Europes Stripe rival Adyen saw $20 billion wiped off its value in a single day. Heres whats going on
Summary
Adyen said in a letter to shareholders this week that its EBITDA (earnings before interest, tax, depreciation and amortization) margin fell to 43% in the first half of 2023 from 59% in the same period a year ago. In its half-year 2023 report, Adyen said that many of its North American customers are cutting back on costs to weather economic pressures like rising interest rates and higher inflation. "Enterprise businesses prioritized cost optimization, while competition for digital volumes in the region provided savings over functionality," Adyen said in a letter to shareholders. Speaking with the Financial Times on Thursday, Adyen CEO Pieter van der Does said that merchants are "trying to explore local providers" to cut down on costs. Simon Taylor, head of strategy at Sardine.ai, said that Adyen might face a "natural ceiling" to what business size it can reach before having to reduce its margins to grow again.
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