Volumes were up significantly at Adyen last year, driving revenue growth for the company and reaffirming its status as one of the world’s largest payments processors.
The company’s full-year figures show a 28% year-over-year increase in volume in H2 alone, ‘excluding a single large volume customer’, with total volume at the end of 2024 standing at €1.285trn.
This amounts to around 160,000 transactions per minute, according to Chief Financial Officer Ethan Tandowsky, who broke the results down in an earnings call shared on the company’s website.
These figures are hugely impressive to the casual observer, but for Adyen’s leadership and those familiar with the company it may not come as much of a surprise – Q3 2024 volume alone was up 32% to €320.6bn.
Adyen’s business interests are varied, encompassing e-commerce, mobile payments and point-of-sale products, and the firm has been positioning itself as a ‘technology partner that can best meet’ the varied needs of the different businesses it targets.
This was how the company’s letter to shareholders put it, signed by Co-Founder and Co-CEO Pieter van der Does, Co-CEO Ingo Uytdehaage, and CFO Tandowsky.
Adyen is encountering steadily increasing customer expectations amid e-commerce reaching ‘new levels of sophistication’, the letter says. Adyen’s response to these expectations appears to be paying off, if revenue is anything to go by.
The Amsterdam Euronext company’s H2 revenue was up 22% to €1.08bn, with a margin of €569.2m, while full-year revenue was up 23% to just under €2bn with a margin of €992m.
This was attributed to wallet expansion with existing customers and new business wins across different verticals, while a slower headcount growth in comparison to revenue growth was cited as resulting in a solid EBITDA performance.
The sheer scale of the volume Adyen processed last year can be explained, as noted above, in the sheer number of industries the firm has been able to build up strong commercial relationships with.
Key industries for the company, as highlighted in the shareholder letter, are hospitality, food and beverages, insurance and health care, as well as global technology.
Its partnerships in the food industry include an APAC deal with KFC, in insurance and health with Thomson Medical Singapore and Tokio Marine, and in tech with QuickBooks and Mailchimp, among others.
Geographically, EMEA remains the strongest region for the company with revenue from this area rising by 27%, followed by North American growth at 21% and APAC and Latin American growth, which both came in at 12%.
“I think it’s a nice combination of delivering today but also making sure we are investing for the long-term across many of them,” Tandowsky commented on Adyen’s regional performances in H2 2024.
“If we start with EMEA, the largest market where we’ve been for the longest time, that was the fastest growing region this half. I think it’s a strong proof point that even in our most core market we are still able to deliver significant growth and this opportunity is nowhere near the end of its cycle.”
He added: “I’m really, really excited for the opportunity not only to help grow with our customers but also to take the investments that will help us grow significantly over the long-term.”
