(Bloomberg) -- Adyen NV’s shares surged the most in six months, as net revenue beat estimates due to gains from both new and existing customers.
Adyen, which handles e-commerce payments for large enterprises and through point-of-sale terminals in physical stores, said Thursday net revenue increased 24% from a year earlier to €913.4 million ($1 billion) for the six months through June. That compares with an average estimate of €908.9 million in a Bloomberg survey of analysts.
The company’s shares rose as much as 8.5%, the biggest intraday gain since Feb. 8. They were up 6.5% at €1,212 apiece at 11:17 a.m. in Amsterdam.
Investors welcomed the strong sales after higher price competition in its key North America market led to a record slowdown in revenue growth last year. Since then, Adyen has unveiled new targets and began offering quarterly trading updates to improve sentiment.
Adyen also added large-format retailers and hospitality firms to its customer base over the past year, Chief Financial Officer Ethan Tandowsky said in an interview. “In this half, hospitality was our fastest-growing” segment, he said.
The company announced partnerships with Italian fashion group Prada SpA, Australian beauty retailer Mecca, sports goods company Decathlon in Hong Kong during the period. North America was its fastest-growing region, where it added Scheels, Crate & Barrel, CB2, Pet Supplies Plus as customers for e-commerce and in-store payments.
In the first quarter, investors were disappointed by a drop in the take rate, which is the proportion the company charges merchants for processing each transaction. That measure came in at 14.7 basis points for the first half of the year, compared to an average estimate of 14.8 basis points.
A “big fear” ahead of the results was the take rate, which was stable in the second quarter compared to the prior three months, UBS analysts including Justin Forsythe wrote in a note to clients. That could help “ease the narrative around pricing pressure,” Forsythe said.
The Amsterdam-listed company operates on a tiered-pricing model in which the more volumes it processes for a merchant, the lower the fees.
The results provide “some reassurance” given concerns on consumer spending, Citi analyst Pavan Daswani said in a note. Adyen’s European peer Worldline SA said earlier this month that European domestic consumption trends had slowed down during the second quarter with the speed of a potential recovery uncertain.
The company confirmed previous guidance that it expects to increase net revenue by a percentage in the “low-twenties and high twenties” every year through 2026. Adyen continues to see net revenue growth toward the low end of this range this year, it said on Thursday.
Earnings before interest, taxes, depreciation and amortization in the first half rose 32% to €423.1 million, beating estimates.
The financial technology firm announced earlier on Thursday that it had expanded payment processing to India and plans to build a technology hub in the country.
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