Adyen sets new targets, outpacing European rivals
FILE PHOTO: The Adyen logo is seen at the reception desk of the company's headquarters in Amsterdam, Netherlands August 24, 2018. REUTERS/Eva Plevier/File Photo
Adyen, the Dutch company known for handling payment processing for eBay and Spotify, set new financial targets on Tuesday, aiming for stronger profitability and steady revenue growth.
The company is gaining ground against U.S. rivals despite most European peers struggling, helped by its strategy of expanding in North America and Asia.
Adyen now expects its earnings before interest, taxes, depreciation and amortization (EBITDA) margin to be above 55 per cent by 2028, up from a previous goal of 50 per cent.
Its net revenue growth target for 2026 remains unchanged in the low- to mid-twenties percent range.
Following 2026, annual revenue growth is expected to come in at around 20 per cent "in any given year," Adyen said, adding that it will refine its outlook each February.
Shares in Adyen were up about 7 per cent by 1417GMT, among the best performers on the pan-European STOXX 600, and on track for their biggest single daily gain since February.
EUROPEAN RIVAL TO US PAYMENTS PROVIDERS
Payments processors are viewed as a barometer for consumer spending because their transaction volumes mirror trends in online and in-store commerce.
While European peers such as France's Worldline and Italy's Nexi have struggled with customer retention, Adyen has gained market share by expanding in regions like North America and Asia, even as global payments growth shows signs of maturing.
The firm competes with U.S. providers PayPal and Stripe, thanks to its payments platform and its tiered pricing model where fees decrease as transaction volumes increase, attracting large enterprises.
Even if the forecast is "largely a continuation" of next year's guidance, the move to update the revenue target each year is "a nice plus," said Thomas Couvreur, analyst at KBC Securities.
