After a couple of not-so-good years, IPO (Initial Public Offering) is back to life again. At present, the IPO market is more active than ever, with so many companies going public this year. One such company that made a significant impact since going public in June 2018 is none other than the payment startup Adyen.
Living up to the hype!
One would expect a lot from the company, especially when the shares priced at €240 ahead of the launch nearly doubled somewhere around €400 a share at the end of the opening day. Well, the Netherland’s pride Adyen certainly lived up to its hype.
75 percent jump in first-half net profit
According to the recent report, Adyen has witnessed a 75 percent jump in first-half net profit, further boosting its shares as well. To be more specific, Amsterdam-based Adyen sales peaked to €156.4 million in total revenue, up 67.3% YoY, processing more than €70 billion of transactions, and collecting €48.2 million in net income up 74.6% YoY.
“We often see that when we sign up one customer in a certain sector, others follow,” Van der Does reportedly said in a telephone interview. “We benefit from our growing brand name. We are becoming a logical partner in places where we were once considered an odd choice.”
A significant rise in manpower
On top of that, the staff headcount also went up about 40%, with 47.3% of them taking up tech roles.
“Results year-to-date are impressive,” Morgan Stanley analysts said in a note. “New merchant wins should begin to contribute volume and support growth from 2019, supporting the medium-term outlook.”
For the uninitiated, Adyen powers payment for large and smaller e-commerce merchants and others. It assists the retailers to take customers payment and lead them through complicated payment networks promptly. While the company operated globally, more than half of the transactions process are in Europe alone.
How does Adyen earn?
Well, Adyen earns its revenue via settlement and processing fees charged to its merchants on a per transaction basis. Adyen is the primary payments provider to eBay and also has other customers including Uber, Netflix, Facebook, Spotify, Etsy, Vodafone, Sephora, Tory Burch, L’Oréal, and booking.com.
Having said that, Adyen is backed by various investors including London-based Index Ventures, Singaporean sovereign wealth fund Temasek, General Atlantic and Iconiq, an investment company representing many of Silicon Valley’s most wealthy executives.
Expanding its footprint
Apart from the multinational services, the company has started attracting other businesses from new sectors including hotels, supermarket and restaurant chains as well. Moreover, Van der Does, co-founder of the company attributes the success of Adyen in activating new payment methods used across the globe without catering to an individual company.
Might slow down!
Having said that, American multinational investment bank and financial services company, Morgan Stanley has said that the growth mighslow down in the coming months due to its conservative guidance.
“Our guidance is a minimum level we expect to achieve”, Van der Does said. “We take a long-term view and don’t see any reason to change our forecasts.”
For more updates, stay tuned to Silicon Canals.