Adyen: Misses Top Line Slightly, but Shares Remain Attractive

Adyen reported its third-quarter business update showing 20% revenue growth below consensus estimates of 22% as collected by FactSet. The release was limited to volume and net revenue figures, giving little insight into the dynamics Adyen was exposed to during the quarter. What we can deduct from the release is that the net take rate improved to 15.5 basis points from 14.8 basis points last quarter. We think it is likely that processed volume growth in platforms (up 44% year over year) and unified commerce (up 33% year over year) contributed to the better take rate. Typically, we observe a weaker net take-rate performance in tandem with strong volume growth in Adyen’s largest segment digital, which grew volumes by 29% compared with last year. We maintain our EUR 1,660 per-share fair value estimate and wide moat rating for Adyen. We believe shares are attractive at current levels.