Adyen (ADYEY) 18 Aug 222022 Q1 Earnings call transcript

Company Profile

Participants

Sanne Minnema	Investor Relations
Ethan Tandowsky	Head of Group Finance
Ingo Uytdehaage	Chief Financial Officer
Mohammad Moawalla	Goldman Sachs
Adam Wood	Morgan Stanley
James Goodman	Barclays
Sandeep Deshpande	JP Morgan
Frederic Boulan	Bank of America
Josh Levin	Autonomous
Nooshin Nejati	Deutsche Bank
Sebastien Sztabowicz	Kepler Cheuvreux
Antonin Baudry	HSBC
Grégoire Hermann	AlphaValue
Chris Brendler	D.A. Davidson
Jamie Friedman	Susquehanna
Alexandre Faure	BNP Paribas
Tammy Qiu	Berenberg
Sanjay Sakhrani	KBW

Call transcript

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Sanne Minnema

Hi all, and welcome to our H1 2022 and Earnings Call. I'm here live from our Amsterdam office, together Ingo Uytdehaage, our CFO; and Ethan Tandowsky, our Head of Group Finance, who will later on talk you through our results and key developments from the first-half of the year.

For now, a short note on the Q&A function is already enabled, and you can start sending in your questions. Please do not forget to include your name and the firm you represent when sending these in.

Before we dive into a conversation with Ethan and Ingo, the team has prepared a video for you that will show how we've been back here in the office, and the results and key developments from the first-half of the year. enjoy much will we you hope it as as did. I you. Thank Hello, [Video our HX welcome XXXX to Playing] and Earnings Call. We're key XXXX. excited developments from the the to first-half share of

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culture our end totaled and X,XXX team HI were Our team hiring the at remain of able our to accelerate FTE Adyen XXXX. And the pace, focus.

of unified On investments customer hardware made to the releasing up product space there commerce journey. several opportunity speed side, most on first-half year. innovation in We the multiple were forward-thinking the exciting enable the to the terminals. the the We the first in-store Adyen-designed by seized during side launches

launch on in enabling contactless collaboration accept Pay businesses to rolling with payments on iPhone out Another iPhone. Apple, Tap an to was

our to While a spreading. most is across offering, journeys Seamless commerce for was are a innovative service continue advanced today's With industries, and quickly the brands. unified industries. we once digital select transformation trend need-to-have priority tomorrow's

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XX% the EBITDA single into unified billion to customers as XX% XX% XX% returned year-on-year, relevance and period. able growing Of XX% year-on-year. of Net year-on-year. we and travel up offering. colleagues to these, XX% dive XXXX, up meet again. of up our traction processed volumes. were and EBITDA we million, was were and restrictions was margin €XXX.X are let's commerce increasing €XXX.X With In costs testament total up million, on financials. €XX.X was HX of continued person These event numbers platform, Now, point processed sale volumes the billion, €XXX.X revenue making the the lifted, in travel our for year-on-year.

commitment our with to our X% line addition, growth. Goals programs responsibility Nations our This the to scale United Development impact, and of in business's enables us EBITDA social the In technology, margin. pledge Sustainable impacted

to continue for build long-term. Adyen We the

to opportunity team talented and capitalize significant a place. on have We a in

execute the Our is ahead, time and to gaze is now.

Sanne Minnema

reflect you that Yes, our biased, face. of on on of for XXXX? video, puts I would that video but all I with first-half -- think opening start might when be just an the an instant looking It's for what comment, us smile slightly at Ingo, you

Ingo Uytdehaage

of to you focused creativity sure have And team. like a office-first continue being atmosphere and that by lot special that our have the get again together that's thing it's to culture, always video, an And in think we I a office make us. visiting we unique year a company. in We first-half the in the being in is Yes, worked fact the together the face-to-face, face-to-face, our whole in working really do we merchants together that.

So, of the think year. achievement a great first-half that's, I

for other in energy together, event gave this each had company proud. company. our that's, speaking first to the other, in Amsterdam, we And time building each course, course, very and seeing much also three it when to company something a the so years, We of working that's am of experienced again, team. here the in And crucial whole I

Sanne Minnema

what fully we can be you? to for to I first-half and anything Yes, this else would add if Yes. that. to think, you'd of subscribe Ethan, both had only year the But it

Ethan Tandowsky

Yes, certainly what's that of Ingo the longer-term actually trends an lot is we've continued. really a to historical seen that on that's well, mentioned, interesting the platform that while interesting change me

coming over like churn, situation. less things net than continued all a continued So, diversification what pretty base, regions macroeconomic across merchant our from XX% of volume during growth existing of dynamic revenues our even was our X%

Development travel to to million, the other, able got and to the or the that's in I the to see volumes see and can revenues also at of but grew where that see XX%, were you customers, as think at you each in So, at we the numbers, to €XXX.X think pledge to as And and really EBITDA I this do our -- video. for XX%, we been grew business, saw impressive the we've U.N. XX%, with shows resiliency. the and Goals. Net over course margins the reference a resiliency Sustainable team

I how unified we're to especially our we're It sale success And the uses significant. cases. numbers. commerce in to seeing lot and many and traction And of of volume especially a that's is you point customers. year. you'll that think this it pleased see those think the I testament important really a of real our And almost doubled So, with was dive numbers, happy also if into

continue especially designed And on developed lot out by a so, a us set, focus the terminal And think, time terminal us. to and I side, spent new a there. we hardware we'll by getting of range

in also half-year. that's with we Tap think the I development, iPhone, launched So, this great the on Pay which a together to

the a side. exciting So, of happening things on lot unified commerce

Sanne Minnema

true there, certainly strong And from point, have you results. like add formula think launching perspective. we indeed, front that there's Yes, to to would of more And set a been fast. add? product even on Ingo, really what I our so it, sounds

Ingo Uytdehaage

the focus other out our building on been platform has Yes, offering.

