Adyen (ADYEN) H1 2024 earnings summary

Executive summary

• Net revenue grew 24% year-over-year in H1 2024, reaching €913.4 million, driven by wallet share expansion, new client wins, and market share gains across diversified verticals.

• EBITDA rose 32% to €423.1 million, with margin expanding to 46% as operating leverage improved and hiring pace moderated.

• Strong regional growth: North America up 30%, EMEA up 25%, with strategic investments and new licenses in India and Mexico supporting long-term growth in APAC and LATAM.

• Unified Commerce expanded into new verticals and geographies, with hospitality as the fastest-growing segment and increased multi-channel adoption.

• Digital and platform pillars showed robust momentum, with higher authorization rates, 22 platforms processing over €1 billion, and strong sequential eBay volume growth.

Financial highlights

• EBITDA margin improved to 46% in H1 2024, up from 43% in H1 2023, reflecting operating leverage.

• Net income increased 45% year-over-year to €409.6 million, supported by higher finance income.

• CapEx was €42.3 million, 4.6% of net revenue, in line with the sustainable target of up to 5%.

• Free cash flow reached €360.6 million, up 46% year-over-year, with a conversion ratio of 85%.

• Take rate declined to 14.7 bps from 17.3 bps in H1 2023, mainly due to merchant mix.

Outlook and guidance

• Net revenue growth for full year 2024 expected at the low end of the 20–29% range, with H2 growth lower than H1 due to tougher comparables.

• Targeting EBITDA margin above 50% by 2026, leveraging operating efficiencies and disciplined investment.

• CapEx to be maintained at up to 5% of net revenue.

• Growth to be driven primarily by wallet share expansion with existing customers, supported by new sales ramp-up and continued product innovation.

• No changes to financial objectives or guidance for the remainder of 2024.