Adyen breaks the billion euro revenue mark

Posted 9 Feb. 2022 at 18:53

It’s not just the big banks that can boast of recording impressive business volumes in 2021. This is also the case for Adyen, whose growth is still very strong.

The European payment champion, listed since 2018 – it is worth twice as much as Societe Generale on the stock market -, indeed announced to “Echos” on Wednesday that it had reached the bar of one billion euros in revenue in 2021, an increase of 46% compared to the previous year.

“There was still an impressive transfer of cash transactions to the digital world, which greatly boosted our activity, explained to Les Echos Pieter van der Does, the boss of Adyen. I am happy with the work that my teams have been able to do to achieve this result despite the layers of complexity added by the Covid crisis with store closings and openings. »

Adyen is a payment acquisition specialist. Simply put, the company allows merchants to accept money from their customers. And with each transaction carried out by them, Adyen pockets a commission.

This is the reason why its results are mainly based on the number of transactions that the company manages each year. And on this aspect, growth is also at the rendezvous. The Amsterdam-based company processed 516 billion euros in payments last year, up 70% year-on-year. In the second half alone, the entity processed just over $300 billion in transactions, the same as in all of 2020. The company also posted a 63% margin and an Ebidta of $630 billion. euros.

Aim for big merchants

In addition, the company recorded very strong growth in its in-store flow, up 97%. Until now, Adyen’s growth was driven by the development of e-commerce, itself accentuated by the pandemic. But the end of the crisis is pushing consumers back to physical stores. “Increasing its exposure to physical commerce was a real challenge for Adyen, explains Grégoire Hermann, analyst at AlphaValue. What is also interesting is that society achieves this with a fairly low marginal cost. In other words, their entry into the world of physical commerce does not seem to cost them dearly. »

This is partly due to the model of Adyen, which since its inception has developed a product that allows it to serve large customers. Unlike its great rival, the American Stripe, which has instead chosen to target small traders. “It’s the essence of Adyen, explains Pieter van der Does. We wanted to build a product that meets the complexity of the demand from large merchants, accessible on a single platform”. The company also succeeded in winning new partnerships during the year, capable of offering significant transaction flows in the years to come. This is the case of General Motors, Toys ‘R’ Us, or the French Monoprix.

Faced with analysts, Adyen however recognized a sensitive point for its future: recruitment. “Adyen admitted that he had not managed to recruit as many talents as he would have liked,” says Grégoire Hermann. It’s a real subject. You have to be able to attract the best engineers to continue on a level playing field with Stripe. »

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