Adyen Earnings: EBITDA Margin Recovering in Overall Good Second Half

Adyen posted a good second half of 2023 after breaking its traditional semiannual reporting schedule and releasing good numbers for the third quarter in November already. As such, the good performance was not entirely unexpected. However, we think another confirmation that Adyen is on track to return to its growth trajectory and widening margins again will be appreciated by investors. Outside of good top-line growth (net revenue up 23% year over year) and EBITDA margins recovering to 48% from 43% in the first half as hiring has started to slow, Adyen has also shown noteworthy operational progress that we believe is supporting our bullish view on the stock. Lastly, we believe Adyen has taken investor criticism to heart and improved its communication strategy. We maintain our EUR 1,660 per share fair value estimate and wide economic moat rating.