recent very focused we platforms have offer much the helping on years, to payments. Over

but this partner trusted a the accounts, those traditional other one the capital, financial Of with but market. started in offering serve that. the them we an software-as-a-service providers institutions, gone We that their off SMB to opportunity And beyond also what bank underserved eBay, and do we that step products now is see often are payments course, mix. SMBs And strongly And issuing. those believe other SMBs. by are lot financial like of platforms other also financial with power can for products, as have we

place see also, good started long-term in years, look it just the in the to it's So, this there. But commerce, we're that the of see We've at investment made that, years unified off. portfolio, so revenues. that it's to in couple you a have a really and if going take really past going a actually investments to in you we, pay is

we a to platform. So, expectation here very have similar

very really pilots in live about much of a where area. I'm and we're that's this that couple pleased So, excited with

Sanne Minnema

is And And as And execute do all the the what we to team. is movie the executing very we're excited. with I now. said time too, think

on we're we building how the team? Before dive final any notes into Q&A,

Ingo Uytdehaage

the of see We've us. year, pleased very new team crucial Yes, added first-half to people is to close the this XXX people. and those building in to

I scale of to want the this think That's further we rest business. ways something the we've year. to found in up that also do

happy indeed, to all further And And opportunity. it's, have now. with about huge as the We see a team team. the executing -- it very growing really of now I'm

Sanne Minnema

I I for see quite first-half this on key some that think this coming so, year. to comment close to that's conversation Q&A. there the are best and of questions in, developments results over the off already

Sanne Minnema

Sachs. The Moawalla is first yourself. please ahead came Mohammad unmute and Goldman in from go Mo, question that from

Mohammad Moawalla

Sanne. Great, thank Hi, Ethan. Hi, I you, end. had from two my Ingo.

a step-up significant revenue slowdown? long-term Clearly, help understand of headcount. initiatives? secondly, guidance? setting the you. Firstly, investments sense should and Can of just pace -- think how the those you that, share you sort because from saw you on how sort would you've, we on your return, further how some getting with of cycle, it, talked and numbers we And to we your through then Thank curious demonstrate structural and you're to Linked going out, impacted measure obviously, investments? I us any kind the don't trajectory? standpoint operating gains team a the of big payback your in for the leverage the is you do the seeing investment you other are get business and macro to of expect of Are the building reiterated when and guess,

Sanne Minnema

Ethan, those Ingo, over our Mo. could and two you investments operating result to questions, note leverage the into your we're how for Thanks you take And first can if the expecting take then, afterwards. on if macro time.

Ingo Uytdehaage

the going of so, past Most half-year, a teams. Yes, And the those were business. if of of new of are those at now, to And XX% the in side go tech over longer-term. Mo, where take back. our But for is the the years roles. you out investments indeed, it look in we staff couple see it's before tech the it's those on new building joiners investments right

just the much At you the it's people; very the also, more at also meet right fact people it's if U.N. to X% not multiple-year So, And long-term the cost that investment. like travel important. a is it's which increase merchants same again, the now, pledge. time, the look

result all higher these cost. in So,

easily would we if course, XX%. get Of the the hiring very we and to would slowdown

future. to unified we before also the staff the revenues, the there a in not we see And the of in turning running; is in a like strong really that this business that that because investing So, is into time it pays product about horizon an seen, products significant financial operational need keep want is lot commerce past, we with but all make operating leverage investment It's longer off. embedded you to that a that's have business.

we believe to right this moment. the is So, the strongly that's at thing why do

Sanne Minnema

long-term So, view to recap, our intact. remains

today, the to impact Ethan, the long-term e-commerce? macro from back on Moving

Ethan Tandowsky

in like opportunity, our on rate. of we course, because together therefore so, very continue customers. that long-term excited first-half. comes hire Ingo of our We're in both Yes, our about And our opportunity, growth a referenced. in numbers focused mix customers, from much haven't of growth and the general, an at that with seen very, very also to we're And we more doing from impact business the faster the but

with Of we've focused our the can we're on which how things been especially more in we of and on projects, focused solve confidence more in more them can on short-term, we more opportunity. help problems, pain we where the short-term, the focus have and we're with is their long-term how customers to that's on points, do the past, the together that same of continue course, the their work

Sanne Minnema

should go On Morgan next at your Wood answer Adam, Adam and question. unmute Mo. question, yourself That ahead the your to Stanley. to from please ask questions,

Adam Wood

Thanks Hey, Ethan. I've Sanne, got two, also taking Ingo, the please. for question.

question market in But point you how there generally, Europe. acquirers but there periods. that difficulty of that I one into just pace I is you I merchants investments existing taking bit little during digging you've were much just versus you've to then you on a the guess, all reestablish, avoided Mo's that coming back market? further stronger presence market digging margins, maybe dig little taking The mix you're of is got because that larger more bit level in a trying the there's share operating of we're were that appreciate in with quite already or in And COVID seeing see this business bit kind mix have not at merchant-acquiring? little e-com you just any products of XX% maybe whether in lots and your in first costs incremental the e-commerce -- about and secondly, you're with leverage The a of on in, you're in you competition for much should previous were the Europe any expect very Thank of margins, wonder suggests obviously other is whether we some a you talk could strong, sale. off of of whether on Europe, a whether growth than versus is share based terms in a because differences need kind of is if targeting broader in weaker just you. set focused a when narrowly incremental do

Sanne Minnema

take could Adam's Thanks, Adam. growth Ethan, first in question Europe? on you

Ethan Tandowsky

Yes, sure.

