Adyen shares slump as payments processor meets revenue estimates

By Steve Goldstein

Shares of Adyen slumped Thursday as the payments processor met revenue expectations even after processing more volume than anticipated.

Adyen (NL:ADYEN) reported first-quarter revenue grew 21% to EUR438 million ($469 million), as proceeded volume rose EUR46% to 297.8 billion.

The Bloomberg-compiled consensus was for volumes of EUR278 billion and revenue growth of 21%.

Adyen shares dropped 15%, though the stock has doubled from its October lows.

Adyen said it benefited from processed volume growth with an existing digital customer that expanded in the second half of last year, a reference to Block's (SQ) Cash App.

The Cash App volumes were less profitable, as the net take rate fell to 14.7 basis points, down from 15.7 basis points in the fourth quarter and 17.7 basis points in the first quarter of 2023, according to analysts at the brokerage Stifel.

Adyen reiterated its hiring plans for "couple of hundred" after only adding a net 26 people in the first quarter, mostly in North America.

Adyen reiterated its goals of revenue growth in the low-to-high twenties and to improve margins above 50% in 2026, and capital expenditure at up to 5% of revenue.

-Steve Goldstein

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04-25-24 0446ET

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