Adyen publishes H1 2022 financial results

We now operate at a different scale, amid a changing environment in which we are well positioned. As we look to capitalize on this opportunity, we are seeing a great appetite for office attendance and in-person cooperation in our growing team. We realize that this goes against what is largely a full-remote trend within tech and feel that the key is to find the right balance. What has changed from the pre-pandemic environment is that we now approach the working environment with a more flexible mindset. Specifically for the mid-market, we’ve continued to invest in partnerships and platforms in order to guarantee that we build to benefit all merchants. To this end, we launched our partner portal during the period – streamlining the referral process for businesses and partners alike.

It offers a range of global payment options and advanced security features. However, Adyen has a somewhat confusing pricing structure and a high monthly transaction minimum. But, it also has some downsides, such as high chargeback fees and limited support for PayPal.

Get started with a free trial of our Application Hosting or Database Hosting. Stripe allows you to take the funds for a refund from your Stripe balance or directly from your bank account, but your processing fees won’t be returned. It’s worth noting that some banks may charge a fee for refund transactions, which could be passed on to the merchant. When it comes to processing refunds, both Stripe and Adyen offer the option for full or partial refunds. From a business standpoint, managing chargebacks and disputes is a critical part of risk management.

We continued to win new business, and to grow, also in this new environment. As we continue to evolve in our role of providing financial infrastructure to growing businesses, our approach to social and environmental responsibility topics has grown too. Our roots dictate that we do first, and tell stories later — having said that, this is an area in which I expect to be able to report significant progress going forward. Operating expenses for H came in at €218.0 million, up 38% year-on-year and comprising 39% of net revenues. The largest contributor to these were employee benefits – which totaled €121.5 million, growing 31% year-on-year.

Founded by Adyen and Affirm alums, Ansa aims to help merchants create virtual wallets for customers

Stripe’s responsive checkout pagesFor those without technical skills, Stripe provides pre-built pages for easy setup. Developers can use Stripe’s API for full customization, and businesses can embed the checkout process into their websites, removing the need for customers to leave the site to pay. Adyen offers straightforward recurring billingAdyen offers recurring billing at no additional costs — merchants are charged at the same rates as individual transactions. This makes it a simple and cost-effective solution for businesses with straightforward billing needs. Adyen’s recurring billing allows you to send monthly, quarterly, or yearly invoices to customers.

• In a continuation of another long-term trend, H2 saw volume churn remain below 1%.
• Platforms contributed €51.8 billion in H2 and €99.9 billion for the FY, making up 13% of total processed volume in 2022 and growing 31% YOY.
• This was the first period since H that travel volumes rebounded in full, with most countries reopening their borders and to a large extent adjusting to COVID-19.
• Throughout this period, we maintained our track record of winning additional wallet share across our commercial pillars.
• After disrupting the online payments landscape, in 2013 we saw an opportunity to tackle in-store payments as well.

Since 2011 we’ve been steadily growing the company — profitably — and now increasingly at scale. I’m proud to report that our long-term outlook has not changed; nor has our speed of execution. We have been able to keep that union intact throughout our growth trajectory. Keeping our culture has always been, and will continue to be, the focal point for us as a management team. At times, our bets didn’t pan out, like when we tried our hand at POS shuttles , but our speed-based culture has always allowed us to pivot back into the right direction quickly.

Accepted Payment Types

To best service our can bitcoin cash, we continued innovating online checkout journeys with iterations to our authentication and payment methods. We’re the only payments platform that fully supports unified commerce — POS, ecommerce, fraud prevention and customer data — for an uninterrupted payment experience. Stripe is known for its easy-to-use platform and high-speed payment processing, while Adyen is known for its seamless omnichannel payment integration. Adyen, on the other hand, is available in 33 European countries, plus Brazil, Canada, Mexico, Puerto Rico, the United States, and the UAE. Adyen supports 36 currencies, making it possible for businesses to accept payments from a wide range of countries and regions. Both offer innovative features to help businesses accept payments from customers around the world.

We have a long-term horizon, we continued to recruit new team members, and our data centers run remotely. Naturally, there were some initial delays in the rollout of projects, mostly on the merchant end, but nothing that significantly impacted the business. This is also why we chose to shift to quarterly reporting for the year, something that is not part of our long- term approach, to provide transparency around the resilience of the business during a crisis.

Stripe vs Adyen Market Share

When it comes to comparing Stripe vs Adyen’s integrations, both providers offer a similar range of options. Ultimately, the choice of which integration provider to use will depend on the specific needs of your business and which tools you’re already using. Adyen’s support team is known for coming up with innovative solutions to tricky problems. However, TrustPilot reviewers have noted that email support from Adyen has been getting slower as the company grows.

This is up 97% year-on-year as we continue to scale our capabilities in this space. We’re seeing an unprecedented transformation in commerce across the region. This is most apparent in the significant change to what stores and retail interactions look like today. Self-checkout has become ubiquitous and delivery is increasingly a daily interaction. The better shopper experience and the lower operational costs of self-checkout in an era of labor shortage make these very attractive for merchants.

