© Reuters
By Scott Kanowsky
Investing.com — adyen NV (AS:) reported that the second half came in well below analyst estimates, sending shares down more than 10% as the Dutch payments company focuses on infrastructure investments and expansion of the workforce despite persistent economic headwinds.
Earnings before interest, taxes, depreciation and amortization for the six months to December 31 amounted to 372 million euros (1 euro = 1.0753 dollars), an increase of 4% compared to the same period of the previous year , but according to Bloomberg consensus expectations of 441.4 euros. METER. Its core profit margin of 52% also missed the forecast of 59.7%.
The Amsterdam-based company said its capital expenditures were €59.1 million during the period, up from €32.62 million in the second half of 2021, mainly due to data center investments that, they are needed, he says, to handle a future increase in payment processing volumes. . However, it plans to reduce spending to 5% of net income this year from its current level of 8%.
Meanwhile, bucking a trend seen at many of the biggest names in tech, Adyen has accelerated employee acquisition to help it operate on “an increasingly global scale.” Its total number of full-time employees rose to 3,332 in the second half, up from 2,575 workers on June 30.
“While the broader tech industry engages in downsizing and hiring freezes, we remain committed to hiring plans that align with our long-term ambitions,” Adyen said. “Our sights are set on progressing towards our well-regarded technical and commercial aspirations, for which additional muscle is essential.”
The company kept its financial outlook unchanged, targeting a mid-20s to mid-30s compound annual growth rate in the medium term and a core profit margin above 65% in the long term.
But Adyen said he is “not immune” to the challenges to global trade posed by high inflation and geopolitical instability.
In a note to clients, Citi analysts argued that Adyen’s lack of detailed guidance led the market to underestimate the magnitude of the current pressure on the company’s earnings.
