ADYEY - Adyen: Acceleration Expected In 2025 And Beyond

2024-03-11 10:11:29 ET

Summary

• Adyen beat expectations on all fronts in 2H23 as the company showed strength in the top line, improving margins and strong interest income.
• The company has ended its two years of accelerated investment period and expects operating leverage to work its way through the financials from 2024.
• Adyen gained market share in the US in 2H23, and the expansion of business with a large existing customer in the US proved an effective land and expand strategy.
• The company has shown that its focus on driving down total cost of ownership has been instrumental in gaining wallet share with existing customers.
• Management expects most of the upside in net revenue growth and EBITDA margins from the accelerated investment phase to be reflected in the financials from 2025 and beyond.

Adyen ( ADYEY ) continues to do well as management has executed well against its medium-term targets set out earlier in the company's investor day.

In addition, the company just ended its two years of accelerated investment period, with the rewards of the investment likely to come in 2025 and beyond in the form of an acceleration in net revenue growth and improving EBITDA margins....

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