Adyen Pros and Cons

At Adyen we build everything for the long term — products, partnerships, and teams. Allow me to take a look back, just this once, as 2019 was the keystone year of a decade that brought a lot of change for Adyen. Optimize your finances and increase automation with our banking infrastructure. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. Coupled with our machine learning technology, we help you protect your business from fraud, provide customer-friendly authentication, and increase approval rates. While our own business proved highly resilient during the pandemic, our merchants’ realities were often very different.

We saw this focus pay off and we were able to grow these teams substantially — over half of the Adyen team was in tech at the end of H1 2022. The Adyen team totaled 2,575 FTE at the end of H1 2022, adding 395 colleagues to the team during the period. This accelerated hiring pace reflects our investments in scaling our recruitment capacities and the extension of the group involved in final decision making on who joins the Adyen team.

Please refer to Note 1 of the interim condensed consolidated financial statements for further detail on revenue breakdown. The operational leverage inherent to our business model and platform was illustrated by the 64% EBITDA margin for the period. As mentioned, net revenue contribution from non-EMEA regions came in at over 40% for the first time since we started reporting these splits. The regional diversification of our net revenues is evidence of the success of our global approach.

Increase revenue and reduce churn by offering your users an elevated experience. It’s equally true that the environment we now find ourselves in is markedly different from when we entered the pandemic. The acceleration of longer-term trends due to the rapid digitalization during the pandemic has changed the landscape, permanently. We’ve talked at length in previous publications about the fact that unified commerce has moved from what was previously a nice value-add to being critical infrastructure for businesses to survive and thrive. We’ve been able to be one of the drivers here as businesses were looking to adapt.

• The war in Ukraine waged on, catalyzing both humanitarian crises and economic knock-on effects felt around the world.
• Check out our comparison of Stripe vs PayPal to determine which one is best .
• Through Adyen Issuing, platforms expand their user relationships while building out an additional revenue stream, as the platform receives a revenue share of the interchange fee.
• This has widened our natural customer fit from digital native companies to a much larger group of business types and industries.
• To preserve our culture of speed and autonomy, we upheld our high talent standards.
• By circumventing the administrative demands and slower pace of traditional banks, their users can now leverage complete cash flow management including business banking.

This meant engineering solutions in-house for the highest end of retail and enterprise customers. These businesses provide far more complex consumer journeys and thus require an equally advanced back-end infrastructure, which we remain the first and only to build. In mid-market, we build to offer the full strength of the Adyen solution to merchants of all sizes via simplified integrations. Our value proposition to these merchants is grounded in our ability to future-proof their payments set-up through access to the single platform, which leaves space to focus on growing their business. Adyen’s history of developing solutions for the most complex journeys is also demonstrated across our Platform pillar. We have a well-established presence in the enterprise platform space, where we first and foremost help platforms fortify their relationships with sub-sellers through embedded payments.

This approach involves signing customers, demonstrating our value, then scaling with them long-term across regions and channels. We initially solve a single problem, then ramp up our collaboration by helping businesses identify and address far more complex needs. In a continuation of another long-term trend, H2 saw volume churn remain below 1%. Once again, our ability to nurture long-term, trusted customer relationships kept them growing on the platform.

Alongside the shift to online traffic, we saw a substantial increase in contactless transactions. Industries were quickly disrupted due to the increased need for contactless shopper journeys and delivery options. We did not see any business developments over the second half of 2022 that would lead us to update our guidance. With secular tailwinds on our side, we look forward to helping our customers build the commerce journeys of the future. But as of now, few merchants outside of retail giants such as Starbucks offer that ability.

We continue to scale our activities by building upon this foundation of foresight and discipline. We are excited by the progress we have made thus far and consider ourselves at the early stages of what we aim to achieve in the region. Our Unified Commerce solution is a prime example of how maintaining our long-term perspective is paying off today. After disrupting the online payments landscape, in 2013 we saw an opportunity to tackle in-store payments as well. Rather than taking the fastest route to market entry, we opted for the most comprehensive and promising.

Driven by the successful execution of our land-and-expand https://1investing.in/, net revenue was €608.5 million in H1 2022, growing 37% year-on-year1. For these third-party payouts, the SMB can exchange funds into their preferred currencies when required and payout via the local clearing in the respective country. Especially when paying out business suppliers in other regions, this is a significant further optimization of financial processes. Comparative figures have been updated to reflect the Net Revenue geographical breakdown as disclosed further in note 1.3 Non-IFRS financial measures, in the H interim condensed consolidated financial statements. The various academies specialize in operations, tech, sales, account management, and marketing.

The abovementioned growth in travel volumes impacted take rate too, by driving the percentage of full-stack volume down, and average transaction value up. We are at an exciting point in our trajectory, and I feel that our momentum is accelerating. We have a strong but still small position in payments, and are taking share from the traditional banks. Over the course of the upcoming years, we will be a driving force in how SMBs access banking services too. We proceed with discipline and focus while we build Adyen to capitalize on our long-term potential. While compiling my notes for this letter, it was hard to decide which topic to address first.