{"id":2003542,"date":"2023-08-17T11:45:01","date_gmt":"2023-08-17T15:45:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/payments-company-adyens-shares-plummet-by-a-third-after-earnings-miss\/"},"modified":"2023-08-17T11:49:43","modified_gmt":"2023-08-17T15:49:43","slug":"payments-company-adyens-shares-plummet-by-a-third-after-earnings-miss","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/payments-company-adyens-shares-plummet-by-a-third-after-earnings-miss\/","title":{"rendered":"Adyen&#8217;s shares drop 33% due to earnings disappointment."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpayments-company-adyens-shares-plummet-by-a-third-after-earnings-miss%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2003542&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Toby \u200bSterling and \u200bElizabeth \u2063Howcroft<\/p>\n<p>AMSTERDAM (Reuters) \u2062-Dutch payments processor Adyen NV\u2019s shares fell by a third on Thursday, wiping \u200dmore than\u2063 13 billion euros off its\u2062 market value, after first-half earnings missed estimates, as sales growth slowed and hiring costs hit margins.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Analysts said the company\u2019s performance raised concerns about stretched\u200b valuations in the digital\u2063 payments sector\u2062 and added\u2062 to worries about\u2064 a general slowdown in what has been viewed as a \u2064high-growth business.<\/p>\n<p>Adyen, which provides services to the likes\u200d of Netflix, Meta, Microsoft and Spotify,\u2063 said revenue growth\u2062 was slower in North America and that its margins\u2064 were \u200cimpacted by hiring costs.<\/p>\n<p>CEO Pieter van der Does acknowledged that competitors in the U.S., which is Adyen\u2019s second-largest \u2064market after\u200c its\u2063 European base, had won business by lowering prices. But \u200che said it did not make sense for Adyen\u2062 to engage in a price war with them.<\/p>\n<p>\u201cIf \u2062there is any place \u2064that you could \u200bsay is most\u200d prone to price competition it \u2063would be \u200dthe U.S. because you can switch more easily,\u201d he said. <\/p>\n<p>He \u200csaid Adyen had not lost any \u200cof its large\u200b platform customers and the competition was an \u201cisolated phenomenon\u201d for one kind of customer: merchants that process both online and in-store payments.<\/p>\n<p>Adyen\u2019s rivals in the US include Stripe, Braintree, Fiserv and PayPal.<\/p>\n<p>The company\u2019s shares fell sharply after a delayed start\u2063 on Euronext due to volatility \u2064and were down 35% at \u2062951\u2062 euros at 1233 GMT. At \u2062current prices, the shares \u2062are down more than 20% in the\u200b year to\u2063 date, surrendering gains up to Wednesday\u2019s\u2063 close.<\/p>\n<p>\u201cThese are disappointing results, particularly the sales miss, and the\u200d key question will be \u2063whether the company can quickly revert\u200c to mid-term trend growth,\u201d JPMorgan\u2062 analysts said.<\/p>\n<p>Earnings \u2064before interest, tax,\u2064 depreciation and amortisation (EBITDA) were 320 million \u2062euros \u200d($348 million), down 10% from a year earlier and below analyst forecasts of 386 million euros, Refinitiv data showed. <\/p>\n<p>Revenue rose 21% \u2063to 739 million\u200c euros, against\u200b Adyen\u2019s mid-term \u2063forecasts of\u2063 more than 25% growth.<\/p>\n<p>\u201cIn some areas the business grew\u2063 at\u200b a lower rate \u200cthan anticipated,\u201d the company said. <\/p>\n<p>Jefferies analyst \u2062Hannes \u200cLeitner said some concerns\u200d are focused on Adyen, \u2063which \u200bis\u200d still more \u200dprofitable and more highly valued than \u2063peers, and some on the \u200bsector and economy.<\/p>\n<p>He said the economy overall\u2064 is \u2062slowing and online payments growth may not be quite\u2064 as fast \u200das it was\u2064 in the pre-COVID era. \u201cThis is impacting Adyen\u2064 a little more\u200c than others.\u201d<\/p>\n<p>Adyen\u2019s \u200cEBITDA margin fell to \u206343% from 59%,\u2063 which the company said was mostly because of higher\u2063 wage costs as it takes on more staff.\u2062 The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/payments-company-adyens-shares-plummet-by-a-third-after-earnings-miss\/\" title=\"Adyen's shares drop 33% due to earnings disappointment.\">company hired 550 full time employees<\/a> as \u2063part of an accelerated hiring push,\u2063 a 17% increase. <\/p>\n<p>A similar margin decline\u200b led to a sell-off \u200cin\u200c Adyen shares when the company reported full-year earnings in February.<\/p>\n<p>Adyen CFO Ethan Tandowsky\u2063 told analysts hiring would\u200d remain \u2064at similar levels in the second half of 2023 before slowing.<\/p>\n<p>He said\u2062 the company is\u200c maintaining\u200b its medium-term targets for revenue growth above 25% and an improving EBITDA margin that it\u200d expects to reach \u206365% in the long\u200d term. But he said it would take time \u200bfor margins to expand toward that \u2064target after the current hiring push had slowed.<\/p>\n<p>($1 = 0.9177 euros)<\/p>\n<p>  (Reporting by Toby Sterling, additional\u2062 reporting\u200c by \u200dSinead Cruise.Editing by David \u200bGoodman, Barbara Lewis\u2064 and Jane Merriman)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/payments-company-adyens-shares\/attachment\/file-photo-the-adyen-logo-is-seen-at-the-companys\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>\u201cDaddy\u201d Biden and John Podesta tout the Inflation Reduction\u200d Act \u200bwhile Glenn \u2062Beck \u200bgets cancelled.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>President Biden \u200bis scheduled to\u200b visit Maui\u200d on Monday. This comes as the death toll has tragically\u200c risen to at \u2064least 106.Hawaii State Representative,<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Following the\u2062 fourth indictment of 45th President Donald Trump, Article III founder and president \u200bMike Davis urges House\u2064 Republicans to use subpoena\u2063 power to fight back.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>A new Associated Press \u200cpoll shows 63% of Republicans say they want Donald Trump to \u200brun again, which is\u2063 jump form 55% who said the same\u2062 thing back in April.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Zeba Siddiqui SAN FRANCISCO (Reuters) \u2013 Google-owned U.S. cybersecurity firm Mandiant said on Thursday it had seen increasing use of artificial\u2026 <\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By \u2063Josh Ye HONG KONG (Reuters) -China\u2019s\u200c Lenovo Group on Thursday posted a worse-than-expected 24% fall in revenue \u2062for the April-June \u200cquarter,\u2026 <\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Josh Ye HONG KONG (Reuters) -China\u2019s Lenovo\u200d Group on \u200bThursday\u200c posted \u2064a worse-than-expected 24% fall in revenue\u2063 for the April-June\u2063 quarter,\u2026 <\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Kanishka Singh WASHINGTON (Reuters) \u2013 New\u200b York City \u200bon Wednesday banned TikTok \u2062on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-passes-bill-to-bar-tiktok-from-government-devices\/\" title=\"Senate Passes Bill to Bar TikTok From Government Devices\">government-owned devices<\/a>, citing security concerns, joining a number\u2026 <\/strong><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dutch payments processor Adyen NV&#8217;s shares plummeted by 33% on Thursday, erasing over 13 billion euros from its market value. The disappointing first-half earnings, with slower sales growth and increased hiring costs, raised concerns among analysts about the company&#8217;s stretched valuations.<\/p>\n","protected":false},"author":66,"featured_media":2003543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2003542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2003542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2003542"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2003542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2003543"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2003542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2003542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2003542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}