The Dutch payment processing firm Adyen closed the books on 2021 with strong numbers for the second half of last year that added up to a solid start to 2022, according to the company’s report released on Wednesday (Feb. 9).
With a 51% jump in core earnings and a net revenue of 556.5 million euros ($636 million), the second half of last year was up 47% year-on-year.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased 51% to 357.3 million euros ($408 million), beating analysts’ expectations and driving its stock prices up.
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Processed volume was 300 billion euros ($343 billion), up 72% year-on-year, and free cash flow conversion ratio was 90%, with CapEx at 6% of net revenue driven by investments at the firm’s new headquarters in Amsterdam, according to a press release about the report.
“The results for the past half-year were strong, and the indicators of sustainable profitable growth remain intact. Having achieved new milestones of scale in 2021, our view of the prospects of our business are as strong as ever,” CEO Pieter van der Does and CFO Ingo Uytdehaage said in Ayden’s annual letter to shareholders.
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“Combined with our first half numbers, this has led to strong results for the full year: 2021 processed volume surpassed the half-a-trillion threshold at 516.0 billion euros. Net revenues for the year were over 1.0 billion euros, and 2021 EBITDA margin was 63%,” the CEO and CFO said in the letter.
Full year processed value in 2021 was up 70% year-on-year, with net revenue up 46% year-on-year.
“We’ve always taken a long-term view of the business. This has been true since the foundation of the company,” van der Does and Uytdehaage said.
“Still, as we operate a culture where our day-to-day focus is primarily on our merchants’ growth, and on continuously solving shorter-term problems, it’s humbling to take stock of the scale at which we now operate — without having had the need to alter the way in which we work together,” they added.
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