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Investing.com - Shares of Adyen surged by more than 8% in early European trading on Wednesday, after the Dutch payments group unveiled quarterly revenue which topped expectations.
Driven by solid retail activity which fueled elevated payment volumes, third-quarter net revenue jumped by 23% from a year ago on a constant currency basis to 598.4 million euros. According to a consensus poll supplied by Adyen, analysts had on average seen the figure growing by 21.1%.
Processed volume came in at 346.9 billion euros, a rise of 8%. Excluding a "single large-volume customer," the increase was 19%, Adyen said, adding that "the impact of this customer on net revenue remains limited."
"Our focus on growing our customer base and deepening existing relationships continues to pay off, resulting in solid momentum across all regions,” said finance chief Ethan Tandowsky in a statement.
However, Adyen flagged that net revenue will expand in the low- to mid-twenties percentage range through 2026, narrower than its prior guidance for an uptick in the low- to high-twenties.
The termination in the U.S. of the so-called "de minimis" exemption for certain items imported into the country valued below $800, as well as sweeping levies that have led to a more uncertain economic environment, have dented demand at online shopping platforms like eBay, a major client for Adyen.
Yet Adyen reiterated its outlook for 2025, including its ambition to grow annual net revenue at 21%, a similar pace to that notched in its fiscal first half, analysts at Kepler Cheuvreux including Sebastien Sztabowicz noted. Profit margins are also tipped to expand, albeit at a smaller rate than in 2024, they added.
"Adyen remains one of the industry’s top payment platforms, it is gradually returning to its historical profile of strong organic net revenue growth and margin leverage, and its valuation remains acceptable," the analysts wrote.