Sanne Minnema

And for then to we'll EBITDA afterwards Adam's on move margins. Ingo question

Ethan Tandowsky

Yes, sure.

across globally customers at So, with we as I the we starting guess them first work our world. point, because, typically a often, look

And the general, from so, global the there are so biggest also say here Europe. traditional income share. In we're faster we're that win from we're players, still with would goes those case, In working we've this We're we're base. We're Europe; really been still in also another seeing than customers. taking growth bins working newer and the the we happy seeing one region times I from the when on longest, on the based also from with market the numbers players. that projects

really we're in So, well. support continue in to we confident here too that. Europe And our hire performance as to

Sanne Minnema

to been light Yes. to invest did. could and a also that on for present our And bit EBITDA time and current shed in from newer investments, Adam Ingo, our margins we've pointed decided we areas long an area why where a more the you we plans out,

Ingo Uytdehaage

sure. Yes,

see we still in. a future investing lot of that's potential, are and where we So,

highlight still margin it's think important I XX%. to is that EBITDA

not can the a dropped for also of leverage like we why we intact. the guidance always build the been can us how long-run. keep this dramatically. company that has in And operating strongly question it for it's lot we There the That's believe So, is platform.

short-term we to what lead and now, do focused the bigger you and right want that that's margins, certain we're over then that business impact some really want make time, If will has to but investments on. it to on

that actually we've to this why that's opportunity And So, have quite made yes, this decision. we're pleased invest. we

Sanne Minnema

Goodman should from I style, go too. answer James, question. long-term yourself So, to next Barclays. and James ahead we think our unmute Up please to is view. true ask your questions your remain that Adam,

James Goodman

percentage much a of whether percentage pre-COVID? disentangle great, afternoon of that's effect we're Obviously, the the the business is in thank well since the the bit one as at and A the now from maturity you little percentage for a rebound has on just seen. Yes, the me how good given are of about talk Can get you. us down. we've to numbers just full-stack back shown That's travel in a in strong so slightly please, terms and grown the net sense help couple to firstly, travel of the its we business then, as difficult where that's just effect least seeing first rest full-stack take? going And or maybe stabilization a that question.

launching more The a that could third-party if noticed you the working of your sale? second about point one own talk with you're I was hardware bit little rationale to providers.

So, does is to you're what hardware you extent of the you. Thank sort relevant is merchants what allow compete that offering how of that be and fully to to? your subset to differentiated, going

Sanne Minnema

travel to terminals James, you one the you, questions. then, volumes. your and first our And for our impact Ethan, behind take rationale if you speak if afterward, could Thank Ingo, on the the our of can on launch -- today.

Ingo Uytdehaage

Yes, sure.

are you at versus volumes, if we full-stack the at XX% year. last XX% half, So, look this

travel. The the of strong. think, of impact that's, travel been, for indeed, very So, rebound sort proxy I a has

again, also rate on platform. rate same result type But of our our a the that impacted yes, pressure some there the of There platform. on is at world on this. you opened take verticals having part time, take as see it's So, has the that this the of

much travel rebounded that we the very the indeed so. expectations in So, had line with when

Ethan Tandowsky

And did them feedback would easy on that terminals they with our manufacture to But And that as customers want indeed together about our how don't make and was journey could and them. as them. terminals, our how we Yes. possible. use design on seamless for we we through best

their cases terminals mobile. help like own we took Adyen design create especially into to which worked use And feedback now our we so, with have And our design. own hard

clerk to with the or some and a an a out being iPhone from meet away add-on store as So, the those customer well go desk journeys which customer also really makes which able easier. smartphone as helps an of have certain an iPad, journeys to

problems. were what to could And into use them our own that yes, design way So, the it customers I identifying our taking solve to felt really cases could their help the it we was best then, we listening control solve.

Sanne Minnema

you question. now from to your for question. next up JP James, Deshpande our unmute Thank and please ask for you. thank next Morgan. It's Sandeep your question, Sandeep, Clear. yourself time

Sandeep Deshpande

first-half process you've mentioned, that rate market I Yes, behaves. first mean I impressive lot is you for and to because me your Good of the ask the question. have take in really volume on hi. afternoon seen -- in thanks decline this mean how take and that a able given My letting the of half. travel quite the factors really a as rate. question other return was various the

two have questions with So, associated I that.

then I customers? one looking keep at your a within time over will to very should as is these rate, exposed hopefully, base, in rate that we we the of in you declining will first be are are are growing? is gateway they not market which you are secondly, that take should take the time that if keep large aspects occurring is expanding keep inflation travel The you be look there that take over enterprise footprint only. long And secondly, the these full-stack you. essentially regarding your because mean will successful, mean rate customer it given that then, two terms travel it term And airlines, much. of essentially not And given customers may is right, the And I you how for helping in at which

how strong another look for because least. understand trying this at travel, a growth So, remain driver you I at will we year am to travel probably

Sanne Minnema

our with also strategies that your rates. for and what our customers, and front we Ingo, in what Sandeep. to start grow take it if to does continue you question, how could you Thank highlight our

rate Ethan then the can I take for take think dynamics. over

Ingo Uytdehaage

sure. Yes,

mostly you customer it's we've rate rate result And look at a merchants. because tiered enterprise indeed of is base, the our pricing. So, declining take business indeed always had or the the model take is if

brings over a price per transaction. merchant volume get if more lower So, time, you

decline So, take in case. the And rate. still that's

real the the a combination with percentage down. fact full-stack that's driver that So, gone has in

we large It's the we to indeed also will that margins. rate. drivers. then because we our absolute on want really we are take the on rates, platform, is these are to So, on there we why business pressure reason achieve. And grow actually We positive then some if and continue the growing which a manage what take be think is don't manage on enterprises

Sanne Minnema

only the on also question Ethan, dynamics agree. take can is I detailed around follow-up travel? more rate

Ethan Tandowsky

Yes.

a has percentage couple just travel as well was that So, do gateway we airlines One of that the full-stack volume. impacts. is do typically referenced for

not impact in has higher but in has is an the travel impact also transactions And lot and ATDs rate. well. in very take first-half on still in of It's general. an typically the clear. full-stack the those fast our as have on on take the rate. proportion that grown So, because other also many year. travel pandemic same are that that throughout But That's the yes, time was business that airline the higher period average has percentage, as or values growing space verticals Travel impacts it before a

Sanne Minnema

unmute for too. to please your America; of you Boulan next, Bank Fred, ahead question. Thank Frederic and On the from that question to ask yourself go

