Report: Adyen Investors Want Blueprint for Recovery
Adyen will hold an investor day this week following a massive price drop earlier this year.
And as Bloomberg News reported Tuesday (Nov. 7) investors are calling for a “clear blueprint” from the Dutch payments FinTech can right itself.
“Investors will need to leave the investor day feeling more confident, which could mean the stock just stays where it is, which, in our view, is fairly appropriately valued,” Craig Maurer, managing director at investment banking firm Financial Technology Partners, told Bloomberg.
He said there is added risk because of Adyen’s last earnings call, on which “they didn’t exactly speak to investors on the level or with the humility that investors were hoping for, which is something that will need to change for confidence to be rebuilt.”
Adyen is used by a number of high-profile companies — including Microsoft, Instacart and Subway — as an all-in-one payments processor that delivers payments over online, mobile and in-store channels, with its infrastructure tied into Visa, Mastercard and other payment methods.
The company had been popular among investors, with its revenue growing by at least 26% every six months since it went public five years ago.
Then came its half-year earnings report in August, in which Adyen noted that hiring costs and lagging growth in the U.S. — where it competes with the likes of PayPal — had caused it to fall short of its internal targets.
“In some areas, the business grew at a lower rate than anticipated,” the company said in a letter to shareholders. “This was the case for our North American net revenue … an increasingly important contributor in recent years.”
The company said in September it would hold an investor day this month, and embarked on something of a “listening tour” following the sharp drop in its share prices.
“We find the dialogue that we had with them in that setting really important, and we want to be able to continue that,” Chief Financial Officer Ethan Tandowsky told Bloomberg.
The investor day is scheduled for Wednesday (Nov. 8) at noon Eastern time in San Francisco, with Adyen saying it will offer a business update for the third quarter.
“While focused on building the business for the long term, Adyen believes this quarterly update further underscores its ongoing commitment to transparency and open dialogue,” the company said in a news release.
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