Adyen reported a big miss on Thursday during sales in the first half of the year. The news caused a $20 billion drop in the company’s market cap.
Pavlo Gonchar | Sopa images | Light rocket | Getty Images
Adyen reported a rise in third-quarter revenue as the Dutch payments company gained market share and attracted new customers, diversifying its merchant mix.
The company, whose technology enables businesses to accept payments online and in-store, reported third-quarter net sales of 498.3 million euros ($535.5 million), up 21% year-on-year at constant exchange rates .
Payments companies saw a boost from an increase in online shopping during the height of the Covid-19 pandemic.
But in recent years, companies like Adyen have faced pressure from lower consumer spending.
However, Adyen has benefited from significant growth through partnerships with its North American customers such as Block Cash App in USA and Shopify in Canada.
In August, Adyen posted a 32% increase in core profit in the first six months of the year as it signaled market share expansion in Europe, the Middle East, Africa and North America.
Last year, shares of the Dutch payments giant fell almost 40% in one day due to worse-than-expected sales and falling profits in the first half of 2023
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