Frederic Boulan

Hi, afternoon. taking very Thank much the good question. you for

little than XX% the just revenue your basis. trying growth slowdown to macro you've underlying bit first a around on of more the back no unpack in bit HX, seen So, impact, coming commentary in all, on

that's about than XX% HX. So, slower the

to verticals digital, fair here, operating of coming or Thank try in next growth three bit it commentary see around it could a back So, around travel, HX in investment phasing different HX bit leverage you. your for that secondary being to some platform. we just can Bps and your to compression forward to up gauge moving kind people, then we et first-half, start drive year, to in we that look dynamics And XXX you CEO seasonality, should level commitments, assume your marketing, we the a the cetera, margin, discussed at some is of parts before should margins? in little that the in if be rebased taking segments the retail the discuss any

Sanne Minnema

Fred. Thanks,

these Ingo, think, fit I both are you. questions two will that

those have what pay on growth, impact The also margins, our on on first is the and over industry parts one, moving what also will of and time. expecting there, and been mix; off we're second revenue the how

Ingo Uytdehaage

at if to growth, I good Yes, think is our so it you look revenue also at look volume.

X% development is So, growth that rate is this the revenue discussed. partly just XX%. the caused by we And fact volume just that growth take is

look are so more and think we that our diversifying, more more good business, growing. it's I revenues, are regions at region, you global the if thing and becoming the and all more

very, So, I in base. healthy think that's development our a also

result, a So, as developments. those we're pleased with

want course bar, grow is it set time, we same important if given we because give where opportunity in it get And this see. to long-term. overspend very that the don't it avoid find want to multiple done We hard focused we've guidance time, would get we do the business this way. won't see we're same margins, the on And focus long-term would revenue EBITDA growth. the instantly that very, percentage invest in quickly. do growing to the model. making years I on we We've only could fit it next in to had we XX% that. a On basically, on we're at like again, think the EBITDA in very over very people. hiring guidance the have the year's on At also overspend, to guidance that or the most any there never guidance, investments, impact our that won't healthy we team we business. crucial new we would the down think like think the the we before want year would that that, we because And And situation because right always to give we the But had we doesn't is now, hire we short-term to factor team and sure high of bar I a also in

Sanne Minnema

please surprise in Fred. for ahead, to up, Autonomous. comes that Thank questions. and Josh, questions, you anyone. think time next for ask I no your go yourself from Levin to It's your unmute sending Josh

Josh Levin

Hi, COVID, before close questions. Around XX% I to good it afternoon, now, have of XX%. was two TPV

XX% think And question on acquiring you will, do headcount. second So, that the go is area? the will full-stack to back

I You XXX the or employees few the that the expect pace added new think think the you. this at ends should the of during next Is Or headcount year? semesters? year the Thank for where up end we should first-half. we end of next

Sanne Minnema

your Thanks speak take full-stack evolved? you first for could questions, and Josh, more could the on plans? thorough acquiring how bit And that's one you Ethan, Ingo, hiring a

Ethan Tandowsky

Yes, sure.

that it's majority So, over adding our the our we years, the only I about the say to that. that talked and a to all at at airlines, over but and platform other how on last the do lot of growing rate wouldn't platform, time. how we've because airlines same were verticals think couple the as done on other our volume also was grow will years continue we to And time, because verticals with we fast, that verticals pre-pandemic, full-stack non-full-stack expected safe over that were the percentage, of not

it to because wouldn't airline So, go it that the pre-pandemic. to volume wouldn't was levels back I expect of I remain what expect those down proportion would

Sanne Minnema

think, clear. I very

ahead, upcoming Ingo? are the but think plans Next something question, years, for have movie I already go hiring the might said

Ingo Uytdehaage

want response we at hired And certainly opportunity, because throw the team. to the the we over the see to want keep four first-half, the we same to high. bar indeed so time, Yes, that we

about would XXX always the to people. second-half that balance, the if new onboard so. also quality, people capacity certainly in of it's So, could same But finding hire we right do we

be we currently so absolutely we that keep, we to and will. will right find this that try we're pace talent, think position the can, we if a I So, the in

Sanne Minnema

question. said, is Josh. ask Bank. to yourself we Please Nooshin unmute Nejati the to next the from and go of your Deutsche now. execute is to question As Nooshin. question; the On Thanks, ahead time next

Nooshin Nejati

questions. my Hi, guys, thanks for taking

surprised, he's hope I'm I First of all, not have with fine. a you, Pieter, he's couple.

know on. of Do demand you how Or also, low want others. can about to in idea rest for I And if as to more if to and helpful, should guess going of year, give you if that of we about exposure I same margins about in and can back you quite know But versus it's forward give or yes so you go guidance? you First, think would or how you. and little trends remain the cost think the same us expanding? a of to your the us expect to your give I us are idea X%? the you about on talked the a some forward more it of the bit But be Thank into going thinking can would there CapEx non-discretionary hiring range above projection, more going then and the bit you discretion XXXX? actually

Sanne Minnema

questions, your could you if start. Nooshin. for Thanks Ingo,

on discretionary and First spend? question on is CapEx then afterwards

Ingo Uytdehaage

sure. Yes,

That's our supply our new year quite that's, think more capacity because our ordering this of our for the we of chain server I that's I on is at one-off have that. than think enterprise majority spending consumers curve. also a aggressively mostly levels linked And guidance, expense we This And volumes seen spend. slightly are stay the think a discretionary merchants. I think on I the to level. then of as volumes, course, why centers. investing And CapEx been new data we than some to ahead CapEx, higher have for challenges saw in the

So, about I can say that's it. what

Sanne Minnema

I take that? question think margins there if moving also another would was forward, want on if to I'm you correct. Ethan,

Ethan Tandowsky

Yes, sure.

the team, into that continue can it, bring to to in. the the we we grow do the right, in on is touched continue important Ingo we opportunity that factor Adyen, is think long-term most I talent find if there's talent for will that like how we and market So, opportunity, we big, feel them the us here and see definitely bring

expect also On the meet the our of increase each year, there economic both And other, to of consistent with travel -- and consistent to I macro the each unless see would the we with forward team getting earlier. UN customers, travel change into referenced be other of half this going hence things, and something to the hand, other. to in was those our pledge ability

the continue as that So, we as high things grow we and those team, to able I in play long-term opportunity. forward, still are and people realize are long to that the find the think help keep best to will going bar

Sanne Minnema

Thanks.

