Adyen Shares Nosedive Despite Company Reporting Revenue and Ebitda Increases

2022 Has not been too kind to service providers in the finance and fintech spectrum. Adyen, the popular payment processing outfit, saw its shares fall by over 10% after posting H1 2022 results. While there is strong revenue growth, the profit margins continue to grow more narrow. 

Adyen May Hit A Rough Patch

There is a big difference between companies being profitable and their profits meeting investor expectations. Even for Adyen, the ongoing squeeze of profit margins will pose a problem eventually. While its revenue growth in H1 2022 is still stellar, the company has fallen short of meeting investor expectations. The net revenue of over 608 million euros – a 37% YoY increase – is impressive, but there is more to this story. 

The Ebitda of 356.3 million euros – still up by 31% year-over-year – is lower than investors want to see. Analysts estimated it to be closer to 59%, making 31% seem like peanuts in comparison. Although analysts had bigger expectations of resumed travel and event costs, those did not materialize in additional Ebitda for Adyen. 

Following the publication of these results, company shares dropped by over 14% in early-hour trading. The market eventually recovered somewhat, but still netted an 11% loss.

Adyen VP of Product and In-person Payments Derk Busser adds:

“By taking ownership of the terminal design, Adyen is assuring we put customer needs at the heart of their functionality. Our goal is to reduce friction within the consumer journey continuously. By designing highly mobile devices, we’re empowering businesses to collect payments not only when behind a checkout counter – but anywhere.”

The terminal design refers to Adyen’s new push tied to investing in unified commerce. That push includes building in-house payment terminals, which will have a dedicated range of models for companies to explore. A unified commerce experience will help improve Adyen’s market presence and potentially boost company revenue over the coming years.