Success! You're on the list.

Success! You're on the list.
London Tech Week

Dutch poster child Adyen’s stock dips 31% as PayPal and Stripe layoffs send ripples through fintech sector

Picture credits: Adyen

Shares of Adyen, Amsterdam’s proud fintech unicorn, which is a rival to the US fintech tycoon Stripe, reportedly dropped nearly by 39% on Thursday. This news came from the company reported worse-than-expected sales and a profit drop in the first half of 2023. 

The disappointing outcomes, compounded by the impact of inflation and increasing interest rates, indicate that sustaining this level of progress will pose a significant challenge. The expansion of revenue in North America, constituting 25% of the company’s sales during that timeframe, decreased by over half to a rate of 23%.

Last year,  Adyen saw an increase of around 1,150 employees, and it has outlined plans to bring in a comparable number of new hires in 2023 as it readies itself for the upcoming phase of expansion. In contrast to its larger counterparts who have announced workforce reductions to mitigate expenses in light of increasing interest rates and economic unpredictability, Adyen stands out for its proactive hiring approach. 

The company expects to slowdown hiring at the start of 2024. Notably, PayPal announced in January that it will layoff 2,000 employees and Stripe announced a 14% cut in workforce late last year. 

In a statement, Adyen, a contender in the payments industry alongside Stripe Inc. and PayPal Holdings Inc., emphasised its focus on assembling a team capable of realising the company’s long-term potential, prioritising this over immediate profit optimisation.

Adyen’s performance in 2023

The Dutch fintech’s poster child witnessed revenue of $804.3 million from January to June 2023, which is up by 21% from a year ago. The reported figures fell short of analyst projections, which had anticipated revenue of over $926 million and year-on-year growth of 40%, as per data from Eikon.

EBITDA (earnings before interest, tax, depreciation, and amortisation) for the first half of 2023 totaled $347 million, indicating a 10% decline compared to the $386 million recorded in the same period of 2022. This result aligns with an analyst forecast of $347 million in profit for the first half of 2023.

Pioneers in the Dutch fintech scene 

Adyen was founded in 2006 by entrepreneurs Pieter van der Does and Arnout Schuijff with the intention of becoming a successful global payment service provider. The payment processing company provides businesses with a platform to accept and process various types of electronic payments. The company’s platform allows merchants to handle payments made through online and in-store channels, as well as on mobile devices. 

Adyen’s services cover a wide range of payment methods, including credit cards, debit cards, digital wallets, and bank transfers, enabling businesses to offer a seamless and integrated payment experience to their customers.

The platform also includes features such as fraud prevention, currency conversion, and analytics to help businesses manage their payment operations efficiently. The company serves as an intermediary between the merchant, the customer, and the financial institutions involved in the payment process, facilitating secure and efficient transactions.

It has become especially popular among e-commerce businesses and multinational companies due to its ability to handle a wide range of payment methods and currencies across different countries.

Related Posts

Get daily funding news briefings in the tech world delivered right to your inbox.

Enter Your Email
join our newsletter. thank you