Shares of Adyen lost ground in deals early Thursday as the corporate reported a slowdown in deal volume growth within the third quarter.
Adyen shares were initially unable to start trading on Thursday following the discharge of the corporate's third-quarter report, but have resumed trading. The stock was down 9.8% at 8:35 a.m. London time, putting it at the underside of the pan-European Stoxx 600.
Adyen's sales growth resulted from a rise in total processing volume (TPV), which rose 32% year-on-year to €321 billion. In the primary half, Adyen reported a forty five% increase in TPV, after previously reporting 46% year-over-year growth in the primary quarter.
Analysts at Citi said in a research note that Thursday's “weaker” transaction volume would likely draw most of investors' attention amid concerns about end-market weakness.
“In any case, the processed volume adoption rate is significantly higher than expected and, if sustained, should support acceleration in revenue growth in 2025/26, while the lower hiring rate should support further margin expansion,” they wrote.
Adyen said digitally processed volumes increased 29% year-over-year, down from the previous quarter, resulting from the impact of a single major customer. blocks Cash App.
Elsewhere, the corporate reported a jump in revenue within the third quarter because the Dutch payments company gained market share and added recent customers, diversifying its merchant mix. Adyen, whose technology enables businesses to just accept payments online and in-store, reported net sales of 498.3 million euros ($535.5 million) within the third quarter, up 21% 12 months over 12 months on a continuing basis Exchange rates correspond.
The company saw stronger traction in in-store payments within the third quarter, with its “unified commerce” point-of-sale terminals seeing 33% year-over-year growth as its installed base of physical payment devices increased by 46,000 to 299,000.
Adyen also said the corporate expanded hiring barely, adding 35 recent employees within the quarter. The company scaled back hiring last 12 months amid concerns concerning the pace of investment.
Last 12 months, shares of the Dutch payments giant plunged nearly 40% in a single day as worse-than-expected sales and profits fell in the primary half of 2023
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Payments firms saw a lift from the rise in online shopping throughout the peak of the Covid-19 pandemic.
But lately, firms like Adyen have been under pressure from lower consumer spending.
However, Adyen has benefited from significant growth through partnerships with its North American customers, equivalent to Cash App within the US and Shopify in Canada.
Adyen maintained its guidance on Thursday, saying it expects net sales growth to be between the high and low 20s through 2026.
The company added that it expects to grow its earnings before interest, taxes, depreciation and amortization to levels above 50% by 2026.
Capital expenditures will remain constant at as much as 5% of net sales, Adyen said.
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