Ethan Tandowsky

stop the quickly add, Like confusion get into not very very operational need like, quickly would we're this. because to have we to around XX%. problems, the business. to to maybe we're because think we hiring because And to hiring like, would stress, also running we also that's run And if right keep no we not expand, could I want we to higher, important now,

So, to level really yes opportunity and the to that is we this see. next get it

to it's very I think important stress that.

Sanne Minnema

I Yes, indeed. think But that make, doing next go to your Pieter he'll couldn't attend unmute circumstances. too. the please from points, for good personal And To Cheuvreux. question. today Sebastien And to Sztabowicz ask question, yourself your on Sebastien, to point question. thanks and it's that, answer he's to due with really Kepler probably, well. ahead

Sebastien Sztabowicz

everyone. hello Yes,

from between year? or specific of and the in the question impact you QX? QX net you in to a part seen secondly, please you. any And seen could have my you impact from seen revenue substantial inflation the side, specific you organic any Just quantify Thank Have business? discrepancies growth have your on growing your profitability any the first your business, your impact on

Sanne Minnema

in to this to those and our on Thank Ingo, Sebastien. developments our questions, could first-half Ethan, you the you -- of organic for growth speak you the of customers year? speak could CapEx

Ingo Uytdehaage

quarter don't really that, the in there over really been development you have has if the there. revenue growth not first-half we been, the I trends look think at is So disclose cyclical

So, much [indiscernible] been would say, years. I that's very a

Ethan Tandowsky

Yes, related scale that short and on that of relationships the a where have about believe our CapEx can, with we're business those we're side, the we we a it anything, term continue never running we and sure making investing grow into as is to more building situation and without suppliers so that in shortage strategic issues. to we're able

a grow bit get come we that well disruption and any make sure ahead the make to efforts to we're supply of in more sure years. chain certainly is could prepared that coming into or this anything So,

Sanne Minnema

lot. a Thanks

for to questions go ahead think all I at Antonin, next unmute can answer yourself? unmute question. HSBC. ask time the Antonin too. on your Antonin, that and from It's question should you from yourself Baudry please this that

Antonin Baudry

me? you Do hear

Sanne Minnema

hear we Yes, you you. now. Thank

Antonin Baudry

Okay, all. afternoon you questions. sorry. my Good for And thank taking

revenue a First What plus institutional year-over-year, your implying revenues, huge strong and your respectively, XX% between the gap how XX%, explain of growth should than is volumes between or on so on relation in net of growth that XX% the a question gross costs about an is 'XX. the consider growth plus unusual strong increase we in revenue net there financial future? the growth

Sanne Minnema

think, Thanks questions, those I would for Ethan, they you both. fit

the how correctly rate year? if question is, take recall I first first-half on was The the during of

Ethan Tandowsky

line, costs costs revenue and think our customers. or from in gross I those that incur the And the growth. difference certainly which gross we the right, revenue in have that I that talk interchange financial general, come the the that's growth that we something net between institutions, is scheme revenue to through, pass fees also can our through to, we the and

So, geographies? rather our net on revenue much purely to by They're number, on driven revenue very come also focus attention those than we revenue do, our really the the net but impact position. where the from, volumes number. and what gross have So limited on schemes the very tend which

Sanne Minnema

thank Clear, you.

answer I Antonin's question. think that should

and Hermann Next Gregoire, yourself unmute AlphaValue. ahead have to your could we go question? up, Grégoire ask from please you

Grégoire Hermann

Everyone can you hear me correctly?

Sanne Minnema

we Thanks. Yes, can.

Grégoire Hermann

at products Thank point-of-sale from deploying or the some how under insights there and a Great. much much sort whether and Thank capacity back increased? willingness solution actually actually us what to you money has taking digital, for you. environment, If of very checking their this you actually holds their in change been merchants, and further merchants slowed them us in-store benefits give of whether tone from these could share look about and unstable approach also Adyen's you to enhance out with or could Adyen's have we spend upgrade to question. experience has Okay. my tense of

Sanne Minnema

customers both second Thanks, how working customers point-of-sale our on also pillar could on with the we're environments? Gregoire. Ingo, the one in questions, digital in the and our first current leveraging you that take

Ingo Uytdehaage

yes. Sure,

start they're digital mix. merchants, to one So, look add if at certainly also point-of-sale merchants the indeed the at you to in digital time and moment

happy think land logical digital in migrate the of add few the in Commerce. or successful still Unified been have a our a that Commerce we quite lot are a that I channel. very expanding And activated adding in still very course digital step, it's with There's merchants could merchants to of merchants their continue could very strategy. is there of that yes, vertical And Unified sales next by also that. that business. merchants We've migrating and expand part way, do a point-of-sale we to overtime so,

lots then we also type of there's of that the the still discussions grow, on have macroeconomic to circumstances. our at merchants room So,

have of a in far, our important also, is [indiscernible]. So, an impact because our we pricing inflation at not big part business, really seen

I net volume there some that the if industry, really think that's for us affected e-commerce, that our seen has yet. something in is instance, also a So, that in increases, revenue. are that And not trends impacts lower the other growth

that's visible think very growth. volume I our also in

So, no it's that indications so different we good, now. so have far, right

Sanne Minnema

Thank answer should that questions. you. your Gregoire,

Chris, yourself Brendler please D.A. Next your go unmute ask ahead Chris up to from Davidson. is question. and

Chris Brendler

you hear Okay, great. Can me?

