Amsterdam-based Adyen, a fintech unicorn, announced on Thursday that it has published its shareholder letter and financial statements for H2 2023. Despite the challenging dynamics and shifting customer priorities, Adyen managed to navigate the turbulence and achieve remarkable growth.
Having said that, let’s explore the key financial highlights, the expansion of their global team, and the successful deepening of customer relationships across various pillars.
Here are the key takeaways:
Net Revenue Growth
Adyen experienced a significant increase in net revenue during H2 2023. Their net revenue reached an impressive €887M, representing a year-over-year growth of 23 per cent.
This achievement was primarily driven by the continued growth of its existing customer base, demonstrating the effectiveness of its underlying land-and-expand strategy.
EBITDA margin
Adyen’s focus on gradual hiring and scaling their global team led to an impressive EBITDA margin of 48 per cent in H2 2023.
Adyen achieved a balance between team expansion and financial performance by intentionally slowing down their hiring pace.
However, the company welcomed 313 new joiners in H2, bringing to a total of 4,196 FTEs at the year’s end.
This margin reflects their commitment to sustainable growth and operational efficiency.
“Building our team over the last two years was a counter-cyclical decision compared to much of the industry, enabled by the profitable business we built and the flexibility it provided amid a favourable talent market,” says the company in the report.
Digital volume grew by 33%
Adyen’s net revenue growth across various pillars demonstrated the effectiveness of its commercial strategy.
In H2 2023, Digital volume grew by 33 per cent year-over-year, driven by the further ramp-up of an existing customer in Q4.
This substantial growth in wallet share with customers highlights the value Adyen brings, even when volumes may outpace revenue due to their tiered pricing model.
Unified commerce growth
Despite the inherent retail exposure and a broader industry slowdown, Adyen’s Unified Commerce pillar continued to grow steadily in H2 2023.
With a growth rate of 24 per cent, Unified Commerce handled peak volumes and recorded high activity levels during the holiday season.
Adyen’s leading position in enabling cross-channel journeys was further solidified by securing partnerships with large-format retail businesses.
“Our infrastructure soundly combatted heightened fraud attempts and maintained the seamless experiences today’s shoppers not only expect, but demand,” says the report.
Platform traction and innovation
According to the report, platforms saw continued traction in H2 2023, growing by 19 per cent compared to 3 per cent in H1.
The company’s success in embedding payments into the Software-as-a-Service (SaaS) business model contributed to this growth, adds the report.
They partnered with major multinational technology company Oracle to offer a complete payment solution, Oracle Payments.
Looking ahead, Adyen plans to onboard a couple of hundred net-new joiners in 2024, with a continued emphasis on hiring outside of Amsterdam across their tech and commercial domains.
This strategic approach will allow Adyen’s operational leverage to become more visible in its financials. In addition, Adyen’s continuous investment in product innovation and its expanding customer base across various verticals position them for further growth and success.
“Though this process will begin in 2024, the operational impact will be less visible as 2023 hires annualise, followed by more material leverage in 2025 and 2026,” says the company.
Read the orginal article: https://siliconcanals.com/news/adyen-in-h2-2023/
