Adyen is the fastest-growing global payments platform 🚀; BNPL payments surge as the rising cost of living hits shoppers 🛍; Kraken’s staking-as-a-service shut down by SEC 😳

FinTech is Eating the World, 10 February

Hey Everyone,

Good morning! Apologies for the delay again but some critical business issues emerged that required my immediate attention. Anyways, this issue is something I was really looking forward to the whole week 🤩 I hope you will share the excitement with me as we’re going to look at Adyen, which is the fastest-growing global payments platform (we’re going to take a deep dive into them), BNPL payments that are surging right now (the rising cost of living hits shoppers + what it means & what’s next?), and Kraken’s staking-as-a-service that just got shut down by SEC (& why it’s disappointing). Let’s jump straight into the super spicy stuff 🌶

Adyen is the fastest-growing global payments platform 🚀

Earnings call ☎️ Dutch payments giant Adyen reported its latest earnings. Despite their stock going down (you will learn why later), the Amsterdam HQed firm crushed their earnings.

Let’s take a closer look.

The numbers 📊 Below are the key numbers for the second half of last year as well as full-year results.

Summary of H2 2022👇🏼

• Processed volume (TPV) was €421.7 billion, up 41% year-on-year (YoY). Of these volumes, point-of-sale (POS) volumes were €67.6 billion, up 62% YoY.

• Net revenue was €721.7 million, up 30% YoY.

• EBITDA of €372 million, up 4% YoY, with EBITDA margin at 52%.

• Net profit of €282 million, up from €264.9 million last year.

• Free cash flow conversion ratio was 80%, with CapEx at 8% of net revenue.

The full Year 2022 Figures

• Processed volume was €767.5B, up 49% YoY. Of these volumes, POS volumes were €112.5B, up 74% YoY.

• Net revenue was €1.3B, up 33% YoY.

• EBITDA of €728.3M, up 16% YoY.

• EBITDA margin was 55% for the full year.

• CapEx was 7% of net revenue for the full year.

P.S. this has to be the most beautiful income statement ever.

Despite being founded back in 2006 (4 years before Stripe), Adyen is arguably the fastest-growing global payments platform in the world.

Let’s deconstruct their growth so we could better understand the key drivers behind it, see the key strategic decisions that paid off, and compare them against their main competitors, which are being crushed, so we could really understand why Adyen is the payments giant you just cannot ignore.