Adyen: Unjustified Q1 selloff
Last Week, Adyen traded down around 17% after reporting its Q1 sales update, falling from the #1 to the #3 position in my portfolio. The market overall declined around 2% today, so there was additional selling pressure. After it crashed last summer, Adyen rallied strong, more than doubling from the bottom after its investor day. The full-year results in February sent the stock higher again. Now, Adyen has returned to those levels before the FY 23 results. Let’s dive into the results and determine why I believe the market is overreacting again. Maybe this will even create a buying opportunity in Adyen.
The results
Adyen reported 438 million euros in net revenues in the quarter, up 21% year over year. After the slump in NA growth contributed to crashing the stock last year, NA continued to gain momentum and was once again the fastest-growing region for Adyen. Processing volume outgrew revenue significantly, up 46%. Adyen again showed that its land and expand strategy is working. Existing customers accounted for 80% of this quarter’s growth and volume churn was again below 1%.