ADYEY - Adyen N.V. (ADYEY) H2 2023 Earnings Call Transcript
2024-02-08 14:24:06 ET
Adyen N.V. (ADYEY)
H2 2023 Earnings Conference Call
February 08, 2024, 09:00 AM ET
Company Participants
Josh Masser - IR
Ingo Uytdehaage - Co-CEO
Ethan Tandowsky - CFO
Conference Call Participants
Mohammed Moawalla - Goldman Sachs
Adam Wood - Morgan Stanley
Justin Forsyth - UBS
Harshita Rawat - Bernstein
James Goodman - Barclays
Sandeep Deshpande - JPMorgan
Hannes Leitner - Jefferies
Josh Levin - Autonomous Research
Pavan Daswani - Citi
Fred Boulan - Bank of America
Alexandre Faure - BNP Paribas
Andrew Bell - Wells Fargo
Darrin Peller - Wolfe Research
Brian Bergen - TD Cowen
James Freeman - SIG
Fahed Kunwar - Redburn Atlantic
Crawford Clarke - Evercore
Sanjay Sakhrani - KBW
Presentation
Operator
Josh Masser
Good afternoon, everybody, and welcome to Adyen's H2 2023 Earnings Call. My name is Josh Masser, and I'm head of investor relations here at Adyen. For today's call, we'll have a fireside chat with our co-CEO Ingo and CFO Ethan, and then we'll open it up to a chat with our co-CEO Ingo and CFO Ethan, and then we'll open it up to a question-and-answer session.
But before all that, we've prepared a short video which we'd like to share with you outlining some of the key highlights of the period. Enjoy.
[video presentation]
Welcome to Adyen's H2 2023 earnings call. We look forward to sharing our latest business and commercial updates. H2 was a period of expansion for our global team and customer relationships. It was also an exercise in continued focus. By implementing meaningful changes while executing on our long-term strategy, we closed the year with a period of profitable growth.
Net revenue landed at EUR887 million in H2, up 23% year-on-year. This was primarily driven by the continued growth of our existing customer base. Even after two years of investing in our team, EBITDA had full year growth, up 14% year-on-year in H2.
EBITDA margin landed at 48% in H2, a metric reflecting slower hiring than in past periods as we brought our investment phase to a close. Even so, we welcomed 313 new joiners, bringing us to a total of 4,196 FTEs at the year's end. Net income outpaced this growth as it also benefited from significant interest income in the period.
We now have the team equipped with the skills required to execute on our key growth ambitions and to do so at scale. Once again, the majority of hires sat in tech and commercial roles located in offices outside of Amsterdam. Across the business, we know that growth is not always linear. Across all pillars, H2 was a period in which iterative product innovation bolstered our commercial ambitions.
Digital volume growth increased to 33% year-on-year this period, benefiting from the ramp-up of a large existing customer. Unified commerce volume grew steadily, but at a slower pace in H2 at 24%, in part due to the pillars inherent retail exposure. Platforms saw continued traction as the SaaS business model further embedded payments, driving us to grow 19% year-on-year.
On the product side, we helped our customers by improving conversion rates, reducing fraud, and unlocking significant operational efficiencies. To continue meeting their needs, we adapted our sales and account management strategies to better emphasize the total cost of ownership benefits that Adyen brings.
Looking at our growth, more than 80% stemmed from existing customers, which serves as a testament to the way we partner. We are now pleased to dive into this period in greater detail. We'll start with a fireside chat with our co-CEO, Ingo Uytdehaage, and our CFO, Ethan Tandowski. We'll then open the floor for a Q&A, during which you can send in your questions using the Q&A functionality at the bottom of the screen....
Adyen N.V. (ADYEY) H2 2023 Earnings Call Transcript