Shares of Dutch payments firm Adyen NV tumbled over 20% on Thursday after its first-half earnings fell short of analysts' expectations and its own targets.
Adyen, which processes payments for major tech platforms like Netflix, Meta and Spotify, reported earnings before interest, tax, depreciation and amortization (EBITDA) of 320 million euros ($348 million) for the first six months of 2022, down 10% year-over-year and missing estimates of 386 million euros. Revenue rose 21% to 739 million euros, below the company's goal of over 25% growth.
The company cited slower growth in its important North American market and higher hiring costs for the earnings miss. Executives said competition intensified in the US payments industry.
When trading opened on Euronext, Adyen shares plunged over 22% to 1,145 euros due to the large earnings miss. Analysts were disappointed by the sales figure and lowered margin.
While Adyen maintained its medium-term outlook, the share slump reflects investor concerns around slowing top-line expansion, especially in North America, as well as margin pressure from accelerated hiring. The company will need to revert quickly to its targeted growth rates to regain lost investor confidence.
