Adyen share price jumps on strong EMEA growth in 2024

Adyen share price jumps on strong EMEA growth in 2024

Adyen has continued to see a recovery in its share price after a strong H2, with the company processing more than a trillion euros of volume for the first time in 2024. In this report, we break down the key factors driving growth for Adyen in Europe and North America.

An abstract network image with Adyen's logo overlaid

Adyen reported another strong half for H2 2024, with revenue rising by 22% to surpass €1bn for the first time on a half-yearly basis, driving total revenue just below €2bn ($2.2bn) for FY 2024, while total processed volume for the year surpassed €1.2tn ($1.4tn). The Dutch payment processor’s share price surged after it announced its results for the half, in which the company diversified its mix while expanding its reach in Europe, the Middle East and Africa (EMEA) and North America.

A graphic showing Adyen's full-year net revenue and EBITDA margin, 2020-2024 and 2025-2026 estimated

Adyen’s H2 2024 revenue hit €1.1bn, with EBITDA rising 35% to reach €569.2m, driving a margin of 53%. For the full year, EBITDA rose 34% YoY to €992.3m, driving a margin of 50% (up four percentage points compared to last year). 

On the back of its results, Adyen reaffirmed its revenue projections for the coming years, with the aim of continuing to grow net revenue annually between the low-twenties and high-twenties percent up to and including 2026, though it noted that it expects a slight acceleration in its annual net revenue growth rate in 2025.

Calculating projections from its 2024 revenue and EBITDA, for 2025 the company could see revenues between €2.4bn and €2.6bn, rising to €3bn-3.3bn in 2026. Adyen also aims to improve its EBITDA margin to levels above 50% in 2026, though it said this margin probably wouldn’t increase at the same rate as it had in 2024.

Adyen core volume growth drivers

Adyen’s revenues continue to be driven by growth across its three core areas: Digital, the company’s core offering spanning its online, in-app and subscription activities; Unified Commerce, its payment acceptance platform spanning in-person payment solutions and more; and Platforms, which encompasses payment services for platforms and marketplaces. 

Adyen’s volume mix continued to shift in H2 2024, with its newest segment Platforms seeing faster growth (44%) than Unified Commerce (35%) and Digital (13%). This reflected the pace of growth over the full year, with Platform volumes growing 51%, Unified Commerce growing 32% and Digital growing by 29%. 

Platform growth was driven by a 67% increase in business customers during the half and significant growth from the F&B and healthcare segments, while Unified Commerce was driven by in-person payments. Meanwhile, for its Digital segment Adyen highlighted the potential of Uplift – its AI-powered payment optimisation suite that was piloted by businesses in 2024 and helped increase their payment conversion rates by up to 6%.

A graphic showing Adyen's full-year processed volume split by segment (Platforms, Unified Commerce and Digital), 2021-2024

Though the company’s Digital segment still very much leads on share at 58% of processed volumes for H2 2024, this was down from 62% in H2 2023 as the other segments continue to grow, with Unified Commerce accounting for 29% of volume share while Platforms accounted for 13%. 

As we discussed in our previous look at Adyen’s potential cross-border share, the company has increasingly moved towards point-of-sale (PoS) and in-person payment solutions, while it has seen a growing share of its revenues in segments that address companies selling physical good online, which are less likely to be purchased across borders. 

Within its Platforms and Unified Commerce segments, PoS payment solutions continued to see faster volume growth than Online volume growth during H2 2024. Across all segments, volumes from PoS solutions in H2 2024 grew 47% to €137m, while non-PoS volumes grew 17% to around €530m.

A graphic showing Adyen's processed volume by business segment, H1 2021-H2 2024

Despite slower growth, Digital – which likely contains its highest volumes from cross-border payments – still takes the lion’s share of Adyen’s revenue, showing the continuing importance of cross-border to the company. In addition to this, fees related to settlement rose by 20% to €718m, while fees related to processing rose 13% to €284m. Although Adyen doesn’t break out cross-border’s contribution to these segments specifically, they are likely to contain some measure of cross-border income. 

Having said this, Adyen is continuing to see faster growth in those segments where cross-border is less relevant, and this is reflected by recent launches and partnerships in H2 2024 – including a new payment acceptance system and the launch of Tap-to-Pay on iPhone across five additional European markets as well as New Zealand. 

EMEA and North America lead regional revenues

Adyen saw its highest regional revenue growth in its EMEA segment, which grew 27% in H2 2024 to €625m, growing 26% for the full year to reach €1.1bn. North America saw the second fastest growth, increasing 21% in H2 2024 to reach €292m.

On the other hand, H2 2024 saw a slowdown in growth in APAC, which grew 12% in H2 2024 to €110m (vs 25% growth in H2 2023), while LatAm declined -1% to €55m. Overall in H2, EMEA contributed 58%, followed by North America at 27%, APAC at 10% and LatAm at 5%, figures that are roughly reflected in the company’s FY results.

A graphic showing Adyen's full year revenue split by region (Latin America, Asia-Pacific, North America and Europe, Middle East and Africa), 2020-2024

Adyen said that it was continuing to realise its market opportunity in its most established markets, but in North America it was continuing to gain market share as a result of a “double-down” approach in this region. In LatAm, however, the decline was the result of an “outsized” FX impact, with this region seeing constant currency growth of 12% YoY, though the company did note an integration with Brazil’s instant payment system Pix that it believes will drive conversion while lowering its costs.

During the call itself, executives noted that EMEA and North America contain the companies’ full three-pillar offering (Digital, Unified Commerce and Platforms) while this is still developing in the APAC and LatAm regions. 

CFO Ethan Tandowsky also mentioned that the company sees the EMEA and APAC markets as more fragmented than North America and Latin America, while also noting that its customers are highly globalised, meaning that their own growth into different regions (i.e. from APAC to EMEA or vice versa) can be reflected in Adyen’s results for those regions.

Adyen continues stock price recovery

Adyen saw its share price rise by 14% on the day it released its H2 2024 earnings results, following a period of decline and recovery. 

Adyen’s significant growth over the Covid-19 pandemic reflects the boost in performance seen by many other ecommerce-focused payment processors in the cross-border payments space. However, the company went on to see a significant share price decline in 2023 as it continued to bring in new employees and profits declined, against a trend of payments players pulling back on hiring. 

The company has since seen a recovery in its share price, which at the time of its H2 2024 earnings call had surpassed the price prior to its large decline in 2023. The company’s share price on the day of its most recent earnings results was 186% higher than its lowest point in 2023.

A graphic showing Adyen's share price on the Amsterdam Stock Exchange, February 2019-February 2025

Adyen’s profitability and continued growth in key regions have impressed investors in these latest results. As the company has looked to cut costs and grow efficiencies, it has also launched new products and continued to expand into new markets to grow its offering. Adyen’s 35% EBITDA growth is its fastest growth since H2 2021, and partly reflects its significant slowdown in hiring, with full-time equivalents (FTE) rising just 4% in H2 2024 vs 26% in H2 2023. 

The company said that it expects to step up hiring in 2025 versus 2024, with a continued focus on investment in North America but also in markets like Japan and India, where Adyen has a long-term investment plan for growth and is helping customers to expand to more markets globally.

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A close up on part of a graphic showing changes in key cross-border payments stock prices in 2024.
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