Adyen stock price surges 9% as Q1 revenue and profits jump

By: Michael Harris
Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to… read more.
on Apr 21, 2020
Updated: Jun 23, 2020
  • Adyen reports rising revenue and core profit in the first quarter
  • The fintech firm has recorded a high surge in the e-commerce payments
  • Adyen stock price gains +9, approaches all-time high

Shares of Adyen (AMS:ADYEN) have surged around 9% today after the fintech company reported rising revenue and core profits for the first quarter. 

Fundamental analysis: Online payments skyrocketing

The Dutch fintech firm reported first-quarter revenue of 135.5 million euros, which represents an increase of 34% compared to a year ago. The core profit (before interest, taxes, depreciation, and amortization) jumped 16% to 63.6 million euro. 

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However, the coronavirus-outbreak and investments made in the marketing and hiring of new staff (169 new full-time staff hired) pushed the profit margin from 56% to 47%.

“We registered negative impact mostly in the travel and in-store retail verticals, and positive impact in digital goods and online retail,” the company said in a statement.

“We see stabilization in the first two weeks of the second quarter.” 

Adyen recorded a surge in transaction volume of 38% to 67 billion euros on a year-to-year basis. However, the company witnessed a drop in transaction volume in the past four weeks due to store closures. 

“E-commerce is growing very quickly, way faster than we ever expected. This might be a fundamental change in how shoppers buy,” said Chief Financial Officer Ingo Uytdehaage.

The surging e-commerce has managed to offset declines in in-store payments, which accounts to around 13% of total sales, recorded during the COVID-19 outbreak and national lockdowns.  

Adyen, who processes payments for companies such as Uber, Netflix and Booking.com, went public in 2018 and it has managed to double its stock price value in the past two years. 

Technical analysis: Stock price closing in on record high

Adyen stock price has gained around 9% today after the company released the Q1 earnings numbers. As you can see from the daily chart below, the stock price is now testing the 78.6% Fibonacci retracement around the €850 handle. 

Adyen stock daily chart (TradingView)

Buyers will be now aiming for the record high at €897.00 to the upside. On the other hand, the 100-DMA around €775 will continue to support the stock price, in addition to the horizontal support located around the €800.00 mark. 

Summary

Shares of Adyen have gained 9% today after the fintech firm reported a revenue increase of 34% compared to a year ago on the surge in e-commerce payments. 

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