Image credits: Adyen
Amsterdam-based fintech unicorn, Adyen, has published its H1 2021 Shareholder letter and financial statements. The report reflects a lot on what has happened in the company, its finances, growth pillars, and much more.
To the uninitiated, Adyen is a payments platform that provides a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and other preferred payment methods.
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Here are six key takeaways from Adyen’s H1 2021 financial results.
Processed transaction
As per Adyen’s report, the volume of processed transactions grew 67 per cent year-on-year amounting to €216B. Adyen notes that most of the volume growth came from merchants that were already on the platform.
POS volume for H1 2021 was €22.8B, making up 11 per cent of total processed volume. Despite global lockdowns impacting growth in the in-store segment, POS volume doubled in absolute numbers year-on-year.
Net Revenue
Thanks to Adyen’s land-and-expand strategy, net revenue touched €445M in H1 2021, up 46 per cent year-on-year from €304.8M in H1 2020. There was a notable diversification across regions which enabled Adyen to post strong growth.
As expected, Europe remains the largest contributor to the company’s net revenue at 60 per cent, followed by North America (22 per cent), APAC (9 per cent), and LATAM (8 per cent).
Year-on-year net revenue growth accelerated in all regions. Most noteworthy, North American net revenue grew80 per cent and outpaced APAC (44 per cent), Europe (40 per cent), and LATAM (26 per cent).
Operation expenses
Total operating expenses were €188.8M in H1 2021, up 24 per cent year-on-year. It represents 42 per cent of net revenue, compared to 50 per cent in H1 2020.
Employee benefits were €119M for H1 2021, up 36 per cent year-on-year. Other operating expenses totaled €53.3M, up 3 per cent from H1 2020. Of these, sales and marketing expenses were €17.2M, down 20 per cent year-on-year.
EBITDA
Adyen’s EBITDA in H1 2021 was €272.7M, up 65 per cent from €165.7M in H1 2020. This increase comes on the back of strong net revenue growth paired with operational scalability of the single platform. EBITDA margin was 61 per cent for the period, up from 54 per cent in H1 2020.
Net income and CapEx
Net income for H1 2021 was €204.8M, up 109 per cent year-on-year from €97.9M in H1 2020. It’s worth noting that the H1 2021 net income was impacted by the movement in other financial results. CapEx was 5 per cent of net revenue, up from 2 per cent in H1 2020.
Free cash flow conversion
Free cash flow was €246.4M, up 60 per cent year-on-year from €154.2M in H1 2020.
Free cash flow conversion ratio was 90 per cent in the first half of 2021, down from 93 per cent in H1 2020. This decrease was mainly driven by the increase in CapEx.
Here’s a quick summary of Adyen’s H1 2021 report:
- Processed volume of €216B, up 67 per cent year-on-year
- Net revenue of €445M, up 46 per cent year-on-year
- EBITDA of €272.7M, up 65 per cent year-on-year
- EBITDA margin of 61 per cent as a result of strong net revenue growth paired with operational scalability of the Adyen platform
- Free cash flow conversion ratio was 90 per cent, with CapEx at 5 per cent of net revenue
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