Adyen Posts Good First Half in Light of Coronavirus Impact; Under Review

No-moat Adyen published first-half 2020 results with net revenue up 27% versus the same period a year ago. EBITDA grew 12% to EUR 141 million compared with the first half of 2019. On a sequential basis, the coronavirus impact was felt, with revenue increasing only 2% versus the second half of last year and EBITDA falling 8%. This is meaningful for a company that is on a high growth trajectory, but overall, we see this as a strong set of results. Adyen’s high exposure to large enterprises with a heavy tilt towards e-commerce platforms has been a blessing during coronavirus lockdowns hitting economies globally. Online volume growth and merchants shifting from in store to online largely offset payment volume declines in harder-hit verticals such as travel. In sum, processed volume declined to EUR 129 billion from EUR 135 billion in the second half of 2019. We are placing Adyen under review to accommodate a change in analyst coverage and plan to publish our updated view by Sept. 2.