Adyen shares soar to a record high as the payments firm beats 2020 profit estimates

Pieter van der Does, chief executive officer of Adyen.

Simon Dawson | Bloomberg | Getty Photos

LONDON — Dutch on-line payments company Adyen saw its shares surge over 10% Wednesday to hit a file high after posting annual profits that beat expectations.

Adyen acknowledged its plump-twelve months 2020 earnings came in at 402.5 million euros ($488.2 million), up 27% from a twelve months earlier and beating the 386 million euros anticipated by analysts in a Refinitiv poll, per Reuters.

The company posted rep revenues of 684.2 million euros last twelve months, up 28% versus 2019, because it benefited from a steal in e-commerce volumes at some stage in the coronavirus pandemic.

Shares of Adyen hit an all-time high of 2,123 euros Wednesday following the starting up of its 2020 numbers.

The firm acknowledged processed price volume came in at 303.6 billion euros in 2020, a 27% expand from the old twelve months. Its plump-twelve months profit margin used to be 59%, an development from 56% in 2019.

In the 2nd half of of the twelve months, Adyen acknowledged, revenues rose 28% twelve months-on-twelve months to 379.4 million euros, whereas profit grew 36% to 236.8 million euros.

Adyen CEO Pieter van der Does acknowledged the industry had proven “resilient” in the latter half of of 2020, including it saw right beneficial properties in its North American operations in 2020.

“The industry’ resilience over the length used to be fueled by the continued diversification of our merchant heinous all the diagram in which through verticals and areas,” van der Does acknowledged in a letter to shareholders. “Most notable is the trot at which North American rep income contributions grew.”

“With a 70% twelve months-on-twelve months expand, rep income contributions from the concern rose to 20% of total rep income in H2 2020, when in contrast with 15% in H2 2019.”

No matter tailwinds from elevated put a query to for on-line payments, Adyen saw development dumb in 2020 amid a pointy decline in trudge back and forth volumes. Quiet, or no longer it is uncommon to explore splendid development in the fintech sector. Originate-united states of americalike Revolut and N26, as an example, stay closely loss-making.

Adyen isn’t very always genuinely admire user-going through fintech platforms, in its put aside specializing in payments to corporations. The firm supplies price services to corporations similar to Uber, Spotify and Netflix.

Adyen, which competes with U.S. company Stripe and U.K. starting up-up Checkout.com, went public on the Amsterdam stock commerce in 2018. Adyen’s initial public providing used to be one amongst the most high-profile tech listings in Europe in most modern years, alongside Spotify.

Since its debut, Adyen’s shares occupy climbed bigger than 700%. With a market cost of

63 billion euros, the firm is now worth bigger than some of Europe’s perfect banks, including BNP Paribas and Santander.

No matter securing a right space in the payments skills market, elevated competition in the put except for privately-held opponents is liable to defend Adyen on its toes. Stripe raised $600 million last twelve months at a $36 billion valuation, and is reportedly now heading in the correct route to right additional funding at a market cost of up to $100 billion. Stripe declined to commentary on experiences about the fundraising.

Meanwhile, Checkout.com attracted a $450 million investment round at a $15 billion valuation last month, making it the most-treasured fintech unicorn in Europe.

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