Adyen publishes H1 2022 financial results
When we launched Adyen for Platforms in 2017, we solely focused on online payments. Now, we are building out Adyen for Platforms into a single integration that offers unified commerce strategies, a full-fledged embedded financial product suite, and compliance and onboarding services. This all plays to the broader trend of platform businesses looking to further capitalize on the revenue opportunity the relationships with their users brings.
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.
Accepted Payment Types
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.
We continue to look beyond short-vehicle insurance coverage changes, and are instead committed to our long-term growth. By staying critical of both the quantity and quality of people we hire, we are building a team that is capable of realizing it. Stripe and Adyen are payment platforms catering to online and offline businesses. Stripe and Adyen both offer developer documentation to help users integrate their payment platforms into their websites or applications. Adyen integrationsSimilar to Stripe, Adyen provides commerce integrations such as Omnichat, WooCommerce, Salesforce B2B, and BigCommerce. Additionally, Adyen offers integrations to streamline internal processes like accounting, customer support, and customer experience with partners such as Chargebee, Aptos, Oracle Hospitality, and DrivenCX.
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.
This metric is a testament to our unique implementation of the most advanced user journeys. Adyen’s checkout optionsAdyen’s mPOS solutions provide in-person payment solutions, making it easy to accept payments from your mobile device. These solutions support varying payment methods such as cards, digital wallets, and other payment methods. When further zooming in on platform volumes, the growth of our unified commerce offering in the platform space is especially noteworthy. Solving for complexity for large digital merchants has been core to our operations since founding Adyen, and helped us shape our offering throughout all stages of growth.
To best service our customers, 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.
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.
Robust volume contributions across growth pillars
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.
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.
Stripe vs Adyen: Pros and Cons
To play our part beyond https://1investing.in/ing the donation infrastructure, we matched every donation, and absorbed all donation costs — the latter a default in our Giving feature. To further capitalize on this opportunity, we continue to drive innovation in the unified commerce space. Investments in in-store journeys were a focal point especially during the first half of the year. On this front, we launched the first models of our in-house developed terminal range. The launch of these devices, for which we partner with hardware manufacturers, enables us to set the pace of innovation and facilitates end-to-end control at the point of sale. Amid our increased pace of hiring, our focus remains on keeping the bar for talent high and scaling the Adyen culture.
The evolution towards near-invisible payments that is synonymous with brands like Uber is now disrupting other industries (e.g. gaming, online retail) too, with no signs of slowing down. Our customers need a partner that can quickly adapt to these evolving circumstances. While we are energized by our embedded financial product offering and the use cases our current pilots embody, we want to reiterate that this area of our business is still very much at its outset.
This period, we made strides with the launch of Unified Commerce in Mexico and Japan. We see a promising horizon ahead for Unified Commerce as we deepen our presence in these evolving markets and beyond. By following this approach, we closed 2022 with a motivated team and a strong set of results. This period, our net revenue landed at €721.7 million, up 30% YOY, mainly driven by our customers’ continued growth on our single platform.
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.
CapEx reflecting higher investments in the infrastructure of the single platform due to macroeconomic circumstances
Stripe and Adyen are both relatively easy to use, but the complexity mostly depends on what you plan to use these tools for. Stripe checkout page and dashboardStripe also offers an invoicing platform and flexible recurring billing functionality, allowing businesses to manage their accounting with ease. Easily add morepayment methodsand grow into new markets with local acquiring.
When combining Capital with Accounts, the platform can provide its users with the funds required to operate and grow their businesses within milliseconds due to our end-to-end banking infrastructure. Returning to working at our offices in 2022 greatly supported our intended speed of execution. Although we are able to operate effectively from home, the creativity and energy that sparks when our team is together cannot be replicated online. To me, these interactions confirm that our common denominator – building Adyen – is strong as ever. As we scale our existing activities and ramp up new ones, 2022 was a year of accelerated investment in our global team.
All resolutions adopted at Adyen’s AGM
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.
Driven by the successful execution of our land-and-expand strategy, 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.
- Besides paying interchange fees for any credit or debit card purchase, merchants also pay other fees for every transaction.
- The team totalled 2,180 FTE at the end of the period, up from 1,954 FTE at the end of June, and 1,747 FTE end of year 2020.
- Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
- This approach enables us to identify the solutions that will benefit many customers, rather than just one.
We benefited throughout the year from infrastructure we put in place immediately as the pandemic hit. We define mid-market merchants as merchants processing up to €25 million annually on our platform. Processed volume for the second half of 2021 was €300.0 billion, up 72% year-on-year.
One platform to accept payments, protect revenue, and control your finances. POS volume evolution, including share of total processed volume in EUR billions. We aim to continue to grow net revenue and achieve a CAGR between the mid-twenties and low-thirties in the medium term by executing our sales strategy. We’re seeing very solid traction in the verticals and regions in which we now operate, and the business is profitable and growing at a great pace – testament to the extraordinary work put in by the team. We continue to work co-creatively with our merchants in our product development.
The platform business model is becoming increasingly dominant across a broad range of verticals, and its growth will only accelerate in the years to come. In other operating expenses, sales and marketing expenses were €24.2 million, up 41% year-on-year, as we were able to meet our customers in-person by hosting events again. Many of the complexities we solve for are industry firsts, and we have maintained a tech-first approach to doing so since our foundation.To scale that ability, hiring for tech roles was a focal point.
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.