Adyen's Q3 Performance Shows Mixed Results

Adyen's (AS:ADYEN) shares declined by 6.5%, trading at €1,287.40 following a disappointing Q3 transaction volume growth.

Key Highlights

Transaction Volume Growth: Adyen reported a 32% increase in transaction volume, missing analysts' expectations of 43% growth.
Impact of CashApp: The slower growth is largely attributed to reduced volumes from Square’s CashApp, which has a minimal effect on revenue despite high transaction volumes.
Analyst Insights: Morgan Stanley analysts noted that while volumes were weaker, the improved take rate due to merchant impact was preferred. They believe the core growth patterns remain steady.

Adyen achieved a 21% year-on-year increase in revenue, aligning with market expectations.
The net revenue matched forecasts, and the slight increase in the net take rate indicates resilience amid a slowdown in key areas.
Barclays analysts expressed optimism about the 21% revenue growth in light of a challenging market environment.

Unified Commerce Gains: This sector continues to perform well with a 33% year-on-year volume increase. Prominent segments include:
- Point-of-Sale Volumes: Growth surged to 45% year-on-year.
- eCommerce Volumes: Growth slowed to 29%, down from 46% in Q2.
- Platforms: Volumes rose 54% year-on-year (excluding eBay), although this was a deceleration.
Despite slowed Digital growth, Adyen's solid performance in other segments reflects ongoing customer acquisition potential, with 22,000 new customers added in Q3.

Hiring was relatively slow with only 72 new employees added year-to-date, 35 in Q3. This cautious approach may support strong margins in the upcoming periods, particularly into the second half of 2024 and first half of 2025.