Sanne Minnema

can, Chris. we Yes,

Chris Brendler

a bit behaved on know really has platform slowed rates how the here. taking ask your and Thank And States pay gained the pandemic? and about Awesome. the for providers. the now that on, after how you you later a question, elsewhere question talk never pandemic, my results. the changed to during I excellent much phenomenon just the have adoption and congratulations of worked growth and with United you has on Can I'd in like traction so lot buy many

Sanne Minnema

buy now pay Yes, sure, Ingo, answer you, Thank Chris. later, you question? Chris could

Ingo Uytdehaage

Yes, sure.

compared now that needs. Buy we one also, It course, of methods methods offer Pay during really that Now different of So, but the our depending buy pandemic, types payment the Later merchants. on taken yes, we off Indeed, the that think, is, macroeconomic in active, we're offer pay how region to fact yes merchant has has the eventually see volume circumstances, we to later these also, been out couple of of And given of credit which the products. our course, on work next platform, to, have typically always current it are majority still volume. will is I probably depending depending the of on the our on quarters,

to this out. So, we works have see how

Sanne Minnema

question. Clear. question; yourself to please with Jamie, ask Susquehanna. and unmute to Friedman that, And the next Hi, go on Jamie is from up ahead your next

Jamie Friedman

guys. Sanne. take to thinking I in rate, be general, take Hi, you How see ask. don't two to impact it's platform I had questions. Nice should but to job about my rate? the And the we on know manage you

products. platforms, is second of So, the in the the financial that's financial one then in So, issuing, capital it's traction, one how take say, Thank Slide the products the and impact on ecosystem rate, financial the it of currently one are suite, to this on like I has if financial platform those on too you XX, gaining you and suite? the market to products, the the terms most of And product accounts thing. where early with general, going which first give you.

Sanne Minnema

ask and question answer rates? it Ethan, take is Jamie, on you can platform job to you, your acknowledging that how Jamie's impact volumes Thank

Ethan Tandowsky

absolutely. Yes,

merchant in big rate, look the of look terms business, platform size at volumes, typically see the that Unified when general, we we in So, a in of or at take we there's right. it a difference Commerce the versus don't in platform a digital

the or size more pillar of So, an bigger, impact has smaller, much that on if of the much itself. by typically pricing much than is business the the

but over the if much driven the the that course, business by that the products embedded of pillar. generate were than that Of time, help can referenced, should we with more to more find opportunities course well, services it's sell financial size of revenue as

Sanne Minnema

that's segue nice his could recap then covered a I if you a Jamie, And functionalities think of platforms. financial into of I over both to selling have the do embedded more services think for Ingo, questions. products we

Ingo Uytdehaage

sure. Yes,

this, capital it you if look issuing So, accounts, and at of payouts. consists

If currently issuing the products at are you moment. what the other doing things mostly see is small relatively payouts, it life

why the continue feedback proof, the So, far investing. is us. this on stage has will it positive, quite keep early really also we the we to it's that's more We're about investment right convinced that and so have for we product talk been once so

Sanne Minnema

next to Alexandre, your yourself on please BNP Alexandre question. question; with ahead is And ask that, Faure from to next the go Paribas. up and unmute

Alexandre Faure

just a questions Good earlier letting afternoon. for on you take Couple on. rate. follow-up Thank very much on me and questions of

is that in it next Was end that quarters [indiscernible] would have of be customer but end size more the eBay if slightly you just is So, you the of rate bottom you enterprise platforms the initiatives explained how other very or day And very outside the said perhaps think amortized. comes And of of shareholder so? much supportive not the take asset, letter to the the I clarification. contract is fully change driver of the to [indiscernible], a after rate. the when component customers in wondering take the my at clearly a question go segment few second of perhaps to

depreciation €XX of ballpark Thank we year, correct? that million a sound of very sort much. the does charge you So, should this About annual think how contract? of

Sanne Minnema

Alexandre. Thanks for questions, your

different could go the expert our on if you in we can to his how I you Ethan, there? to speak And questions eBay think, first an lucky we and the everything market are we room, explain pillars about contract. Ingo, commercial have

Ingo Uytdehaage

Yes.

rate, you that's on the because we So, specifically a at maybe like say not to business. look And initiatives boring repeating keep that. if -- how take the we I increase it's bit would typically any manage

a pricing If driver is lower us transaction, the size. and the per have for take therefore merchants grows lower think mainly rate. we and I

to is you more have got volume if from a more a extent and So, sliding certain bigger scale it merchants.

is, the expect margins where really you that's make course, linked bit course, more type the of business. volume of Of we to actual grow but products. are the it how there also products. think the revenue But course, of about to rate That's financial continue if course, to a amended different less of run could can key with to because the an in long It's of is, of is want sure in take increase process area further we that grow us. these business. we We where

Sanne Minnema

the Ethan, assets, it then, And you. away. eBay Thank take on contract

Ethan Tandowsky

Yes, sure.

the profitable. a monetary assets have you the that contract if eBay, contract going There forward. specifically the parts. every as two component component there shouldn't that important expect amortized you of good And we about platform to start point then starting talk so a think think monetary is And I I on indeed to there. component. is then the And fully has understand non-monetary the important are it's that been and it's charge

non-monetary the will continue. that side, On

the fully can you which continue at to And of depreciated. disclosed. while contract non-monetary is the the so, piece that life And piece now expect we monetary have just over the look

Sanne Minnema

have question, Thanks your for Boulan all see coming that, answered to America please that next go too. Ethan. at from Alexandre, of Thank Bank ahead I ask you in. Fred, the and those. that should another question Frederic On to unmute questions. yourself for question

Frederic Boulan

that, the as comment margin may Thank [indiscernible] it well? keep you and you you versus of light be I'll in thanks If shed terminal? the today Hi, brief. can Can margin on specifically the for POS you. the online on announced and follow-up. initiative any profile new on of

Sanne Minnema

think certainly Ingo, take can. we question? could you that I Yes,

Ingo Uytdehaage

Yes, sure.

terminals, look in payments for at on because get us a you the we've them making the margins out important for huge field. our margin it's the focused more to Also in-store on or on online, typically there real both If profile terminals never not is difference.

