On Thursday, payments company Adyen beat market expectations with a 65 percent jump in first-half profit, boosted by higher volumes and strong growth in the United States. Adyen is the company employed by major companies like Netflix, Facebook, Spotify, Etsy, and Uber to process payments.
Adyen reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 272 million euros ($318 million), for its first quarter ended on June 30, surpassing analysts’ forecast of 252 million euros. Adyen’s net revenue experienced a year-over-year jump of 46 percent to 445 million euros, also beating analysts’ expectations of 425 million euros.
Adyen confirmed its medium-term targets of a compounded annual growth rate of around 25 percent to 30 percent. Adyen’s total volumes jumped by 67 percent year-over-year to 216 billion euros, boosted by an increase in U.S. volumes. Higher volumes at existing customers, such as McDonald’s, accounted for most of its increase in volume, it said.
The pandemic has caused people to opt for online payments over the physical use of cash, and Adyen said that it was working to adapt to this change. “We are solidly executing our strategy in a space that is consistently buoyed by macroeconomic trends, many of which were accelerated by COVID-19,” Adyen said in a statement. With the advent of the pandemic, the way consumers collect the goods they buy, as well as how they pay for them, has also been affected.
Adyen, which also assists vendors in handling payments in stores and online, said that “ordering ahead, curbside pick-up, and in-store purchases with self-service checkouts” will continue to be part of the company’s everyday reality.
Adyen is a Dutch company known for its all-in-one solution and international reach; the company’s all-in-one payment solution, security and optimization tools, and lack of fees has made its service stand out among others. Adyen payment services include a payment gateway for online payments, point-of-sale for in-person transactions, and integration abilities for in-app or mobile payments.
Outstandingly, Adyen offers companies the tools for payment processing and also provides the merchant account necessary to receive payments. As both a payment processor and merchant account provider, Adyen payment services allow business owners to accept a variety of payment methods in the way that works best for their particular business.