Adyen shares fall after unexpected slowdown in volume growth – BNN Bloomberg

(Bloomberg) — Shares of Adyen NV fell after the payments company’s volume growth unexpectedly slowed in the third quarter.

The Amsterdam-based company’s refining volume growth fell short of forecasts for the period, slowing to 32% over the period from 45% in the first half.

Adyen shares fell 13%, their highest in more than six months, to 1,201 euros ($1,293) apiece in Amsterdam.

One large digital client saw slower growth in the quarter compared with the first half, which is “entirely responsible for the sequential” volume decline, Adyen Chief Financial Officer Ethan Tandowski said in an interview.

Adyen, which processes e-commerce payments for large businesses and through point-of-sale terminals in brick-and-mortar stores, said its net revenue rose 20% to 498.3 million euros in the third quarter. That compares with an average estimate of 503.3 million euros, according to a Bloomberg survey of analysts.

Investors have been closely watching the pace of net revenue growth since they were stunned by a record slowdown last year due to price competition in North America. Over the past year, Adyen has added large format retailers and hospitality firms to its client base and expanded its operations into India, while working to increase its volume of work with existing clients.

Adyen previously said its digital business began growing in the second half of last year, largely thanks to its existing client.

“Concerns about competition may return,” David Vignon, an analyst at Stifel, said in a note to clients. Adien noted that the slowdown in growth during this period was due to “Square’s Cash App,” he said.

The Dutch firm’s trading update comes as European peer Worldline SA cut its full-year forecast twice since August, partly due to slow trading conditions. Last week, rival PayPal Holdings Inc. also provided a forecast that disappointed investors.

Adyen reiterated its goal of growing net revenue by a “mid-twenty” percentage each year through 2026.

–With assistance from Henry Wren.

(Updates with details throughout)