By Gianluca Lo Nostro and Leo Marchandon
(Reuters) -Dutch payments group Adyen ’s shares fell nearly 10% on Thursday after its quarterly sales fell short of market expectations .
Adyen said its third-quarter revenue on a constant-currency basis was 498.2 million euros ($535.32 million), up 21% from 413.6 million euros a year earlier. But it was below an analysts’ consensus forecast of 503.3 million euros.
European digital payments companies boomed after the COVID-19 pandemic, but their shares have come under pressure as consumers have reined in spending.
Amsterdam-listed Adyen said that its quarterly processed volume rose to 320.6 billion euros, but flagged a dip compared to its first-half volumes.
The lower volume growth is driven entirely by a single large volume customer which, as previously referenced, has a limited impact on net revenue,” Adyen said in a statement.
Adyen’s shares, which were down 8.2% by 0904 GMT, are on track for their worst day since April.
Its platforms division, which works as an end-payment solution for businesses and users, produced the biggest percentage increase across Adyen’s commercial businesses , up 44% on a year-on-year basis.
Adyen also said that further diversification in its merchant mix and wallet share expansion, a metric used by payments processors to measure their ability to pick up consumer spending, are still driving growth.
“Given the discount structure of Adyen , where larger volumes are charged incrementally lower fees, seeing a drop in this large customer volumes actually improves Adyen’s take rate,” KBC Securities analysts said in a note.
The ‘take rate’ is the percentage of revenue from transactions kept by the company or fee/commission charged to merchants.
Adyen confirmed its net revenue target of low-twenties and high-twenties percent yearly growth up to 2026.
($1 = 0.9307 euros)
(Reporting by Gianluca Lo Nostro and Leo Marchandon; Editing by Jacqueline Wong , Jane Merriman and Alexander Smith)
