New Stock Adyen: ADYYF

Need to do more research, but initial overview looks very interesting.

Adyen NV is a technology company. It has built an efficient single platform that enables the acceptance and processing of cards and local payments globally across its merchants’ online, mobile and point of sale channels.

Founder led - both co-founders are still involved (CEO and CTO)

Market Cap: ~$14 billion

From their H1 2018 results (new IPO:

Highlights

Processed volume of €70 billion: up 43.1% year-on-year – growth across the width of the merchant base

Net revenue of €156.4 million: up 67.3% year-on-year – growth well-balanced geographically and across channels

EBITDA of €70.3 million: up 83.1% year-on-year – EBITDA margin of 44.9% - with continued investment in global team and marketing

Net income for the period was €48.2 million: up 74.6% year-on-year

Continued high cash generation – with free cash flow conversion of 89.3%

POS (point-of-sale) processed volume up 120% year-on-year: accelerated traction in the offline segment

I plan to dig a little deeper over the next few days. Would love to hear others’ thoughts.

https://www.adyen.com/investor-relations

  • Austin

Shopify (SHOP) Ticker Guide

For information on all of my current holdings view my profile here: http://my.fool.com/profile/CMFAleeb/info.aspx

10 Likes

Didn’t know this until just now.

In Jan, Ebay announced they were moving away from Paypal and to Ayden as the primary payment processor.

EBay Inc. rose to a record high after giving an optimistic revenue forecast and unveiling plans to shift its payments business from long-time partner PayPal Holdings Inc. to Adyen BV, a global payments company based in the Netherlands. Shares of PayPal tumbled.

PayPal is currently EBay’s payments processor, meaning merchants selling on the marketplace have to have PayPal accounts to accept funds, and it will remain a checkout option for EBay shoppers at least until July 2023. But Adyen will gradually take over processing EBay payments, beginning in North America this year and will handle a majority of transactions in 2021

https://www.bloomberg.com/news/articles/2018-01-31/ebay-to-d…

  • Austin

Shopify (SHOP) Ticker Guide

For information on all of my current holdings view my profile here: http://my.fool.com/profile/CMFAleeb/info.aspx

4 Likes

Was also on Forbes 2017 Cloud 100 list as a top cloud company. Interesting to see some of the companies we’re invested in also used to be on this list until they came public. There’s the new 2018 version which might gives us some companies to watch. Ayden is no longer on it because it’s only for private companies here’s a blurb from the 2017 list.

Stripe’s joined by three other San Francisco companies in the top 5: file sharing and collaboration company Dropbox (No. 2), messaging platform Slack (3) and digital signatures unicorn DocuSign (4). But rounding out the group is a challenger to Stripe with sneaky-big revenue and its own multi-billion dollar valuation, Adyen (5). On a list still dominated by Silicon Valley, cofounder and CEO Pieter van der Does has quietly built his own would-be payments juggernaut. Adyen works with Facebook, too, but also Uber, Netflix and Spotify, processing $90 billion in transactions last year on $727 million in nearly-doubled revenue. The company bills itself as more international friendly than its California competitors, in part due to its scrappy Dutch roots. “We [have taken] it on as a badge of honor: Adyen, the unknown unicorn,” van der Does says.

https://www.forbes.com/sites/alexkonrad/2017/07/11/cloud-100…

  • Austin

Shopify (SHOP) Ticker Guide

For information on all of my current holdings view my profile here: http://my.fool.com/profile/CMFAleeb/info.aspx

2 Likes

I also got interested a few months back, but I saw that the top 10 clients of Adyen represent more than 30% of sales.

You also have to know that its IPO featured only secondary shares. Investors sold shares representing only a 13.4% stake. And they didn’t raise money with the IPO.

2 Likes

Stock symbol anyone? Tried adyyf, and company name in Stockcharts, to no avail. Thanks.

Right ticker, just not covered by stockcharts.com

e.g.

https://finance.yahoo.com/quote/ADYYF?p=ADYYF&.tsrc=fin-…

Right now Schwab is saying it has a bid size of zero and an ask size of zero. I’m not sure if the ticker is actually trading yet in the US market. You might need to buy it directly from the dutch exchange. I’m also interested in Adyen. One of their core competencies is operating transnationally, facilitating payments in different currencies, which is obviously quite important.

About the stock, one thing to be aware of is that insiders reneged on the lock-up agreement allowing themselves to sell a lot of shares long before the lock up expiration. Also, I struggle finding financial data on foreign listed companies, but one thing I have gleaned is that they are looking at a big revenue slowdown coming up in the near term, but EPS growth is supposed to be steady.

https://simplywall.st/stocks/nl/software/ams-adyen/adyen-sha…

Anyways, it’s definitely under the radar now. Worth looking into for sure.

Yahoo Finance also show bid and ask of zero and average daily volume of 165. That would make me extremely cautious.

Yahoo Finance also show bid and ask of zero and average daily volume of 165. That would make me extremely cautious.

There is much more liquidity on Euronext Amsterdam for Adyen :

https://www.euronext.com/en/products/equities/NL0012969182-X…

Yes, but liquidity in the European exchange for the primary stock is not liquidity in the US ticker. If the latter is what you hold, then the liquidity issues would concern me. Witness the strange things that have been going on with AMAVF while the trading in ARCM.ST has been frozen.

I’d want to know how much of the growth rate is a one off taking over from Paypal on eBay from this year in North America and unlikely to be repeated in future year growth before investing!
Ant

2 Likes

You also have to know that its IPO featured only secondary shares. Investors sold shares representing only a 13.4% stake. And they didn’t raise money with the IPO.

I wouldn’t take that as a negative, as it could very well imply that they did not need to raise additional capital (presumably because they’re already generating cash to continue operating the business).

-volfan84
late to this thread, but at least a bit interested in Adyen