ADYEY - Adyen: Ignoring The Noise
2024-06-10 04:38:06 ET
Summary
- Adyen reported a very strong processed volume number which is up 46% from the prior year, while revenues came in in-line, growing 21% from the prior year.
- As a result, take rates were the main focus in the quarter, as it came in at 14.7 basis points, slightly below the consensus of 15.7 basis points.
- The main reason for the weakness in take rates was due to mix, as collective large customer volume expansion resulted in processed volume growing faster than revenues.
- The key thing here is that Adyen builds its business around absolute net revenues rather than the take rates.
- Adyen maintained its medium-term guidance for net revenue CAGR between low-20s to high 20s % until and including 2026, and EBITDA margin to increase to at least 50% in 2026.
Adyen ( ADYEY ) recently published its 1Q24 results , which resulted in panic in the share price as the market sold off the stock post earnings.
That said, after reviewing the 1Q24 results, I do not think it is wise to sell Adyen here given that there is a lot of noise on take rates, but the business fundamentals of the company remain strong....
Adyen: Ignoring The Noise