want it making business. to don't loss also We have as a

profit. So, we a with minor always try to sell it

So, to the having full control cost terminal. the and not own the hardware sure by terminals terminal drive innovation our more side It's we the introduction on could on also side. certainly profits is that we down making of the that of increase

through platforms. competitive at offer the it through price also a merchant a So, more but

online. behind and strategy driven. the think difference mostly volume I payments, see this. a again And don't between it's we in-store for that's So, And big

Sanne Minnema

question, go next the Tammy Berenberg. to your and On Fred. Thank and for additional that Tammy, question. please this you. is yourself, Qiu ask from ahead question; Thanks unmute

Tammy Qiu

question. you taking my Thank for

are up continuing only because So, hiring. your given future you stop continue up of to didn't still one that the one to long-term will probably go of expenses in the are one and the probably

to going also, would after getting this. So cost forward? merchant, going like ask business additional long-term there of more is or getting And for I the be is another question additional expensive that

Sanne Minnema

one. for will second over the Ethan, first Then we'll question and to into the also time wait question dive take you could great. that and new your Okay, cost on we'll translate how first customer?

Ethan Tandowsky

It's that I of because And think it point. starting interesting payments. and to in just than we operating important so think invest we in scenario we just we would needs that already than of course, great where And true the But, space. they see early. a is that platform wider that. that question now we it's that's a I an we get on need if a are right? are Ingo after an We groups is And really point. what Yes, are their markets to that more saying customer the lot starting now, traction focus lot these we referenced leverage, are right? could really invest. is areas, go But want will what of the to in That's new

straight away. won't Of course, you see that investment

would you into it we it, kicks where do there get to are, faster period net revenues. will wouldn't But an a leverage. we time operating really if So, because is before investment be truly of

you to customers and if stagnate new it's then But in opportunities If would cost the yes, will go we are So, are we absolutely, and to investing opportunities could worth to new that. here. do just areas were that after newer fair after also more stop to think are opportunities these that going to previously the currently go we long-term after, it we quickly. in. more like that we yes there get choose say get going we And we're or

Sanne Minnema

question. your Thanks. Tammy that should answer

are still ask for free you second If surprise unmuted, to question. also please feel

Tammy Qiu

hi. Okay,

Sanne Minnema

Hello?

Tammy Qiu

Yes, hi. Do you hear me?

Sanne Minnema

do. we Yes,

Tammy Qiu

of My see we for lot emerging you. what your thank payment emerging Okay, to start about is question is market processors. because markets, a amazing, strategy second

the omni-channel significant getting long-term to service organically? in to listed there? it be been Are at region it proposition would your you down has be that the I do in to are area do merchants to need Or, international provider. and would say strategy going in probably of one think sense them global you think U.S. the And you cover makes transaction it in of with inorganically? Some progress your making because that's point I What's future. some

Sanne Minnema

Thanks for your question, Tammy.

like answer, function not Before we dive does hand into in raised I and remind audience a Q&A the the to would that work.

them, in send the very difficult firm happy us the represent. would be but if can including to the and great you So, too. will questions we your for you chats via answer be Else, it's name

do too? in answer Tammy's that way. Ethan, it you markets, strategy please second could our emerging So, question

Ethan Tandowsky

Yes, sure.

right? a value we this we our point-of-sale have is truly an unified over I It's part really in all built transaction think the customers. Netherlands; commerce is a same a platform doing platform. in of whether the you that transaction runs a global Brazil that's or platform, And think online offer are it that really here big the core single I bring offering the we to which

would think I do it's an that unlikely So, that. we take strategy to inorganic

part we want well. a that that's countries are story been as there our course, of to. big And to Of expand

at like feel us, the it's focused. sure about we that to doesn't making once, strategy. right For everything do And stay

products in for it's countries be deeper our So, focus to going what new certain our continuing needle financial And at customers that now. that and with will areas time the for move will be next us, customers. really now platform like what's can

we from than organically to would expand regionally. definitely will it continue time to So, depends be inorganically. But the rather focus And time.

Sanne Minnema

we few And and to Zoom, in. we household that every and I after that learn long see after a have can coming still that you. memo, more home from Ethan. now it's time great from working see Thanks, questions Thank then. a

Sandeep. Another Sandeep, and please go unmute ahead question yourself. from

Sandeep Deshpande

stream letting for on When to out your mean, mean, your could the because given were that revenue Quickly much POS me remember, reporting at new issuing revenues expenses expect for was was me you I your thanks new I that? already separately. of little you initiatives, first conversation IPO, from do significant new a the particularly -- initiative. now, hi, we a initiatives, the on I time have higher see on Yes, again. of comments

Now, any some of they these sense we that the with? see to started have can revenue new separate successful how see two -- testing that When has or them three the do initiatives become in you that we streams, expect stream beyond as reported of for Adyen. these initial gone revenue customers

Sanne Minnema

could answer Ingo, question Thank Sandeep's you, on issuing? Sandeep. if you

Ingo Uytdehaage

sure. Yes,

So, new we absolutely line. added have to customers initial

issuing, first-half XXXX, a size at we So, onboarded list of in moment, nuance also not of it to of has the not the when and we the it. sale it point

course, good of course, positive have of working becomes And, meaningful. it's it early. very small. We're, want well. we relatively still lot thing we merchants, is give from to they unfortunately find that proud I of -- the bit it, really think too it's a transparency they show most appreciate to once But our but feedback we a So, it product, the

a more of it's else. matter than anything So, time

Sanne Minnema

Thank you.

unmute yourself go please question. Sanjay, from your Sakhrani Next ahead ask and up KBW. is to Sanjay

Sanjay Sakhrani

Thank you.

but macroeconomic you how Thanks. the now? I Would we path But no can the And I second your maybe you we to e-commerce a talk continue Ingo, investments lack potential think, were would measure Sandeep's I'm impact? right question. along environment, philosophy. about apparent just we specific slowdown of this or follow-up or investment the a should Maybe cyclical the making if thereof you question, them? success there disclosure, decelerate the first-half. mentioned in an curious about impacts in think slowdown And in get you're won't you guess maybe had as

