Amsterdam-based payments platform Adyen has published its H2, 2021, Shareholder letter and financial statements. The letter reflects on what has happened in the company, its finances, growth pillars, and much more.
Adyen is a payments platform that provides an end-to-end infrastructure connecting directly to Visa, Mastercard, and other preferred payment methods.
Here are seven key takeaways from Adyen’s H2, 2021, financial results.
Processed transaction
In H2, 2021, the volume of processed transactions grew 72 per cent year-on-year to €300B. For the full year, the processed volume was €516B, up 70 per cent compared to €303.6B in 2020.
The POS volume for H2, 2021, was €41.8B, making up 14 per cent of total processed volume.
“This is up 97 per cent year-on-year as we continue to scale our capabilities in this space,” says the report.
Net revenue
As processed transactions increased, net revenue registered by the company also skyrocketed as it hit €556.5M in the second half of 2021, up 47 per cent year-on-year.
For the entire year, the company’s revenue was up 46 per cent year-on-year and totalled €1B.
The net revenue contribution from non-EMEA regions came in at over 40 per cent for the first time since the company started reporting these splits.
Operating expenses
Total operating expenses for H2, 2021, was €218M, up 38 per cent year-on-year. It represents 39 per cent of net revenues. Employee benefits were €121.5M, growing 31 per cent year-on-year.
Sales and marketing expenses were €19.1M, up 5 per cent year-on-year compared to H1 2021, says the report.
For the entire 2021, operating expenses of €406.8M was up 31 per cent year-on-year. The company has also added €13M one-off operational loss that arose from a difference in currency rates in the Lebanese Pound into operating expenses.
EBITDA and Net income
EBITDA for Adyen in H2, 2021, was €357.3M, up 51 per cent year-on-year from 2020. Full-year EBITDA was €630M for 2021, up 57 per cent year-on-year.
EBITDA margin for the second half came in at 64 per cent, compared to 62 per cent for H2, 2020, and 61 per cent for H1, 2021.
The Net income was €264.9M for the second half of the year, up 62 per cent year-on-year.
CapEx and Free cash flow
CapEx was €32.6M for the period, as the company dealt with a significant one-off expense with investment in new offices in Amsterdam, mentions the report.
Consequently, CapEx was 6 per cent of net revenues. Without the one-off, CapEx would have come in under 5 per cent of net revenues.
Adyen’s H2, 2021, free cash flow was €320.2M, up 48 per cent year-on-year. Free cash flow conversion ratio was 90 per cent in H2, 2021.
Investing in growth
In H2, 2021, Adyen opened a new office in Malaysia – while investing significantly in another, on Rokin in Amsterdam. At that time period, the Dutch unicorn hired primarily in the tech and commercial functions
According to the report, Adyen was able to add 226 FTE to the team during the second half of the year. The team totalled 2,180 FTE at the end of the period, up from 1,954 FTE at the end of June, and 1,747 FTE end of the year 2020.
“We continue to pursue a hiring strategy of sustainable growth at scale, keeping our rate of absorption in mind,” mentions Adyen in the letter.
Adyen’s financial objectives
According to Adyen, it has not seen any developments in the business over the second half of 2021. 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.
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