce and Digital

The company's platform business emerged as the standout performer, maintaining its position as the fastest-growing segment. The platform segment's growth reflects the company's ongoing expansion of its merchant base, with notable activities in North America including its existing partnerships with Block's Cash App and Shopify.

In the Unified Commerce segment, Adyen reported growth as it continued to expand across different industry verticals. The digital segment also continued its established growth pattern in a market that has evolved since the heightened online shopping activity during the pandemic period.

“As we look towards the end of the year and into 2025, we remain confident in the vast opportunity ahead and in our ability to continue executing on our long-term vision,” Tandowsky added, expressing confidence in the company's future trajectory.

Adyen’s New CTO and PayPal Partnerhisp

In August, Adyen appointed Tom Adams as its new Chief Technology Officer. Adams steps in as Alexander Matthey, Adyen’s outgoing CTO, concludes a decade of service marked by significant technological contributions. Adyen's Co-Founder and Co-CEO, Pieter van der Does, conveyed strong confidence in Adams' capability to advance the company's tech-driven strategy.

In parallel, PayPal has entered into an expanded global partnership with Adyen. Through this arrangement, Adyen will incorporate PayPal’s Fastlane solution into its offerings for enterprise and marketplace customers in the United States, with plans for global expansion.

Fastlane is engineered to improve guest checkout by accelerating the transaction process, ultimately aimed at boosting conversion rates by simplifying the customer experience.