In its first earnings report following its June IPO, Adyen posted strong results underpinned by €70bn ($81bn) in payment volume processed through the first half of the year. The company has also shown momentum with key initiatives, such as in-store payments, while garnering a variety of new logos. In this report, we provide an update on Adyen's business, discuss its strategic priorities and detail its competitive positioning.

The 451 Take

Adyen's business continues to fire on all cylinders in a crowded and intensely competitive payment processing market. The company's single platform and cross-border, multichannel proposition is resonating with the market, and its earnings results clearly reflect that. We are particularly impressed with Adyen's in-store progress, supported by the recent launch of its Terminal API. In-store processing opens Adyen up to a massive new volume opportunity while aligning it with the trend toward unified commerce in retail.


Adyen continues to grow at a steady clip across all fronts. The company has expanded headcount by 100 since the start of the year to 768 employees, roughly two-thirds of which are based in its European offices in Amsterdam (headquarters) and London. Headcount in the APAC region (Singapore) is up nearly 50% YoY, and almost 25% in North America (San Francisco). The new additions across all regions have predominately filled product and sales roles.

Adyen's total revenue through the first half of the year reached €697.1m, with net revenue up 67% YoY to €156.4m. Europe continues to account for the lion's share of net revenue, with roughly two-thirds derived from the continent. North America and APAC, where Adyen has a significantly smaller foothold comparatively, posted strong YoY net revenue gains of 143% and 147%, respectively. Importantly, Adyen is profitable with strong margins. It saw EBITDA of €70.3m through the first half of the year, and an EBITDA margin of 44.9%. Net income reached €48.2m in H1, up 75% YoY.


Adyen is focused on driving growth across three core areas of its business. These include:

In-store: Adyen's in-store acceptance capabilities are a critical part of its unified commerce value proposition, which enables retailers to accept multichannel payments via a single processing platform. The company's in-store presence now extends to 37 countries, with support for Singapore added earlier this year. The volume of transactions it handled at the PoS has grown to €6.6bn through the first half up 2018, representing a 120% YoY increase. In-store payments now represent nearly one out every 10 dollars that Adyen handles (9.4% of total payment volume). This growth has been fueled in part by the addition of a steady stream of new customers. Added to the list of existing customers such as Bonobos and Tory Burch are the likes of Asics, Dunkin' Donuts and Lush.

In March, Adyen launched its Terminal API, which runs on various portable, handheld and countertop Verifone PoS devices and is compatible with PoS software packages such as RetailPro and Oracle Retail. The Terminal API is intended to enhance the functionality of the PoS device, such as enabling personalization (e.g., local payment method support) and inventory integration to provide the basis for delivering an endless aisle shopping experience.

Midmarket: While Adyen has traditionally been known as an enterprise-focused payments provider, the company is making investments to build out a position in the midmarket. Sales and marketing expenses rose 63% in H1 to €11.4m, in large part due to additional marketing resources that Adyen is dedicating to broadening its exposure to this market. The company has also increased hiring for midmarket-focused sales and product roles, in addition to implementing dedicated development teams focused on SMB commerce platforms such as Magento and NetSuite. New customers include Brompton, Tony's Chocolonely and Ubeeqo.

Also of note are enhancements Adyen has made to its web and native app SDK, Adyen Checkout, which provides midmarket businesses with a customizable and streamlined way to integrate Adyen. The company has also made updates to its Customer Area, where users can search for payments and manage disputes.

Enterprise: Enterprise customers such as Netflix, Spotify, Uber and LinkedIn continue to serve as the feedstock for Adyen's processing volume growth. Many of Adyen's enterprise clients are high-growth entities themselves, meaning as their revenue grows, so does the transaction volume Adyen processes for them. Adyen has also demonstrated an ability to win new business within existing accounts, in part through product enhancements such as the integration of Visa's and Mastercard's account updater services and automated transaction routing. Enterprise growth has also been supported by new customer wins, which include eBay, Cabify, Valve and Dollar Shave Club.

Moving forward, it is worth monitoring Adyen's progression into new enterprise retail segments. While the company has done particularly well with digital-native brands and marketplaces, it is making inroads into more traditional segments, such as supermarkets, restaurant chains and hospitality.


Adyen operates in an intensely competitive, crowded and price-sensitive market. The company's chief differentiators include its unified processing platform and multichannel, cross-border acceptance proposition. Its core competition in the enterprise – both in-store and in digital – includes a variety of legacy payment-processing heavyweights, including WorldPay, First Data, Chase Merchant Services and Cybersource.

In the midmarket, Adyen's competition includes the likes of Braintree, PayPal and Stripe. To a lesser extent, additional sources of competition include BlueSnap, WePay, and Ingenico ePayments.
Jordan McKee
Research Director, Customer Experience & Commerce

Jordan McKee is a Research Director for Customer Experience & Commerce, and also leads 451 Research’s coverage of the payments ecosystem. He focuses on digital transformation across the commerce value chain, with an emphasis on the major trends impacting payment networks, issuing and acquiring banks, payment processors and point-of-sale providers.

Jeremy Korn
Research Associate

Jeremy Korn is a Research Associate at 451 Research. He graduated from Brown University with a BA in Biology and East Asian Studies and received a MA in East Asian Studies from Harvard University, where he employed quantitative and qualitative methodologies to study the Chinese film industry.

Aaron Sherrill
Senior Analyst

Aaron Sherrill is a Senior Analyst for 451 Research covering emerging trends, innovation and disruption in the Managed Services and Managed Security Services sectors. Aaron has 20+ years of experience across several industries including serving in IT management for the Federal Bureau of Investigation.

Want to read more? Request a trial now.