Here’s how Amsterdam fintech unicorn Adyen performed in H2 2022

Amsterdam-based fintech unicorn Adyen published its shareholder letter and financial statements for H2 2022 on Wednesday. The letter focuses on the company’s activities, finances, growth pillars, and more.

Here are the seven key takeaways from Adyen’s H2 2022 financial results.

Processed transaction

During H2 2022, Adyen processed €421.7B, up 41 per cent YOY. 

For the full year, Adyen processed €767.5B, up 49 per cent YOY. 

According to the report, ‘Digital’ remained the largest volume contributor overall, realising €253.8B in H2 and €471.4B for the full year, making up 61 per cent of total processed volume in 2022 and growing 46 per cent YOY. 

Unified Commerce volumes amounted to €116.1B in H2 and €196.2B for the FY, which was 26 per cent of total processed volume in 2022 and up 67 per cent YOY. 

Platforms contributed €51.8B in H2 and €99.9B for the FY, making up 13 per cent of total processed volume in 2022 and growing 31 per cent YOY. 

“Taking eBay volumes out of the equation, Platforms would have been our fastest growing pillar at 79 per cent in H2 and 95 per cent for the full year,” the report reads. 

POS

The point-of-sale (POS) volume was €67.6B in H2 and €112.5B for the full year, up 74 per cent,, making up to 15 per cent of total processed volume in 2022 – up from 13 per cent in 2021.

Net revenue

Adyen registered net revenue of €721.7M in H2 2022, growing 30 per cent YOY. 

For the entire year, the Dutch unicorn’s net revenue came in at €1.3B, up 33 per cent YOY. 

The company says the majority of its net revenue came from its land-and-expand commercial strategy.

The report has diversified the Net revenue contributions regionally in the second half of 2022, with North America and APAC displaying the greatest acceleration. 

EMEA contributed 55 per cent of total net revenue, followed by North America (27 per cent), APAC (11 per cent), and LATAM (7 per cent). 

For the full year, net revenue contributions were: 

• €746.8M in EMEA 
• €343.2M in North America 
• €142.4M in APAC
• €97.8M in LATAM

“H2 2021 was an exceptionally strong period for EMEA contribution, which impacted H2 YOY growth rates,” says the report.

Operating expenses

Total operating expenses for Adyen in H2 2022 were €387.7M, up 78 per cent from H2 2021. 

Employee benefits were €222.1M in H2 2022, up 83 per cent YOY. 

Sales and marketing totaled €31.4M in H2 2022, up 64 per cent YOY. 

Full-year 2022

The full-year operating expenses were €665.4M, up 64 per cent YOY. 

Employee benefits for the entire year stand at €380.6M, up 58 per cent YOY. 

For the full year 2022, sales and marketing were €55.6M, up 53 per cent YOY due to investment in brand awareness and hosting events to meet customers in person again.

EBITDA

EBITDA was €372M in H2 2022, up 4 per cent from €357.3M in H2 2021. The EBITDA margin was 52 per cent in H2 2022, compared to 64 per cent in H2 2021. 

Full-year 2022

For the full year, EBITDA was €728.3M, up 16 per cent from 2021. Full-year EBITDA margin stands at 55 per cent, compared to 63 per cent in 2021. 

Free cash flow and CapEx

Adyen’s free cash flow was €298.1M in H2 2022, down 7 per cent from €320.2M in H2 2021. The free cash flow conversion ratio was 80 per cent in the second half of 2022, down from 90 per cent in H2 2021.

CapEx was €59.1M, and 8 per cent of net revenue, up from 6 per cent of net revenue in H2 2021. 

Full-year 2022

Full-year free cash flow conversion ratio was 83 per cent, down 8 per cent YOY.

For the full year, CapEx was €99.1M, and 7 per cent of net revenue.

Adyen’s Financial objective

According to Adyen, it has not seen any developments in the business over the second half of 2022. As a result, the company’s financial objectives remain unchanged from the last time they published results.

They are:

• To continue to grow net revenue and achieve a CAGR between the mid-twenties and low-thirties.
• To improve EBITDA margin and increase to levels above 65 per cent in the long term.
• To maintain a sustainable capital expenditure level of up to 5 per cent of Adyen’s net revenue.