Sanne Minnema

is questions, Could those were directed they at please Sanjay. my already so, one. Thanks already job for Ingo, take them? you you,

Ingo Uytdehaage

Yes, sure.

the I our our see, no slowdown. strategy the Also, because e-commerce. merchants, at have in so there with growth, in existing is look we with always we you no volume if this quite land-and-expand So, think, current that's, indeed, slowdown first-half, numbers that visible

a thought look level whether accelerate or in the That's have more a question. think what it's the question, issues. how something going our not into a been the we we not year. one-off, the certainly the I never We've opportunistic indeed, the on And that's we bit second-half visible, we But into new think first-half, investment, bit success investment we structurally you wanted in at datacenters. slightly decelerate, see fair of under-invested capacity then, to that run we a measure area. next but still that's maybe yes, are as do that seen If really on this I in higher like investments, because

lot it's long-term to want the investments, from track say these we of course, track we embedded don't two the Of like really that fair -- make we long-term that financial so really are years, products the it's those a a but new sure revenues progress, next to expect play. or that three

Of course, we're We that update we it's progressing. very you projects. working to right for we ourselves, the also transparent we're want how to be on because, that know important want qualitatively also

to want different with -- relevant also, the I and So, how successful build think we by use is cases, we're then products, what showing probably from in there. do

Sanne Minnema

you. Thank

to was I think questions. clear Sanjay's answer very it

let have to my final doesn't access I'm now. Next Justin think waiting the I know me for Credit have we we to Suisse, will difficulty] from Q&A function who iPad in. [Technical up, but we we from He have have coming next. question you a -- unmute

now yourself difficulty] can your to you [Technical ask unmute question. Justin,

Unidentified Analyst

you Can hear me?

Sanne Minnema

we can. Justin, Yes,

Unidentified Analyst

Thank Adyen you. you, the difficulties. apologies on for the Thank technical What was Platforms? question for

I think lag. bit little must I on of a be a

for on question Platforms. a have Adyen I So,

that to And we fragmented say for us is that financial think the mentioned what of can going as are you're of a facets, kind was most market elsewhere, and horizontal eBay we longer-term do I to volumes remaining we different give functional longer-term, that go-to-market understand really, around platforms? basis, and how that also, is marketplace, embedded focusing that of about vertical is given that? calculated. geographical platforms, FX well the at SaaS also, wanted on rough wanted Ethan is the where maybe basis, directional forward, SaaS ask 'XX, as in two of point, some that opportunity. meaning the mean put quite services in U.S. And impact, compared a Europe believe XXXX, SaaS set When outlook is this it volumes, there could we given an the idea just I on the like was So, that you to

it Is us more help a kind like magnitude those benefit have in would it you there XH difference kind basis else I you a decent So, U.S. equal. XH the numbers XH If Thank all guys. 'XX been any gap from think dollar. hedging tailwind meaningful 'XX, the in of compare of much, it or of significantly seemed be the can we size on would 'XX though, get the bridge in the a FX? very two to periods between versus

Sanne Minnema

questions. -- a have in the I typically reminder with iPad. your do going for recap to you best I'm my here Thank them I to can because

could unmute do more, please feel we're how there to Ethan, yourself think the make I segments. to across that with you one. question could impact was Justin, all questions. we'll the cover and first anything, one take your we I'm evolving on second Ingo, you once that. that And missing speak free Platforms, If on too, FX sure

Ingo Uytdehaage

-- question. you actually Pretty lot look of this in also also, way unique not And our are lot for of offer commerce the in and yes, on unified our do. are see we a Platforms embedded a think, in can course, offering That's unified would players I therefore build mostly There if to not years is to it's, is something products on So, area. a There's proposition. that we a you of strategy, long-term, similar we financial -- Adyen product, where licensee financial this what priority over. the investments it's the if U.S. it's Europe have we made multiple at it is have long-term years, say not because commerce. basically question that But traction embedded -- overnight, is I it's away can that like going like take is like specifically this very the to

would that think we there -- early, not. there from commerce unified two can things we I implementation have is could or are whether learn relatively are if tell, we that success

but feedback there really to merchants, to based it volumes then years. get So, takes also from on

then focused to that's how it point so, secondly, -- -- we we yes, has merchants. of with financial does So, traction also and need like that long-term. traction building again that why want have to right it our embedded is first evaluate we're And the products, game the it have on that patience out,

Ethan Tandowsky

FX USD we side, the half-year. on that on this constant was And it is saw true a the basis biggest tailwind that currency

get mismatch course, between the costs revenues and customers, bill currency amount our past And our prior over that's periods. to based have less in what currency on compared in. a we we billed had course, our than to in half-year we they of periods, of Of constant the what providing and, the is control costs this

Sanne Minnema

you, Thank Ethan.

Unidentified Analyst

it, -- Got you thank

Sanne Minnema

Justin, ahead, that we cover we you? everything had to did Go for

Unidentified Analyst

helpful. super that's No,

different have, to instance, say, that's net geographically, is? it a mix for that make then impact dollar something revenue from the or say of would could what which or in, kind Europe, is than fair sounds yes. of like being versa, billed in but And coming So, U.S. that flows out you vice that the

Ethan Tandowsky

lot. a we have driven Definitely, have U.S. Yes, it's on that over fluctuate those the they merchants any bill but by the not given that's our in And dollar, to it is It currencies larger like that them should do really period platform, possible. in. that flexibility. currency say control

Unidentified Analyst

difficulty] very you [technical Thank Lovely. --

Sanne Minnema

for question queue. questions the Justin, more still was in your That have we for last are a today. you, the questions. Thank few There

there, of answers We and the hope results great talking inbox will and the and come And will in the were and way strong answer Thank office It you of a the very for you. with our you, Thank you those of set where we in together again see to your questions. having first-half the via was you our through we presenting results. key February. sending team, quickly. developments IR dialing your year, Thank you for in. in all you Bye-bye.

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