Adyen (ADYEN) Q3 2024 TU earnings summary

Executive summary

• Net revenue grew 20% year-over-year (21% in constant currency), reaching €498.3 million in Q3 2024, driven by wallet share expansion, merchant diversification, and new business wins.

• Processed volume totaled €320.6 billion, up 32% year-over-year; excluding a single large Digital customer, growth was 27%, slightly higher than H1.

• Growth was broad-based across all pillars: Digital, Unified Commerce, and Platforms, with Platforms as the fastest-growing segment.

• Existing customers contributed the majority of growth, while a single large volume customer impacted volume growth but had limited effect on net revenue.

• Guidance for the full year remains unchanged, with expectations to be at the low end of the net revenue growth range.

Financial highlights

• Net revenue up 20% year-over-year, driven by wallet share gains, merchant diversification, and new business wins.

• Processed volume up 32% year-over-year; Platforms up 44%, Digital up 29%, Unified Commerce up 33%.

• 25 platforms now process over €1 billion annually, up from 17 last year.

• Unified Commerce processed volume rose 33% year-over-year; 559 customers process across multiple regions, and 299k terminals are active.

• Platforms pillar has 126k business customers.

Outlook and guidance

• Financial objectives remain unchanged: annual net revenue growth targeted in the low- to high-twenties percent through 2026.

• EBITDA margin goal set above 50% by 2026, leveraging operating efficiencies.

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

• Expect to remain at the low end of the net revenue growth range for the full year, with no expectation to fall below it in H2.

• Acceleration in net revenue growth for 2025 expected, driven mainly by wallet share gains and new sales ramping up.