Adyen's transaction volume growth rate slows, resulting in a 10% decline in share price.

• Adyen, a company that enables businesses to process payments both online and in-store, reported a 21% increase in net revenue to 498.3 million in the third quarter compared to the same period last year.
• Adyen's stock price dropped by almost 40% in a single day in August due to lower-than-anticipated sales and declining profits.

In early Thursday trades, shares of the company lost ground as it reported a slowdown in the growth of its transaction volumes in the third quarter.

Despite initially failing to open on Thursday following Adyen's third-quarter report, the stock resumed trading. At 8:35 a.m. London time, the stock was down 9.8%, reaching the bottom of the pan-European Stoxx 600.

Adyen's sales growth was driven by a 32% increase in total processed volume (TPV) to 321 billion euros in the year, with a 45% jump in TPV in the first half, following a 46% year-over-year growth in the first quarter.

Investors will likely focus on weaker transaction volume on Thursday, as analysts at Citi expressed concerns over end-market weakness in a research note.

The take rate on the processed volume is comfortably higher than expected, and if sustainable, should support sales growth acceleration in 2025/26. Additionally, the lower run-rate of hiring should support continued margin uplift.

Adyen reported that digital processed volumes grew 29% year-over-year, but this was lower than the previous quarter due to the impact of a single large-volume customer, Cash App.

Adyen, a Dutch payments firm, experienced a 21% increase in third-quarter net revenue to 498.3 million euros ($535.5 million) on a constant currency basis, due to the addition of new customers and an increase in wallet share, which diversified its merchant mix.

In the third quarter, the firm experienced stronger traction from in-store payments, with its "unified commerce" point-of-sale terminals seeing 33% year-over-year growth. Additionally, its installed base of physical payment devices increased by 46,000 to 299,000.

Adyen stated that it slightly increased its hiring in the quarter, adding 35 new employees. Despite slowing its hiring in the past year due to concerns about its investment pace, the firm has been expanding its workforce.

In 2023, the Dutch payments giant's shares plummeted nearly 40% in a single day due to disappointing sales and declining profits in the first half of the year.

Online shopping surged during the pandemic, leading to a rise in payments firms' profits.

In recent years, companies like Adyen have been under pressure due to decreased consumer spending.

Adyen has experienced substantial growth due to its partnerships with North American clients, including Cash App in the U.S. and Canada.

Adyen maintained its guidance on Thursday, predicting net revenue growth between the low to high-twenties percent, up to and including 2026.

The company anticipates increasing its earnings before interest, tax, depreciation, and amortization above 50% by 2026.

Adyen stated that capital expenditure will not exceed 5% of net revenues.